GPPB Amend IRR Sec 54.5: Procure Security Exempt

Section 63 of Republic Act No. 9184 mandates the GPPB to formulate and amend the IRR and corresponding standard forms whenever necessary.
Section 39.1 of the IRR requires the posting of a performance security by the winning bidder prior to contract signing, to guarantee faithful performance under the contract based on the Bidding Documents.
Section 62 of the IRR requires a warranty security from the contract awardee for procurement of goods and infrastructure projects.
Section 54.5 of the IRR governs when performance and warranty securities must be submitted in contracts acquired through alternative methods of procurement, subject to enumerated exemptions.

Section 54.5 provides that performance and warranty securities (as prescribed in Section 39 and Section 62 of the IRR) are submitted for contracts acquired through alternative methods of procurement.
The duty to submit these securities applies except for specified procurement cases listed in Section 54.5 after amendment.
Shopping under Section 52 is exempt from the requirement to submit performance and warranty securities under Section 54.5.
Negotiated Procurement is exempt from performance and warranty securities under the following IRR provisions: Section 53.2 (emergency cases) and Section 53.10 (lease of real estate property).
Negotiated Procurement exemptions are expanded to include Section 53.5 (Agency-to-Agency).

Section 53.9 (small value procurement) is exempt from the requirement to submit performance and warranty securities.
Section 53.12 (Community Participation) is exempt from the requirement to submit performance and warranty securities.
Section 53.13 (UN agencies) is exempt from the requirement to submit performance and warranty securities.
The amended Section 54.5 therefore confirms that Agency-to-Agency and Community Participation do not require the posting/submission of performance and warranty securities through the alternative-method framework.

The resolution amends the Guidelines on Agency-to-Agency Agreements by deleting Section 5(c).
Deleted Section 5(c) previously stated that, subject to appropriate guidelines, the Procuring Agency may require the Servicing Agency to post a performance security under Section 39 of R.A. 9184 and/or to post a warranty security under Section 62 of R.A. 9184.
The resolution deletes Section 6(e) of the Guidelines on Agency-to-Agency Agreements.
Deleted Section 6(e) previously required that, pursuant to Section 5(c), the MOA reflect the parties’ agreement regarding posting of a performance bond and/or warranty security.
The resolution renumbers the Guidelines’ provisions as follows:
- Sections 5(d) and 5(e) are renumbered to Sections 5(c) and 5(d), respectively.
- Section 6(f) is renumbered to Section 6(e).

The resolution confirms, adopts, and approves the amended rule changes to Section 54.5 of the revised IRR of R.A. 9184.
The resolution confirms, adopts, and approves the amended Guidelines on Agency-to-Agency Agreements, specifically through deletion and renumbering.
The resolution takes effect immediately upon approval.

The resolution references GPPB Resolution No. 018-2007 dated 31 May 2007, which was published in the Official Gazette on 14 January 2008, in connection with the Guidelines on Agency-to-Agency Agreements.