NPM No. 030-2016
Requesting Entity: Ormoc PC Specialist
Issues Concern: Reservation Clause
1. Whether it is legal to cancel a bidding project instead of continuing the scheduled bid opening without any reason
It is well settled in our jurisprudence that there is grave abuse of discretion (1) when an act is done contrary to the Constitution, the law or jurisprudence; or (2) when it is executed whimsically, capriciously or arbitrarily out of malice, ill will or personal bias. Hence, rejecting any and all bids, declaring a failure of bidding, or not awarding the contract without any lawful, valid and justifiable ground as specified in Section 41 of RA 9184 and its IRR constitutes grave abuse of discretion; more so when the reservation clause was invoked whimsically, capriciously or arbitrarily out of malice, ill will or personal bias as may be determined by a court or authority of competent jurisdiction.
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The procuring entity, through the Head of the Procuring Entity may cancel the procurement project 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 Republic Act No. 9184 and its revised Implementing Rules and Regulations (IRR.)
2. Whether it is proper that after the cancellation of the bidding project, the procuring entity will repost the opportunity at the PhilGEPS website and schedule another bidding
[B]ased on the actual needs of the procuring entity, a procurement project which was cancelled based on Section 41 of RA 9184 and its IRR 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.