PROTEST MECHANISM

BLACKLISTING GUIDELINES
CONTRACT TERMINATION

Atty. Libertine Go Cagang – Guanzon, CPA

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 PROTEST MECHANISM

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Protest on Decisions of the BAC

Decisions of the Bids and Awards Committee (BAC) at any procurement stage
may be questioned by filing a request for reconsideration (RR)

1 2 3
Filing of RR BAC Resolution If RR is DENIED,
Within 3 calendar days decision of the BAC may
(CDs) upon receipt of Within 7 CDs from be protested in writing to
written notice or upon receipt of RR the Head of the Procuring
verbal notification Entity (HoPE)

Provided that:
1. A prior RR should have been
filed by the party concerned in
accordance with the preceding
Section, and
2. RR has been resolved.

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Requisites for Filing a Protest
Section 65(c) of RA No. 9184
Must be in writing through a Verified Position Paper
• accompanied by a payment of a non-refundable protest fee, to be
paid in cash, and
• the certificate against forum shopping

Addressed to the HoPE

Filed within 7 CDs from receipt of the BAC resolution denying the RR
Verified Position Paper

Bidder’s Name & Office Address

Name of the Project/Contract

Implementing Office or Procuring Entity

Brief Statement of facts

Issue to be Resolve

other matters and information pertinent and

relevant to the proper resolution of the protest

Certification against forum shopping

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Verified Position Paper

Position paper is verified by Unverified position

an affidavit that the: paper shall be
Failure to comply shall
considered unsigned,
⮚ Affiant has read & produces no legal
not be curable by mere
understood the contents amendment of the
effect, and results to
thereof; and verified position paper.
the outright dismissal
⮚ Allegations therein are true of the protest.
& correct of his/he personal
knowledge or based on
authentic records.

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distribution without the author’s approval is prohibited.
Resolution of Protests

Filing of Protest within Head of BAC Sec

Receipt of 7 CDs from receipt by HoPE shall resolve shall furnish the
Denied Request the party concerned of the protest within 7 bidder with a copy
for the resolution of the CDs from receipt of the decision
Reconsideration BAC denying its request thereof within 7 CD from
for reconsideration. receipt.

• In the form of a
Verified Position
Paper
• Payment of non-
refundable protest
fee

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distribution without the author’s approval is prohibited.
Resort to Regular Courts
Section
Any 65(c)from
protest taken of RA
any No. 9184treated in R.A. No. 9184 & its IRR shall not stay or
decision
delay the bidding process: Provided, however, that protests must first be resolved
before any award is made.

Court Action may be resorted to only after the protest shall have been resolved with
finality. (Doctrine of Exhaustion of Administrative Remedies)

Where the protest was not verified and the protest fee was not paid, respondent was
held to have failed to avail of the correct protest procedure before it filed its petition
for annulment of the award before the Regional Trial Court (RTC under Certiorari,
Rule 65)
Protest Fees
(GPPB Resolution 05-2012)

ABC RANGE PROTEST FEE

50 million pesos and below 0.75% of the ABC
More than 50 million pesos to 100 million pesos PhP 500,000.00

More than 100 million pesos to 500 million pesos 0.5% of the ABC

More than 500 million pesos to 1 billion pesos PhP 2,500,000.00

More than 1 billion pesos to 2 billion pesos 0.25% of the ABC

More than 2 billion pesos to 5 billion pesos PhP 5,000,000.00

More than 5 billion pesos 0.1% of the ABC

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distribution without the author’s approval is prohibited.
 KNOWLEDGE
CHECK

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KNOWLEDGE CHECK NO. 03

The non payment of protest fee does not toll the

prescriptive period for filing the protest and becomes
a justifiable ground for the HOPE to not entertain the
protest

a. TRUE

b. FALSE

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without the author’s approval is prohibited.
KNOWLEDGE CHECK NO. 03

The non payment of protest fee does not toll the

prescriptive period for filing the protest and becomes
a justifiable ground for the HOPE to not entertain the
protest

a. TRUE

b. FALSE

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without the author’s approval is prohibited.
Blacklisting Guidelines
 I

I Uniform Guidelines
I Blacklisting Procedure During Procurement
II Stage
Blacklisting Procedure During Contract
III
Implementation Stage

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distribution without the author’s approval is prohibited.
 UNIFORM GUIDELINES ON
BLACKLISTING

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UNIFORM GUIDELINES ON BLACKLISTING

GPPB
Title / Subject Matter Date Approved Effective Date
Resolution
40-2017 Approving the Revised December 21, September 4, 2018
Uniform Guidelines for 2017
Blacklisting of
Manufacturers, Suppliers,
Distributors, Contractors
and Consultants.

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UNIFORM GUIDELINES ON BLACKLISTING

GPPB
Title / Subject Matter Date Approved Effective Date
Resolution
14-2020 Approving the Prescribed June 25, 2020 August 7, 2020
Form of Blacklisting Order,
the Implementation of the
Online Blacklisting Portal
for Posting and Updating
of status of blacklisted
entities.

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distribution without the author’s approval is prohibited.
DEFINITION OF TERMS

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

BLACKLISTED PERSON/ENTITY

A person/entity who was disqualified by

an agency and/or is included in the GPPB
Consolidated Blacklisting Report

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DEFINITION OF TERMS
SUSPENSION

Interim penalty imposed for infractions committed by a

bidder during the procurement stage, whereby such
bidder is prohibited from further participation in any of
the bidding process of an agency

Shall be effective during the period of motion for

reconsideration and/or appeal, and shall terminate
only upon final decision by the HoPE or appellate
authority

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DEFINITION OF TERMS
APPELLATE AUTHORITY
Department, office or government unit exercising general
and/or administrative supervision/control over the
blacklisting agency.

Department level agencies shall exercise appellate

authority over offices, agencies, bureaus, government
units, GOCCs and SUCs under their jurisdiction.

Blacklisting decisions of government agencies that

are not subject to general and/or administrative
supervision/control of any department, office or
government unit shall be final and executory.

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DEFINITION OF TERMS

DELISTING
Removal of a person/entity from the Consolidated Blacklisting Report
(https://gppb.gov.ph/ConsolidatedBlacklistingReport.php)

A blacklisted
person/entity shall be
automatically
delisted after the
period for the penalty
has elapsed.

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SCOPE OF BLACKLISTING

Blacklisting shall apply to the following persons:

Individuals or Sole Proprietorships – Bidders and spouses

Partnerships – Partnership itself & its partners

Cooperatives – Cooperative itself & members of the board of directors, general

manager or chief executive officer

Partnership, Joint Venture or Consortium, or has blacklisted member/s and/or

partner/s, as well as a person/entity who is a member of a blacklisted joint venture or
consortium

Corporations - a single stockholder, together with his/her relatives up to the third civil
degree of consanguinity or affinity, and their assignees, holding at least 20% of the
shares therein, its chairman and president

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distribution without the author’s approval is prohibited.
 BLACKLISTING DURING
PROCUREMENT STAGE

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GROUNDS FOR BLACKLISTING DURING
PROCUREMENT STAGE
Submission of eligibility requirements containing false Allowing the use of one’s name, or using the name of
information/falsified documents the name of another for purpose of public bidding

Submission of Bids that contain false information or

Withdrawal of a bid, or refusal to accept an award, or
falsified documents, or the concealment of such
enter into contract without justifiable cause, after he
information in the Bids in order to influence the
had been adjudged as having submitted the
outcome of eligibility screening or any other stage of
LCRB/HRRB
the public bidding

Refusal to clarify or validate in writing its Bid during
post qualification within a period of 7 CDs from receipt
of the request for clarification
Any documented unsolicited attempt by a bidder to
unduly influence the outcome of the bidding in his
favor
Refusal or failure to post the required performance
security within the prescribed time
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 3 times within a year,
except for valid reasons

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SANCTIONS FOR BLACKLISTING DURING
PROCUREMENT STAGE

Bid Security Forfeiture

1st offense: Blacklisting for 1 year
2nd offense: Blacklisting for 2 years
Enforcement of Bid Securing Declaration

Without prejudice to the imposition of additional

administrative sanctions as the internal rules of the
agency may provide and/or further criminal
prosecution.

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BLACKLISTING PROCEDURE DURING
PROCUREMENT STAGE
Initiation of Action BAC notifies Contractor shall submit its
Contractor in writing written answer to BAC with
upon verification of documentary evidence and
existence of grounds request for hearing, if he so
desires, within 5 cd from
Who may initiate? receipt of notification
• Any bidder/prospective bidder
• Duly authorized observer
• BAC • That a complaint has been filed
• That he has opportunity to show
cause NO TIME EXTENSION
“Contractors” shall refer to • That a hearing shall be SHALL BE ALLOWED
manufacturers, suppliers, conducted, upon request
distributors, contractors and • The consequence of being
consultants suspended and blacklisted

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BLACKLISTING PROCEDURE DURING
PROCUREMENT STAGE
IF CONTRACTOR DOES NOT SUBMIT ANSWER
C
O DISMISS THE
N Within 15 CDs from NO
CASE
T BAC recommends to receipt of BAC
Does NOT the HoPE the
R Submit resolution and
suspension of the records of BAC
A answer Contractor and the Proceeding, HoPE
C forfeitureof bid determines
T security. existence of HoPE issues a
O reasonable cause YES Suspension
R Order and
forfeiture of bid
Within 5 CDs from security
receipt of
notification from
BAC

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BLACKLISTING PROCEDURE DURING
PROCUREMENT STAGE
BAC immediately
IF CONTRACTOR SUBMITS ANSWER sets the date and
time for hearing
C YES BAC conducts hearing
O
N
T
R Submits Request for BAC determines
NO
A
C
answer hearing existence of fault YES A
T
O
R
Based on the
Within 5 cd from
complaint, answer and
receipt of
documentary evidence
notification from
and facts verified
BAC

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BLACKLISTING PROCEDURE DURING
PROCUREMENT STAGE
IF CONTRACTOR SUBMITS ANSWER

DISMISS THE
NO
CASE
BAC recommends to the Within 15 CDs from receipt
HoPE the suspension of the
A Contractor and the
of BAC resolution and
records of BAC Proceeding,
forfeiture of bid security. HoPE determines
existence of reasonable
cause HoPE issues a
YES
Suspension Order
and forfeiture of
bid security

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distribution without the author’s approval is prohibited.
BLACKLISTING PROCEDURE DURING
PROCUREMENT STAGE
NOTICE OF DECISION: The HoPE shall furnish the suspended contractor a
copy of the decision immediately after its promulgation.

EFFECT OF DECISION:
1. Contractor is suspended upon receipt of the notice of decision
2. The suspension shall remain in effect during the period of motion for
reconsideration and appeal, and shall terminate only upon a reversal of the
decision by HoPE or appellate authority.
3. If no motion for reconsideration or appeal is filed, the decision shall become
final and executory after the lapse of 7 CDs from the receipt of the notice of
decision, and the HoPE shall issue the BLACKLISTING ORDER to the
Contractor.
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BLACKLISTING PROCEDURE DURING
PROCUREMENT STAGE
IF CONTRACTOR FILES MOTION FOR RECONSIDERATION AND APPEAL

C NO HoPE issues
O Blacklisting Order
HoPE resolves
N Files MR motion within 7
T CDs from receipt Files Appellate
R YES Authority
Appeal
A resolves appeal
C within 7 CDs
T Within 7 CDs from receipt of
O notice of decision, based on
R the ff:
1. Decision does not Filed with the If appeal is NOT
conform with the appellate authority granted, HoPE
evidence/facts within 7 CDs from issues Blacklisting
2. Newly discovered receipt of notice Order.
evidence

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distribution without the author’s approval is prohibited.
 BLACKLISTING DURING
CONTRACT
IMPLEMENTATION STAGE

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GROUNDS FOR BLACKLISTING DURING CONTRACT
IMPLEMENTATION STAGE
1. 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”);

2. 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;

3. 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 PE

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distribution without the author’s approval is prohibited.
GROUNDS FOR BLACKLISTING DURING CONTRACT
IMPLEMENTATION STAGE
4. 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;

5. For the procurement of consulting services, poor performance by the

consultant of his services arising from his fault or negligence.

6. 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
System rating sheet, or the existing performance monitoring system of the PE.
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distribution without the author’s approval is prohibited.
GROUNDS FOR BLACKLISTING DURING CONTRACT
IMPLEMENTATION STAGE
7. 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

8. In case it is determined prima facie that the contractor has engaged,

before or during implementation of the contract, in unlawful deeds and
behaviors relative to contract acquisition and implementation as
enumerated in Section III.D. of the Guidelines on Termination of
Contracts.

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distribution without the author’s approval is prohibited.
SANCTIONS FOR BLACKLISTING DURING
CONTRACT IMPLEMENTATION STAGE

Performance Security Forfeiture

1st offense: Blacklisting for 1 year
2nd offense: Blacklisting for 2 years

Without prejudice to the imposition of additional

administrative sanctions as the internal rules of the
agency may provide and/or further criminal
prosecution.

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distribution without the author’s approval is prohibited.
BLACKLISTING PROCEDURE DURING CONTRACT
IMPLEMENTATION STAGE
❑ Upon termination of contract due to default and/or unlawful acts of the
contractor, the HoPE shall issue within 7 CDs a Blacklisting Order.

❑ Where contract termination is no longer possible, but the contractor

committed acts or causes which may constitute ground(s) for blacklisting,
the implementing unit shall, within 7 CDs after the lapse of project duration,
cause the execution of a Verified Report, with all relevant evidence
attached, subject to the following procedures:

Notice of
Show Cause Decision
Blacklisting

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distribution without the author’s approval is prohibited.
BLACKLISTING PROCEDURE DURING CONTRACT
IMPLEMENTATION STAGE
Notice of Blacklisting Show Cause Decision

Upon recommendation by the IU, the

HoPE shall initiate the blacklisting
procedures by a written notice to the
contractor with the following information:
1. a statement of the acts that
constitute the ground/s for
blacklisting;
2. an instruction to the contractor to
show cause as to why it should not
be blacklisted; and
3. special instructions of the PE, if any.
The Notice of Blacklisting shall be
accompanied by a copy of the Verified
Report
❑ Within a period of 7 CDs from
receipt of the Notice of
Blacklisting, the contractor shall
submit to the HoPE a verified
position paper stating why it
should not be blacklisted.
❑ If the contractor fails to show
cause after the lapse of the 7-day
period, either by inaction or by
default, the HoPE shall issue a
Blacklisting Order.
Within a non-extendible period of 10
CDs from receipt of the verified
position paper, the HoPE shall
decide whether or not to blacklist
the contractor. It shall serve a
written notice to the contractor of its
decision which shall become final
and executory after the lapse of 7
CDs from the receipt of the notice of
decision.

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WHEN DOES BLACKLISTING ORDER BECOME
FINAL AND EXECUTORY?

1. If the bidder did not file a Motion for Reconsideration (MR) on the Decision
to Suspend, said Decision becomes final and executory after the lapse of 7
CDs counted from receipt of the Notice of the Decision; or,

2. If the bidder did not file an Appeal after his MR has been denied, the
Decision becomes final and executory after the lapse of 7 CDs counted
from receipt of the resolution on the motion for reconsideration; or,

3. If an Appeal was filed and the same was denied, the Decision becomes
final and executory upon receipt by the agency and person/entity concerned
of the Decision on the protest.

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distribution without the author’s approval is prohibited.
STATUS OF BLACKLISTED PERSON/ENTITY

BEFORE ISSUANCE BLACKLISTING BLACKLISTING

OF BLACKLISTING ORDER ISSUED ORDER ISSUED
ORDER BEFORE NOA AFTER NOA
The erring contractor may The blacklisted The awarded
participate in the person/entity shall not be project/contract shall not
procurement of any qualified for award and be prejudiced by the
government project such project/contract said order: Provided, that
except in the agency shall be awarded to the said offense(s) is/are
where he is suspended another bidder pursuant to not connected with the
R.A. 9184 and its IRR awarded project/contract

Effectivity period for the penalty shall be clearly specified n the Blacklisting Order
and shall commence on the same date of its issuance
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distribution without the author’s approval is prohibited.
APPLICATION OF PENALTY

Remaining 2-year BO
period of New 2-year BO (latter shall be deemed
previous BO terminated and subsumed)

Offense
>2 2-year BO

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distribution without the author’s approval is prohibited.
BLACKLISTING ORDER FORM
GPPB Circular No. 03-2020

https://www.gppb.gov.ph/downloadables/forms/BOForm.docx

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BLACKLISTING ORDER FORM
GPPB Circular No. 03-2020
The Blacklisting Order duly signed by the HoPE/appellate authority shall
contain the following:
1. Department/Office Order or Board Resolution number,
2. Complete registered business name, address and PhilGEPS
registration number of the blacklisted person/entity,
3. License number, if applicable,
4. Authorized Managing Officer,
5. Name of project/contract and location/amount,
6. Specific ground(s)/offense(s) committed,
7. Sanction imposed and its specific duration (“start” and “end” dates),
and
8. Date of issuance of the order to blacklist.
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distribution without the author’s approval is prohibited.
 1. VERIFICATION CONTRACT
2. NOTICE
3.
4.
SHOW CAUSE
RESCISSION
TERMINATION
5. DECISION
PROCEEDING

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CONTRACT TERMINATION PROCEEDING

Verification of the HOPE / CTRC Contractor shall submit

existence of grounds notifies Contractor in Verified Position Paper
writing accompanied stating why the contract
by Verified Report should not be terminated,
within 7 cd from receipt of
Upon receipt of written report notification
verify existence of grounds
and cause the execution of
Verified report within 7 cd • That the contract is being
terminated (citing the grounds)
NO TIME EXTENSION
“Contractors” shall refer to • The extent of termination (total SHALL BE ALLOWED
manufacturers, suppliers, or partial)
distributors, contractors and
• Instruction to show cause
consultants
• Special instructions, if any
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distribution without the author’s approval is prohibited.
CONTRACT TERMINATION PROCEEDING

HOPE issues
C NO Order terminating
the contract
O Within non
N extendible period of
T Submits 10 CDs from receipt
R Position YES of position paper,
A paper?
C HoPE decides
RESCISSION OF TERMINATION whether or not to
T
NOTICE terminate the contract
O
R before receipt of the Contractor’s verified
position paper, PE may withdraw the Notice
Within 7 CDs from to Terminate if it is determined that certain
receipt of items or works subject of the notice had been
completed, delivered, or performed
notification

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 1. CONTRACTOR’s
DEFAULT

2. CONVENIENCE
CONTRACT
3. INSOLVENCY TERMINATION
4. UNLAWFUL ACTS
GROUNDS
5. CONTRACTOR’s
INITIATIVE

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CONTRACTOR’S DEFAULT

GOODS INFRASTRUCTURE CONSULTING

1. Negative Slippage 1. Without Force Majeure
1. Without Force Majeure
Fails to deliver outputs /
At least 10% Delay
During Project Duration deliverables w/in prescribed
At least 15% Delay period
2. With Force Majeure
After Contract Expiry
At least 10% Delay 2. With Force Majeure
Goods not delivered w/in 60
days from receipt of notice 2. Contractor: Outputs/ deliverables not
that fortuitous events had a.Abandons works
performed w/in 60 days from
ceased. AND the Delay is at b.Fails to have the min. essential
equipment on site per approved work receipt of notice that
least 10%
plan fortuitous events had ceased.
c.Fails to execute works in accordance
3. Other breach of contract to the contract
d.Fails to remove materials or perform 3. Fails to perform any other
(i.e. Inferior goods)
corrective works obligations under the
e.Sub-lets w/o PE’s approval contract
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CONTRACT TERMINATION
CONVENIENCE INSOLVENCY

The Head of the Procuring Entity may

terminate a contract for the convenience of
the Government The Procuring Entity shall terminate the
contract if the Supplier/ Contractor/
if he has determined the existence of Consultant is declared
conditions that make Project
Implementation economically, financially bankrupt or insolvent as determined
or technically impractical and/or with finality by a court of competent
unnecessary, such as, but not limited to, jurisdiction.
fortuitous event(s) or changes in law and
national government policies.

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distribution without the author’s approval is prohibited.
CONTRACT TERMINATION
UNLAWFUL ACTS
The Procuring Entity may terminate the contract in case it is determined prima facie that the
Supplier/Contractor/Consultant has engaged, before or during the implementation of the
contract, in unlawful deeds and behaviors relative to contract acquisition and implementation.
Unlawful acts include, but are not limited to, the following:

a) Corrupt, fraudulent, collusive and coercive practices;

b) Drawing up or using forged documents;

c) Using adulterated materials, means or methods, or engaging in production contrary to rules

of science or the trade; and

d) Any other act analogous to the foregoing.

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distribution without the author’s approval is prohibited.
TERMINATION BY CONTRACTOR / CONSULTANT
INFRASTRUCTURE CONSULTANCY
Continuous Work Stoppage for at least 60
cd without contractor’s fault, due to any of
the following:
TheC/C must serve
Consultant written
may noticeits
terminate to
a) Failure of the Procuring Entity to deliver, terminate theProcuring
contract atEntity
least if the
agreement with the
within a reasonable time, supplies, materials, thirty (30) calendar days before its
right-of-way, or other items it is obligated to latter is in material breach of its obligations
intended termination.
furnish under the terms of the contract; or pursuant to the contract and has not
remedied the same
The Contract within sixty
is deemed (60)
terminated
b) The prosecution of the work is disrupted by calendar if it days
is not following
resumed initsthirty
receipt
(30) of the
the adverse peace and order situation, as Consultant’s
calendarnotice
daysspecifying such breach.
after the receipt of
certified by the Armed Forces of the Philippines such notice by the Procuring Entity.
Provincial Commander and approved by the
Secretary of National Defense.

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 DROP YOUR
QUESTIONS
HERE!

Contact us:
Unit 2504 Raffles Corporate Center, F. Ortigas Road, Ortigas
THANK YOU! Center, Pasig City, Philippines 1605

TeleFax: (632)7900-6741 to 44
Email address: training@gppb.gov.ph