Revised Guidelines for Blacklisting in Procurement

Legal basis and prior blacklist guidelines

The Revised Guidelines govern blacklisting consistent with Section 69.4 of the IRR of Republic Act No. 9184.
Prior Uniform Guidelines for Blacklisting were approved and adopted by GPPB Resolution No. 09-2004 (20 August 2004).
The blacklist guidelines were amended by GPPB Resolution No. 03-2011 (28 January 2011) to harmonize with the 2009 IRR of Republic Act No. 9184.
The Revised Guidelines include a change in appeal/protest mechanics to align with Section 55 of Republic Act No. 9184 and its 2016 IRR.
The revised framework reiterates the requirement for procuring entities to submit Blacklisting Orders to the GPPB through Circular 10-2017.

Policy goals and rule structure

The Revised Guidelines impose administrative penalties that disqualify manufacturers, suppliers, distributors, contractors, and consultants from participating in government procurement.
The Revised Guidelines set separate processes for blacklisting during the procurement stage and during contract implementation.
The Revised Guidelines require publication/distribution mechanisms through the quarterly Consolidated Blacklisting Report prepared by the GPPB.
The Revised Guidelines specify how suspension, blacklisting, delisting, and application of repeated offenses operate.

Coverage and who is disqualified

The Revised Guidelines govern blacklisting of manufacturers, suppliers, distributors, contractors, and consultants (referred to as “contractors” for brevity) involved in government procurement for offenses or violations committed during procurement and contract implementation stages under Section 69.4 of the IRR of Republic Act No. 9184.
The Revised Guidelines apply to all branches and instrumentalities of government, including constitutional commissions and offices, agencies, departments, bureaus, offices, and instrumentalities, including GOCCs, GFIs, SUCs, and LGUs.
A person/entity blacklisted by a procuring entity and/or included in the GPPB Consolidated Blacklisting Report is not allowed to participate in the bidding of all government projects during the period of disqualification unless delisted under the Revised Guidelines.
Blacklisting applies to the specific persons/relationships identified for each business form (individual/sole proprietor, partnership, cooperative, joint venture/consortium, and corporation).

Defined terms used in blacklisting

Appellate Authority is the department, office, or government unit exercising general and/or administrative supervision/control over the blacklisting agency; department-level agencies exercise appellate authority over offices, agencies, bureaus, government units, GOCCs, and SUCs under their jurisdiction, and certain agencies’ decisions are final and executory if not subject to supervision/control.
Award is a written notice from the procuring entity accepting a bid or proposal.
Blacklisting is an administrative penalty disqualifying a person or entity from participating in any government procurement for a given period.
Suspension is an interim penalty for procurement-stage infractions that prohibits further participation in any bidding process of an agency, remains in effect during the period for motion for reconsideration and/or appeal, and terminates only upon final decision by the HoPE or the appellate authority.
Consolidated Blacklisting Report is the GPPB report listing suppliers, manufacturers, distributors, contractors, and consultants blacklisted by procuring entities.
Contract Implementation is the undertaking of a project or contract according to the contract documents.
Termination of Contract is extinction of contract by resolution or rescission under Articles 1191, 1380, 1381 of the Civil Code, and Section 68 and Annex A (Guidelines on Termination of Contracts) of the IRR of Republic Act No. 9184, and other applicable laws arising from default or unlawful acts of the contractor.
Delist is removal of a person/entity from the Consolidated Blacklisting Report.
Blacklisted Person/Entity is a person/entity disqualified by an agency and/or included in the GPPB Consolidated Blacklisting Report.
Offense is a violation under Section 69 of Republic Act No. 9184 and its IRR in one procurement project wherein the procuring entity has already issued a Blacklisting Order.

Grounds and penalties for blacklisting

Procurement Stage (Section 69 of Republic Act No. 9184): blacklisting is imposed by the procuring entity for one (1) year for the first offense and two (2) years for the second offense from participating in public bidding, without prejudice to additional administrative, civil, or criminal sanctions under applicable laws.
Procurement Stage grounds include:
- Submission of eligibility requirements containing false information or falsified documents.
- Submission of bids containing false information or falsified documents, or concealment of such information in the bids to influence eligibility screening or any other stage of public bidding.
- Allowing use of one’s name, or using the name of another, for purposes of public bidding.
- Withdrawal of a bid, refusal to accept an award, or refusal to enter into contract with government without justifiable cause after adjudication of the lowest calculated responsive bid or highest rated responsive bid.
- Refusal or failure to post the required performance security within the prescribed time.
- Refusal to clarify or validate in writing its bid during post qualification within seven (7) calendar days from receipt of the request for clarification.
- Any documented unsolicited attempt by a bidder to unduly influence the outcome of bidding in its favor.
- Acts that tend to defeat competitive bidding, including habitual withdrawing from bidding or submitting late bids or patently insufficient bids for at least three (3) times within a year, except for valid reasons.
A bid security forfeiture applies in addition to blacklisting when the procurement-stage penalty is imposed.
Contract Implementation Stage (after termination): the procuring entity imposes blacklisting for one (1) year for the first offense and two (2) years for the second offense for violations committed during contract implementation stage, without prejudice to additional internal administrative sanctions and/or further criminal prosecution.
Contract Implementation grounds include:
- Failure, due solely to the contractor’s fault or negligence, to mobilize and start work or performance within the specified period in the Notice to Proceed (NTP).
- Failure to fully and faithfully comply with contractual obligations without valid cause, or failure to comply with any written lawful instruction of the procuring entity or its representatives; lawful instructions include (for infrastructure projects or consultancy contracts) employment of competent technical personnel/work supervisors; warning signs and barricades per approved plans/specifications/contract provisions; stockpiling and removal of waste/excess materials (including broken pavement and excavated debris) per approved plans/specifications/contract provisions; deployment of committed equipment/facilities/support staff/manpower; and renewal of performance security effectivity dates after expiration.
- Assignment and subcontracting of the contract or any part, or substitution of key personnel named in the proposal, without prior written approval.
- For goods procurement: unsatisfactory progress in delivery arising from fault or negligence and/or unsatisfactory or inferior quality of goods as provided in the contract.
- For consulting services: poor performance arising from the consultant’s fault or negligence; poor performance includes defective design resulting in substantial corrective works; failure to deliver critical outputs; specifying materials inappropriate/substandard/above acceptable standards; and allowing defective workmanship/works by the contractor being supervised by the consultant.
- For infrastructure projects: poor performance or unsatisfactory quality and/or progress arising from fault or negligence as reflected in Constructor’s Performance Evaluation System (CPES) rating sheet; in absence of CPES rating sheet, the procuring entity’s existing performance monitoring system applies; poor performance includes negative slippage of 15% and above within the critical path due entirely to contractor fault or negligence; and quality of materials and workmanship not complying with approved specifications.
- Willful or deliberate abandonment or non-performance resulting to substantial breach without lawful and/or just cause.
- Prima facie determination that the contractor engaged, before or during implementation, in unlawful deeds and behaviors relative to contract acquisition and implementation enumerated in Section III.D of the Guidelines on Termination of Contracts.
Contract implementation-stage blacklisting carries an additional penalty: forfeiture of the contractor’s performance security.

Blacklisting during procurement stage: process

Initiation: a bidder/prospective bidder or duly authorized observer may file a written complaint with the Bids and Awards Committee (BAC); the BAC may also commence proceedings motu proprio upon prima facie determination that the bidder/prospective bidder committed a procurement-stage ground.
A procuring entity may require a reasonable fee for initiating blacklisting proceedings at its option.
Notification: once grounds are verified, the BAC immediately notifies the contractor in writing, stating that a complaint is filed or the contractor is considered for blacklisting; the grounds; the opportunity to show cause as to why suspension and blacklisting should not be imposed; the right to a hearing upon request where documentary evidence, verbal testimony, and cross-examination are allowed; and the consequences of suspension/blacklisting.
Answer deadline: within five (5) calendar days from receipt of notification, the contractor must submit a written answer with documentary evidence and a request for hearing to determine questions of fact if desired; no time extension is allowed.
Failure to answer: if the contractor fails to answer within the five (5) calendar days, the BAC issues a resolution recommending immediate suspension from further bidding by the agency and forfeiture of the bid security.
Hearing and timeline: if requested, the BAC immediately sets the hearing date/time; the hearing is non-litigious and is terminated within five (5) days; if no request is made, the BAC decides based on complaint, answer, documentary evidence, and verified facts.
BAC resolution recommendation: if convinced the contractor is at fault, the BAC issues a resolution recommending suspension and forfeiture of bid security to the head of the procuring entity.
Head of Procuring Entity decision: the Head of the Procuring Entity decides within fifteen (15) days from receipt of the BAC resolution and records whether reasonable cause exists for suspension and bid security forfeiture; if reasonable cause exists, a decision suspends the contractor and declares bid security forfeited; otherwise, the case is dismissed.
The decision must clearly state the facts, evidence, and law basis and the date of effectivity of the penalty, if any; the Head of the Procuring Entity may delegate to the BAC the authority to impose the corresponding sanctions.
Notice and suspension effect: the Head of the Procuring Entity furnishes the suspended contractor a copy of the decision immediately upon promulgation; suspension begins upon receipt of the notice and continues during the period for motion for reconsideration and/or appeal, terminating only upon final decision by the Head or appellate authority.
Finality and blacklisting order timing: if no motion for reconsideration or appeal is filed within the reglementary period, the decision becomes final and executory; the Head of the Procuring Entity issues a Blacklisting Order disqualifying the contractor from participating in bidding of all government projects; motion for reconsideration and/or appeal must be resolved first before any Blacklisting Order is issued.
Motion for reconsideration: may be filed within three (3) calendar days from receipt of the notice of decision; only one motion for reconsideration is allowed; it must be based on either or both: (a) the decision is not in conformity with evidence/facts presented, or (b) newly discovered evidence or facts not discovered/produced at the investigation that would probably alter the result.
The Head of the Procuring Entity resolves with finality within seven (7) calendar days from filing and furnishes a copy immediately upon promulgation.
Appeal: if the motion for reconsideration is denied, the suspended bidder files an appeal via Notice of Appeal with the appellate authority within seven (7) calendar days from receipt of the decision denying the motion for reconsideration and upon payment of the appeal fee in the same amount prescribed for protest under Section 55.3 of the IRR of Republic Act No. 9184; the appellate authority decides within seven (7) calendar days upon perfection of appeal.
Finality of agency decision: the agency decision becomes final and executory after lapse of seven (7) calendar days from receipt of notice of decision or resolution on the motion for reconsideration; if an appeal is filed, the affirmed/modified/reversed decision becomes final and executory upon receipt by the agency and the concerned person/entity.
Upon finality of blacklisting, the Head of the Procuring Entity or appellate authority issues the Blacklisting Order disqualifying the erring contractor from participating in bidding of all government projects.

Blacklisting during contract implementation: process

Termination-based blacklisting: upon termination of contract due to default and/or unlawful acts, the Head of the Procuring Entity issues within seven (7) calendar days a Blacklisting Order immediately disqualifying the erring contractor from participating in bidding of all government projects, and forfeits the contractor’s performance security.
When termination is no longer possible: if termination is no longer possible but the contractor committed acts that may constitute grounds for blacklisting, the implementing unit causes execution of a Verified Report with relevant evidence after the lapse of project duration, within seven (7) days after the lapse of project duration.
Notice of Blacklisting: upon recommendation by the Implementing Unit, the Head of the Procuring Entity initiates blacklisting procedures by written notice stating (1) acts constituting the grounds, (2) instruction to show cause why the contractor should not be blacklisted, and (3) special instructions if any; the Notice of Blacklisting is accompanied by a copy of the Verified Report.
Show cause period: within seven (7) calendar days from receipt of the Notice of Blacklisting, the contractor submits a verified position paper stating why it should not be blacklisted.
Failure to show cause: if the contractor fails to show cause after the seven (7) day period due to inaction or default, the Head issues a Blacklisting Order.
Decision timeline and finality: within a non-extendible period of ten (10) calendar days from receipt of the verified position paper, the Head decides whether to blacklist; the Head serves written notice of the decision, which becomes final and executory after lapse of seven (7) calendar days from receipt of the notice of decision.

Effects, repeat offenses, and delisting

Before issuance of a Blacklisting Order, the erring contractor may participate in procurement of any government project except in the agency where the contractor is suspended.
If a Blacklisting Order is issued prior to Notice of Award (NOA), the blacklisted person/entity is not qualified for award and the project/contract is awarded to another bidder pursuant to Republic Act No. 9184 and its IRR.
If a Blacklisting Order is issued after award, the awarded project/contract is not prejudiced, provided the offenses are not connected with the awarded project/contract.
The effectivity period for blacklisting for one (1) year or two (2) years must be clearly specified in the Blacklisting Order, and its commencement is the same date as the issuance of the Blacklisting Order.
Application of penalty for repeat offenses: if blacklisting for two (2) years is imposed during pendency of a previous blacklisting order, the previous order is deemed terminated and subsumed in the two (2) years blacklisting.
Third or subsequent offense: if an offense is committed for the third time or oftener, the applicable penalty remains blacklisting for two (2) years.
Automatic delisting: a blacklisted person/entity is automatically delisted after the penalty period elapses.

GPPB notification, reporting, and posting

Within seven (7) calendar days after issuance of blacklisting or delisting orders by the agency, the blacklisting agency submits to the GPPB the required documents, unless otherwise provided.
Blacklisting Order submission must include Department/Office Order or Board Resolution number; name and address of the blacklisted person/entity; license number if applicable; Authorized Managing Officer (AMO); name of project/contract and location/amount; specific ground(s)/offense(s) committed under Section 4; sanction imposed and its duration including start date and end date; and date of issuance of the order.
Delisting Order submission must include Department/Office Order or Board Resolution number; name and address of the blacklisted person/entity; name of project/contract and location; specific sanction lifted; number of previously issued blacklisting orders/resolutions; effectivity date of delisting; and date of delisting approval.
The GPPB prepares the Consolidated Blacklisting Report every quarter based on submitted orders and disseminates it to procuring entities and the Commission on Audit (COA).
The Consolidated Blacklisting Report is posted in the GPPB website and the Government Electronic Procurement System (G-EPS) and indicates how many times a person/entity has been blacklisted, the offense type, the penalty imposed, and the blacklisting agency concerned.
The GPPB delists in the report those whose sanctions are lifted automatically after serving the penalty under Section 8.
The GPPB Technical Support Office’s authority is ministerial: receiving and posting orders on its website and preparing the Consolidated Blacklisting Report from submitted orders; submission/presentation carries the presumption of compliance with applicable guidelines and due process.
Non-posting of a Blacklisting Order on the GPPB website or non-inclusion in the Consolidated Blacklisting Report does not affect the status of the blacklisted entity, because blacklisting is effected by the issuance of the Blacklisting Order by the agency.
For infrastructure projects, if a blacklisting agency refers a case to the Philippine Contractors Accreditation Board (PCAB) for license suspension/revocation, the agency submits a copy of the decision with supporting documents to PCAB.
All existing blacklisting reports and lists of constructors with PCAB-suspended or -revoked licenses as of the effectivity of the IRR are adopted and become part of the GPPB Consolidated Blacklisting Report upon issuance of the Revised Guidelines.

Amendments and effectivity rules

The GPPB may introduce modifications by amending specific provisions as the need arises.
Any amendment applies to government projects advertised for bid after the amendment’s effectivity.
The Revised Guidelines take effect immediately after publication in the Official Gazette or in a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies (for the Guidelines themselves), while the resolution also provides a fifteen (15) day publication-plus-filing effectivity for the Revised Guidelines after publication and filing.

Circular 10-2017 on filing blacklisting orders

Circular 10-2017 reiterates the requirement that all procuring entities submit Blacklisting Orders to the GPPB.
The Circular covers all Departments, Bureaus, Offices and Agencies of the National Government, including SUCs, GOCCs, GFIs, and LGUs.
The Circular requires submission within seven (7) calendar days after issuance of a blacklisting or delisting order, and submission must include the Blacklisting Order or Delisting Order documents with the same key elements listed in the Revised Guidelines.
The Circular requires quarterly GPPB Consolidated Blacklisting Report preparation, dissemination to procuring entities and COA, and posting on the GPPB website and G-EPS, and requires delisting from the report when sanctions are lifted automatically after serving penalty.
The Circular repeats that the GPPB Technical Support Office’s role is ministerial and that non-posting or non-inclusion does not affect blacklisting status because blacklisting is effected by issuance of the Blacklisting Order.
The Circular takes effect immediately.