NPM No. 121-2016

Requesting Entity: Government Service Insurance System

Issues Concern: Cancellation of Procurement Activities



Whether the Bids and Awards Committee (BAC) is allowed to declare a cancellation of procurement activities and re-posting of advertisement.

Republic Act (RA) No. 9184 and its 2016 Revised Implementing Rules and Regulations (IRR) do not specifically provide rules on cancellation of procurement activities. Instead, Sections 35 and 41 thereof provide rules on declaration of failure of bidding.

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In this regard, we wish to clarify that the authority of the BAC to declare a failure of bidding and to subsequently conduct a re-bidding is confined with the provisions of Section 35 of RA 9184 and its 2016 Revised IRR. For cancellation of procurement activities, the HoPE may opt to use the Reservation Clause by rejecting any and all bids, declaring a failure of bidding, or not awarding the contract if lawful, valid and justifiable grounds exist as specified in Section 41 of RA 9184 and its IRR. Consequently, based on the actual needs of the procuring entity, a cancelled procurement project may again be submitted for bids provided that the procuring entity complies with the advertisement, posting and other requirements of the procurement law and its associated rules.