Tax Clearance Certificate as a mandatory requirement in Shopping

Good day everyone!

Is the Tax Clearance Certificate (National) a mandatory requirement in Shopping (small value procurement)? I understand it is a central and basic documentary requirement for public/competitive bidding.

Tess wrote:Good day everyone!

Is the Tax Clearance Certificate (National) a mandatory requirement in Shopping (small value procurement)? I understand it is a central and basic documentary requirement for public/competitive bidding.

Section 53. Negotiated Procurement
Negotiated Procurement is a method of procurement of goods, infrastructure projects and consulting services, whereby the procuring entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultantin any of the following cases: .
53.1 xxxx
53.9. Small Value Procurement. Where the procurement does not fall under Shopping in Section 52 of this IRR and the amount involved does not exceed the thresholds prescribed in Annex “H” of this IRR.(a)
53.9.1. The procuring entity shall draw up a list of at least three (3) suppliers, contractors, or consultants of known qualifications which will be invited to submit proposals, in the case of goods and infrastructure projects, or curriculum vitae, in the case of consulting services.(a)
53.9.2. The thresholds prescribed in Annex “H” of this IRR shall be subject to the periodic review by the GPPB. For this purpose, the GPPB shall be authorized to increase or decrease the said amount in order to reflect the changes in
economic conditions and for other justifiable reasons.(n)

If we are to read carefully the above definition of section 53 (including sec 53.9) indicates the advisability for the existence of a registry of suppliers maintained, current and updated by the Procuring Entity. In my opinion, in SVP its mandatory requirements for prospective bidders to have those document (TCC) presented and kept by the PE. If the PE wishes to enter into contract with the suppliers from whom goods are procured it should be in good standing, and have not committed any breach of contract in previous transactions with the PE.The procedures for the conduct of public bidding should be observed. However, the minimum period for each bidding procedure may be reduced, if so required. Hope this would be of help.

Tess wrote:Good day everyone!

Is the Tax Clearance Certificate (National) a mandatory requirement in Shopping (small value procurement)? I understand it is a central and basic documentary requirement for public/competitive bidding.

Hi tess,

the TCC would be an ideal requirement even for SVP. As mentioned by sunriser, maintaining a registry would allow a PE more clout in ensuring that the PE only transacts with suppliers with presumed eligibility. Sad to say however that in agencies not maintaining a registry it might be a challenge to require suppliers to present the TCC (unless perhaps if this is required in the RFQ). It could also be a problem in small municipalities where there are not that many suppliers.

In any case, i also believe that monitoring this TCC is the primary responsibility of the DOF/BIR. I would like to share some unpleasant experience in requiring EFPS (electronic filing) that was mandatory before for businesses which are supposed to file thru the EFPS. I would often encounter suppliers who are actually allowed by the BIR to file thru the manual system. para tuloy kami contrabida. Buti na lang ngayon the PE has the option to allow bidders to submit manually filed ITRs.

Tess wrote:Good day everyone!

Is the Tax Clearance Certificate (National) a mandatory requirement in Shopping (small value procurement)? I understand it is a central and basic documentary requirement for public/competitive bidding.

For shoppping NO, for SVP (sec 53.9) YES

RESOLUTION NO. 09-2009
j. The procuring entity must validate whether it is entering into a contract with a technically, legally and financially capable supplier, contractor or consultant by requiring the submission of relevant documents or through other means.

The IRR, RA 9184 and the Resolution 9-2009 is silent on the issue.

TCC is a post qualification requirement,

That shopping and SVP has no post qualification stage

Therefore it is not mandatory.

And I agree with engrjhez "that it would be a good practice checking and requiring it."

Procurement practitioner additional information, Try this link http://www.gppb.gov.ph/laws_rules/laws/BIR-RR_3-2005.pdf
and this link http://www.gppb.gov.ph/laws_rules/laws/BIR-RMC_16-2005.pdf
and lastly ftp://ftp.bir.gov.ph/webadmin1/pdf/16767EO_No.398.pdf