NPM 014-2012

Requesting Entity: John Hay Management Corporation (JHMC)

Issues Concern: Third Re-bidding



Clarification on the proposed third re-bidding of JHMC's infrastructure project "Renovation and Extension of Cottage 624"

We wish to stress that the existing government policy is that the procurement of infrastructure projects, goods and consulting services shall be competitive, transparent, and undergo public bidding, except as otherwise provided by Republic Act (RA) 9184 and its revised Implementing Rules and Regulations (IRR). Alternative Methods of Procurement may be resorted to only in highly exceptional cases provided in Article XVI of RA 9184


Although Section 53.1 of the IRR allows procuring entities to resort to negotiated procurement after two failed biddings, this is not mandatory. As provided in Section 48.1 of RA 9184 and its IRR, in order to promote economy and efficiency, the procuring entity may resort to any of the alternative methods of procurement provided in the IRR subject to the prior approval of the Head of the Procuring Entity (HOPE).

Based on the foregoing, we are of the view that JHMC is not compelled to resort to negotiated procurement under Section 53.1 in case there has been two failed biddings. Negotiated Procurement (Two Failed Biddings) is an option, the exercise of which is merely permissive and discretionary upon the HOPE. thus, the Government Procurement Policy Board's approval on JHMC's intended third re-bidding of its infrastructure project is unnecessary and not required under RA 9184 and its IRR.