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NFCC is this cumpolsary?

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NFCC is this cumpolsary?

Post by matclem on Thu Sep 23, 2010 3:15 pm

In the ITB bidders are required to submit necessary documentary requirements. One of this is the computation of NFCC, what if the bidder submitted an insufficient NFCC, is that ground for disqualification? How about if they secure a CLC or CDC after the notice of award but they did not submit it during the opening of bids can that be allowed? In the IRR-A of RA9184 section 23.6 (j) bidders are allowed to submit CLC or CDC if the contract is awarded to them. Can they just submit a CLC or CDC as part of their commitment to the project? or NFCC is a must in the bid requirements? NFCC for me, is not a full-proof gauge of bidder's contracting capacity. It is self-serving and can be determined by the bidder through their F/S and K. While, a CDC or CLC locks the bidder to the project and informing the procuring entity of the financial status of the bidder through bank certification or credit line. Which should be the best option?

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Re: NFCC is this cumpolsary?

Post by jcolas on Thu Sep 23, 2010 7:00 pm

Yes, Sir Matclem, NFCC is compulsory. This is one of the Clas "A" Documents required under Section 23.1, Rule VIII of the Revised IRR of RA 9184. The NFCC should be at least equal to the ABC being bid. Ergo if the Bidder submitted an NFCC that is short or less than the ABC of your project, the bidder should be disqualified. If and when the bidder can not submit a computation of his NFCC, he can submit a Credit Line Certificate.
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Re: NFCC is this cumpolsary?

Post by sunriser431 on Thu Sep 23, 2010 7:50 pm

matclem wrote:In the ITB bidders are required to submit necessary documentary requirements. One of this is the computation of NFCC, what if the bidder submitted an insufficient NFCC, is that ground for disqualification?

If a prospective bidder’s NFCC level, after having been computed based on the ITB section 5.5 of the PBDs is equal to the ABC, then said prospective bidder complies with the eligibility criteria, conversely, if not able to comply or fall short of the requirements he is automatically disqualified.

matclem wrote: How about if they secure a CLC or CDC after the notice of award but they did not submit it during the opening of bids can that be allowed?
Failure to submit CLC during the bid opening is ground for disqualification. Section 5.5 of the ITB provides the guidelines, the bidder has the option to submit NFCC or a commitment from a Universal or Commercial Bank to extend a credit line in its favor if awarded the contract for this Project (CLC). Reminder CDC is no longer required in the revised IRR.

matclem wrote: In the IRR-A of RA9184 section 23.6 (j) bidders are allowed to submit CLC or CDC if the contract is awarded to them. Can they just submit a CLC or CDC as part of their commitment to the project? or NFCC is a must in the bid requirements? NFCC for me, is not a full-proof gauge of bidder's contracting capacity. It is self-serving and can be determined by the bidder through their F/S and K. While, a CDC or CLC locks the bidder to the project and informing the procuring entity of the financial status of the bidder through bank certification or credit line. Which should be the best option?
In my observation, you are still using the old IRR-A, the revised IRR has been issued by GPPB Resolution No.03-2009 dated 22 July 2009.
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