NPM No. 095-2016

Requesting Entity: Social Security System Luzon South Division 2

Issues Concern: Alternative Bids



Validity of Submitting Alternative Bids


A bid with options is considered an alternative bid regardless of whether said bid proposal is contained in a single envelope or submitted in two (2) or more separate bid envelopes.


Instructions to Bidders (ITB) Clause 14 of the Philippine Bidding Documents is instructive that Alternative Bids shall be rejected in line with the general principle that improvement of bids or alternative bids shall not be allowed. This practice defeats the concept of competition among the bidders. The bidder who offers alternate bids has undue advantage over other bidders when he will be allowed to pose two bids, thus eliminating competition.


Notice to Losing Bidder


RA No. 9184 and its revised IRR do not provide rules for the notification of bidders as to the result of the bid evaluation. However, in the event of post-disqualification of the bidder with the Lowest Calculated Bid (LCB), Section 34.5 of the revised IRR dictates that the BAC shall immediately notify the bidder in writing that it was post-disqualified and the grounds relied upon by the BAC for the disqualification. Relative to this, please be further advised that GPPB issued Circular No. 03-2012 dated 17 August 2012, which provides guidelines on the process of post qualification and notification of bidders determined by the procuring entity to be post-disqualified.


Disposal of Sample/Tested Items or Products


RA 9184 and its revised IRR are silent on the disposal of items or products that has been presented for testing. Nonetheless, please be guided that the items or products tested or supplied for inspection may be returned or disposed provided that an award has already been made and no Motion for Reconsideration has been filed by non-winning bidder or a waiver of such right has been made.