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Place of Business

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Place of Business

Post by bogkalabog on Thu Dec 02, 2010 2:00 pm


During the conduct of post-qualification, the BAC noticed that the bidder with the lowest bid submitted a Mayor's Permit where its Plant Office is located while other submitted documents like Philgeps Registration Tax Clearance and DTI showed that its Head Office is situated in another city. The BAC cited ITB Sec 12.1 (a) (ii) which provides that "Mayor's Permit issued by the city or municipality where the principal place of business of the prospective bidder is located". Having found this, the BAC post-disqualified the said bidder. Is the BAC correct in its decision?
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Re: Place of Business

Post by sunriser431 on Thu Dec 02, 2010 6:15 pm

bogkalabog wrote:
During the conduct of post-qualification, the BAC noticed that the bidder with the lowest bid submitted a Mayor's Permit where its Plant Office is located while other submitted documents like Philgeps Registration Tax Clearance and DTI showed that its Head Office is situated in another city. The BAC cited ITB Sec 12.1 (a) (ii) which provides that "Mayor's Permit issued by the city or municipality where the principal place of business of the prospective bidder is located". Having found this, the BAC post-disqualified the said bidder. Is the BAC correct in its decision?
In reference to the bold underline text, try this LINK opinion of the GPPB. Hope it might help. bounce
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Re: Place of Business

Post by fe a. araya on Thu Dec 02, 2010 6:32 pm

I think, if the BAC has valid reason for post-disqualifying the lowest bidder, such as when the Bid Data Sheet (BDS) specifically required permits from the place where the project is located, then the action of the BAC is in order. If it did not state in the BDS, then I don't think it is a sufficient ground for disqualification.
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Re: Place of Business

Post by bogkalabog on Thu Dec 02, 2010 9:07 pm

sir sunriser431, i've read the contents of that NPM but i think it referred to an infra project. The matter in contention is on goods. The bidder has a plant where it manufacture the goods to be supplied but has its head office in another city,and yet it submitted a Mayor's Permit where its plant is located.
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Re: Place of Business

Post by engrjhez® on Fri Dec 03, 2010 4:40 pm

bogkalabog wrote:
During the conduct of post-qualification, the BAC noticed that the bidder with the lowest bid submitted a Mayor's Permit where its Plant Office is located while other submitted documents like Philgeps Registration Tax Clearance and DTI showed that its Head Office is situated in another city. The BAC cited ITB Sec 12.1 (a) (ii) which provides that "Mayor's Permit issued by the city or municipality where the principal place of business of the prospective bidder is located". Having found this, the BAC post-disqualified the said bidder. Is the BAC correct in its decision?

To validly apply the rule, we should look into other documents that might suggest where the principal place of business is. If in the Tax Clearance, the last three numbers in the 12-digit TIN is 000, then the business and address is in its principal state. Else, it must have been a "branch" or something hence, secondary place of business. If it has been evident that the Mayor's Permit was not from the principal place of business, then the BAC may have done the right technical decision. Smile

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Re: Place of Business

Post by bogkalabog on Fri Dec 03, 2010 7:30 pm

engrjhez® wrote:.
To validly apply the rule, we should look into other documents that might suggest where the principal place of business is. If in the Tax Clearance, the last three numbers in the 12-digit TIN is 000, then the business and address is in its principal state. Else, it must have been a "branch" or something hence, secondary place of business. If it has been evident that the Mayor's Permit was not from the principal place of business, then the BAC may have done the right technical decision. Smile[/color]

Thank you sir, you are always dependable :-)
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