QuestionsQuestions (Commonwealth Act No. 506)
It is anchored on Republic Act No. 9184 (R.A. 9184), particularly Section 75 (GPPB’s power to formulate implementing rules and necessary guidelines) and Section 69.4 of the IRR-A of R.A. 9184, which specifically directs the GPPB to issue guidelines for blacklisting.
They apply to all branches, constitutional commissions, offices, agencies, departments, bureaus, offices, and instrumentalities of government, including GOCCs, GFIs, SUCs, and LGUs, for government procurement.
Manufacturers, suppliers, distributors, contractors, and consultants involved in government procurement.
A blacklisted person/entity is disqualified from participating in the bidding of all government projects during the period of disqualification, unless it is delisted as provided in the guidelines.
Yes. A joint venture/consortium that is blacklisted, or that has blacklisted member(s)/partner(s), is not allowed to participate in any government procurement during the disqualification period. Likewise, a person/entity who is a member of a blacklisted joint venture/consortium is also barred.
For corporations, a single stockholder (plus relatives up to the third civil degree of consanguinity/affinity) and assignees holding at least 20% of the shares, as well as its chairman and president, may be blacklisted if they are determined to hold the same controlling interest in a previously blacklisted corporation or in two blacklisted corporations; the corporations they are part of are likewise blacklisted.
Blacklisting is an administrative penalty disqualifying a person/entity from participating in any government procurement for a given period. Suspension is the administrative penalty imposed during competitive bidding that prohibits further participation in the bidding process of a particular agency.
Examples include submission of false/falsified eligibility requirements, false information or falsified documents in bids or concealment of such information, unauthorized use of another’s name, withdrawal/refusal to accept award/enter into contract without justifiable cause, failure to post performance security, refusal to clarify/validate bid within 7 days, documented attempts to unduly influence outcomes, and other acts defeating competitive bidding purposes (including habitual withdrawal/non-participation at least three times within a year for no valid reason).
The procuring entity imposes suspension for one (1) year for the first offense and suspension for two (2) years for the second offense from participating in public bidding. The bid security is also forfeited, without prejudice to other administrative sanctions or criminal prosecution.
Grounds include failure to mobilize/start work after NTP due solely to contractor fault/negligence; failure to comply fully and faithfully with contractual obligations or lawful written instructions; assignment/subcontracting or substitution of key personnel without prior written approval; unsatisfactory progress or inferior quality of goods (goods procurement); poor performance for consulting services; poor performance/unsatisfactory quality/progress for infrastructure projects as reflected in CPES (or equivalent monitoring); and willful or deliberate abandonment/non-performance resulting in substantial breach without lawful/just cause.
After termination of contract due to default, the contractor faces suspension of one (1) year for the first offense and two (2) years for the second offense from participating in public bidding, and the performance security is also forfeited, without prejudice to other sanctions or criminal prosecution.
It may be initiated by any bidder/prospective bidder or a duly authorized observer through a written complaint to the BAC, and the BAC may also motu proprio commence proceedings based on prima facie determination that grounds for blacklisting were committed.
The BAC must immediately notify the contractor in writing: (1) that a complaint has been filed or the BAC considered suspension/blacklisting; (2) the grounds; (3) the opportunity to show cause; (4) that a hearing will be conducted upon request where documentary evidence may be presented, verbal testimony may be given, and witnesses may be cross-examined; and (5) the consequences of suspension/blacklisting.
No. The contractor must submit its written answer within five (5) calendar days from receipt of notification, with documentary evidence and a manifestation for request of hearing if desired; no time extension is allowed.
The Head of the Procuring Entity must determine within fifteen (15) days from receipt of the BAC resolution and records whether reasonable cause exists.
Suspension becomes effective upon receipt of the notice of decision prohibiting participation in the bidding process of the agency. If no motion for reconsideration or protest is filed, the decision becomes final and executory after seven (7) calendar days from receipt of notice of decision.