Requesting Entity: Den-Tronix International Trading
Issues Concern: Failure to Indicate Reference Number of Procurement Activity in the Surety Bond
Whether the failure to indicate the reference number of a particular procurement in the Surety Bond is a sufficient ground to disqualify a prospective bidder.
[A] Surety Bond posted as bid security must comply with the following minimum requirements:
a) Posted in favor of the item subject for procurement of the procuring entity concerned;
b) Callable on demand;
c) Issued by a reputable insurance or surety company, including the Government Security Insurance Commission;
d) Equivalent to at least five percent (5%) of the Approved Budget of the Contract, in accordance with the schedule provided under Section 27 of the Implementing Rules and Regulations (IRR) of Republic Act (R.A.) No. 9184;
e) Valid for a period of at least one hundred twenty (120) calendar days pursuant to Section 28 of the IRR of R.A. 9184; and
f) Accompanied with a certificate unequivocally stating that the surety or insurance company is specifically authorized to issue surety bonds callable on demand issued by the Insurance Commission.
Accordingly, stating the bidding reference number on the Surety Bond posted as bid security is not one of the minimum requirements for its validity, hence, the failure to state the same does not amount to a ground for disqualification.