The New Government Procurement Act (NGPA) or Republic Act No. 12009 continues to uphold the principles of transparency and competitiveness in public procurement, emphasizing efficiency and a fit-for-purpose approach. One key feature retained from the Government Procurement Reform Act (GPRA) or Republic Act No. 9184 is the provision for Negotiated Procurement – Two Failed Biddings.
Under the GPRA, if competitive bidding or Limited Source Bidding fails twice due to any of the following conditions, the process can shift to Negotiated Procurement:
1. No bids are received
2. All prospective bidders are declared ineligible
3. All bids fail to comply with bid requirements or fail post-qualification, or
4. The bidder with the Lowest Calculated and Responsive Bid (LCRB), Highest Rated and Responsive Bid (HRRB), Single Calculated and Responsive Bid (SCRB), or Single Rated and Responsive Bid (SRRB) refuses to accept the contract award without justifiable cause.
The NGPA retains this provision, ensuring that in case of two failed biddings, the Bids and Awards Committee (BAC) may resort to Negotiated Procurement. This approach is designed to be fit-for-purpose, ensuring procurement processes remain efficient and effective.
Section 64 of the NGPA outlines the conditions for a failure of bidding in competitive bidding, limited source bidding, or competitive dialogue, including:
1. No bids received
2. All bidders declared ineligible
3. No bid qualifying as the LCRB, HRRB, or Most Economically Advantageous and Responsive Bid (MEARB), or
4. The bidder with the LCRB, HRRB, or MEARB refusing to accept the contract award without justifiable cause.
In such cases, the contract shall be re-published or reposted and re-bid. If the second bidding also fails, the BAC may proceed with Negotiated Procurement as provided in Section 35 of the NGPA.
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