NPM No. 019-2017
Requesting Entity: Governance Commission for GOCCs (GCG)
Issues Concern: Performance Security for Negotiated Procurement under Highly Technical Consultants Modality
Whether posting of Performance Security is required as a condition precedent for the award of contract in Negotiated Procurement under Highly Technical Consultants modality.
Section 54.5 of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 prescribes the rules on the posting of Performance Security applicable to alternative methods of procurement. Posting of Performance Security is required only in Limited Source Bidding and Negotiated Procurement under Two Failed Biddings, Take-over of Contracts and Adjacent or Contiguous modalities. On the other hand, for Negotiated Procurement under Emergency Cases and Small Value Procurement modalities, procuring entity may require posting of Performance Security depending on the nature of the procurement project, provided that it shall be required in infrastructure projects.
Based on the foregoing, we would like to clarify that posting of Performance Security is not required as a condition precedent for the award of contract in Negotiated Procurement under Highly Technical Consultants modality.