Handling of Failed Biddings and Procurement Process Adjustment
- When all bids exceed the ABC (failure of bidding), the Bids and Awards Committee (BAC) must modify terms, conditions, and specifications without increasing the ABC.
- Upon a second failed bidding, the procuring entity may resort to negotiated procurement but must maintain the project terms and ABC.
- If failure persists and the procuring entity seeks to revise the ABC, a new public bidding with re-advertisement is required.
- If negotiated procurement also fails due to bids exceeding the ABC, the BAC must evaluate and possibly update the APP and Procurement Planning Management Plan (PPMP).
Conditions for Upward and Downward Adjustment of ABC
- Upward adjustment of the ABC is allowed exclusively under these conditions:
- After a second failed bidding where all bids exceeded the ABC or no bids were submitted, or failure in negotiated procurement following two failed biddings.
- Prior modification of project specifications has occurred as per Section 35, IRR-A; however, indivisible projects whose technical components are integral cannot have their terms reduced.
- Downward adjustment is permissible to reflect actual market prices or to align with the scope and field conditions of the project.
Procedural Requirements After ABC Adjustment
- Any adjustment of the ABC—whether upward or downward—requires the procuring entity to conduct a new bidding process with appropriate re-advertisement or posting.
- Subsequent adjustments must comply with the same guidelines to ensure continued adherence to procurement laws and maintain transparency and fairness.
Administrative Adoption and Implementation
- The Government Procurement Policy Board (GPPB) officially approved and adopted this resolution outlining the rules on ABC adjustments.
- The resolution incorporates reviews from the Inter-Agency Technical Working Group and GPPB member discussions.
- This resolution took effect immediately as of April 1, 2005, ensuring regulatory clarity on ABC management in government procurement.
- Signatories include representatives from major government departments and the private sector, demonstrating multi-sectoral consensus.