Amended Eligibility Requirement based on Experience

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Amended Eligibility Requirement based on Experience

Post by RDV @ GP3i on Wed Apr 01, 2009 12:11 pm

This is in answer to Mr. Manuel a Dioquino's request, which he posted in the GPPB Shoutbox: “pls publish the specific amendment regarding the reduced requirements for bidders of COMELEC AUTOMATION BIIDDING as publieched (sic) in the newspapers recently.thanx

The specific amendment regarding what Mr. Dioquino mentioned as the “reduced requirements for bidders of COMELEC AUTOMATION” was by virtue of GPPB Resolution No. 07-2006 dated 20 January 2006 amending Item 2, Sec. 23.11.1 of IRR-A on the eligibility criteria for the procurement of goods. The amended provision now reads as follows:http://www.gppb.gov.ph/issuances/Resolutions/2006/07-2006.pdf

"Sec. 23.11. Eligibility Criteria

23.11. For the procurement of goods

2. The prospective bidder must have an experience of having completed within the period specified in the IAEB concerned a single contract that is similar to the contract to be bid, and whose value, adjusted to current prices using the wholesale consumer price index, must be at least fifty percent (50%) of the approved budget for the contract to be bid.

However, (a) when failure of bidding has resulted because no single bidder has complied with the said requirement; or (b) imposing the same will likely result to a monopoly that will defeat the purpose of public bidding, the procuring entity, in lieu of the above, may instead require the following:

a) The prospective bidder should have completed at least three similar contracts and the aggregate contract amounts should be equivalent to at least fifty percent (50%) of the ABC of the project to be bid;

b) The largest of these similar contracts must be equivalent to at least twenty-five percent (25%) of the ABC of the
project to be bid; and

c) The business/company of the prospective bidder willing to participate in the bidding has been in existence for at least three (3) consecutive years prior to the advertisement and/or posting of the IAEB.

For this purpose, the similar contracts mentioned under 2(a) and 2(b) above must have been completed within the period specified in the Invitation to Apply for Eligibility and to Bid. The procuring entity can clarify in the bidding documents the similar projects that can be considered in the bidding.

Provided, further, that when the item/good to be procured is novel or its procurement is otherwise unprecedented or is unusual, and compliance to the requirement on a largest single similar contract is impracticable, the prospective bidder will only have to comply with requirement (c) above
.
"

While the original requirement of a single largest completed contract that is similar to the contract to be bid, adjusted for current prices, which is equivalent to at least 50% of the ABC of the contract to be bid, is retained under the amended experience require, the procuring entity is, however, given the option to require a less stringent experience requirement, under any of the 2 situations:

1) when failure of bidding occurs because no bidder can comply with the requirement, or

2) in order to prevent a likely result of a monopoly.

From what I heard, it is the second situation that COMELEC used in justifying the lowering of the experience requirement which is allowed under that amended provision.
http://www.comelec.gov.ph/invi2bid/2009/Bid_Bulletin_No3_032609.html
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Re: Amended Eligibility Requirement based on Experience

Post by mealigan on Fri Apr 24, 2009 5:13 pm

Here is a case which just came in:
A government agency wants to bid out consulting services, e.g. engineering surveys. The agency's BAC disqualified bidders because they required them to have an experience as consultant for the last 3 years, of at least one (1) work of a nature and complexity similar to the works under the contract to be bid the cost of which should be at least 50% of the Approved Budget for the Contract.
The TWG objected to the disqualification since the PBD does not set any requirement of this sort for consulting services, but he was over ruled.

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Re: Amended Eligibility Requirement based on Experience

Post by RDV @ GP3i on Fri Apr 24, 2009 5:42 pm

mealigan wrote:Here is a case which just came in:
A government agency wants to bid out consulting services, e.g. engineering surveys. The agency's BAC disqualified bidders because they required them to have an experience as consultant for the last 3 years, of at least one (1) work of a nature and complexity similar to the works under the contract to be bid the cost of which should be at least 50% of the Approved Budget for the Contract.
The TWG objected to the disqualification since the PBD does not set any requirement of this sort for consulting services, but he was over ruled.

Since the TWG is (only) assisting the BAC, the BAC has the final say insofar as the procurement process prior to its recommendation to the HOPE.

The TWG may be correct for saying that the PBD did not set any requirement in terms of experience, but, maybe, the intention was really to require at least 3 years experience and with at least one (1) work of the nature and complexity similar to the project equivalent to at least 50% of the ABC.

The PBD on Consulting Services, specifically the Eligibility Documents (ED), has the following provision/requirement under Item 2.2 of Eligibility Requirements, Class A documents:

"Technical Documents

(a.6) Statement of the prospective bidder of all its ongoing and completed government and private contracts within the relevant period specified in the EDS, where applicable, including contracts awarded but not yet started, if any. The statement shall state for each contract whether it is ongoing, completed or awarded but not yet started. The statement shall include, for each contract, the following:

(i) the name and location of the contract;
(ii) date of award of the contract;
(iii) type of consulting services;
(iv) amount of contract;
(v) contract duration; and
(vi) certificate of satisfactory completion issued by the client, in the case of a completed contract
;


The required experience, which should have been indicated in the Eligibility Data Sheet or EDS, may have been overlooked. But if there really is such a requirement, then the procuring entity should not be estopped from requiring the same.

However, I think, the proper way of doing it, since it was already opening of the eligibility requirement, is for the BAC or HOPE to declare a failure of bidding. That way the particular bidder or bidders, who were disqualified, are also not prejudiced by the failure of the BAC/procuring entity to correctly reflect the requirement in the PBDs.

During the re-bidding, those which were disqualified can still participate. We avoid also a situation in which the BAC could be accused of belatedly requiring that particular experience in order to favor a particular bidder.
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Re: Amended Eligibility Requirement based on Experience

Post by mealigan on Sat Apr 25, 2009 12:47 pm

Actually, the BAC declared a failure of bidding since nobody qualified based on the add'l requirement which the BAC included in the EDS, i.e. single largest completed contract that is similar to the contract to be bid, adjusted for current prices, which is equivalent to at least 50% of the ABC of the contract to be bid.
The point of the TWG is that this specific requirement is true only to goods and civil works but not to consulting services since there is no specific provision in the IRR that such is required of the bidders for consulting services. ABC for the project is P 20 MM.
Bidders for this particular project (cadastral survey) are geodetic engineers / surveying firms. Nobody among the bidders is qualified unless new bidders will have the required experience and corresponding project cost. The TWG is anticipating that the contract can not be implemented unless a very big surveying firm enters the bidding.
This is the first time that cadastral surveys are bidded out by regional offices since the 1990s when the last cadastral surveys have been made. The order to conduct cadastral surveys was made only last year hence this particular case might have been overlooked. We examined the provision of RA 9184 and its IRR but could not find the provision which requires that for consulting services, the single largest completed contract that is similar to the contract to be bid, adjusted for current prices, should be equivalent to at least 50% of the ABC of the contract to be bid..
We find it odd that for consulting services, the IRR is silent on this particular requirement. Might it be that because of the wide scope of consulting services, putting the requirement of a 50 % equivalent completed contract for the last three years might not be applicable in all cases of consulting services because this might be too stringent.
Or could it also be that the requirement is only for a similar/related experience of the consultant regardless of the amount involved because that is what is required during the short listing.
Hence, this requirement has not been explicitly stated.
Can this issue be addressed in the proposed OneIRR? The proposed IRR also does not have this requirement for consulting services.

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Re: Amended Eligibility Requirement based on Experience

Post by RDV @ GP3i on Mon Apr 27, 2009 9:54 am

mealigan wrote:Actually, the BAC declared a failure of bidding since nobody qualified based on the add'l requirement which the BAC included in the EDS, i.e. single largest completed contract that is similar to the contract to be bid, adjusted for current prices, which is equivalent to at least 50% of the ABC of the contract to be bid.
The point of the TWG is that this specific requirement is true only to goods and civil works but not to consulting services since there is no specific provision in the IRR that such is required of the bidders for consulting services. ABC for the project is P 20 MM.
Bidders for this particular project (cadastral survey) are geodetic engineers / surveying firms. Nobody among the bidders is qualified unless new bidders will have the required experience and corresponding project cost. The TWG is anticipating that the contract can not be implemented unless a very big surveying firm enters the bidding.
This is the first time that cadastral surveys are bidded out by regional offices since the 1990s when the last cadastral surveys have been made. The order to conduct cadastral surveys was made only last year hence this particular case might have been overlooked. We examined the provision of RA 9184 and its IRR but could not find the provision which requires that for consulting services, the single largest completed contract that is similar to the contract to be bid, adjusted for current prices, should be equivalent to at least 50% of the ABC of the contract to be bid..
We find it odd that for consulting services, the IRR is silent on this particular requirement. Might it be that because of the wide scope of consulting services, putting the requirement of a 50 % equivalent completed contract for the last three years might not be applicable in all cases of consulting services because this might be too stringent.
Or could it also be that the requirement is only for a similar/related experience of the consultant regardless of the amount involved because that is what is required during the short listing.
Hence, this requirement has not been explicitly stated.
Can this issue be addressed in the proposed OneIRR? The proposed IRR also does not have this requirement for consulting services.

TRUE, engr mealigan. The IRR is silent on the single largest contract for consulting services. I would agree to your proposal, to prevent possible abuses by procuring entities by including additional experience requirement which would limit participation to only big firms to the disadvantaged of individuals/partnerships, to consider clarifying it the draft IRR. (I just hope it is not yet too late for possible inclusion in the final draft.)
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