NPM 053-2012

Requesting Entity: Philippine Health Insurance Corporation

Issues Concern: Composition of the Bids and Awards Committee and Requirement for Terms of Reference



(1) Whether the actions/decisions of a Bids and Awards Committee (BAC) which was presided over by the Vice-Chairman by reason of the resignation of the Chairman may be considered valid pursuant to Section 11.2.1 of Rule V of the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184.

x xxSection 11.2.1 of Rule V of the IRR of RA 9184 expressly provides that the BAC should consist of at least five (5) but not more than seven (7) members. Without the necessary composition, the BAC cannot be considered to have the authority to exercise its duties and functions. As such, any action or decision of a BAC that does not have sufficient quorum or the necessary composition is deemed invalid.

Section 12.4 of the IRR x xx does not apply when the Chairman is permanently absent and the BAC composition is less than the required number in the IRR.

[T]he resignation of the Chairman, resulting in the reduction of the BAC-PHIC composition to less than five (5) members, renders the BAC composition non-compliant with Section 11.2.1 of the revised IRR. Consequently, the decisions and actions, such as those taken during a pre-procurement conference, shall be deemed invalid.

(2) Whether there is a need for Terms of Reference (TOR) for the public bidding of toner cartridges considering that these involve only supplies.

TOR is required as part of the Philippine Bidding Documents for Consulting Services, specifically, Section VI thereof.

It is clear from the foregoing that TOR is required when the nature of procurement is consulting services. Considering that the procurement of toner cartridges falls under Goods, a TOR is not necessary for its procurement. What the rules require, however, is for the Bidding Documents to include the Technical Specifications, which should provide a clear statement of the standards of workmanship, materials and performance of the goods and general services to be procured.