Bee Ny, RepublikangPilipinas fii RELEASED National Inigstion Administrat (-* 79 NOV 2016 (PAMBANSANG PANGASIWAAN NG PATUBIG) Lungsod ng Quezon Offce Address. Nalenal Goverment Center DSA. Dimon, Guezen Gly. Pippnes Teeonone os: Sen) seoaariere ‘Telefax No. (632) 928-9343 Webste i got TIN. ‘oo-6-415 Mc No. 6} s. 2016 MEMORANDUM CIRCULAR To : ‘THE DEPUTY ADMINISTRATORS, DEPARTMENT MANAGERS, REGIONAL MANAGERS, PROJECT MANAGERS, DIVISION MANAGERS ‘AND ALL OTHERS CONCERNED SUBJECT; _ GUIDELINES IN THE IMPLEMENTATION OF THE 3-STRIKE POLICY IN PROCUREMENT OF CONTRACT FOR INFRASTRUCTURE WORKS GOODS AND CONSULTING SERVICES Section 69.1 Rule XXIII (Administrative Sanctions) of the Revised Implementing Rules and Regulations of RA 9184 states that the Head of the Procuring Entity (HOPE), subject to the authority delegated to the BAC, if any, shall impose on bidders or prospective bidders, the administrative penalty of suspension of one (1) year for the first offense, and suspension of two (2) years for the second offense from participating in the public bidding process, as well as disqualification from further participating in the public bidding being undertaken by the procuring entity concerned, where applicable, for the following violations”, among others, section 69.1.1 which states, “All other acts that tend to defeat the purpose of the competitive bidding, such as habitually withdrawing from bidding, submitting late Bids or patently insufficient bid for at least three (3) times within a year, except for valid reasons”. In order to carry out the above provision and to promote professionalism and accountability, a three (3)-strike Policy in the procurement of contract for Infrastructure works, goods and consulting services is hereby prescribed subject to the following Guidelines: 1. VIOLATIONS Any of the following acts committed by a bidder shall be considered an act that tends to defeat the purpose of public bidding such as, but not limited to, the following: a. Abidder that had purchased bidding documents, but subsequently (a) withdrawn from the bidding or (b) submitted a letter of non-participation, or (c) did not submit a bid - without valid cause, as determined by the Bids and Awards Committee (BAC) concerned.b. A bidder submitting a late bid without a valid cause, as determined by the BAC concerned. ¢. A bidder submitting insufficient/defective documents such as insufficient bid securities and other deficiencies. d. Other acts that tend to defeat the purpose of public bidding as determined by the BAG, provided that these acts had been indicated or discussed in Instructions to bidders, Bid Bulletins, Notices, Minutes of Pre-Bid Conference or other similar Instruments. Each “ojfense” by a bidder under Section 69.1. of the Revised IRR of RA 9184 shall also be considered an infraction/violation and shall be counted as one strike within a period of one year starting from January of every year for all procurement by the concerned Bids and Awards Committee of the National Irrigation Administration (NIA) Central Office and field offices. Every time the bidder is observed to have done any of the four (4) acts enumerated in item 1 of this Memorandum Circular and has committed any of the offenses under Section 69. 1 of the Revised IRR of RA 9184, the Chairperson of the BAC concerned shall immediately serve written notice to the bidder informing him of his act, and giving three (3) days to show cause why he should not be sanctioned under this memorandum for committing an act which tend to defeat the purpose of public bidding. Based on the evaluation by the BAC of the bidder's response, the BAC shall within seven (7) days from receipt of the bidder's response, determine whether the bidder's act was done with or without a valid cause. |. The BAC concerned shall monitor the participation of the bidders in all of its projects and maintain a tally of violations by the bidder of the 3-strike policy in its jurisdiction. For monitoring purposes, the BACs in the Central Office and field offices shall immediately submit to the Manager, Legal Services, the list of bidder/s which committed a violation under this Memorandum Circular. Thereafter, the Legal Services shall forward the list to the Management Information Division (MID) for posting at the NIA website. . Based on the verified 3-strike Reports, the concerned BAC in the Central Office and the field offices, in coordination with the Legal Services, shall recommend to the NIA Administrator, for approval, the following administrative sanctions on the erring contractor for violation of the 3-strike policy: a) Forthe first violation or strike first warning. b) For the second strike - second warning ©) For the third strike = suspension for one (1) year from participating in any procurement process in any office of the NIA.4) For the second offense (bidder has committed three strikes after serving the one-yea suspension above) = suspension for two (2) years from participating in any procurement process in any office of the NIA. 7. Any concerned BAC that shall fail to report the complete and verified three (3)-strike infractions committed by the bidders shall be subject to disciplinary action in accordance with existing CSC rules and regulations. ‘This Memorandum shall take effect immediately. For strict compliance. ENGR. FLORENCIO F. PADERNAL, DPA Administrator 016 Date: Novembw 24, _