Question & AnswerQ&A (GPPB Resolution NO. 09-2004)
The guidelines apply to all branches, constitutional commissions and offices, agencies, departments, bureaus, offices, and instrumentalities of the Government including GOCCs, GFIs, SUCs, and LGUs, governing the blacklisting of manufacturers, suppliers, distributors, contractors and consultants involved in government procurement for offenses or violations committed during competitive bidding and contract implementation.
Blacklisting is an administrative penalty disqualifying a person or entity from participating in any government procurement for a given period due to offenses or violations committed.
A person/entity blacklisted by a procuring entity and/or included in the GPPB Consolidated Blacklisting Report is prohibited from participating in all government project bidding during the disqualification period unless delisted. A joint venture or consortium with blacklisted members or partners is also disqualified.
The penalty is suspension from participating in the public bidding process for one (1) year for the first offense and two (2) years for the second offense, along with forfeiture of bid security and possible administrative or criminal sanctions.
Grounds include submission of falsified eligibility requirements or bids, unauthorized use of names in bidding, withdrawal of bid without justifiable cause after being adjudged lowest or highest rated responsive bidder, refusal or failure to post performance security, refusal to clarify bid during post qualification, attempts to unduly influence bidding, and habitual withdrawal from bidding without valid reasons.
Penalties include suspension for one (1) year for the first offense and two (2) years for the second offense for violations such as failure to mobilize work within the specified period, failure to comply with contractual obligations or lawful instructions, unauthorized subcontracting or personnel substitution, unsatisfactory delivery or quality of goods/services, poor performance, and willful abandonment leading to contract termination. Performance security shall also be forfeited.
A bidder, prospective bidder, or authorized observer may file a written complaint with the Bids and Awards Committee (BAC), or the BAC may act motu proprio upon prima facie determination of offenses.
The BAC notifies the contractor in writing, allows submission of written answer within five (5) calendar days, may conduct a hearing if requested, and issues a resolution recommending suspension and forfeiture of bid security to the Head of the Procuring Entity who makes the final decision.
The suspended contractor may file a Motion for Reconsideration within seven (7) calendar days from receipt of the decision, which must be resolved within fifteen (15) calendar days. A protest may be filed with the appellate authority within seven (7) days from resolution on the motion. The decision becomes final after these procedures.
A blacklisted person/entity is automatically delisted after the penalty period unless the blacklisting agency requests the GPPB to maintain the listing for justifiable reasons. Delisting occurs only after issuance of a Delisting Order by the blacklisting agency.
The agency must submit the Blacklisting Order containing specifics like agency order number, name and address of the blacklisted person/entity, license number, project details, grounds, penalty duration, and date of issuance. For Delisting, a Delisting Order with similar details indicating lifting of sanctions is required, all within seven (7) calendar days of issuance.
If the Blacklisting Order is issued after the award and the offense is unrelated to the awarded contract, the contract shall not be prejudiced by the order and will continue until completion or lawful termination.
The Appellate Authority is the department, office, or government unit exercising general or administrative supervision over the blacklisting agency. For agencies without such supervision, their blacklisting decisions are final and executory.