The conferment of award is based on the recommendations made by the PBAC to the LCE, as clearly stated in the PBAC Evaluation Report. The contract is awarded to the best complying bid, i.e., the bid that will render the required services at the least cost and therefore, is most advantageous to the government. The award of contract should be made by the LGU concerned within the period of bid validity, which is within 180 calendar days of bid opening. In the event when extension for bid validity is requested by the LGU due to justifiable reasons, bidders have the right to refuse to grant such an extension without forfeiting their bid security.
Upon receipt of the notice of award, the winning bidder must, within 30 calendar days comply with all the documentary requirements of the contract, which may include the following:
a. Prescribed performance security
b. Proof of commitment of the required equity contribution
c. Proof of firm commitments from a reputable financial institution to provide sufficient credit lines to cover the total estimated cost of the project
d. In case the winning bidder is a consortium, an agreement indicating that the members are jointly and severally liable for the obligations of the project proponent under the contract
e. In case the winning bidder is a Special Purpose Company formed specifically to undertake the project, proof of registration in accordance with Philippine laws
f. Other such requirements as may be imposed by the LGU.
In the event that these requirements are not met within the prescribed period, the bid security of the winning project proponent shall be confiscated. It should be noted that as long as there is at least one complying bidder, a contract may be awarded. However, if there is only one complying bidder, direct negotiation may be undertaken by the LGU, as long as the process conforms with Section 9.1, Rule 9 of RA 7718.
Prior to project implementation, the LGU may also opt for rebidding under the following circumstances:
a. Refusal of the complying and qualified bidders to execute the contract
b. Failure of bidding, when no complying bids are received