Question & AnswerQ&A (Resolution NO. 40-2017)
These guidelines govern the blacklisting of manufacturers, suppliers, distributors, contractors, and consultants involved in government procurement for offenses or violations committed during procurement and contract implementation stages, and apply to all branches, offices, agencies, GOCCs, GFIs, SUCs, and LGUs in the Philippines.
Blacklisted persons/entities including individuals, sole proprietors, partnerships, cooperatives, joint ventures, consortia, corporations, their partners, members, and relatives holding controlling interests are prohibited from participating in government procurement during the disqualification period unless delisted according to the guidelines.
Blacklisting is an administrative penalty disqualifying a person or entity from participating in any government procurement for a specified period due to violations committed during procurement or contract implementation.
Grounds include submission of false/falsified documents, using another's name in bidding, withdrawal of bid without justifiable cause, refusal to post performance security, failure to clarify bids, undue influence attempts, and habitual withdrawal or late bids without valid reasons.
The penalty is blacklisting for one year for the first offense, and two years for the second offense, disqualifying the bidder from participating in government bidding during the period.
Upon contract termination due to default or unlawful acts, the contractor is blacklisted for one year for the first offense and two years for the second offense, including forfeiture of performance security. Offenses include failure to mobilize, non-compliance with contractual obligations, poor performance, unauthorized subcontracting, and willful abandonment.
It starts with complaint filing or motu proprio action by BAC, notification to contractor, opportunity for hearing upon request, BAC resolution recommending suspension, decision by Head of Procuring Entity within 15 days, notice of decision, effectivity of decision, motion for reconsideration, and possible appeal to appellate authority.
Suspension prohibits the contractor from participating in the agency's bidding process during the period of motion for reconsideration and appeal, terminating only upon final decision by the Head of Procuring Entity or appellate authority.
The Appellate Authority, which is the department or government unit exercising general control over the blacklisting agency. Decisions by agencies without such supervisory authority are final and executory.
They are automatically delisted after the penalty period has elapsed as indicated in the Blacklisting Order.
Within seven calendar days, the entity must submit the Blacklisting Order and/or Delisting Order to the GPPB, containing relevant details such as order number, names, license number, project info, grounds for blacklisting, sanctions, duration, and issuance date.
Its role is ministerial, limited to receipt and posting of Blacklisting Orders on its website and preparation of the Consolidated Blacklisting Report; it presumes due process was observed but does not affect the operative effect of blacklisting which is issuance of the order by the entity.
Suspension is an interim penalty imposed for infractions during procurement, preventing further participation in any bidding process of the agency during the period of motion for reconsideration and appeal, ending only upon final decision by the Head of Procuring Entity or appellate authority.
No, if the Blacklisting Order is issued after contract award, the contract is not prejudiced unless the offense is connected to that contract.