NPM 162-2012

Requesting Entity: Zamboanga City Water District (ZCWD)

Issues Concern: Guidelines for Design and Build Projects



What is the proper course of action in case the bidding documents issued by the procuring entity provided for the inclusion of the Value Engineering Analysis of Design and Construction Method in the Second Envelope (Financial Proposal), instead of having it in the First Envelope (Technical Proposal), as required in the Guidelines for Design and Build Infrastructure Projects?

[A]s directed in said Guidelines, the PE is required to comply with this particular provision and see to it that the bidding documents reflect the same instruction. Non-compliance with said requirement amounts to the failure of the Bids and Awards Committee (BAC) to comply with the requirements of the present law and its associated rules and guidelines, which may result in the disallowance by the Commission on Audit and the likely imposition of applicable administrative, civil, and criminal sanctions.

Considering the foregoing, x x x the available recourse to the Head of the Procuring Entity in light of the BAC's failure to follow the prescribed procurement procedures is to declare a failure of bidding pursuant to the Reservation Clause under Section 41 of the IRR of RA 9184, and impose proper and applicable administrative sanctions against the erring officials for their failure to comply with existing procurement law, rules, and regulations, after due notice and hearing.