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Key Takeaways from the New Government Procurement Act (Part XII)

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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

 


AT A GLANCE:

Government Procurement Policy Board (GPPB) shall establish an electronic filing system for bidders to submit their protests after paying a non-refundable protest fee via electronic payment channels within the system. The amount of the protest fee, which shall be a reasonable amount in proportion to the approved budget for the contract (ABC) but not exceed Five Million pesos (P 5,000,000.00) and the periods during which the protests may be filed and resolved shall be specified in the IRR: Provided, however, That a prior request for reconsideration should have been filed by the party concerned to the Bids and Awards Committee (BAC) and the same has been resolved.


 

Resolution of Protests

 

The protests shall be resolved strictly on the basis of records of the BAC. Up to a certain amount to be specified in the IRR, the decisions of the Head of Procuring Entity (HoPE) shall be final. 

 

Resort to Regular Courts

 

Court action may be resorted to only after the protests contemplated in this Article have been completed. Cases filed in violation of the process specified in this Article shall be dismissed for lack of jurisdiction. The Regional Trial Court shall have jurisdiction over final decisions of the HoPE. Court actions shall be governed by Rule 65 of the 1997 Rules of Procedure, as amended. 

 

In cases where the amounts are in excess of the specified thresholds in the IRR, the decisions of the HoPE shall become final and executory ten (10) calendar days after receipt of copy thereof by the parties, unless, within the same period, an appeal to the Regional Trial Court has been perfected.

 

Nothing in this Act shall be interpreted to prejudice or prohibit the Office of the Ombudsman from exercising its duties, functions, and powers as provided under the 1987 Constitution, Ombudsman Act of 1989, and/or any relevant rules and regulations pursuant thereto. 

 

Non-interruption of the Bidding Process

 

In no case shall any protest taken from any decision treated in this Article shall stay or delay the bidding process. Protests must first be resolved before any award is made. 

 

Prohibition on the Issuance of Temporary Restraining Orders, Preliminary Mandatory Injunctions

 

No court, except the Supreme Court, shall issue any temporary restraining order, preliminary injunction, or preliminary mandatory injunction against the government or any of its subdivisions, officials, or any person or entity, whether public or private acting under the government direction, to restrain, prohibit, or compel the procurement, bidding, or awarding of contracts for Goods, Infrastructure Projects, and Consulting Services of the government; commencement; and the undertaking or authorization of any other lawful activity necessary for such contract.

 

This prohibition shall apply in all cases, disputes, or controversies instituted by a party, including, but not limited to, cases filed by bidders or those claiming to have rights through such bidders involving such contract. This prohibition shall not apply when the matter is of extreme urgency involving a constitution issue, grave injustice and irreparable injury will arise. The applicant shall file a bond, in an amount to be fixed by the court, which shall accrue in favor of the government should the court finally decide that the applicant was not entitled to the relief sought.

 

Dispute Resolutions

 

Any and all disputes arising from the implementation of a contract covered by this Act may be submitted to arbitration or other forms of alternative dispute resolution in the Philippines according to the Alternative Dispute Resolution Act of 2024: Provided, That construction disputes that are within the competence and jurisdiction of the Construction Industry Arbitration Commission shall be referred thereto.

 

To ensure efficiency in the procurement process, parties to the dispute are encouraged to select the most expeditious mode of dispute resolution. 

 

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.

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