Question & AnswerQ&A (GPPB Resolution NO. 07-2005)
The ABC is the budget for the contract duly approved by the head of the procuring entity, as provided for in the General Appropriations Act (GAA) and/or continuing appropriations for national government agencies; the corporate budget for the contract approved by the governing board for GOCCs and GFIs; the budget approved by the Sanggunian for LGUs; and for SUCs as provided under Republic Act No. 8292. The terms ABC, Approved Budget for the Contract, and Approved Budget are used interchangeably.
All procurement should be within the approved budget of the procuring entity and must be consistent with the approved Annual Procurement Plan (APP) and yearly budget.
Bids higher than the ABC shall be automatically disqualified as per Section 31 of R.A. 9184.
The Bids and Awards Committee (BAC) shall modify the terms, conditions, and specifications in the bidding documents to change the scope of work or adjust the cost estimates or specifications while maintaining the ABC.
The procuring entity may enter into a negotiated procurement as provided under Section 35.3 of the IRR-A.
Yes, the ABC may be adjusted upwards only if there have been two failed biddings due to all bids exceeding the ABC or failure in negotiated procurement after two failed biddings, and there was a previous modification of the terms, conditions, and specifications except for indivisible projects where the technical component cannot be reduced.
Yes, the ABC may be adjusted downwards to reflect actual market prices, scope of work, or to suit actual field conditions of the project.
The procuring entity must conduct re-bidding with re-advertisement/posting after any adjustment of the ABC.
Modification of terms, conditions, and specifications can be made upon failure of bidding without adjusting the ABC. However, adjustments of ABC upwards require previous modifications except when the project is indivisible.
The rule on adjustment in the ABC was approved by the GPPB on April 1, 2005.