GPPB Circular No. 01-2014

(NAR) VOL. 25 NO. 3 / JULY - SEPTEMBER 2014

[ GPPB CIRCULAR NO. 01-2014, May 23, 2014 ]

GPPB RESOLUTION NO. 25-2013 DATED 30 AUGUST 2013 ON THE FORMS OF BID SECURITY

Adopted: 23 May 2014 Date Filed: 15 September 2014 1.0 Purpose This Circular is being issued to clarify GPPB Resolution No. 25-2013 dated 30 August 2013 relative to the Forms of Bid Security that Bidders may submit during Public Bidding and the corresponding amendments to the Revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 and the Philippine Bidding Documents (PBDs) for Goods, Infrastructure Projects, and Consulting Services. 2.0 Coverage All Departments, Bureaus, Offices and Agencies of the National Government including State Universities and Colleges, Government-Owned and/or Controlled Corporations, Government Financial Institutions, and Local Government Units. 3.0 Forms of Bid Security 3.1 Pursuant to Section 27.2 of the IRR of RA 9184, as amended by GPPB Resolution No. 25-2013 dated 30 August 2013, Procuring Entities are given the option to limit the bid security to two (2) acceptable forms in the Bidding Documents, one of which shall be the Bid Securing Declaration (BSD) and the other may be chosen from at least one (1) of the following forms, thus: Amount of Bid Security Form of Bid Security (Equal to Percentage of the ABC) a) Cash or cashier’s/manager’s check, issued by a Universal or Commercial Bank.

b) Bank draft/guarantee or irrevocable letter of credit issued by a Universal or Two percent (2%) Commercial Bank: Provided, however, that it shall be confirmed or authenticated by a Universal or Commercial Bank, if issued by a foreign bank.

c) Surety bond callable upon demand Five percent (5%) issued by a surety or insurance companyduly certified by the Insurance Commission as authorized to issue such security.

d) Any combination of the foregoing Proportionate to share of form with respect to total amount of security 3.2 The prospective bidder shall be given the option to post a BSD OR any other form of bid security indicated by the Procuring Entity in the Bidding Documents. To illustrate, the procuring entity shall include BSD, as one of the choices; the other form of bid security may be Cashier’s Check (or Cash, Manager’s Check, Bank Draft/Guarantee, Irrevocable Letter of Credit, Surety Bond, or combination of the identified forms). The prospective bidder may opt to post a BSD OR Cashier’s Check as its bid security. Accordingly, the prospective bidder is required to post only one (1) form of bid security, in this example, it could either be a BSD OR Cashier’s Check. 4.0 This Circular shall take effect immediately. 5.0 For guidance and compliance.

(SGD) FLORENCIO B. ABAD Chairperson