NPM No. 061-2017


Issues Concern: Elective Official as Bidder; Expired PCAB License



(1)    Can a firm owned and/or managed by an elective official who is not the Head of the Procuring Entity (HoPE) participate in the procurement process as a bidder.

As a general rule, an entity owned and/or managed by an elective official can participate in the procurement opportunities of government provided that it complies with all the requirements prescribed under the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184, the Government Procurement Reform Act, except in the procuring entity where the elective official serves. The prohibition against a firm owned and managed by an elective official participating in the procurement within the elective official`s agency on the ground of conflict of interest is anchored on Section 3(i) of Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees.

(2)    If upon opening of the bids, it was found out that the PCAB License is expired, should the BAC declare automatic failure or should they continue to open the financial proposal?

Section 23 of the IRR of RA 9184 requires all eligibility requirements to be "complete" and "sufficient". A PCAB license as an eligibility requirement for the procurement of infrastructure projects should be valid at the time of the deadline for the submission and opening of bids. If it is not so, the bidder shall be declared ineligible and will be disqualified.