Requesting Entity: Department of Finance (DOF)
Issues Concern: Applicability of General Conditions for the Contract Clause 17.3 to Security and Janitorial Services
Whether the warranty security requirement under Clause 17.3 of the General Conditions of Contract in the Philippine Bidding Documents (PBDs) for the Procurement of Goods may be dispensed with in the procurement of security and janitorial services.
Section 62.1 of the IRR of RA 9184 states that warranty security shall be required after acceptance by the procuring entity of the expendable or non-expendable supplies, x x x. Logically, although procurement of goods includes supplies and services, the requirement on the posting of warranty security excludes services from its application. Resultantly, GCC Clause 17 of the PBDs for the Procurement of Goods should also be understood to have the same limited application.
[S]ince the requirement for the posting of warranty security under Section 62.1 of the IRR of RA 9184 applies only in the case of contracts involving expendable and non-expendable supplies, GCC Clause 17 of the PBDs for the Procurement of Goods does not apply in cases of contracts solely for performance of general support services.