Determination of the Lowest Calculated and Responsive Bid

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Determination of the Lowest Calculated and Responsive Bid

Post by meijunji on Fri Apr 22, 2011 8:27 pm

Hi i would like to inquire, how to determine the lowest calculated and responsive bid, especially in the case of bidding of security services

My friend in one particular bidding stated that, there is no prescribed template provided by BAC for the presentation of the cost distribution for security services. The members of the BAC only said that the presentation should be "more or less patterned with PADPAO template".

Because of the instruction in the pre-bid conference, two bidders claim that they should be proclaimed the LCRB, here are the issues:

(1) Bidder A (2)Bidder B
XXX------1,000 XXX---------1,000
XXX------1,000 XXX---------1,000
Uniform Allowance (RA 5487)----100 None

TOTAL Cost to GUard------ 2,100 TOTAL-------2,000
Admin Overhead 100 Admin------- 160
VAT---------- 12 VAT--------- 19.20
TOTAL---------- 2,212 TOTAL------ 2,179.20

In view of the foregoing, Bidder B is the Lowest Calculated Bid but Bidder A contested that the reason why Bidder B was LCB was because no uniform allowance is given pursuant to RA 5487 (uniform allowance). Should there have been a uniform allowance in Bidder B's Bid proposal, Bidder A should be declared LCB.

Furthermore, Bidder A explained that if Bidders A and B, assuming that cost distribution is the same, and the point of comparison is the Admin Overhead, Bidder A should be LCB.

Is the claim of Bidder A valid, in this particular case, what should the BAC Members do? What should be done to put the bidders in equal footing?

Hoping you answer my queries, thank you very much! Smile

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Re: Determination of the Lowest Calculated and Responsive Bid

Post by sunriser431 on Fri Apr 22, 2011 10:29 pm

For future reference in the preparation of the Technical requirements for security services. We had previous forum thread discussion, click this LINK bounce
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Re: Determination of the Lowest Calculated and Responsive Bid

Post by riddler on Fri Apr 22, 2011 11:08 pm

sunriser431 wrote:For future reference in the preparation of the Technical requirements for security services. We had previous forum thread discussion, click this LINK bounce

hi sunriser. 'was following the thread you gave to mejunji.. i just noticed that there is no allowance for profit for the procurement of security services, is the profit (how much %?) already included in the Administrative Overhead Margin? Very Happy
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Re: Determination of the Lowest Calculated and Responsive Bid

Post by meijunji on Sat Apr 23, 2011 9:26 pm

sunriser431 wrote:For future reference in the preparation of the Technical requirements for security services. We had previous forum thread discussion, click this LINK bounce

Thank you sir, sunriser. The ambiguity in the instructions in the pre-bid caused different interpretation in the distribution of bid proposal because of the statement "more or less patterned to PADPAO".

But if only the admin overhead was to be followed, and assuming everything is treated the same, bidder A will win. Bidder B however will be the lowest calculated bid.

What we are suggesting is the recomputation of the bid distribution so that all factors to be considered are the same for both bidders.

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Re: Determination of the Lowest Calculated and Responsive Bid

Post by sunriser431 on Mon Apr 25, 2011 5:16 pm

riddler wrote:
sunriser431 wrote:For future reference in the preparation of the Technical requirements for security services. We had previous forum thread discussion, click this LINK bounce

hi sunriser. 'was following the thread you gave to mejunji.. i just noticed that there is no allowance for profit for the procurement of security services, is the profit (how much %?) already included in the Administrative Overhead Margin? Very Happy
Hi "riddler" sorry for my late reply. The basis for the application and the computation of the VAT will be based on the Administrative overhead margin, (profit margin). it cannot be applied to the amount payable to employee, precisely because it will be tax separately as part of the compensation income of the employee, otherwise there will be double taxation on the same source. Depending on the financial capacity of the contactor, they could gamble the ranges from "0" % & up to max of 10% as the profit margin. Hence the allowance for profit is already deemed included in the administrative overhead margin Smile
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Re: Determination of the Lowest Calculated and Responsive Bid

Post by riddler on Tue Apr 26, 2011 10:09 pm

sunriser431 wrote:
riddler wrote:
sunriser431 wrote:For future reference in the preparation of the Technical requirements for security services. We had previous forum thread discussion, click this LINK bounce

hi sunriser. 'was following the thread you gave to mejunji.. i just noticed that there is no allowance for profit for the procurement of security services, is the profit (how much %?) already included in the Administrative Overhead Margin? Very Happy
Hi "riddler" sorry for my late reply. The basis for the application and the computation of the VAT will be based on the Administrative overhead margin, (profit margin). it cannot be applied to the amount payable to employee, precisely because it will be tax separately as part of the compensation income of the employee, otherwise there will be double taxation on the same source. Depending on the financial capacity of the contactor, they could gamble the ranges from "0" % & up to max of 10% as the profit margin. Hence the allowance for profit is already deemed included in the administrative overhead margin Smile

Very Happy thanks "sunriser".. pahabol na tanong ulit. what about other Goods? say supply and delivery of Office Supplies, do we still need to include the PROFIT in the Administrative Overhead Margin?

Very Happy thanks.


PS. sa proc of Infra kasi separated talaga sa breakdown of Estimate yung Overhead Margin or OCM (7-12%), VAT (12%), and Profit (10-12%). scratch scratch bounce
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Re: Determination of the Lowest Calculated and Responsive Bid

Post by Agatha520 on Mon Jun 27, 2011 11:46 am

Yes,I think so.










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