2006-04-03

NPM 005-2006

Requesting Entity: Land Bank of the Philippines

Issues Concern: Failure of Bidding under RA 9184 and its IRR-A

 

Details

Whether or not failure of bidding may be declared on the basis of the failure of the BAC to request the bidders to extend the validity of their bids.

[If] the BAC did not require the bidders to extend or renew their respective bid securities, it follows then that the respective bid securities of the participating bidders have already expired on the date of opening of the second envelope. It is important to note that under Section 28 of the IRR-A, bid and bid securities can only be valid for a reasonable period as determined by the head of the procuring entity concerned, but in no case shall exceed one hundred twenty (120) days.


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In view of the foregoing, the head of the procuring entity can declare a failure of bidding due to the failure of the BAC to follow the prescribed bidding procedures under RA 9184 and its IRR-A , in particular, to request the participating bidders to extend the validity periods of their respective bids and bid securities before the expiration date thereof.