Case Digest (G.R. No. 183260)
Facts:
- The Philippine Sports Commission (PSC) is the petitioner, and Dear John Services, Inc. is the respondent.
- In December 2001, PSC published an invitation to bid for janitorial and security services.
- Dear John Services expressed interest and paid the bidding fee.
- On March 8, 2002, PSC Chairman Eric Buhain canceled the pre-bidding conference for evaluation of bidding procedures.
- The invitation to bid was re-advertised, with pre-bidding and bidding set for April 16 and April 26, 2002, respectively.
- Dear John Services submitted a bid of P18,560,078.00; Consolidated Building Maintenance, Inc. (CBMI) submitted a higher bid of P27,419,097.00.
- PSC awarded the contract to CBMI, claiming Dear John Services did not meet the 60% lower limit of the Approved Agency Estimate (AAE).
- Dear John Services requested reconsideration, arguing the AAE should have been disclosed before bidding.
- They filed a complaint for injunction in the Regional Trial Court (RTC) of Parañaque City, seeking a temporary restraining order (TRO) against PSC.
- The RTC issued a TRO on May 14, 2002, which was later extended but ultimately dismissed the complaint on November 29, 2006.
- Dear John Services appealed to the Court of Appeals (CA), which reversed the RTC's ruling on April 17, 2008, awarding nominal damages of P200,000 to Dear John Services and dismissing the complaint against PSC.
- The petitioners filed a motion for reconsideration, denied on June 11, 2008, leading to the current petition for review.
Issue:
- (Unlock)
Ruling:
- The Supreme Court ruled that Dear John Services did not fail to meet the 60% lower limit of the AAE due to irregularities in the bidding process.
- The Court held that PSC lacked a valid basis to reject Dear John Services' bid, as the reservation clause in t...(Unlock)
Ratio:
- The Supreme Court emphasized that public bidding must adhere to principles of transparency, competitiveness, and accountability to protect public interest and ensure fair competition.
- The PSC's failure to disclose the AAE prior to bidding v...continue reading
Case Digest (G.R. No. 183260)
Facts:
The case involves the Philippine Sports Commission (PSC) as the petitioner and Dear John Services, Inc. as the respondent. The events leading to the case began in December 2001 when the PSC published an invitation to bid for janitorial and security services. Dear John Services expressed its intent to participate in the bidding and paid the required bidding fee. On March 8, 2002, PSC Chairman Eric Buhain issued a memorandum canceling the pre-bidding conference pending an evaluation of the bidding procedures. After the review, the invitation to bid was re-advertised, and the pre-bidding and bidding dates were set for April 16 and April 26, 2002, respectively.
During the bidding, Dear John Services submitted a bid of P18,560,078.00, while Consolidated Building Maintenance, Inc. (CBMI) submitted a higher bid of P27,419,097.00. Despite Dear John Services' lower bid, the PSC awarded the contract to CBMI, claiming that Dear John Services did not meet the 60% lower limit of the Approved Agency Estimate (AAE). In response, Dear John Services sent a letter on May 8, 2002, requesting reconsideration of its bid, arguing that the AAE should have been disclosed prior to the bidding. Subsequently, Dear John Services filed a complaint for injunction before the Regional Trial Court (RTC) of Parañaque City, seeking a temporary restraining order (TRO) to prevent the PSC from awarding the contract to CBMI. The RTC issued a TRO on May 14, 2002, which was later extended. However, the RTC ultimately dismissed the complaint on November 29, 2006, ruling that the PSC had the authority to award the contra...