NPM 094-2012

Requesting Entity: Philippine Postal Savings Bank, Inc.

Issues Concern: Award of Contract to the Bidder with Higher Price Quotation using Small Value Procurement (SVP) as Alternative Modality



Whether Bids and Awards Committee can award the contract to a supplier who offered better specifications, but with price higher than the lowest received quotation.

[T]he bidder complying with the minimum technical specifications, whose price proposal is determined to be the lowest, must perforce be awarded the contract. Thus, an offer providing higher technical specifications, coupled with a higher price, is not entitled to award of contract. It is noteworthy to stress that "[n]o incentive bonus, in whatever form or for whatever purpose, shall be allowed."