EXTENSION OF BID SECURITY VALIDITY

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EXTENSION OF BID SECURITY VALIDITY

Post by lena2011 on Wed Mar 06, 2013 1:03 pm

Can it be possible that bid security maybe extended? How many days? Can the LGU request the bidder to extend its bid security up to three or four times?

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Re: EXTENSION OF BID SECURITY VALIDITY

Post by RDV @ GP3i on Wed Mar 06, 2013 3:54 pm

lena2011 wrote:Can it be possible that bid security maybe extended? How many days? Can the LGU request the bidder to extend its bid security up to three or four times?

A Bid Security should be valid for a maximum period of 120 c.d. from bid opening. However, it is allowed for the procuring entity to request the bidders who submitted bids to extend the validity of their bid security if no award could yet be made before the expiry of their bid securities for some justifiable reasons. (Take note that, per provision of the IRR, an award should be made within 90 c.d. from bid opening.)

But for a procuring entity to request for the extension of bid security up to 3 or 4 times the maximum period of 120 c.d. (4 mos.) could no longer be justified because it would have extended the procuring process, from bid opening up to award, from one year up to 1 1/2 years. That is already unjustified, which could make the BAC/HOPE criminally liable for delaying the procurement process without justifiable cause. Likewise, that long period of extension would be costly to the bidders, in terms of both the cost of the bid security and of their bid prices (as inflation would have catch up on their offers.)

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