NPM 042-2011

Requesting Entity: Masada Security Agency, Inc.

Issues Concern: Section 36 on Single Calculated/Rated and Responsive Bid



Whether the Social Security System's Bids and Awards Committee (SSS-BAC) may omit the retirement pay benefits required under Section 19 (a)(5) of the Implementing Rules and Regulations (IRR) of Republic Act (RA) 5487 as reiterated in Government Procurement Policy Board (GPPB) Circular 02-2006 relative to the agencies' procurement of security services.

GPPB Circular 02-2006 clarifies under Section 4 thereof that all private security agencies participating in the bidding for government contracts may offer different bid prices without being charged of cut-throat competition, provided that they do not go below the standard salaries and benefits for the guards and the mandated taxes in the minimum cost distribution formula. Furthermore, Section 5 of the same circular advises government agencies to require bidders to indicate in their financial proposal the itemized components of the minimum cost distribution formula to facilitate the evaluation of bids.

[T]he requirement under Section 19 (a)(5) of the IRR of RA 5487 cannot be omitted by procuring entities from the detailed cost breakdown of the financial bid form used for the procurement of security services.