NPM 041-2011

Requesting Entity: Laguna Water District (LWD)

Issues Concern: Procedures for Negotiated Procurement (Two-Failed Biddings)



1.Inquiry on the procedures in the conduct of Negotiated Procurement for goods after two (2) failed biddings.

As provided under Sections 35.2 and 35.3 of the IRR, whenever a failure of bidding has occurred, the procuring entity is required to conduct a mandatory review of the terms, conditions, and specifications in the bidding documents, including its cost estimates. As the BAC deems fit, it may revise and agree on a new set of technical specifications; and, if necessary, may adjust the amount of the ABC, subject to the required approvals under the IRR. however, it should be emphasized that if the procuring entity will resort to Negotiated Procurement (Two-Failed Biddings), the increase in the ABC should not be more that twenty percent (20%) of the ABC for the last failed bidding.

2.Whether the disqualified bidders who participated in the two (2) failed biddings are allowed to join in the negotiated procurement process.

[T]here is nothing in the rules prohibiting bidders from previous failed biddings from participating in the same procurement activity, albeit conducted through Negotiated Procurement (Two-Failed Biddings). In as much as RA 9184 and its IRR are governed by the principle of competition, it is in furtherance of such principle that bidders who failed to qualify during the previous failed biddings may be allowed to participate in a subsequent opportunity.