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Award to the next Lowest Calculated Bid

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Award to the next Lowest Calculated Bid

Post by jomai on Mon Sep 12, 2011 12:56 pm

Please help!

We had a bidding for supply and delivery of medicines, the amount of bid for bidder no.1 is 900thousand plus while second bidder was 1.9M. The 1st bidder was declared as the winning bidder, however,the winning bidder failed to accept the contract for the reason that the medicines submitted is no longer available in the market. The BAC then awarded the contract to the next lowest calculated bidder. Is the decision of the BAC valid, considering that the disparity in price is more than 100%? Should the BAC consider first a mandatory review?
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Re: Award to the next Lowest Calculated Bid

Post by RDV @ GP3i on Tue Sep 13, 2011 10:20 pm

jomai wrote:Please help!

We had a bidding for supply and delivery of medicines, the amount of bid for bidder no.1 is 900thousand plus while second bidder was 1.9M. The 1st bidder was declared as the winning bidder, however,the winning bidder failed to accept the contract for the reason that the medicines submitted is no longer available in the market. The BAC then awarded the contract to the next lowest calculated bidder. Is the decision of the BAC valid, considering that the disparity in price is more than 100%? Should the BAC consider first a mandatory review?

The BAC is duty bound to recommend to the next lowest calculated bidder. However, considering that there is a wide disparity between the LCRB and the next lowest, the HOPE may exercise his Reservation Clause and not award the contract to the next lowest calculated bidder as the award of the project to the latter will not redound to the benefit of the procuring entity, particularly if the HOPE has reason to believe that the ABC may be overstated. That is the danger if the ABC is overstated and not adequately reviewed. If the BAC recommends the award to a contract within the ABC and the recommendation is approved by the HOPE but it was later proven that the awarded contract is still overstated then the BAC and HOPE could be held liable for causing undue injury to the government under the Ant-Graft Law.
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Re: Award to the next Lowest Calculated Bid

Post by jomai on Wed Sep 14, 2011 3:16 pm

Thanks, sir RDV, really a great help.
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Re: Award to the next Lowest Calculated Bid

Post by tindero on Mon Oct 17, 2011 6:15 pm

sir may i ask more elaboration regarding section 37.1 stating "Award of contract shall be made to the bidder with the lowest calculated responsive bid or the highest rated responsive bid, as the case may be, at its submitted bid price or calculated bid price whichever is lower". how about the discrepancy between the as read amount and calculated bid but still within the ABC ceiling? what amount shall be considered as the amount of the contract? thanks and more power

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Re: Award to the next Lowest Calculated Bid

Post by sunriser431 on Mon Oct 17, 2011 9:24 pm

tindero wrote:sir may i ask more elaboration regarding section 37.1 stating "Award of contract shall be made to the bidder with the lowest calculated responsive bid or the highest rated responsive bid, as the case may be, at its submitted bid price or calculated bid price whichever is lower". how about the discrepancy between the as read amount and calculated bid but still within the ABC ceiling? what amount shall be considered as the amount of the contract? thanks and more power
excerpts from section 32 of the Revised IRR which is self explanatory.
Bid Evaluation for the Procurement of Goods and Infrastructure Projects
section 32.1 xxxx
section 32.2.3. In case of discrepancies between: (a) bid prices in figures and in words, the latter shall prevail; (b) total price per item and unit price for the item as extended or multiplied by the quantity of that item, the latter shall prevail; (c) stated total price and the actual sum of prices of component items, the latter shall prevail; (d) unit cost in the detailed estimate and unit cost in the bill of quantities, the latter shall prevail.
You may also read the section 28 (Detailed Evaluation and Comparison of Bids) of the PBDs for your guidance. For the electonic copy of the PBDs, follow the
LINK . Good luck. bounce
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Re: Award to the next Lowest Calculated Bid

Post by RDV @ GP3i on Mon Oct 17, 2011 10:49 pm

tindero wrote:sir may i ask more elaboration regarding section 37.1 stating "Award of contract shall be made to the bidder with the lowest calculated responsive bid or the highest rated responsive bid, as the case may be, at its submitted bid price or calculated bid price whichever is lower". how about the discrepancy between the as read amount and calculated bid but still within the ABC ceiling? what amount shall be considered as the amount of the contract? thanks and more power

Welcome to the forum, tindero.

It means that if the calculated price of the LCRB is lower than it's submitted price (bid as read) then the amount of the contract award to that LCRB shall be at its calculated price.

On the other hand, if the calculated price of the bidder is higher than it's submitted price but despite that the same bidder has declared the LCRB, then the award of contract to the said bidder shall be on it's submitted price.
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Re: Award to the next Lowest Calculated Bid

Post by tindero on Tue Oct 18, 2011 3:51 pm

sir, additional query please:D
the scenario is like this: there was an infra contract which was awarded based on the recomputation by the BAC and TWG of the "As Read" bids to arrived at the lowest calculated bid. however the computed amount of LCB is higher the the amount of the "As Read" bid by the same bidder. contending that the discrepancy of the AS READ bid and LCB is due to slight mathematical computation error, what amount shall be considered at the amount of the contract to be awarded, is the submitted (as read) bid or the higher LCB.?

kindly englighten me regarding the issue on slight mathematical computation? is this computation may just be effected by the BAC in declaring or adjusting the submitted bid in declaring the lowest calculated bid.

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Re: Award to the next Lowest Calculated Bid

Post by RDV @ GP3i on Tue Oct 18, 2011 4:08 pm

tindero wrote:sir, additional query please:D
the scenario is like this: there was an infra contract which was awarded based on the recomputation by the BAC and TWG of the "As Read" bids to arrived at the lowest calculated bid. however the computed amount of LCB is higher the the amount of the "As Read" bid by the same bidder. contending that the discrepancy of the AS READ bid and LCB is due to slight mathematical computation error, what amount shall be considered at the amount of the contract to be awarded, is the submitted (as read) bid or the higher LCB.?

kindly englighten me regarding the issue on slight mathematical computation? is this computation may just be effected by the BAC in declaring or adjusting the submitted bid in declaring the lowest calculated bid.

The BAC will recommend the award of contract to the LCRB at its submitted bid price being the lower amount than its calculated price. It means that, even though the bidder has been declared the LCRB at the higher calculated price, the recommended amount of contract will always beat the lower price, which in this case in the submitted price and not the higher calculated price.

In the evaluation process, the BAC guided by the provisions and the rules (in case of discrepancy) provided for in the IRR. The BAC and/or the TWG are allowed to make corrections for computational errors and omissions in order to ensure equal footing and enable proper comparison of bids. In the comparison of bids, it is the calculated price that will be compared.
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