Prohibition for Blacklisted Entities
- Blacklisted persons/entities are barred from participating in bidding for all government projects during the disqualification period.
- Applies to individuals and spouses, partnerships and partners, cooperatives and their board/members, joint ventures/consortia with blacklisted members, and corporations with controlling stockholders linked to blacklisted corporations.
Definitions
- Appellate Authority: Supervisory government entity reviewing blacklisting decisions.
- Award: Written acceptance of bid/proposal.
- Blacklisting: Administrative penalty disqualifying participation in government procurement.
- Suspension: Interim penalty prohibiting ongoing participation in bidding during appeal process.
- Consolidated Blacklisting Report: GPPB-prepared list of blacklisted entities.
- Contract Implementation: Carrying out project as per contract documents.
- Termination of Contract: Contract extinction due to default or unlawful acts.
- Delist: Removal from blacklisting report.
- Offense: Violation warranting blacklisting per law.
Grounds and Sanctions for Blacklisting
Procurement Stage Offenses: Include falsified eligibility/bid documents, using another's name, unjustified bid withdrawal, refusal to post security, refusal to clarify bids, undue influence attempts, habitual withdrawal or late bids.
Penalties escalate from 1-year blacklisting (first offense) to 2-year blacklisting (second offense).
Bid security is forfeited upon blacklisting.
Contract Implementation Offenses: Include failure to mobilize/start work, non-compliance with contract or lawful instructions, unauthorized subcontracting, unsatisfactory progress or quality, poor consultant performance, deliberate abandonment, unlawful acts in contract stages.
Similar blacklisting penalties and forfeiture of performance security apply.
Blacklisting Procedures During Procurement Stage
- Initiation by complaint or motu proprio by Bids and Awards Committee (BAC).
- Notification to contractor including grounds, right to reply, hearing, and consequences.
- Hearing conducted within 5 days if requested.
- BAC issues resolution recommending suspension and forfeiture.
- Head of Procuring Entity (HoPE) decides within 15 days; may delegate sanction imposition.
- Suspension effective upon notice; continues during motions and appeals.
- Only one motion for reconsideration allowed within 3 days; appeal within 7 days with prescribed fees.
- Decisions become final and executory after appeals or lapse of periods.
Blacklisting Procedures During Contract Implementation
- Immediate blacklisting upon contract termination due to default/unlawful acts.
- If no termination, a verified report triggers notice and show cause to contractor.
- Contractor must respond within 7 days; failure leads to blacklisting.
- HoPE decides within 10 days; decision final after 7 days.
Status and Effects of Blacklisting
- Erring contractor can participate before issuance of Blacklisting Order except in agency imposing suspension.
- If blacklisting issued before notice of award, contractor is disqualified.
- Project awards before blacklisting remain valid if offenses unrelated.
- Blacklisting duration specified explicitly.
Application and Duration of Penalty
- A longer blacklisting subsumes any previous shorter periods.
- Third or more offenses result in 2-year blacklisting.
- Delisting automatic after penalty period.
Reporting and Consolidation by GPPB
- Blacklisting agencies must submit orders and delisting documents to GPPB within 7 days.
- GPPB prepares and disseminates quarterly Consolidated Blacklisting Report to government entities and COA.
- Reports posted on GPPB website and Government Electronic Procurement System.
- GPPB's role is ministerial; non-posting does not affect blacklisted status.
- Referrals to Philippine Contractors Accreditation Board for license suspension/revocation in infrastructure cases.
- Existing blacklisting lists integrated into consolidated report.
Amendments
- GPPB may amend guidelines; amendments apply to projects advertised after effectivity.
Effectivity
- Guidelines take effect 15 days after publication and filing of certified copies.
Circular on Submission of Blacklisting Orders
- Reiterates submission requirements to GPPB within 7 days.
- Contains blacklisting and delisting order details.
- GPPB prepares quarterly reports.
- Emphasizes ministerial nature of GPPB's role.
- Referrals to PCAB for license actions in infrastructure procurement.
- Circular effective immediately.