Title
Revised Guidelines for Blacklisting in Procurement
Law
No. 40-2017
Decision Date
Sep 6, 2018
The Government Procurement Policy Board (GPPB) issues guidelines for the blacklisting of contractors involved in government procurement, outlining the sanctions and grounds for blacklisting during the procurement and contract implementation stages, as well as the procedure for blacklisting and delisting, with the requirement for all procuring entities to submit Blacklisting Orders to the GPPB.

Questions (Resolution NO. 40-2017)

Section 63.1(b) of Republic Act (R.A.) No. 9184, as well as the GPPB’s mandate under the 2016 Revised IRR of R.A. 9184, authorizes the GPPB to formulate and amend procurement rules whenever necessary.

GPPB Resolution No. 09-2004 (dated 20 August 2004) approved and adopted the Uniform Guidelines for Blacklisting.

Manufacturers, suppliers, distributors, contractors, and consultants involved in government procurement, including entities in all government branches, constitutional commissions and offices, agencies, GOCCs, GFIs, SUCs, and LGUs.

It is an administrative penalty disqualifying a person or entity from participating in any government procurement for a given period.

Suspension is an interim penalty imposed during the procurement stage that prohibits the bidder from further participating in any bidding process of an agency. It remains in effect during the period of motion for reconsideration and/or appeal and terminates only upon final decision by the Head of the Procuring Entity (HoPE) or appellate authority.

First offense: one (1) year blacklisting. Second offense: two (2) years blacklisting. In addition, the bid security is forfeited.

Examples include: (1) submission of eligibility requirements with false info/falsified documents; (2) bids with false info/falsified documents or concealment of such info; (3) allowing use of another’s name or use of name of another for bidding; (4) withdrawal/refusal to accept award/enter into contract without justifiable cause; (5) refusal/failure to post performance security; (6) refusal to clarify/validate bids within seven (7) days; (7) documented unsolicited attempt to unduly influence bidding; (8) acts defeating competitive bidding such as habitually withdrawing or submitting late/patently insufficient bids for at least three (3) times within a year.

Procurement stage focuses on acts/violations during bidding and eligibility/post-qualification, with suspension and forfeiture of bid security. Implementation stage focuses on contractor’s acts after contract award/implementation and typically follows termination/default or verified reports, with forfeiture of performance security.

The BAC verifies the existence of grounds for blacklisting. If the contractor fails to submit a written answer within five (5) calendar days, the BAC issues a resolution recommending the immediate suspension and forfeiture of the bid security.

Hearings are set immediately and are non-litigious, terminated within five (5) days.

Within fifteen (15) days from receipt of the resolution and records of the BAC proceedings.

A contractor is suspended upon receipt of the notice of decision prohibiting participation in bidding of the agency. Suspension remains during the reglementary period for motion for reconsideration and appeal, and terminates only upon final decision by the HoPE or appellate authority.

MR must be filed within three (3) calendar days from receipt of the notice of decision, and it may be based on: (1) the decision not conforming with evidence/facts; and/or (2) newly discovered evidence or facts that could likely alter the result.

It uses an appeal (not “protest”), via a Notice of Appeal to the appellate authority if the MR is denied, filed within seven (7) calendar days from receipt of the decision denying the MR, upon payment of an appeal fee equal to the protest fee under Section 55 of the IRR of R.A. 9184.

When the contract is terminated due to default and/or unlawful acts of the contractor, the HoPE must issue within seven (7) calendar days a Blacklisting Order immediately disqualifying the erring contractor from participating in all government projects, with forfeiture of performance security.

The implementing unit must, within seven (7) days after the lapse of project duration, cause the execution of a Verified Report with relevant evidence attached, followed by (1) Notice of Blacklisting and (2) Show Cause (seven days to submit a verified position paper), and then (3) Decision by the HoPE within a non-extendible ten (10) calendar days from receipt of the verified position paper.


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