BLACKLISTING

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 BLACKLISTING AND SUSPENSION

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

SUSPENSION
 The administrative penalty imposed for
infractions committed by a contractor during
competitive bidding stage, whereby such
contractor is prohibited from further
participation in the bidding process of an
agency.
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 SANCTIONS
I. FIRST OFFENSE:
 Suspension for one (1) year

II. SECOND OFFENSE:

 Suspension for two (2) years

III. Bid Security or Performance Security is

also forfeited
- 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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 COMPETITIVE
BIDDING STAGE

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 GROUNDS FOR BLACKLISTING

1. Submission of eligibility requirements

containing false information or falsified
documents. 
2. Submission of Bids that contain false
information or falsified documents, or the
concealment of such information in the Bids
in order to influence the outcome of
eligibility screening or any other stage of
the public bidding.
3. Allowing the use of one’s name , or using
the name of the name of another for purpose
of public bidding.

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 GROUNDS FOR BLACKLISTING

4. Withdrawal of a bid, or refusal to accept

an award, or enter into contract with the
government without justifiable cause,
after he had been adjudged as having
submitted the Lowest Calculated
Responsive Bid or Highest Rated
Responsive Bid.
5. Refusal or failure to post the required
performance security within the
prescribed time.

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 GROUNDS FOR BLACKLISTING

6. Refusal to clarify or validate in writing its Bid

during post qualification within a period of
seven (7) calendar days from receipt of the
request for clarification.
7. Any documented unsolicited attempt by a
bidder to unduly influence the outcome of the
bidding in his favor.
8. 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
three (3) times within a year, except for valid
reasons.
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 PROCEDURE FOR BLACKLISTING

BAC notifies Contractor shall

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

IF CONTRACTOR DOES NOT SUBMIT ANSWER

C BAC Within 15
recommends to DISMISS
O cd from THE
N the HOPE the receipt of NO
suspension of CASE
T Does BAC
R NOT the Contractor resolution
A Submit and the and records
C answer forfeiture of bid of BAC HOPE
T security. Proceeding, issues a
O HOPE YES Suspensi
R determines on Order
existence and
of forfeiture
Within 5 cd reasonable of bid
from receipt of cause security
notification
from BAC 9
 PROCEDURE FOR BLACKLISTING
BAC immediately
IF CONTRACTOR SUBMITS ANSWER sets the date and
time for hearing
C BAC conducts hearing
YES
O
N
T
R Submits Request BAC determines
A for NO existence of fault
answer
C hearing
T YES NO
O
R HOPE DISMISS
Base on the issues a THE
complaint, answer
Suspension CASE
Within 5 cd from and documentary
Order and
receipt of evidence and facts
forfeiture of
notification from verified
bid security
BAC
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 PROCEDURE FOR BLACKLISTING

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
protest and shall terminate only upon a
reversal of the decision by HOPE or appellate
authority.
3. If no motion for reconsideration or protest is
filed, the decision shall become final and
executory after the lapse of 7 calendar days
from the receipt of the notice of decision.
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 PROCEDURE FOR BLACKLISTING
IF CONTRACTOR FILES MOTION FOR
C
RECONSIDERATION NO HOPE issues
O Blacklisting Order
HOPE
N resolves
T Files MR motion YES
Protest Appellate
R within 7 cd Authority
A from receipt resolves
C protest
T Within 3 cd from
within 7cd
O receipt of notice of Filed with the
R appellate authority
decision, base on
within 7 cd from
the ff:
receipt of notice If protest is NOT
1. Decision does
not conform granted, HOPE
with the issues Blacklisting
evidence/facts Order.
2. Newly
discovered
evidence 12
 PROCEDURE FOR BLACKLISTING

Agency
C submits
O copy of
N HOPE Blacklisting GPPB posts
Does
T issues Order to the
NOT
R Blacklisting GPPB within Blacklisting
file
A Order 7 cd after Order in the
MR
C its issuance GPPB
T Website
O Within 3 cd
R from receipt
of notice of
decision,

IF CONTRACTOR DOES NOT FILE MOTION

FOR RECONSIDERATION
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 STATUS OF BLACKLISTED PERSON/ENTITY
When does Blacklisting Order become final and
executory?
1. If the bidder did not file a MR on the Decision to
Suspend, said Decision becomes final and
executory after the lapse of 7 days counted from
receipt of the Notice of the Decision; or, 
2. If the bidder did not file a Protest after his MR has
been denied, the Decision becomes final and
executory after the lapse of 7 days counted from
receipt of the resolution on the motion for
reconsideration; or, 
3. If a Protest 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.  14
 CONTRACT
IMPLEMENTATION STAGE

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 GROUNDS FOR BLACKLISTING

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;

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 GROUNDS FOR BLACKLISTING

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 procuring entity;

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;

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 GROUNDS FOR BLACKLISTING

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;

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 GROUNDS FOR BLACKLISTING

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;

In addition to the penalty of suspension, the

performance security shall also be forfeited.

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 PROCEDURE FOR BLACKLISTING

1. Undertake Contract Termination Proceedings:

Refer to Guidelines on Termination of
Contracts under GPPB Resolution No. 18-2004
dated 22 December 2004

2. HOPE shall immediately issue a Blacklisting

Order disqualifying the erring contractor from
participating in the bidding of all government
projects upon termination of the contract due
to default of contractor.

3. Forfeiture of performance security

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 BLACKLISTING UNDER ALTERNATIVE
METHODS OF PROCUREMENT
Suspension or blacklisting of suppliers,
contractors, or consultants shall be made in
accordance with the Uniform Guidelines for
Blacklisting of Manufacturers, Suppliers,
Distributors, Contractors, and Consultants.

A suspended or blacklisted supplier, contractor

or consultant shall not be allowed to participate
in all procurement opportunities of the
government for the duration of the suspension
or blacklisting, regardless of the modality of
procurement employed by the Procuring Entity.

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 DELISTING

 Removal of a person/entity from the

Consolidated Blacklisting Report.

 Automatically delisted after the period of the

penalty shall have elapsed, unless
blacklisting agency requests the GPPB to
maintain the blacklisted person/entity in the
list for justifiable reasons. Delisting shall be
made after the issuance of the agency of a
Delisting Order.

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 TERMINATION OF
CONTRACTS
(Annex “I” of 2016 IRR of RA 9184)

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 GROUNDS FOR TERMINATION

1. Termination for Default;

2. Termination for Convenience;
3. Termination for Insolvency;
4. Termination for Unlawful Acts; and
5. Termination by Contractor / Consultant.

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 TERMINATION FOR DEFAULT
The PE shall terminate a contract when any of the following
conditions attend its implementation:

1. In contracts for Goods

a. outside force majeure, the Supplier fails to perform or
deliver any or all of the Goods, wherein such failure
amounts to at least 10% of the contract price;
b. As a result of force majeure, the Supplier is unable to
deliver or perform any or all of the Goods, wherein such
failure amounts to at least 10% of the contract price, for
a period of not less than 60 cd after receipt of notice
from the PE that the force majeure is deemed to have
ceased;
c. The Supplier fails to perform any other obligation under the
Contract. 29
 TERMINATION FOR DEFAULT

2. In contracts for Infrastructure Projects

a. Due to Contractor’s fault and while the project is

on-going, it has incurred a negative slippage of 15%
or more;
b. After the expiration of the contract time, the
Contractor incurred negative slippage of 10% or
more, due to its own fault; or

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 TERMINATION FOR DEFAULT

2. In contracts for Infrastructure Projects

c. The Contractor commits any or all of the following:

i. Abandons the contract works, refuses or fails
to comply with a valid instruction of the PE or
fails to proceed expeditiously and without
delay despite a written notice by the PE;
ii. Does not have the listed minimum essential
equipment in the project site in accordance
with the approved work plan and equipment
deployment schedule;

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 TERMINATION FOR DEFAULT

2. In contracts for Infrastructure Projects

c. The Contractor commits any or all of the

following:
iii. Does not execute the works in accordance with
the contract or neglects to carry out its
contractual obligations;
iv. Neglects or refuses to remove materials or
perform a new work that has been rejected as
defective or unsuitable; or
v. sub-lets any part of the works without approval
of the PE.

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 TERMINATION FOR DEFAULT

3. In contracts for Consulting Services

a. outside force majeure, the Consultant fails to

deliver or perform the Outputs and Deliverables
within the period specified in the contract, or
within any granted extension;
b. As a result of force majeure, the Consultant is
unable to deliver or perform a material portion of
Outputs and Deliverables for a period of not less
than 60 cd after receipt of notice from the PE that
the force majeure is deemed to have ceased;
c. The Consultant fails to perform any other
obligation under the Contract.
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TERMINATION FOR CONVENIENCE

 The PE may terminate the contract at any time for

its convenience.

 The HOPE shall determine the existence of conditions

that would make the project implementation
economically, financially or technically impractical
and/or unnecessary.

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 TERMINATION FOR INSOLVENCY

 The PE shall terminate the contract if the

Supplier/Contractor/Consultant is declared bankrupt or
insolvent.

 The bankruptcy/insolvency of the Supplier/Contractor/

Consultant must be that as determined by a court of
competent jurisdiction.

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TERMINATION FOR UNLAWFUL ACTS

 The PE 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 the contract acquisition and
implementation.

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TERMINATION FOR UNLAWFUL ACTS

 Unlawful acts include, but not limited to, the following:

i. Corrupt, fraudulent, collusive and coercive

practices;
ii. Drawing up or using forged documents;
iii. Using adulterated materials, means or
methods, or engaging in production contrary to
rules of science or the trade;
iv. Any other act/s analogous to the foregoing.

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 TERMINATION BY
CONTRACTOR/CONSULTANT
1. In contracts for Infrastructure Projects

 The Contractor may terminate his contract with the PE

if the works are completely stopped for a continuous
period of at least 60 cd, through no fault of its own
for the following reasons:
i. Failure of PE to deliver supplies, materials, right-of-
way, or other items under the terms of the
contract; or
ii. Works is disrupted by adverse peace and order
situation, certified by the AFP Provincial
Commander and approved by the Secretary of
National Defense.
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 TERMINATION BY
CONTRACTOR/CONSULTANT

2. In contracts for Consulting Services

 The Consultant may terminate its agreement with the

PE if the latter is in material breach of its contractual
obligations and has not remedied the same within 60
cd from receipt of the Consultant’s notice specifying
such breach.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS

1. Verification

 The implementing unit shall, within 7cd from receipt

of written report of acts or causes which may
constitute ground/s for termination, verify the
existence of such grounds, and shall execute a
Verified Report, with all relevant evidence attached.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS
2. Notice to Terminate
 The HOPE shall terminate contract only by written
notice to the Contractor/Supplier stating therein the
following:
i. the grounds and the statement of the acts that
constitute the grounds for which the contract is being
terminated;
ii. extent of termination;
iii. an instruction to the Supplier/ Contractor/Consultant
to show cause why the contract should not be
terminated; and
iv. special instruction of the PE, if any.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS
2. Notice to Terminate

 The PE may withdraw the Notice to Terminate, at

any time before the receipt of the Supplier’s/
Contractor’s/ Consultant’s position paper.

 Withdrawal of Notice to Terminate shall be based on

PE’s determination that items or works, subject of
the notice, had been completed, delivered, or
performed.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS
3. Show Cause

 A Verified position paper shall be submitted by the

Supplier/ Contractor/ Consultant to the HOPE
within 7cd from receipt of the Notice of
Termination.

 Failure by the Supplier/ Contractor/ Consultant to

submit the verified position paper within the
reglementary period shall cause the HOPE to issue
an Order of termination.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS
4. Decision

 Within a non-extendible period of 10 cd upon receipt

of the verified position paper, the HOPE shall
decide, whether or not to terminate the contract.

 Failure by the Supplier/ Contractor/ Consultant to

submit the verified position paper within the
reglementary period shall cause the HOPE to issue
an Order of termination.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS
4. Decision

 Termination shall be based only on the ground/s

stated in the Notice to Terminate.
 HOPE may create Contract Termination Review
Committee (CTRC) to assist him in the discharge of
his function.
 All findings or decisions of the CTRC are subject to
the approval of the HOPE.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS
5. Take-over of Contracts

 If a PE terminates a contract due to default,

insolvency, or for a cause, it may enter into a
Negotiated Procurement pursuant to Section 53(c) of
RA 9184 and 53.3 of its IRR.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS

 Sections 53.3.1 to 53.3.3 of the IRR of RA 9184

provides for the procedures in conducting the
negotiation, thus:
1. The contract may be negotiated starting with the second lowest
calculated/highest rated bidder for the project under
consideration at the bidder’s original bid price.

2. If negotiation fails, then negotiation shall be done with the

third lowest calculated/highest rated bidder at his original
price. If the negotiation fails again, a short list of at least three
(3) eligible contractors shall be invited to submit their bids, and
negotiation shall be made starting with the lowest
calculated/highest rated bidder.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS

 Sections 53.3.1 to 53.3.3 of the IRR of RA 9184

provides for the procedures in conducting the
negotiation, thus:
3. Authority to negotiate contracts for projects under
these exceptional cases shall be subject to prior
approval by the Heads of the Procuring Entities
concerned, within their respective limits of
approving authority.

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 PROCEDURES FOR TERMINATION OF
CONTRACTS
6. PE’s options in Termination for Convenience
 Applies only to contract for Goods
 Goods shall be accepted if performed or are ready for
delivery within 30 cd after receipt of Supplier’s Notice to
Terminate at the contract terms and prices.
 Goods not yet performed or ready for delivery, PE may
elect:
i. to have any portion delivered or performed and paid at
the contract terms and prices; and/or
ii. to cancel the remaining and pay to the Supplier an
agreed amount for partially completed or performed
goods and for materials and parts previously procured
by the Supplier
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 PROCEDURES FOR TERMINATION OF
CONTRACTS
7. Notice by Contractor/Consultant

 Written notice must be served to the PE at least 30 cd

before its intended termination.

 Contract is deemed terminated if it is not resumed in

30 cd after receipt of such notice by the PE.

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 THANK YOU!!
Contact us at:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44
Email Address: gppb@gppb.gov.ph

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