Letter of Intent

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Letter of Intent

Post by mbdr on Thu Apr 16, 2009 11:45 am

Gdam to all!

We have a bidding for Granu Fill Materials for the city's community airport costing 5M+. In IAEB, we require the prospective bidders for a Letter of Intent (LOI) to be submitted on april 13, 2009 (deadline). The schedule dates for the procurement activities of the said requisition are as follows:

Date of Publication/Advertisement- April 3, 2009
deadline for submission of LOI- April 13, 2009
Issuance of Bid Documents- April 20, 2009
Pre-Bid Con- April 20,009
Opening of Bids-May 13, 2009

Two prospective suppliers submitted an LOI to BAC through the Secretariat, Company A submitted LOI on april 13, 2009 but Company B submitted LOI on April 14, 2009. My question is... since the deadline for the submission of LOI is 4/13/09, does company B allowed to buy bid docs ? Is he automatically disqualified in the bidding of the said item due to non submission of LOI on the specified date(deadline of sumbission ) as specified in IAEB adverstised in the newspaper and PHIL GEPS on april 3, 2009?

Sirs, may we hear from your end regarding this matter. thank you and regards.

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Re: Letter of Intent

Post by RDV @ GP3i on Thu Apr 16, 2009 1:08 pm

mbdr wrote:Gdam to all!

We have a bidding for Granu Fill Materials for the city's community airport costing 5M+. In IAEB, we require the prospective bidders for a Letter of Intent (LOI) to be submitted on april 13, 2009 (deadline). The schedule dates for the procurement activities of the said requisition are as follows:

Date of Publication/Advertisement- April 3, 2009
deadline for submission of LOI- April 13, 2009
Issuance of Bid Documents- April 20, 2009
Pre-Bid Con- April 20,009
Opening of Bids-May 13, 2009

The case appears to be procurement of GOODS. In the procurement of GOODS, RA 9184 and its IRR-A do not require the submission of LOI. Interested bidders, after buying the Bid Documents, shall submit the Eligibility requirements and their bids on or before the deadline for submission of the same.

The Rules provide that after the procuring entity receives the bidder's LOI and application for eligibility (applicable for Infra and Consulting Services only), the procuring entity shall issue the eligibility requirements. The bidder shall submit the eligibility envelope on or before a set deadline, afterwards the BAC shall conduct eligibility check on the date fixed for the opening of the eligibility envelope. Only those which pass the eligibility check and/or short-listing will be issued the bidding documents.

Will you be doing the foregoing process? It seems not, because the procurement activities show that after the deadline for the submission of LOI on April 13, the procuring entity will proceed with the issuance of bidding documents after a week, which is on April 20. Another question: What happens between April 13 and April 20? Is there anything that the BAC/TWG and the bidder will be doing during this one-week period?

mbdr wrote:Two prospective suppliers submitted an LOI to BAC through the Secretariat, Company A submitted LOI on april 13, 2009 but Company B submitted LOI on April 14, 2009. My question is... since the deadline for the submission of LOI is 4/13/09, does company B allowed to buy bid docs ? Is he automatically disqualified in the bidding of the said item due to non submission of LOI on the specified date(deadline of sumbission ) as specified in IAEB adverstised in the newspaper and PHIL GEPS on april 3, 2009?

Sirs, may we hear from your end regarding this matter. thank you and regards.

Without considering my answer above, under normal circumstances, the BAC Secretariat should no longer accept the LOI after the deadline. In your case, the BAC Secretariat accepted the LOI even if it was submitted after the deadline. The BAC Secretariat should have stamped the date and time of receipt of the LOI. On the basis of that, the BAC should return the said LOI to the bidder informing the latter that he/she is not qualified to participate in the bidding process because of late submission.

Those are just my honest take on the case.
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Re: Letter of Intent

Post by riddler on Thu Apr 16, 2009 3:46 pm

In addition to, i think the posting requirements for goods under annex "c" of the IRR is only 7 calendar days. Sobra ata sila RDV.

However, i noticed that in infrastructure projects I frequently read in the Newspapers that LOI and Posting of IAEB are being shortened to 7 calendar days, while others in 1o cal days, why is that RDV. I believed that if they lumped it up it should be a minimum of 14 cal days.
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Re: Letter of Intent

Post by RDV @ GP3i on Thu Apr 16, 2009 4:44 pm

ruel t. wrote:In addition to, i think the posting requirements for goods under annex "c" of the IRR is only 7 calendar days. Sobra ata sila RDV.

Actually, di ko na tiningnan yung posting nila. Let us see. Nakalagay ang date of publication/advertisement ay April 3. Let us consider it as the first day of posting na rin. Kung 7 days ang posting, dapat April 10 ang last day ng posting. After last day of posting, maximum na naman na 7 c.d. para sa submission ng LOI, kaya dapat ang last day ng submission ng LOI ay April 17, at hindi April 13. I miss that one, thank you, engr ruel.

ruel t. wrote:However, i noticed that in infrastructure projects I frequently read in the Newspapers that LOI and Posting of IAEB are being shortened to 7 calendar days, while others in 1o cal days, why is that RDV. I believed that if they lumped it up it should be a minimum of 14 cal days.

Tama ka dapat talaga ay 14 calendar days (7 c.d. posting plus 7 c.d. submission ng LOI), pero maximum siguro at hindi minimum. Di nila pwede babaan ang posting period kasi dapat 7 c.d. yan. Ang submission ng LOI naman pwede ba less than 7 c.d? Basahin natin ang provision ng IRR-A:

"21.3.1. For the procurement of infrastructure projects and consulting services, the
interested party shall submit a written LOI together with its application for eligibility, which must be received by the BAC not later than seven (7) calendar days from last date of posting of the Invitation to Apply for Eligibility and to Bid provided in Section 21.2 of this IRR-A.


The IRR provision provided the deadline both to the prospective bidder and the BAC, but the procuring entity, I think, is not precluded from setting an earlier deadline, provided it is clearly indicated in its IAEB. Pero wag naman dapat na binibigyan natin ng napaka-iksing panahon ang prospective bidder na makapag-comply ng eligibility requirements. Kasi papasok na naman ang idea na baka meron collusion dahil merong iba (yung favored ones) na makakapag-submit sa maikling panahon at yung iba naman ay di kaya (yung wala sa favor kuno ng procuring entity).
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Re: Letter of Intent

Post by mbdr on Thu Apr 16, 2009 5:37 pm

"21.3.1. For the procurement of infrastructure projects and consulting services, the
interested party shall submit a written LOI together with its application for eligibility, which must be received by the BAC not later than seven (7) calendar days from last date of posting of the Invitation to Apply for Eligibility and to Bid provided in Section 21.2 of this IRR-A.


Sir, please be informed that this is already a re-bidding. the first bidding was sometime in January 2009 . There was a failure in the 1st bidding due to insufficient stocks requirement as presented in their governor's permit.

Sir na shoot naman namin ang rules d ba as to the schedule of the deadline of submission of LOI. Anyway thanks for your replies. These will serve us as references in our future biddings.

Sana hindi kayu magsawa sa akin. GDPM

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Re: Letter of Intent

Post by riddler on Thu Apr 16, 2009 5:47 pm

Rdv qoute
Actually, di ko na tiningnan yung posting nila. Let us see. Nakalagay ang date of publication/advertisement ay April 3. Let us consider it as the first day of posting na rin. Kung 7 days ang posting, dapat April 10 ang last day ng posting. After last day of posting, maximum na naman na 7 c.d. para sa submission ng LOI, kaya dapat ang last day ng submission ng LOI ay April 17, at hindi April 13. I miss that one, thank you, engr ruel.

Tama ka dapat talaga ay 14 calendar days (7 c.d. posting plus 7 c.d. submission ng LOI), pero maximum siguro at hindi minimum. Di nila pwede babaan ang posting period kasi dapat 7 c.d. yan. Ang submission ng LOI naman pwede ba less than 7 c.d? Basahin natin ang provision ng IRR-A:

"21.3.1. For the procurement of infrastructure projects and consulting services, the
interested party shall submit a written LOI together with its application for eligibility, which must be received by the BAC not later than seven (7) calendar days from last date of posting of the Invitation to Apply for Eligibility and to Bid provided in Section 21.2 of this IRR-A.


What i meant RDV is kasi goods ito, after the last day of posting April 10 di ba dapat pAGKA April 11 eh Issuance of Bidding Docs na? parang sobra ata ang sked nila (April 20). I think it would be better to include the Issuance of Bid documents for goods from the first day of posting until the last day of its issuance or a total of 14 cal days.
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Re: Letter of Intent

Post by RDV @ GP3i on Thu Apr 16, 2009 6:15 pm

ruel t. wrote:
What i meant RDV is kasi goods ito, after the last day of posting April 10 di ba dapat pAGKA April 11 eh Issuance of Bidding Docs na? parang sobra ata ang sked nila (April 20). I think it would be better to include the Issuance of Bid documents for goods from the first day of posting until the last day of its issuance or a total of 14 cal days.

Tama ka, dapat talaga sa first day of posting pa lang (April 3) ay issuance na ng bidding documents, dahil procurement of GOODS ang kanila.

Ang ginawa kasi nila ay nag-require pa ng submission ng LOI, na di naman kailangan, kaya sinabi ko na rin kung merong LOI (INFRA and Consulting Services), ano ang proceso dapat ayun sa IRR-A.

Dahil ang tanong ay kung naresib ang LOI after the deadline, ano ang gagawin nila, kaya sinagot ko na rin.

Delikado lang na magkaroon ng Failure ng Bidding, under Sec. 41, for the reason that the BAC did not follow the required bidding procedure.
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Re: Letter of Intent

Post by mbdr on Thu Apr 16, 2009 9:09 pm

Sir RDV yes nakuha ko na ang mga ponto niyu ni Sir Ruel. We accept that there is again a lapse in our part, requiring them such LOI since goods ang pinag usapan dito. Puydi ba sir... to correct the error (question lang po), the BAC will issue a resolution accepting the LOI of company b kahit late nato (of course justifying their action). Kasi ang BAC accpted the fault and it might come out na isa lang ang bidder pag e disqualify nila ang company B. Parang mawala ang purpose ng competitive bidding.... at SCRB na naman , d ba?

Naku sirs .... I need your stand on this. Thanks

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Re: Letter of Intent

Post by engrjhez® on Fri Apr 17, 2009 12:11 am

mbdr wrote:Sir RDV yes nakuha ko na ang mga ponto niyu ni Sir Ruel. We accept that there is again a lapse in our part, requiring them such LOI since goods ang pinag usapan dito. Puydi ba sir... to correct the error (question lang po), the BAC will issue a resolution accepting the LOI of company b kahit late nato (of course justifying their action). Kasi ang BAC accpted the fault and it might come out na isa lang ang bidder pag e disqualify nila ang company B. Parang mawala ang purpose ng competitive bidding.... at SCRB na naman , d ba?

Naku sirs .... I need your stand on this. Thanks
This is what I think is better. Tutal, LOI is not mandatory if this is procurement of goods (tama ba?), you may proceed disregarding that particular LOI thing (coz it is not required naman in the 1st place).

Granular fill materials are those used for stability of foundations/ground, right? Is this an infra project implemented by administration? or by contract? or simply procurement of construction materials? I don't see kc who will make use of such materials. Paki-clarify. If this is by infra, your schedule may be acceptable (except to the late issuance of bidding docs, which as RDV pointed out, must be available upon 1st day of posting).

Di naman siguro baduy ang Taglish noh? Very Happy
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Re: Letter of Intent

Post by mbdr on Fri Apr 17, 2009 9:58 am

Sir,this is purely procurement of construction materials fo use of the city's community airport.

Buti pwede na ang Taglish para well not find hard to express .... hehehehe hirap ng English sir. hahahaha

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Re: Letter of Intent

Post by RDV @ GP3i on Fri Apr 17, 2009 11:52 am

mbdr wrote:Sir RDV yes nakuha ko na ang mga ponto niyu ni Sir Ruel. We accept that there is again a lapse in our part, requiring them such LOI since goods ang pinag usapan dito. Puydi ba sir... to correct the error (question lang po), the BAC will issue a resolution accepting the LOI of company b kahit late nato (of course justifying their action). Kasi ang BAC accpted the fault and it might come out na isa lang ang bidder pag e disqualify nila ang company B. Parang mawala ang purpose ng competitive bidding.... at SCRB na naman , d ba?

Naku sirs .... I need your stand on this. Thanks

I suggest na mag-issue ng Supplemental/Bid Bulletin ang BAC at ilagay dun sa Bid Bulletin ang mga pagbabago ng schedule pati sa dates. Pwede nyo extend ang issuance ng bidding documents at ang opening date para makapag comply yung isang bidder. Tapos padalhan niyo pareho yung 2 bidder at mandatory na ipost niyo sa PhilGEPS.
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Re: Letter of Intent

Post by mbdr on Sat Apr 18, 2009 9:48 pm

Ok Sir RDV. Thanks for your good suggestion/s. Gdpm.More power!

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