NPM No. 141-2015

Requesting Entity: Philippine Science High School - Central Mindanao Campus (PSHS-CMC)

Issues Concern: HOPE Declaration of Failure of Bidding



Whether the action of the Campus Director, the Head of the Procuring Entity (HOPE), of declaring a failure of bidding for the reason that the said project is no longer applicable is valid and if rebidding such project would violate the procurement law.

As the approving authority, the HOPE is given discretionary power to approve or disapprove the recommendations made by the BAC. The HOPE reserves the right to reject any and all bids, declare a failure of bidding, or not award the contract based on the grounds provided in Section 41 of RA 9184 and its IRR, which is also reflected in the Invitation to Bid of the Philippine Bidding Documents (PBDs). Nonetheless, when the HOPE exercises its power under the Reservation Clause, he must be able to clearly show the existence of the ground/s relied upon. Moreover, the same is not without any sanction if exercised capriciously.

As for the rebidding of the project, it is also within the procuring entity's authority, function, and discretion to decide, whether the procurement should be eventually pursued according to its needs and budget availability. Caveat must be made, however, that when a project has been cancelled by the HOPE for reason provided for under Section 41 of the procurement law and its IRR, the rebidding of the same project must be carefully studied.