January 20, 2006

GPPB RESOLUTION NO. 05-06

TO PROVIDE THE EXEMPTION FROM POSTING OF PERFORMANCE SECURITY FOR GOODS PROCURED THROUGH SHOPPING UNDER SECTION 52 (a) OF THE IRR-A OF RA 9184

WHEREAS, EHaDIC

WHEREAS, pursuant to Section 39 of

WHEREAS, the posting of a performance security guarantees the faithful performance of the supplier to indemnify or compensate the Government for any damage or loss due to non-completion of projects or non-performance of contracts;

WHEREAS, the alternative method of Shopping under Section 52 (a) of the

WHEREAS, to require the supplier, specifically selected by the procuring entity from whom the goods shall be directly procured, to still post a performance security in cases where shopping under Section 52 (a) of the

NOW, THEREFORE, premises considered, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to adopt, as WE hereby adopt the rule as to the exemption of suppliers from further posting a performance security in cases where the procurement is done through Shopping under Section 52 (a) of the

This resolution shall take effect immediately.

APPROVED this 20th of January 2006 at Pasig City, Philippines. cACHS