NPM 031-2014

Requesting Entity: Catalina Security Agency

Issues Concern: Bid Evaluation



Request for opinion relative to the following provision adopted by a Procuring Entity (PE) in the procurement of security services:

"Bids higher than the lowest price by up to Five Thousand Pesos (PhP 5,000.00) shall be considered tied with the said lowest bid price, and the BAC shall apply its non-discretionary tie-breaking procedure to determine the lowest calculated bid."

RA 9184 and its IRR, including the PBDs for the Procurement of Goods do not sanction or recognize a situation where the PE is allowed to consider as tie the bid prices submitted by bidders, without regard to the differential amounts of their bids, by creating a specific bid price range or window. Aside from this, the proposed approach also defeats the very essence and purpose of competition, as it disincentivizes and discourages willing suppliers and contractors from participating in public bidding and providing for a competitive bid price proposal to the detriment and disadvantage of the government, and ultimately the people that the government serves.

[I]t is our opinion that the above-stated provision in the bidding documents may not be imposed by a PE for it runs counter to competition and existing procurement law, rules, and regulations.