NPM No. 083-2016
Requesting Entity: Commission on Audit-Cordillera Administrative Region
Issues Concern: Bid Security
Whether it would be a violation of Section 27.2 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 and GPPB Resolution No. 03-2012 for a Procuring Entity (PE) to require the submission of two forms of bid security from its bidders, which include any of the forms under Sec. 27.2 above, and an additional Bid Securing Declaration (BSD).
To illustrate, the PE shall include BSD as one of the choices; the other form of bid security may be Cashier`s Check (or Cash, Manager`s Check, Bank Draft/Guarantee, Irrevocable Letter of Credit, Surety Bond, or combination of the identified forms). The prospective bidder shall post ONLY ONE (1) FORM of bid security, a BSD OR Cashier`s Check as its bid security. Accordingly, the prospective bidder is required only to post one (1) form of bid security, in this example, it could either be a BSD OR Cashier`s Check.
Thus, bidders are not required to post two (2) forms of bid security. And this is all the more true in the current 2016 revised IRR, where the PEs can no longer limit the acceptable forms of bid security into two. Ultimately, the bidder has the discretion and choice as to what form of bid security it shall post. Accordingly, it is a violation of the rules to require two forms of bid security from the bidders.