Untitled: Who May Be Eligible To Participate in A Public Bidding For Infrastructure Projects?

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coa.gov.ph/phocadownload/userupload/ABC-Help/Updated_Guidelines_in_the_Audit_of_Procurement/Annex
7/section3 part1-6.htm

Who may be eligible to participate in a public bidding for infrastructure projects?


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The following persons/entities shall be allowed to participate in the bidding: (IRR-A


Section 23.11.2.1)

1. Duly licensed Filipino citizens/sole proprietorships;

2. Partnerships duly organized under the laws of the Philippines and of which at
least seventy-five percent (75%) of the interest belongs to citizens of the
Philippines;

3. Corporations duly organized under the laws of the Philippines and of which at
least seventy five (75%) of the outstanding capital stock belongs to citizens of the
Philippines;

4. Persons/entities forming themselves into a joint venture, i.e., a group of two (2) or
more persons/entities that intend to be jointly and severally responsible or liable
for a particular contract, provided that:9

Why is that?
Why do we require that the bidder's largest single contract be at least
50% of the ABC of the contract to be bid?

We do this because we want to be assured that the prospective bidder has the
technical and financial capability to undertake the contract to be bid.

a. In accordance with Letter of Instructions No. 630 (LOI 630), Filipino


ownership or interest in the joint venture concerned shall be at least
seventy-five percent (75%); and

b. In determining the eligibility of the joint venture, the principle of “collective


compliance” will be applied to its members/principals in the sense that each
of the entities of the joint venture must submit all of the documents that are
required to establish eligibility, although the non-compliance of one
member/principal may be compensated by the compliance of another
member/principal;

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5. Cooperatives duly registered with Cooperative Development Authority.

All these entities must have:

1. A license by the PCAB, in accordance with the provisions of R.A. 4566.


(IRR-A Section 23.11.2.2)

2. The experience of having satisfactorily completed a single contract similar


to that to be bid, and whose value, adjusted to current prices using the
National Statistics Office (NSO) consumer price indices available at the
PhilGEPS website, is at least fifty percent (50%) of the ABC of the contract
to be bid. (IRR-A Section 23.11.2.3)

What do we mean?
When is a contract “similar” to another?

A contract is similar to the contract to be bid if it has the same major categories
of work, such as in both bridges and fly-overs.

Note, however, that Small A and Small B contractors without similar experience
on the contract to be bid may be allowed to bid if the cost of such contract is not
more than fifty percent (50%) of the range of contract cost allowed for them. The
ARCC per PCAB registration of contractor, as provided in PCAB Board
Resolution No. 001, series of 2004 and, GPPB Resolution No. 012-2004, dated
August 20, 2004, is as follows:

Registration Particulars

Allowable Range of Contract Cost (in Million Pesos)

Prior and up CFYs 2004- CFYs 2006- CFYs 2008-


to CFY 2003- 2005 & 2005- 2007 & 2007- 2009 & 2009-
2004 (For 2006 (For 2008 (For 2010 (For
projects projects projects projects
advertised for advertised for advertised for advertised for
bidding prior bidding from bidding from bidding from
and to June July 1, 2004 to July 1, 2006 to July 1, 2008 to
Category 30, 2004) June 30, 2006) June 30, 2008) June 30, 2010)

Small A Up to 0.5 Up to 0.5 Up to 0.5 Up to 0.5

Small B Up to 3 Up to 10 Up to 20 Up to 30

Medium Up to 15 Up to 50 Up to 100 Up to 150


A

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Medium Up to 30 Up to 100 Up to 200 Up to 300
B

Large A Up to 50 Up to 150 Up to 300 Up to 500

Large B Less than or Less than or Less than or Less than or


above 50 above 150 above 300 above 500

________________________________________________
8 For FAPs, reference should be made to the appropriate standard bidding documents
for the project to determine the appropriate qualification requirements of a bidder.
9
For FAPs, any firm may bid independently or in joint venture confirming joint and
several liability, either with domestic firms and/or with foreign firms, but the IFIs
generally do not accept conditions of bidding which require mandatory joint ventures or
other forms of mandatory association between firms.

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