NPM No. 062-2017


Issues Concern: Failure of Bidding



Whether the bidding, which was declared failed four (4) times due to lack of bidders, should be procured through Competitive Bidding or Negotiated Procurement.

We note that it is the Procuring Entity (PE) that has the sole authority and is in the best position to determine the appropriate method of procurement for a specific project based on the identified needs and requirements of the PE, the attendant circumstances and the time when these needs must be satisfied.

Section 10 of Republic Act (RA) No. 9184, the Government Procurement Reform Act, and its 2016 revised Implementing Rules and Regulations (IRR) mandate that all procurement shall be done through Competitive Bidding, except when resort to alternative methods of procurement is warranted by attending circumstances. More importantly, these alternative methods of procurement shall be resorted to only in highly exceptional cases provided in Sections 49 to 53 of RA 9184 and its 2016 Revised IRR.

Negotiated Procurement through Two-Failed Biddings modality can be resorted to only if the original or the first mode of procurement, including the second failure, were conducted through Competitive Bidding, and two-failed biddings were declared in accordance with Section 35 of the 2016 IRR of RA 9184. The procurement that has been declared failed four (4) times may still be undertaken through Competitive Bidding, or through Negotiated Procurement under the Two Failed Biddings modality, depending on the needs of the procuring entity, the attending circumstances, and the time element for which these needs must be satisfied.