PROTEST MECHANISM

AND REMEDIES

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 Modules Objectives
By the end of this module, participants should be able to:

• Know the grounds and remedies of offenses committed in

relation to the conduct and/or participation to procurement
activities; and

• Understand the procedures and considerations of how to

resolve a request for reconsideration and/or protest.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
 I Penal, Civil, and Administrative Provisions

II
Liabilities Under R.A. 3019

III Protest Mechanism

Negotiation in Government Procurement

Requisites for Filing a Request/Motion
for Reconsideration and Valid Protest

Negotiation inProcedure
Gernment in the Resolution of Protest
Procurement

IVIII Blacklisting Guidelines

Liabilities Under R.A. 3019
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
 PENAL, CIVIL AND
ADMINISTRATIVE PROVISIONS

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Highest Standard of Ethics

The standard of ethics required to be observed by

procuring entities and bidders, manufacturers,
suppliers or distributors during the procurement and
execution of contract.

Bidders determined to have committed corrupt,

fraudulent, collusive and coercive practices by the
government will not be eligible to bid in its projects
Prohibited Practices

Collusive Corrupt Coercive Fraudulent

Corrupt Practices
Practices Practices Practices Practices

Scheme or arrangement Improper and unlawful Harming or threatening Misrepresentation of

between two (2) or more enrichment of one’s self to harm, directly or facts in order to influence
bidders to establish bid or others indirectly a procurement process
prices at artificial levels
 PENAL PROVISIONS

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Coverage

Public officers who commit Private individuals who commit

any of the acts enumerated any of the following acts
under Section 65.1 of the IRR enumerated under Sections 65.2
and 65.3

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
Coverage of Penal Clause

The penalties and offenses under

RA 9184 and its revised IRR shall
cover all types of procurement
whether done manually or
electronically.

Sec. 65.4 of the IRR

Applicable Penalty

❑ Imprisonment for not less than six

(6) years and one (1) day but not
more than fifteen (15) years.

❑ Temporary or Perpetual
disqualification from public office
(public official)

❑ Permanent disqualification from

transacting business with
government (Private Individual)
the
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Jurisdiction

Jurisdiction over the offenses

defined under this Rule shall
belong to the appropriate
courts, according to laws
existing at the time of the
commission of the offenses.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
Offenses Committed:
BY PUBLIC OFFICERS
Section 65(a) of RA 9184

Open any sealed Bid Delaying, without Unduly influencing or

including but not justifiable cause, the exerting undue
limited to Bids that screening for pressure on any member
may have been procurement of the BAC or any
submitted through the processes officer of the procuring
electronic system
entity

When the head of the

agency abuses the
Splitting of contracts exercise of his power
to reject any and all
bids

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
Offenses Committed :
BY PRIVATE INDIVIDUALS
Section 65(b) of RA 9184

Agreement and submission Agreement to secure undue

to submit bids with pre- advantage
arranged lowest bid

Malicious submission of Employment of scheme

different bids through two or disadvantageous to the
more persons public

*Public officers conspiring with the private individuals

are also liable under the provision.
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
Administrative Sanctions:
BY PRIVATE INDIVIDUALS
Section 65(b) of RA 9184

When a bidder maliciously submits

When two or more bidders agree different bids through two or more
and submit different bids as if persons, corporations, partnerships or
they were bona fide, when they any other business entity in which he has
know that one or more of them interest to create the appearance of
was so much higher than the competition that does not in fact exist so
other. as to be adjudged as the winning bidder.

When two or more bidders enter

into an agreement which call When a bidder, by himself or in
upon one to refrain from bidding connivance with others, employs
for procurement contracts, or schemes which tend to restrain the
which call for withdrawal of Bids natural rivalry of the parties.
already submitted.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
Offenses Committed:
By Private Individuals
Section 65(c) of RA 9184

Submission of eligibility Submission of bidding

requirements containing documents containing false
false information of falsified information of falsified
documents or concealment documents or concealment of
of such information such information

Using name of another or

allowing another to use one’s Withdrawal of bid
name

*Public officers conspiring with the private individuals are

also liable under the provision.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
 CIVIL LIABILITY

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Civil Liability

Restitution for the damage done Forfeiture in favor of the government

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
 ADMINISTRATIVE
SANCTIONS

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Administrative Sanctions

FIRST OFFENSE: 1 YEAR Disqualification from further

SECOND OFFENSE: 2 YEARS participating in the public
bidding being undertaken by
the PE

From participating in the

Forfeiture of Bid Security or
public bidding process
Performance Security
SUSPENSION

Blacklisted

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
 LIABILITIES UNDER
R.A. NO. 3019

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Liabilities Under R.A. No. 3019

Sec. 3(a) - Persuading, inducing, influencing another public officer to:

a) perform an act constituting a violation of rules and regulations
a) allowing himself to be so persuaded, induced, or influenced to commit
such violation or offense
Liabilities Under R.A. No. 3019

Sec. 3(b)
Directly or indirectly requesting or
receiving any gift, present,
share, percentage or benefit for himself
or for any other person, in connection
with any contract or transaction
between the Government and any other
party., wherein the public officer in his
official capacity has to intervene under
the law.
Liabilities Under R.A. No. 3019

Sec. 3 (d)

Accepting or having any member of

his family accept employment in a
private enterprise which has pending
official business with him during the
pendency thereof or within one (1)
year after its termination.
Liabilities Under R.A. No. 3019

Sec. 3 (e)
Causing any undue injury to any
party, including the Government, or
giving any private party any
unwarranted benefits, advantage
or preference in the discharge of his
official, administrative or
judicial functions through manifest
partiality, evident bad faith or
gross inexcusable negligence.
Liabilities Under R.A. No. 3019

Sec. 3 (g)

Entering, on behalf of the Government, into any contract or transaction

manifestly and grossly disadvantageous to the same, whether or not the
public officer profited or will profit thereby.
Applicable Penalty

❑ Imprisonment for not less than six

(6) years and one (1) day but not
more than fifteen (15) years.

❑ Perpetual disqualification from public

office

❑ Confiscation or forfeiture in favor of

the Government
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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.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
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

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
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 & not be curable by mere
produces no legal
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.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
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

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
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

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
 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