2004-01-05

NPM 002-2004

Requesting Entity: Career Executive Service Board (CESB)

Issues Concern: Development of the New Career Executive Service Performance Evaluation System (CESPES) by the CESB through Limited Source Bidding

 

Details

Whether or not another bidding process may be conducted in case the project would call for additional funds to finance additional requirements so as to meet such contingency.

The procuring entity should have meticulously and judiciously planned, as the law (R.A. 9184, IRR-A, Sec. 7.1) is expressly worded, all the terms, conditions and specifications in all its procurement activities before pushing through with the bidding process. The winning bidder cannot provide for additional requirements that would need additional funds for the project after the bidding was conducted. Hence, we believe that the remedy is to declare a failure of bidding and supplement for the Approved Budget for the Contract (“ABC”) from other budgetary items in the General Appropriations Act.

Thus, it is our advice that before starting over again with the bidding process as regards the said project, your agency should be able to foresee all the possible financial needs of the project and in accordance with such, update the Agency Procurement Management Plan (APMP) and the Project Procurement Management Plan (PPMP) corresponding to the said project, while ensuring that the ABC is consistent with the appropriation for the project authorized in the GAA and/or continuing appropriations.