Competitive Bidding

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Competitive Bidding

Post by jcolas on Wed Nov 17, 2010 1:06 pm

What Does "patently insufficient means?" Is an NFCC that is way below the ABC be considered patently insufficient? Can the BAC, during post-qualification stage, ask the supplier to submit another NFCC that is more or less equal the ABC and pass it as part of the post-qualification process?
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Re: Competitive Bidding

Post by engrjhez® on Thu Nov 18, 2010 4:12 am

jcolas wrote:What Does "patently insufficient means?" Is an NFCC that is way below the ABC be considered patently insufficient? Can the BAC, during post-qualification stage, ask the supplier to submit another NFCC that is more or less equal the ABC and pass it as part of the post-qualification process?
Patently insufficient means that a deficiency exists and a clear evidence of its deficiency is incontestable, and that there are no explicit ways of altering the fact(s) presented by the document itself. A non-complying (insufficient) NFCC cannot be directly considered as "patently insufficient" because the law provides an alternative. In the deficiency of NFCC computation, a Credit Line Certificate (CLC) may take its place as a requirement. NFCC/CLC being part of the eligibility requirements, cannot be asked to be improved during post-qualification. But should the insufficiency in NFCC (as seen in eligibility check) clearly had the absence of CLC to serve the purpose of checking the liquidity of a bidder, then it may be considered "patently insufficient" at that instant. Smile
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Re: Competitive Bidding

Post by jcolas on Thu Nov 18, 2010 7:02 am

"Engrjhez wrote:
NFCC/CLC being part of the eligibility requirements, cannot be asked to be improved during post-qualification.
And that for the BAC to require the bidder to submit an additional supporting document during bid evaluation stage is a violation of Section 32 of the IRR, Am I right Sir Engrjhez?
In the instant case, can the BAC Claim that their move to ask for another NFCC that is compliant to the law a part of post qualification, as they claim that the first NFCC which the bidder submitted does not reflect the true financial status of the bidder. They further claimed that the bidder's financial status as reflected in his ITR which is way above the ABC reflects the true and correct financial status of the bidder. What is your idea on the matter?
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Re: Competitive Bidding

Post by RDV @ GP3i on Thu Nov 18, 2010 12:23 pm

jcolas wrote:"Engrjhez wrote:
NFCC/CLC being part of the eligibility requirements, cannot be asked to be improved during post-qualification.
And that for the BAC to require the bidder to submit an additional supporting document during bid evaluation stage is a violation of Section 32 of the IRR, Am I right Sir Engrjhez?
In the instant case, can the BAC Claim that their move to ask for another NFCC that is compliant to the law a part of post qualification, as they claim that the first NFCC which the bidder submitted does not reflect the true financial status of the bidder. They further claimed that the bidder's financial status as reflected in his ITR which is way above the ABC reflects the true and correct financial status of the bidder. What is your idea on the matter?

A computation by bidder of his NFCC (if that is the one submitted by the bidder instead of a CLC) should show that it should at least be equal to the ABC. It is below the ABC, then it could be considered as patently insufficient.

The BAC, during post-qualification, may only ask for additional documents for the purpose of validating the documents/statements already submitted but not as a replacement (or improvement) of what has already been submitted and subjected to the eligibility check and to the preliminary examination of bids because that is considered an improvement of the bidder's bid. During eligibility check, if the NFCC computation showed that it is less than the ABC, it could already be considered as patently insufficient which could already be used as basis to declare the bidder ineligible during bid opening. If, however, the computation showed that the NFCC is NOT less than the ABC; hence, it could not be considered as patently insufficient, during post-qualification the BAC will have to verify and validate the computation made by the bidder.

I just wonder how the ITR could be used in determining the financial status or the net financial contracting capacity (NFCC) of the bidder. The formula for NFCC is: [(Current Assets minus Current Liabilities) x K] minus Value of all outstanding or uncompleted portions of projects under ongoing contracts, including contracts yet to be started.

Current Assets and Current Liabilities could be verified against the Audited Financial Statement of the bidder submitted as part of the eligibility requirements. The value of all ongoing/awarded but not yet started projects could be verified against the Statement of all Completed, Ongoing, and Awarded but not yet started projects, which is also part of the eligibility requirements. Those documents are already sufficient for the BAC to make its own computation of the NFCC during post-qualification. The Income Tax Returns (ITR) has nothing to do with the computation of the NFCC.

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Re: Competitive Bidding

Post by jcolas on Fri Nov 19, 2010 7:23 am

Thank you Sir Engrjhez and Sir RDV for the inputs.
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Re: Competitive Bidding

Post by edprintshoppe on Wed Jul 13, 2011 1:49 am

Greetings.. . .PLEASE assist how would i resolve this issues/concerns (same predicament on modified data) we participated a 4000 copies printing of school paper bidding in a certain Gov't School.WE bid at Php142K log as lowest bid and 2nd at Php154K plus 450copies free. The BAC mentioned that they would likely consider the free copies w/ value (and deduct it on their bid???? ) thus,would likely turn us into highest bidder then. it was even seconded by one of the BAC member that.., it is a marketing strategy. With this situation, how can i present my stand to defend my bid and on what particular provision i'll quote for their basis of evaluation on their possible cause of action? they have done this on previous bidding already. . . scratch

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Re: Competitive Bidding

Post by ikuz23 on Wed Jul 13, 2011 4:25 pm

good day,
you are right sir, it is a marketing strategy. but the question is why would they include free copies? but instead, they concentrate on the no. of copies in the said bidding? maybe the 2nd bidder wanted to play safe on their bid in order to catch the attention of the bac (like, wow! daming freebies). in my personal opinion, the award must be given to lowest calculated bidder. what was posted in ITB is only 4,000 copies, no more, no less. i mean freebies are only just freebies (no value), they will not be subject for computation of what the supplier had offered. what must the 2nd bidder had done is that they place bid amount minus freebies, I'm sure it will lower their bid with a great chance of winning the said project. this will be done during post qual. I'm sorry i cant find any legal basis on the IRR. just an opinion sir. Wink
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Re: Competitive Bidding

Post by sunriser431 on Wed Jul 13, 2011 9:16 pm

edprintshoppe wrote:Greetings.. . .PLEASE assist how would i resolve this issues/concerns (same predicament on modified data) we participated a 4000 copies printing of school paper bidding in a certain Gov't School.WE bid at Php142K log as lowest bid and 2nd at Php154K plus 450copies free. The BAC mentioned that they would likely consider the free copies w/ value (and deduct it on their bid???? ) thus,would likely turn us into highest bidder then. it was even seconded by one of the BAC member that.., it is a marketing strategy. With this situation, how can i present my stand to defend my bid and on what particular provision i'll quote for their basis of evaluation on their possible cause of action? they have done this on previous bidding already. . . scratch
From the facts presented, it appears the unit cost is determinable at P38.50 per copy (154,000.00/4000), from here on the total value of the freebies can now be determine to cost at 17,325.00 (P38.50*450). After taking into consideration the value of the freebies, it appears the adjusted total bid price would be now value at P136,675.00 (P154,000.00-17,325.00) and could now advance to the post qualification stage. In section 28.3(b) of the PBDs allows the BAC to consider the arithmetical corrections to identify the Lowest Calculated Bid. bounce
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Re: Competitive Bidding

Post by RDV @ GP3i on Wed Jul 13, 2011 10:39 pm

sunriser431 wrote:
edprintshoppe wrote:Greetings.. . .PLEASE assist how would i resolve this issues/concerns (same predicament on modified data) we participated a 4000 copies printing of school paper bidding in a certain Gov't School.WE bid at Php142K log as lowest bid and 2nd at Php154K plus 450copies free. The BAC mentioned that they would likely consider the free copies w/ value (and deduct it on their bid???? ) thus,would likely turn us into highest bidder then. it was even seconded by one of the BAC member that.., it is a marketing strategy. With this situation, how can i present my stand to defend my bid and on what particular provision i'll quote for their basis of evaluation on their possible cause of action? they have done this on previous bidding already. . . scratch
From the facts presented, it appears the unit cost is determinable at P38.50 per copy (154,000.00/4000), from here on the total value of the freebies can now be determine to cost at 17,325.00 (P38.50*450). After taking into consideration the value of the freebies, it appears the adjusted total bid price would be now value at P136,675.00 (P154,000.00-17,325.00) and could now advance to the post qualification stage. In section 28.3(b) of the PBDs allows the BAC to consider the arithmetical corrections to identify the Lowest Calculated Bid. bounce

While arithmetical corrections are allowed, but generally these corrections are only for computational errors and omissions to enable proper comparison of all eligible bids. Se. 32.2.1(b) of the IRR on arithmetical corrections "may also consider bid modifications if expressly allowed in the Bidding Documents. Any adjustments shall be calculated in monetary terms to determine calculated prices." The situation of the 2nd lowest bidder as read may fall on this particular provision. The BAC, therefore, can only apply its ruling if it is expressly allowed in the Bidding Documents, otherwise, it has no basis to consider the freebies over and above the minimum requirement of 4000 copies as an arithmetical correction. I am of the opinion, therefore, that what the BAC did is not in accordance with the IRR and its bidding documents if it was not expressly allowed in the bid docs.

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Re: Competitive Bidding

Post by sunriser431 on Thu Jul 14, 2011 7:25 pm

RDV @ GP3i wrote:
sunriser431 wrote:
edprintshoppe wrote:Greetings.. . .PLEASE assist how would i resolve this issues/concerns (same predicament on modified data) we participated a 4000 copies printing of school paper bidding in a certain Gov't School.WE bid at Php142K log as lowest bid and 2nd at Php154K plus 450copies free. The BAC mentioned that they would likely consider the free copies w/ value (and deduct it on their bid???? ) thus,would likely turn us into highest bidder then. it was even seconded by one of the BAC member that.., it is a marketing strategy. With this situation, how can i present my stand to defend my bid and on what particular provision i'll quote for their basis of evaluation on their possible cause of action? they have done this on previous bidding already. . . scratch
From the facts presented, it appears the unit cost is determinable at P38.50 per copy (154,000.00/4000), from here on the total value of the freebies can now be determine to cost at 17,325.00 (P38.50*450). After taking into consideration the value of the freebies, it appears the adjusted total bid price would be now value at P136,675.00 (P154,000.00-17,325.00) and could now advance to the post qualification stage. In section 28.3(b) of the PBDs allows the BAC to consider the arithmetical corrections to identify the Lowest Calculated Bid. bounce
While arithmetical corrections are allowed, but generally these corrections are only for computational errors and omissions to enable proper comparison of all eligible bids. Se. 32.2.1(b) of the IRR on arithmetical corrections "may also consider bid modifications if expressly allowed in the Bidding Documents. Any adjustments shall be calculated in monetary terms to determine calculated prices." The situation of the 2nd lowest bidder as read may fall on this particular provision. The BAC, therefore, can only apply its ruling if it is expressly allowed in the Bidding Documents, otherwise, it has no basis to consider the freebies over and above the minimum requirement of 4000 copies as an arithmetical correction. I am of the opinion, therefore, that what the BAC did is not in accordance with the IRR and its bidding documents if it was not expressly allowed in the bid docs.
I have no problem with the facts presented, it only shows and proves adjustment can be made but of course subject to the condition set in the BDS ITB clause 28.3(b). anyway its up to "edprintshoppe" in providing us additional information regarding the issues and concern. Peace Smile
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Re: Competitive Bidding

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