| ARTICLE XI
AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT
SEC.
37. Notice and Execution of Award. - Within a period
not exceeding fifteen (15) calendar days from the determination
and declaration by the BAC of the Lowest Calculated Responsive
Bid or Highest Rated Responsive Bid, and the recommendation
of the award, the Head of the Procuring Entity or his duly
authorized representative shall approve or disapprove the
said recommendation. In case of approval, the Head of the
Procuring Entity or his duly authorized representative shall
immediately issue the Notice of Award to the bidder with
the Lowest Calculated Responsive Bid or Highest Rated Responsive
Bid.
If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the criteria for post-qualification, his Bid shall be considered the "Lowest Calculated Responsive Bid," in the case of Goods and Infrastructure or the "Highest Rated Responsive Bid," in the case of Consulting Services. However, if a bidder fails to meet any of the requirements or conditions, he shall be "post-disqualified" and the BAC shall conduct the post-qualification on the bidder with the second Lowest Calculated Bid or Highest Rated Bid. If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is post-disqualified, the same procedure shall be repeated until the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid is finally determined.
In all cases, the contract shall be awarded only to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.
Within ten (10) calendar days from receipt of the Notice of Award,
the winning bidder shall formally enter into contract with
the Procuring Entity. When further approval of higher authority
is required, the approving authority for the contract shall
be given a maximum of twenty (20) calendar days to approve
or disapprove it.
In the case of government owned and/or controlled corporations,
the concerned board shall take action on the said recommendation
within thirty (30) calendar days from receipt thereof.
The Procuring Entity shall issue the Notice to Proceed to the
winning bidder not later than seven (7) calendar days from
the date of approval of the contract by the appropriate
authority. All notices called for by the terms of the contract
shall be effective only at the time of receipt thereof by
the contractor.
SEC. 38. Period of Action on Procurement Activities. -
The procurement process from the opening of bids up to the
award of contract shall not exceed three (3) months, or
a shorter period to be determined by the procuring entity
concerned. Without prejudice to the provisions of the preceding
section, the different procurement activities shall be completed
within reasonable periods to be specified in the IRR.
If no action on the contract is taken by the head of the procuring
entity, or by his duly authorized representative, or by
the concerned board, in the case of government owned and/or
controlled corporations, within the periods specified in
the preceding paragraph, the contract concerned shall be
deemed approved.
SEC. 39. Performance Security. - Prior to the signing
of the contract, the winning bidder shall, as a measure
of guarantee for the faithful performance of and compliance
with his obligations under the contract prepared in accordance
with the Bidding Documents, be required to post a performance
security in such form and amount as specified in the Bidding
Documents.
SEC. 40. Failure to Enter into Contract and Post Performance
Security. - If, for justifiable causes, the bidder
with the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid fails, refuses or is otherwise unable to
enter into contract with the Procuring Entity, or if the
bidder fails to post the required performance security within
the period stipulated in the Bidding Documents, the BAC
shall disqualify the said bidder and shall undertake post-qualification
for the next-ranked Lowest Calculated Bid or Highest Rated
Bid. This procedure shall be repeated until an award is
made. However, if no award is possible, the contract shall
be subjected to a new bidding.
In the case of a failure to post the required performance security,
the bid security shall be forfeited without prejudice to
the imposition of sanctions prescribed under Article XXIII.
SEC. 41. Reservation Clause. - The Head of the
Agency reserves the right to reject any and all Bids, declare
a failure of bidding, or not award the contract in the following
situations:
- If there is prima facie evidence of collusion between
appropriate public officers or employees of the Procuring
Entity, or between the BAC and any of the bidders, or if
the collusion is between or among the bidders themselves,
or between a bidder and a third party, including any act
which restricts, suppresses or nullifies or tends to restrict,
suppress or nullify competition;
- If the BAC is found to have failed in following the prescribed
bidding procedures; or
- For any justifiable and reasonable ground where the award
of the contract will not redound to the benefit of the government
as defined in the IRR.
SEC. 42. Contract Implementation and Termination. -
The rules and guidelines for the implementation and termination
of contracts awarded pursuant to the provisions of this
Act shall be prescribed in the IRR. The rules and guidelines
shall include standard general and special conditions for
contracts. |
