UNIFORM GUIDELINES FOR BLACKLISTING OF MANUFACTURERS, SUPPLIERS,

DISTRIBUTORS, CONTRACTORS AND CONSULTANTS

1. SCOPE

These guidelines shall govern the blacklisting of manufacturers, suppliers, distributors,

contractors and consultants (“Contractors” for brevity) involved in government
procurement for offenses/violations committed during competitive bidding and contract
implementation, in accordance with Section 69.4 of the Implementing Rules and
Regulations (“IRR”) of Republic Act No. 9184 (“R.A. 9184”), otherwise known as the
“Government Procurement Reform Act.”

These guidelines shall apply to all branches, constitutional commissions and offices,
agencies, departments, bureaus, offices, and instrumentalities of the Government,
including GOCCs, GFIs, SUCs and LGUs.

2. BLACKLISTED PERSONS/ENTITIES NOT ALLOWED TO PARTICIPATE IN THE

BIDDING OF GOVERNMENT PROJECTS/CONTRACTS

A person/entity who is blacklisted by a procuring entity and/or included in the Government

Procurement Policy Board (“GPPB”) Consolidated Blacklisting Report shall not be allowed
to participate in the bidding of all government projects during the period of
suspension/disqualification unless a certificate from GPPB confirming a delisting order
from the blacklisting agency has been submitted to the procuring entity concerned.

A joint venture or consortium which is blacklisted or which 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 are, likewise, not allowed to participate in any government procurement
during the period of suspension/disqualification. A corporation, the majority owner (50% +
1) of which is blacklisted, shall likewise be disqualified.

3. DEFINITION OF TERMS

3.1 Appellate Authority. refers to the agency/office exercising general and/or

administrative supervision/control over the blacklisting agency, e.g., in case of
agencies like the National Irrigation Administration, Philippine Ports Authority, and
Philippine Tourism Authority, the appellate authority shall be Department of
Agriculture, Department of Transportation and Communications, and Department of
Tourism, respectively; for all department level agencies such as the Department of
Public Works and Highways, Department of Transportation and Communications,
Department of Agriculture, the appellate authority shall be the Office of the
President.

3.2 Award. a written notice from the procuring entity accepting a bid or proposal.

3.3 Blacklisting. a decision issued by an agency to suspend/disqualify a person/entity

from participating in any government procurement, either perpetually or for a given
period.

3.4 Blacklisting with conditions. a decision issued by an agency to

suspend/disqualify a person/entity from participating in any government
 procurement for a given period which is deemed to continue even after the lapse of
the period until all outstanding liabilities/obligations with the procuring entity have
been settled by the said person/entity.

3.5 Consolidated Blacklisting Report. a report prepared by the GPPB containing the
list of Contractors blacklisted by agencies.

3.8 Contract Implementation. a process of undertaking a project/contract in

accordance with the contract documents.

3.9 Delist. to remove a person/entity from the Consolidated Blacklisting Report.

3.10 Blacklisted Person/Entity. a person/entity who was suspended or disqualified by

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

3.11 Hearing Officer/Committee. an officer or body designated by the blacklisting

agency to conduct investigation/hearing of blacklisting cases.

3.12 Project Management Office. a department/division in an agency assigned to

supervise/monitor the implementation of projects.

4. SANCTIONS AND GROUNDS FOR BLACKLISTING

4.1 Competitive Bidding Stage

The administrative sanctions provided for in Section 69, Rule XXIII of R.A. 9184
shall be imposed for offenses/violations committed by contractors during the
competitive bidding stage of procurement.

4.2 Contract Implementation Stage

The following administrative sanctions shall be imposed for offenses/violations

committed by contractors during contract implementation:

a) Forfeiture of performance security and disqualification for six (6) months for
first offense, forfeiture of performance security and disqualification for one (1)
year for second offense, forfeiture of performance security and disqualification
for two (2) years for third offense, and forfeiture of performance security and
perpetual disqualification for succeeding offenses for any of the following:

a.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”);

a.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 lawful instruction of the procuring entity or its representative(s)
pursuant to the implementation of the contract. For the procurement of
infrastructure projects, the following instances shall be considered lawful
instructions:

i. Employment of competent engineers and/or work supervisors;

ii. Provision of warning signs and barricades in accordance with
approved plans and specifications and contract provisions;
 iii. Stockpiling in proper places of all materials including broken
pavement and excavated debris in accordance with approved
plans and specifications and contract provisions;
iv. Deployment of committed equipment and manpower; and
v. Failure to renew the effectivity dates of the performance security
after its expiration during the course of the execution of the works.

b) Forfeiture of performance security and disqualification for one (1) year for first
offense, forfeiture of performance security and disqualification for two (2) years
for second offense, and forfeiture of performance security and perpetual
disqualification for succeeding offenses for any of the following:

b.1 Assignment and subcontracting of the contract or any part thereof

without prior written approval by the procuring entity.

b.2 For the procurement of goods and consulting services, poor

performance by the contractor or unsatisfactory or inferior quality and/or
progress in the delivery of the goods or performance of the services
arising from his fault or negligence.

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 (“CPES”) rating sheet. In the absence of the CPES
rating sheet, the existing performance monitoring system of the
procuring entity shall be applied. Any of the following acts by the
constructor shall be construed as poor performance:

i. Negative slippage of 15% and above due entirely to the fault or

negligence of the contractor; and

ii. Quality of materials and workmanship not complying with the

approved specifications arising from the contractor's fault or
negligence.

b.3 For the procurement of goods and related services, and consulting
services, failure of the contractor to comply with the relevant orders of
the Department of Labor and Employment (“DOLE”) on safety and
health standards.

For the procurement of infrastructure projects, failure of the contractor to

comply with the Occupational Safety and Health Standards provided for
under DOLE Department Order No. 13, series of 1998 on Guidelines
Governing Occupational Safety and Health in the construction industry
and related issuances; provided, however, that in order to give enough
time for contractors to comply with the provisions of DOLE D.O. No. 13,
series of 1998, this shall not be a ground for blacklisting until such time
that the total cost of implementing a construction safety and health
program is made an integral part of a project’s construction cost as a
separate pay item, as reflected in the project’s bidding and contract
documents;

b.4 Willful negligence to correct or rectify imminent danger or conditions in

clear violation of the stoppage of work order by the Secretary of Labor
and Employment or his/her authorized representative; and
 b.5 Failure to register as a contractor with the DOLE regional offices or with
the Bureau of Local Employment pursuant to DOLE Order No. 10, s.
1997 and related issuances.

c) Forfeiture of performance security and disqualification for two (2) years for first
offense, and forfeiture of performance security and perpetual disqualification
for succeeding offense on willful or deliberate abandonment or non-
performance of the project or contract by the contractor without lawful and/or
just cause.

In any of the above-mentioned offenses/violations, the blacklisting agency

concerned may, by administration, undertake the whole or a portion of the
unfinished work, or award the same to another qualified contractor pursuant to
R.A. 9184 and its IRR.

5. DUE PROCESS OR PROCEDURE FOR BLACKLISTING

5.1 Verification

a) Verification of a report or finding of acts or causes which may constitute an

offense during competitive bidding shall be made by the Bids and Awards
Committee (“BAC”) within fifteen (15) calendar days from the discovery of the
acts or causes which may constitute an offense or from the submission of a
report to the BAC on the existence of grounds for blacklisting. The BAC shall
submit all verified reports accompanied by supporting affidavits or material
evidence to the Legal Office of the procuring entity.

b) Verification of a report or finding of acts or causes which may constitute an

offense arising from contract implementation shall be made by the Project
Management Office (“PMO”) or its equivalent. The PMO or its equivalent shall
submit all reports accompanied by supporting affidavits or material evidence to
the Legal Office of the procuring entity concerned.

5.2 Notification and Hearings

Within seven (7) calendar days from the receipt of the report, the Legal Office of the
procuring entity shall notify the contractor concerned in writing, requiring him to
answer the charges within fifteen (15) calendar days from receipt of notice. If the
Legal Office finds merit in the case, a hearing officer shall be assigned to hear the
same; otherwise, it shall dismiss the case. In the case of the former, the hearing
officer shall schedule hearings with notices to both parties, and shall invite a
representative from a duly recognized private group in a sector or discipline
relevant to the procurement at hand as an observer for each hearing. The hearing
officer shall submit his recommendation to the head of the blacklisting agency not
later than thirty (30) calendar days from the date of the last hearing.

5.3 Decision

The head of the blacklisting agency shall decide the case within thirty (30) calendar
days upon receipt of the recommendation submitted by the hearing officer. The
corresponding sanction(s) provided for in these guidelines shall be imposed by the
head of the blacklisting agency based on the offense committed. The decision shall
clearly and distinctly state the facts, evidence and the law on which it is based, as
well as the date of effectivity of the penalty, if any.
 In case a contractor commits more than one offense or a combination of offenses
for the same project/contract in a particular agency, each violation shall be meted
the corresponding penalty.

5.4 Notice of Decision

The blacklisting agency shall furnish the blacklisted person/entity a copy of the
decision within seven (7) calendar days from its promulgation. The blacklisting
agency shall also furnish a copy of the decision to the GPPB, for information
purposes, within the same period herein.

5.5 Motion for Reconsideration

A Motion for Reconsideration may be filed by the blacklisted person/entity within

fifteen (15) calendar days from receipt of the notice of decision and shall be for
either or both of the following causes, provided that only one (1) Motion for
Reconsideration shall be filed with the blacklisting agency:

a) The decision is not in conformity with the evidence and/or facts presented; and

b) Newly discovered evidence or facts which could not be discovered and

produced at the investigation and which when presented would probably alter
the result of the investigation.

The blacklisting agency shall resolve the motion for reconsideration within fifteen
(15) calendar days from receipt thereof. The blacklisting agency shall furnish the
blacklisted person/entity a copy of the resolution within seven (7) calendar days
from its promulgation. The blacklisting agency shall also furnish a copy of the
resolution to the GPPB, for information purposes, within the same period herein.

Failure to file a motion for reconsideration within the reglementary period provided
herein shall render the decision final and executory.

5.6 Appeal from Decision

An appeal may be filed by the blacklisted person/entity with the appellate authority
within fifteen (15) calendar days from receipt of the resolution. The appellate
authority shall decide on the appeal within fifteen (15) calendar days from receipt
thereof. The decision shall immediately become final and executory upon receipt
thereof by the blacklisting agency and person/entity concerned. The GPPB shall be
furnished with a copy of the appeal and the decision thereon, for information
purposes.

Failure to file an appeal within the reglementary period provided herein shall render
the decision final and executory.

5.7 Status of Blacklisted Person/Entity Pending Finality of the Decision

Before finality of the decision to blacklist a person/entity, the said person/entity may
participate in the procurement of any government project/contract. But if the
decision blacklisting the said person/entity becomes final prior to the date of the
notice of award (“NOA”), the blacklisted person/entity shall not be qualified for
award and such project/contract shall be awarded to another bidder pursuant to
R.A. 9184 and its IRR.
 If the decision to blacklist a person/entity becomes final after award of a government
project/contract to the said blacklisted person/entity, the awarded project/contract
shall not be prejudiced by the said decision: Provided, however, That the said
offense(s) committed by the blacklisted person/entity is/are not connected with the
awarded project/contract.

6. DELISTING

6.1 A blacklisted person/entity shall be automatically delisted after the period for the
penalty shall have elapsed, unless the blacklisting is with condition and the
condition has not been satisfied or the blacklisting agency requests the GPPB to
maintain the blacklisted person/entity in the GPPB Consolidated Blacklisting Report
due to justifiable reasons.

6.2 In the case of blacklisting with conditions, at the end of the period of blacklisting, a
request shall be made by the blacklisted person/entity to the blacklisting agency to
issue a Delisting Order. Such Delisting Order shall be issued only when all
liabilities/obligations have been settled by said blacklisted person/entity.

6.3 In the case of perpetual disqualification, no corrective action for delisting shall be
made.

7. METHODOLOGY FOR NOTIFICATION TO THE GPPB

7.1. Unless otherwise provided in these guidelines, the blacklisting agency concerned
shall submit to the GPPB, within seven (7) calendar days after the
blacklisting/delisting decisions are made by the agency, any of the following
documents:

a) Blacklisting Order duly signed by the agency containing, among others,

Department/Office Order or Board Resolution number, name and address of
the blacklisted person/entity, license number, if applicable, Authorized
Managing Officer (“AMO”), name of project/contract and location/amount,
specific ground(s)/offense(s) committed as provided in Sections 4.1 and 4.2
hereof, sanction imposed and its date of start and completion, date of issuance
of the decision to blacklist, and other conditions which can extend effectivity of
sanctions in Sections 4.1 and 4.2 hereof.

b) Delisting Order duly signed by the blacklisting agency containing, among

others, Department/Office Order or Board Resolution number, name and
address of the blacklisted person/entity, name of project/contract and location,
specific sanction being lifted and the number of previously issued blacklisting
Department/Office Orders or Board Resolutions, effectivity date of delisting,
and date of delisting approval.

7.2 In the case of procurement of infrastructure projects, should a blacklisting agency

decide to refer the case of its blacklisted person/entity to the Philippine Contractors
Accreditation Board (PCAB) for license suspension/revocation, it shall submit to
PCAB a copy of the decision accompanied with supporting documents.

7.3 The GPPB shall prepare the Consolidated Blacklisting Report every quarter, based
on the submitted Blacklisting Orders as provided for in Section 7.1(a) hereof and
 disseminate the same to procuring entities and the Commission on Audit (“COA”).
The report shall indicate the number of times a person/entity has been blacklisted,
the type of offense/violation committed, the penalty imposed, and the blacklisting
agency concerned. The GPPB shall delist from such report those whose sanctions
are lifted automatically after serving the given penalty as provided for in Section 6.1
hereof and those whose sanctions are lifted through the issuance of Delisting
Orders as provided for in Section 6.2 hereof.

7.4 All existing blacklisting reports of the Government or any of its procuring entities, as
of the date of effectivity of the IRR, are hereby adopted and made part of the GPPB
Consolidated Blacklisting Report, once released in accordance with the guidelines
to be issued by the GPPB as provided in Section 69.4 of the IRR of R.A. 9184.