Section 7Sec./Art. 7

A new section is hereby added after Section 5 of the same Act and numbered as Section 5-A, to read as follows:

"Section 5-A.Direct Negotiation of Contracts. Direct negotiation shall be resorted to when there is only one complying bidder left as defined hereunder:

"(a) If, after advertisement, only one contractor applies for prequalification and it meets the prequalification requirements, after which it is required to submit a bid/proposal which is subsequently found by the agency/local government unit (LGU) to be complying.

"(b) If, after advertisement, more than one contractor applied for prequalification but only one meets the prequalification requirements, after which it submits bid/proposal which is found by the agency/LGU to be complying.

"(c) If, after prequalification of more than one contractor, only one submits a bid which is found by the agency/LGU to be complying.

"(d) If, after prequalification, more than one contractor submit bids but only one is found by the agency/LGU to be complying:Provided, That, any of the disqualified prospective bidder may appeal the decision of the implementing agency/LGUs prequalification bids and awards committee within fifteen (15) working days to the head of the agency, in case of national projects or to the Department of the Interior and Local Government, in case of local projects from the date the disqualification was made known to the disqualified bidder: Provided, furthermore, That the implementing agency/LGUs concerned should act on the appeal within forty-five (45) working days from receipt thereof."