Thursday, April 10, 2008

Bidders not required to submit clearances from SSS, DOLE, Pag-ibig, etc. as part of bidding requirements.

The GPPB has issued on March 7, 2008, Circular Letter No. 01-2008 advising government agencies or procuring entities that Memorandum Circular No. 80 issued on February 10, 1994 which requires the submission of certain documents and incorporation of certain provisions in Security and Janitorial contract awards - was impliedly repealed by R.A. 9184 and its IRR-A.

The circular clarified that as a general policy, imposition of additional eligibility or technical documents is discourage because it increases transaction cost and reduces competition. Thus the additional requirements for bidders to submit clearances from DOLE, SSS, PhilHealth or Pag-IBIG, as part of the eligibility or technical documents should be discouraged. In addition, the submission of a clearance or certificate that the bidder has no pending administrative or labor case is violative of due process and therefore, prohibited.

In lieu of the above mentioned requirements, the procuring entity will simply require the bidder to submit a certification under oath that it complies with existing labor laws and standards as provided for under Section 25.3 of IRR-A. However, during post qualification the procuring entity may verify, validate and ascertain the statement submitted under oath. The procuring entity may also require the submission of subject clearances during contract implementation.