NPM No. 053-2015
Requesting Entity: Junna Industrial Corporation
Issues Concern: Bid Securing Declaration
Whether the Bid Securing Declaration (BSD) is considered not acceptable as it was not specified in the Invitation to Bid (IB).
[T]he GPPB issued GPPB Resolution No. 03-2012, which adopted the use of BSD as a form of Bid Security, in order to enhance competition and bidders’ participation, reduce transactional costs, and promote economy in public procurement. We also wish to inform you of the issuance of GPPB Resolution No. 25-2013 and GPPB Circular No. 01-2014, amending among others, Section 27.2 of the IRR of RA 9184, which provide that Procuring Entities are given the option to limit the bid security to two (2) acceptable forms in the Bidding Documents, one of which shall be the Bid Securing Declaration and the other may be chosen from at least one (1) of the forms identified in Section 27.2.
Accordingly, the PE is mandated to include the BSD in its Bidding Documents as an acceptable form of bid security and at least one (1) other form provided for under the rules. Thereafter, the bidder has the discretion and choice as to what form of bid security it shall submit, that is, either a BSD or the other form of bid security identified by the procuring entity.