Guidelines on Blacklisting in Government Procurement

Blacklisted persons/entities barred from participating in any government bidding during disqualification period.
Blacklisted joint ventures or consortiums and their members are also barred.
Corporations controlled by blacklisted stockholders (20% or more shares) and their related parties are also blacklisted.

Appellate Authority: Supervising department or government unit with appellate power over blacklisting decisions.
Award: Written acceptance of bid by procuring entity.
Blacklisting: Administrative penalty barring participation in government procurement.
Suspension: Temporary prohibition from bidding due to infractions in competitive bidding.
Consolidated Blacklisting Report: GPPB list of blacklisted entities.
Contract Implementation: Undertaking of a project per contract documents.
Termination of Contract: Extinction of contract due to default or legal grounds.
Delisting: Removal from Consolidated Blacklisting Report.
Blacklisted Person/Entity: Disqualified party listed by agency or GPPB.

Competitive Bidding Stage:

Suspension for 1 year for first offense, 2 years for second, plus forfeiture of bid security.
Grounds include:
- Submission of falsified eligibility/bid documents.
- Unauthorized use of name for bidding.
- Bid withdrawal or award refusal without justifiable cause.
- Failure to post performance security.
- Failure to clarify bid when requested.
- Attempts to unduly influence bidding.
- Other acts defeating competitive bidding (habitual withdrawal without valid reason).

Contract Implementation Stage:

Suspension for 1 year (first offense), 2 years (second offense), plus forfeiture of performance security.
Grounds include:
- Failure to mobilize/start work timely.
- Non-compliance with contractual obligations or lawful instructions.
- Unauthorized subcontracting or personnel substitution.
- Unsatisfactory delivery or quality of goods/services.
- Poor performance in consulting services or infrastructure projects.
- Willful abandonment or non-performance.

Initiation: Complaint filed with BAC or motu proprio action.
Notification: Contractor notified of complaint and possible suspension.
Answer: Contractor must answer within 5 days, else resolution for suspension issued.
Hearings: Held on request, non-litigious, concluded within 5 days.
Decision: Head of Procuring Entity decides within 15 days whether to suspend and forfeit bid.
Notice: Contractor receives decision immediately.
Effect: Suspension effective upon notice, lasting through reconsideration and protest periods.
Motion for Reconsideration: Filed within 7 days, decided within 15 days.
Protest: May be filed with appellate authority within 7 days after reconsideration decision.
Finality: Decision final after 7 days if unchallenged, leading to blacklisting order.

Blacklisting and forfeiture of performance security upon contract termination due to contractor default.

Can participate in other agencies’ procurement before blacklisting order issuance.
If blacklisted before notice of award, disqualified from award.
Awarded contracts unaffected if offenses unrelated to the contract.

Automatic after penalty period unless agency requests retention with justifiable cause.
Delisting only via official Delisting Order.

Blacklisting agencies must submit blacklisting and delisting orders within 7 days.
GPPB publishes quarterly Consolidated Blacklisting Report with detailed information.
Reports accessible to procuring entities, COA, and posted online.
Cases involving infrastructure license issues referred to PCAB.
Existing blacklisting lists adopted into the Consolidated Report.

GPPB may amend guidelines as needed.
Amendments apply only to projects advertised after effectivity.
Guidelines effective immediately upon publication and filing with University of the Philippines Law Center.