Requesting Entity: Department of Public Works and Highways Region IV-B, MIMAROPA
Issues Concern: Government Procurement Policy Board (GPPB) Resolution No. 25-2013
Interpretation of GPPB Resolution No. 25-2013 dated 30 August 2013, relative to the acceptable forms of bid security that bidders may post during the submission of bids, particularly:
1. Whether the bidders are now required to post two (2) forms of bid securities - (1) Bid Securing Declaration (BSD) as mandatory form; and (2) of any of the two bid security forms to be prescribed by the Procuring Entity (PE); or,
2. The bidders will choose from and shall post only one (1) of the two (2) bid security forms as prescribed by the PE, wherein the BSD is a mandatory form.
To illustrate, the PE shall include BSD, as one of the choices; the other form of bid security may be Cashier’s Check (or Cash, Manager’s Check, Bank Draft/Guarantee, Irrevocable Letter of Credit, Surety Bond, or combination of the identified forms). The prospective bidder shall post ONLY ONE (1) FORM of bid security, a BSD OR Cashier’s Check as its bid security. Accordingly, the prospective bidder is required to post only one (1) form of bid security, in this example, it could either be a BSD OR Cashier’s Check.
[B]idders are not required to post two (2) forms of bid security. We wish to clarify that the PE is mandated to include the BSD in its Bidding Documents as an acceptable form of bid security and at least one (1) of the forms provided for under the rules. Ultimately, the bidder has the discretion and choice as to what form of bid security it shall post.