Requesting Entity: Integrated Energy Systems & Resources, Inc
Issues Concern: Cash Deposit Certificate
Whether the cash deposit certificate must expressly stipulate that a specified amount is being put on hold in favor of the procuring entity and for a specific project.
At the outset, x x x the sample forms prescribed by the Government Procurement Policy Board merely serve as guides. Eligible bidders need not copy verbatim the language used in the sample forms. They may change its wordings as long as the language employed is consistent with the purpose and intent of the law.
[T]he procuring entity must determine if the contents of a cash deposit certificate complies with the following elements:
(a) It must contain a clear commitment to hold out a specified amount of cash;
(b) Amount of cash being held out must not be lower than that set by the procuring entity in the bidding documents, which is at least equal to 10% of the ABC.
(c) The commitment must be issued by a licensed bank; and
(d) It must be specific to the contract to be bid.
If the procuring entity determines that the language of the cash deposit certificate meets the foregoing requirements, then the cash deposit certificate submitted is presumed to have complied with Section 23.11.1 of the IRR-A of R.A. 9184.