NPM No. 140-2017
Requesting Entity: HEADQUARTERS PHILIPPINE AIR FORCE
Issues Concern: Blacklisting of a Foreign Supplier’s Local Agents
Request that the Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors, Contractors and Consultants be amended to the effect that local agents be equally penalized together with its foreign supplier by also including the local agents in the blacklist.
We wish to reiterate our earlier opinion that in cases where a bidder is represented by an agent, the principal-agent relationship is governed by the law on agency under the New Civil Code.
Accordingly, applying this principle of law, a bidder who was blacklisted as a “principal” in a previous procurement activity, may still represent a current bidder as an “agent” in government procurement opportunities, such as in the case of competitive bidding, since such blacklisted bidder is merely representing the current bidder as an “agent”. In the same manner, if the “principal” bidder is blacklisted by a procuring entity, its “agent” or representative is not blacklisted, unless the “agent” expressly binds himself through the Contract of Agency, or when he exceeds his authority as agent.