BLACKLISTING

1

BLACKLISTING

GPPB Resolution No. 09-2004 pursuant to 69.4 of the Revised IRR

BLACKLISTING: An administrative penalty disqualifying a person or an entity from participating in any government procurement for a given period.

SANCTIONS:suspension for one (1) year for the first offensesuspension for two (2) years for the second offense-without prejudice to the imposition of additional administrative sanctions as the internal rules of the agency may provide and/or further criminal prosecution-Bid Security is also forfeited

2

BLACKLISTING

Who may initiate?

Any bidder/prospective bidder or duly authorized observer by filing a written complaint with the BAC.

BAC may also motu proprio commence the proceedings upon prima facie determination that the contractor as a bidder or prospective bidder has committed any of the grounds for blacklisting during the competitive bidding stage.

3

SUSPENSION:

The administrative penalty imposed for infractions committed by a contractor during competitive bidding stage, whereby such contractor is prohibited from further participation in the bidding process of an agency.

CONTRACT IMPLEMENTATION A process of undertaking a project or contract in accordance with the contract documents.

4

BLACKLISTING

DURING COMPETITIVE BIDDING STAGE1.Submission of eligibility requirements containing false information or falsified documents. 2.Submission of Bids that contain false information or falsified documents, or the concealment of such information in the Bids in order to influence the outcome of eligibility screening or any other stage of the public bidding.3.Allowing the use of one’s name , or using the name of the name of another for purpose of public bidding.4.Withdrawal of a bid, or refusal to accept an award, or enter into contract with the government without justifiable cause, after he had been adjudged as having submitted the LCRB/HRRB.

5

BLACKLISTING

DURING COMPETITIVE BIDDING STAGE5.Refusal or failure to post the required performance security within the prescribed time.6.Refusal to clarify or validate in writing its Bid during post qualification within a period of seven (7) calendar days from receipt of the request for clarification. 7.Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor.8.All other acts that tend to defeat the purpose of the competitive bidding, such as habitually withdrawing from bidding or submitting late bids or patently insufficient bids, for at least three (3) times within a year, except for valid reasons.

6

BLACKLISTING

DURING CONTRACT IMPLEMENTATION

a) Failure of the contractor, due solely to his fault or negligence, to mobilize and start work or performance within the specified period in the Notice to Proceed (“NTP”); b) Failure by the contractor to fully and faithfully comply with its contractual obligations without valid cause, or failure by the contractor to comply with any written lawful instruction of the procuring entity or its representative(s) pursuant to the implementation of the Contract;

7

BLACKLISTING

DURING CONTRACT IMPLEMENTATION

c) Assignment and subcontracting of the contract or any part thereof or substitution of key personnel named in the proposal without prior written approval by the procuring entity;

d) For the procurement of goods, unsatisfactory progress in the delivery of the goods by the manufacturer, supplier or distributor arising from his fault or negligence and/or unsatisfactory or inferior quality of goods, as may be provided in the contract;

8

BLACKLISTING

DURING CONTRACT IMPLEMENTATION

e) For the procurement of consulting services, poor performance by the consultant of his services arising from his fault or negligence;

f) For the procurement of infrastructure projects, poor performance by the contractor or unsatisfactory quality and/or progress of work arising from his fault or negligence as reflected in the Constructor's Performance Evaluation;

9

BLACKLISTING

DURING CONTRACT IMPLEMENTATION

g) Willful or deliberate abandonment or non-performance of the project or contract by the contractor resulting to substantial breach thereof without lawful and/or just cause; and

In addition to the penalty of suspension, the performance security shall also be forfeited

10

BLACKLISTING

DURING CONTRACT IMPLEMENTATION

HOPE shall immediately issue a Blacklisting Order disqualifying the erring contractor from participating in the bidding of all government projects upon termination of the contract due to default of contractor.

GPPB Resolution No. 18-2004 dated 22 December 2004

11

Blacklisting Procedure for Competitive Bidding Stage

Initiation of Action BAC to verify the existence of the grounds Notify Contractor

Complaint has been filed Show cause Hearing to be conducted upon request Consequence of being blacklisted

Submit within 5 cd from receipt, contractor to submit written answer (no time extension allowed)

12

Failure to answer, BAC to issue a resolution recommending suspension in any bidding process of the agency and forfeiture of bid security

If an Answer is submitted but no hearing is requested, BAC shall determine the case based on the documents then issue a resolution recommending suspension in any bidding process of the agency and forfeiture of bid security

Hearing Non-litigious and to be terminated within 5 cd BAC may Invite Observers

13

Decision

HOPE shall issue Resolution within 15 cd from receipt Determine if reasonable cause exists To issue Resolution suspending contractor in any bidding

process of the agency and forfeiture of bid security Each violation shall be meted the corresponding penalty.

Notify Contractor of Decision immediately from its promulgation

14

Effect of Decision

A contractor is suspended from participating in the bidding process of the agency upon receipt of the Notice of Decision

Suspension effective during period of MR and protest and terminated upon reversal

If no MR is filed, Decision shall become final and executory after the lapse of 7cd. HOPE to issue Blacklisting Order disqualifying the erring contractor from participating in the bidding of ALL government projects

15

File Motion for Reconsideration To be filed within 7cd from receipt Grounds:

1. Decision is not in conformity with evidence and/or facts presented; and

2. Newly discovered evidence or facts HOPE to decide within 15 cd from filing Furnish contractor of the Decision immediately after

promulgation

16

Protest from Decision File a Protest under Section 55.1 of the IRR with the

Appellate authority within 7 cd from receipt of the Resolution of MR

Finality of Decision Appellate Authority issues Blacklisting Order disqualifying

the erring contractor from participating in the bidding of all government projects.

17

For Infra does not actually have on the project site the minimum essential equipment listed in the Bid to prosecute the work

does not execute work in accordance with the contract

For Consultancyoutside force majeure – failure to deliver w/in specified

period force majeure – failure to deliver w/in 6o days from cessation of force majeure

20

2. Termination for ConveniencePE may terminate the contract at its convenience and

after determination that the existing condition makes the project implementation economically, financially or technically and/or unnecessary.3. Termination for Insolvency

The contractor is declared bankrupt/insolvent with finality

21

4. Termination for Unlawful ActsCorrupt, fraudulent, collusive and coercive practices;

forged documents, adulterated materials, and any analogous act.

5. Termination by Contractor or Consultant Failure of the PE to deliver supplies, ROW

Disruption due to peace and order situation as certified by AFP

22

BLACKLISTING

STATUS OF BLACKLISTED PERSON/ENTITY

Before issuance of order: erring contractor may participate in the procurement of any government project except in the agency where he is suspended.

Blacklisting Order is issued prior to the date of the notice of award: blacklisted person/entity shall not be qualified for award and such project/contract shall be awarded to another bidder. If the Blacklisting Order was issued after the award, awarded contract shall not be prejudiced provided the offense is not connected with the award.

24

Delisting -Removal of a person/entity from the Consolidated

Blacklisting Report -PE submits the Order to the GPPB within 7 cd for inclusion of

the blacklisted person/entity in the Consolidated Blaclklisting Report

25

Complaint is filed with or initiated by

the BAC

BAC notifies Contractor upon

verification of existence of grounds

Within 5 cd from receipt of notification

BAC conducts hearing

BAC determines existence of fault

YES

YES

NO

Within 15 c.d from receipt of the resolution and the

records of the BAC proceedings

HOPE resolves motion within 15 c.d. from receipt

and furnishes Contractor a copy

YES

Within 7 c.d. from receipt of Suspension Order

Submitted answer?

Requested hearing?

With fault?

BAC recommends to the HOPE the suspension of the Contractor and the forfeiture of bid security

Is there reasonable

cause?

HOPE issues Suspension Order

and furnishes Contractor a copy

START

Blacklisting agency submits copy of

Blacklisting Order to the GPPB

Within 7 c.d. from issuance of the Blacklisting Order

GPPB posts the Blacklisting Order in

the GPPB website for information purposes

NO

YES

Dismiss the case

NO

HOPE determines existence of

reasonable cause

Dismiss the case

NO

Filed motion for reconsideration?

YES NO

Within 7 c.d. from receipt of decision

Filed protest?

ENDHOPE issues

Blacklisting Order

END

GPPB delists blacklisted Contractor

After the penalty period have elapsed

Blacklisting agency requested to

maintain Contractor in

blacklist?

NO

GPPB maintains Contractor in blacklist until

the blacklisting agency issues Delisting Order

Appellate authority resolves protest

YES NO

Within 7 c.d. from receipt of protest

Granted protest?

Dismiss the case

YES

END

NO

YES

*The procedures in broken lines do not affect the effectivity of the Blacklisting Order

Guidelines on Blacklisting 26

27

THANK YOU!