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Procedure for the procurement of consulting service - DOH

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MANUAL PROCEDURES FOR THE PROCUREMENT OF CONSULTING SERVICES<br />

GUIDELINES ON THE TERMINATION OF CONTRACT<br />

1. LEGAL BASIS<br />

Appendix 4 <strong>of</strong> <strong>the</strong> Handbook on Philippine Government Procurement which took effect through GPPB<br />

Resolution 018-2004 dated 22 December 2004 and published in <strong>the</strong> Official Gazette on 16 May 2005.<br />

2. PURPOSE, SCOPE, AND APPLICATION<br />

These guidelines aim to promote fairness in <strong>the</strong> termination <strong>of</strong> <strong>procurement</strong> contracts and to<br />

prescribe contract conditions and measures to enable government to protect its interests. For<br />

this purpose, policies and procedures relating to <strong>the</strong> whole or partial termination <strong>of</strong> government<br />

<strong>procurement</strong> contracts <strong>of</strong> goods, infrastructure projects, and <strong>consulting</strong> <strong>service</strong>s are herein<br />

established.<br />

3. RULES AND GUIDELINES<br />

3.1 DEFINITION OF TERMS<br />

a. Coercive Practice means harming or threatening to harm, directly or indirectly,<br />

persons or <strong>the</strong>ir property to influence <strong>the</strong>ir participation in a <strong>procurement</strong> process, or<br />

affect <strong>the</strong> execution <strong>of</strong> a contract.<br />

b. Collusive Practice means a scheme <strong>of</strong> arrangement including practice among<br />

bidders (prior to or after bid submission) designed to establish bid prices at artificial<br />

non-competitive levels to prevent free and open competition.<br />

c. Corrupt Practice means <strong>the</strong> <strong>of</strong>fering, giving, receiving or soliciting <strong>of</strong> anything <strong>of</strong><br />

value to influence <strong>the</strong> action <strong>of</strong> a public <strong>of</strong>ficial in <strong>the</strong> selection process or in contract<br />

execution. It also means entering, on behalf <strong>of</strong> <strong>the</strong> Government, into any contract or<br />

transaction manifestly and grossly disadvantageous to <strong>the</strong> same, whe<strong>the</strong>r or not <strong>the</strong><br />

public <strong>of</strong>ficer pr<strong>of</strong>its or will pr<strong>of</strong>it <strong>the</strong>reby; and similar acts as provided in Republic Act<br />

3019.<br />

d. Fraudulent Practice means a misrepresentation <strong>of</strong> facts in order to influence a<br />

selection process or <strong>the</strong> execution <strong>of</strong> a contract to <strong>the</strong> detriment <strong>of</strong> <strong>the</strong> Procuring<br />

Entity.<br />

e. Head <strong>of</strong> <strong>the</strong> Procuring Entity refers to: (i) <strong>the</strong> head <strong>of</strong> <strong>the</strong> agency or his duly<br />

authorized <strong>of</strong>ficial, <strong>for</strong> national government agencies; (ii) <strong>the</strong> governing board or its<br />

duly authorized <strong>of</strong>ficial, <strong>for</strong> government-owned and/or controlled corporations; or (iii)<br />

<strong>the</strong> local chief executive, <strong>for</strong> local government units. Provided, that in a department,<br />

<strong>of</strong>fice or agency where <strong>the</strong> <strong>procurement</strong> is decentralized, <strong>the</strong> Head <strong>of</strong> each<br />

decentralized unit shall be considered as <strong>the</strong> Head <strong>of</strong> <strong>the</strong> Procuring Entity subject to<br />

<strong>the</strong> limitations and authority delegated by <strong>the</strong> head <strong>of</strong> <strong>the</strong> department, <strong>of</strong>fice or<br />

agency.<br />

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