Requesting Entity: Bureau of Fire Protection (BFP) Regional Head Quarters 3
Issues Concern: Negotiated Procurement (Two-Failed Biddings)
Whether it is proper to adjust the Approved Budget for the Contract (ABC) and resort to Negotiated Procurement after a second failure of bidding.
The ABC may be adjusted, provided it is not more than twenty percent (20%) of the ABC for the last failed bidding, and the required approval for the increase have been obtained.
Sections 35.2 and 35.3 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 provide that whenever a failure of bidding has occurred, the procuring entity is required to conduct a mandatory review of the terms, conditions, specifications in the bidding documents, including its cost estimates. As the BAC deems it fit, and based on the findings in its mandatory review, it may revise and agree on a new set of technical specifications; and, if necessary, may adjust the amount of the ABC, subject to the required approvals under the IRR.
If, after two failed biddings under Section 35 of the IRR, the procuring entity decides to resort to Negotiated Procurement (Two-Failed Biddings), Section 53.1.1 of the IRR also requires the BAC to conduct a mandatory review of the terms, conditions, specifications, and cost estimates; and, when necessary, increase the ABC provided that it is not more than twenty percent (20%) of the ABC for the last failed bidding.