SM Land VS Bcda
SM Land VS Bcda
SM Land VS Bcda
BCDA
G.R. No. 203655
Facts:
The dispute involves an unsolicited proposal from petitioner SM Land, Inc. (SMLI) to develop
the multi-billion-peso Bonifacio South Property in Bonifacio Global City. In January 2013,
SMLI sued respondent Bases Conversion and Development Authority (BCDA) for supposedly
changing the negotiation rules from a competitive challenge to public bidding, when the former
was already well into talks with the latter over its proposal. According to SMLI, BCDA had
violated a contract by doing so. In its Decision dated August 13, 2014, the Court ordered BCDA
and its president to subject SMLI’s unsolicited proposal to a competitive challenge. It is this
Decision that is placed before the Court for reconsideration.
Issues:
1. Can SMLI assail the decision of the BCDA to ignore its submitted proposal under its
Competitive Challenge despite compliance with the rules for the disposal of the property
in question?
2. Can SMLI invoke the application of the alter ego doctrine when the BCDA
recommended to the Office of the President that the SMLI submitted bid proposal under
BCDA’s Competitive Challenge be totally ignored?
RULING:
1. Yes. SMLI has the right to a completed competitive challenge pursuant to the NEDA
Joint Venture Guidelines and the Certification issued by the BCDA.
Under the Administrative Code of 1987, acts of the President providing for rules of a
general or permanent character in implementation or execution of constitutional or
statutory powers shall be promulgated in Executive Orders. The NEDA Joint Venture
Guidelines and the Competitive Challenge are incorporated in presidential issuances and
officers of NEDA and BCDA were likewise authorized by the President to undertake
steps to carry out the tasks.
2. Yes. In this particular case the executive power to issue rules and regulations on
procurement has been delegated to the President’s alter egos, partcularly to NEDA and
BCDA. BCDA can no longer renege on submitted proposal of SMLI under its
Competitive Challenge. By allowing SMLI, to submit “voluntary and unconditional
proposal” to improve the original offer, BCDA is now precluded from changing the rules
it earlier promulgated. SMLI was led to believe that BCDA has been duly authorized to
act on behalf of the Office of the President.