11.2.2 Delayed conduct of Negotiated Procurement after two failed biddings
amounting to ₱2,919,512.17
11.2.2.1 Section 4.1 of the IRR of RA No. 7160 mandates that the BAC
shall endeavor to conduct the re-bidding of a procurement project
immediately, but it should not exceed 15 days after the declaration
of the first failure of bidding, given that the period may be extended
up to 30 days upon approval of the HoPE. The same periods shall
be observed for the conduct of Negotiated Procurement under Two
Failed Biddings modality reckoned from the declaration of the
second failure of bidding.
11.2.2.2 Consistent with the declared policy of adherence to the principles
of efficiency in the procurement process, the Government
Procurement Policy Board (GPPB) issued GPPB Circular No.
2016-05 dated December 20, 2016, prescribing the period for the
conduct of re-bidding and negotiated procurement under two
failed biddings modality.
11.2.2.3 In the audit of disbursements on a sampling basis, we observed
that disbursements pertaining to the procurement of supplies and
materials and improvement of a multi-purpose building totaling
₱2,919,512.17 were undertaken through public bidding. However,
BAC declared two failed biddings due to the absence of bid
submissions in both instances. Consequently, the BAC resorted to
Negotiated Procurement – Two Failed Biddings. Post-audit of
supporting documents relating thereto revealed that the conduct
thereof was delayed by 63 to 224 days, with an average delay of
112 days.
No. of Days after
1st to 2nd Bidding
2nd to Negotiated
Date Particulars Amount Bidding Procurement
06/05/2024 Supplies and materials needed for various projects of City ₱ 481,925.63 23 63
Engineering Office
09/26/2024 10 units solar powered water pumping system 1,089,320.00 42 77
11/25/2024 Improvement of Brgy. Multi-Purpose Building, Brgy. San 1,212,006.54 28 82
Isidro
12/13/2024 Mixing sand & gravel and aggregate base course for Major 136,260.00 49 224
Repair of Multi-purpose Pavement and Stage at Sitio Lower
Datong, Tabuan, 1st Revision, Bayawan City
Total ₱2,919,512.17 `
(See complete details in Appendix 3)
11.2.2.4 There was also no documentary evidence indicating that the BAC
formally requested an extension following the failure of the
bidding process. In the absence of such a request, the delay in
resorting to an alternative mode of procurement may be deemed a
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