NPM No. 081-2016

Requesting Entity: Philippine Postal Savings Bank (PostBank)

Issues Concern: Delinquent Debtor as Bidder



Whether a delinquent debtor may bid under Negotiated Procurement (Two-Failed Bidding) under Section 53.1 of the Revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.


[Q]ualifications must be ascertained by the Procuring Entity through documentary requirements it has required to be submitted. Hence, a bidder may only be disqualified should it fail to comply with the documentary requirements, or is found to be not technically, legally and financially capable for the project being procured.


Accordingly, a bidder who has an outstanding debt with the Procuring Entity (a Savings Bank) is not disqualified by virtue of such obligation. However, in such instance, the Procuring Entity is cautioned to verify the financial capability of such bidder to undertake the project at hand based on available information.