11.2.1 Awarding of contracts beyond the bid validity period
11.2.1.1 Section 28.1. of the IRR of RA No. 9184 requires that Bids and
bid securities shall be valid for a reasonable period as determined
by the Head of the Procuring Entity concerned, which shall be
indicated in the Bidding Documents, but in no case shall the period
exceed one hundred twenty (120) calendar days from the date of
the opening of bids.
11.2.1.2 The post-audit of the disbursements for the construction of five
FMR projects and the procurement of a dropside truck totaling
₱61,333,314.12 revealed, however, that the contracts were
awarded despite the lapse of the 120-day maximum bid validity
period. The number of days delayed ranged from 28 to 343 days,
as shown below:
No. of
Days from No. of
Bid Bid Days
Date Particulars Amount Opening Contract Opening Delayed
03/27/2024 Concreting of Gamao- ₱14,954,858.36 03/21/2023 10/16/2023 209 89
Ohot-Duyan-Duyan FMR
03/27/2024 Concreting of Cayaocao- 15,021,483.00 03/21/2023 10/16/2023 209 89
Busay FMR
03/27/2024 Concreting of Minaba- 16,972,605.22 03/21/2023 10/16/2023 209 89
Tayawan FMR
05/21/2024 Construction of Multi- 2,317,113.11 08/23/2022 11/29/2023 463 343
purpose Center for Senior
Citizen
06/25/2024 Concreting of Lapay- 8,629,254.43 08/29/2023 01/24/2024 148 28
Bugay FMR
09/30/2024 1 unit brand new dropside 3,438,000.00 08/08/2023 03/14/2024 219 99
truck, 20 footer, Hino
FC9HL7A
Total ₱61,333,314.12
11.2.1.3 The average number of days delayed was 123 days or
approximately four months. Moreover, the Procuring Entity did
not secure a formal request for an extension from the respective
bidders before the bid validity period expires. This extended
period of delay may have resulted in procurement inefficiencies,
potential cost escalations, and disruptions in project
implementation. Prolonged delays could also affect the timely
delivery of goods and services, impacting the intended
beneficiaries and overall project objectives.
11.2.1.4 The awarding of contracts beyond the bid validity period exposes
the government to financial risks, i.e., price fluctuations and
contract renegotiations, potentially resulting in increased costs and
inefficiencies in project execution.
64
