2017-12-29

NPM No. 083-2017

Requesting Entity: PROVINCIAL LOCAL GOVERNMENT UNIT OF IFUGAO

Issues Concern: Performance Security

 

Details

1.    Whether the posting of Performance Security is mandatory.


We wish to clarify that the posting of the performance security is a mandatory requirement. Section 39 of RA No. 9184 mandates that prior to the signing of contract, the winning bidder shall, as a measure to guarantee the faithful performance of and compliance with his obligations under the contract prepared in accordance with the Bidding Document, be required to post a performance security in such form and amount as specified in the Bidding Documents.


2.    Whether the Bids and Awards Committee (BAC) may continue its bidding process although there is an issue raised by the winning bidder.


The procurement activities shall proceed, as the request for reconsideration shall not stay or delay the bidding process, but the protest should first be resolved before any award can be made, in the event that a protest is filed.