Line of Business

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Line of Business

Post by mika07 on Wed Oct 05, 2011 3:43 pm

What happens if the prospective bidder bidded for a contract which is not within its line of business?

We have one project, siphoning of sludge at the Septic Tank. The project was already awarded to the lone bidder but upon verification of its BIR certificate, its line of business includes only the following:
- Building of constructions or parts, civil engineering
- retail sale of hardware paints and glass and
- other retail sale in specialized stores
Verification with the BIR would show that under the Philippine Standard Industrial Code, siphoning activities fall under the separate line of business specifically on SEWAGE & REFUSE DISPOSAL, SANITATION & SIMILAR ACTIVITIES
90 01 WASTE COLLECTION, DISPOSAL ON A FEE/CONTRACTUAL BASIS
90 09 SANITARY AND SIMILAR SERVICES N.E.C.

With the the above data, can this still be awarded to the lone bidder, considering that he has also submitted a statement of all completed government contract which are similar n nature? Is there a violation of RA 9184?

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Re: Line of Business

Post by jcolas on Wed Oct 05, 2011 4:04 pm

"mika07 wrote"
What happens if the prospective bidder bidded for a contract which is not within its line of business

MY answer to this is why was this material information not found out during the post qualification? Your presentation would only show that their was a failure during the post qualification stage. What you can do, if their was already an award is to advise the Head of the procuring entity to invoke Section 41 (Reservation Clause) and declare a failure of bidding.
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Re: Line of Business

Post by engrjhez® on Wed Oct 05, 2011 10:35 pm

mika07 wrote:What happens if the prospective bidder bidded for a contract which is not within its line of business?

We have one project, siphoning of sludge at the Septic Tank. The project was already awarded to the lone bidder but upon verification of its BIR certificate, its line of business includes only the following:
- Building of constructions or parts, civil engineering
- retail sale of hardware paints and glass and
- other retail sale in specialized stores
Verification with the BIR would show that under the Philippine Standard Industrial Code, siphoning activities fall under the separate line of business specifically on SEWAGE & REFUSE DISPOSAL, SANITATION & SIMILAR ACTIVITIES
90 01 WASTE COLLECTION, DISPOSAL ON A FEE/CONTRACTUAL BASIS
90 09 SANITARY AND SIMILAR SERVICES N.E.C.

With the the above data, can this still be awarded to the lone bidder, considering that he has also submitted a statement of all completed government contract which are similar n nature? Is there a violation of RA 9184?

I will return a question on your part. In the submitted "Statement of Completed Projects...", does the lone bidder (eventually awarded) have completed a project similar in nature amounting at least 50% of the ABC? If the answer is "yes", have you verified that such completed project existed as verified during the post qualification?

If both of your answers are "yes", then in my opinion, I do not see a violation as far as RA 9184 is concerned. Smile
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Re: Line of Business

Post by jcolas on Thu Oct 06, 2011 11:06 am

"Engrhez wrote"
I will return a question on your part. In the submitted "Statement of Completed Projects...", does the lone bidder (eventually awarded) have completed a project similar in nature amounting at least 50% of the ABC? If the answer is "yes", have you verified that such completed project existed as verified during the post qualification?
If both of your answers are "yes", then in my opinion, I do not see a violation as far as RA 9184 is concerned. .

I firmly believe that their is a violation and I recommend that the contract be rebid. If an award would be made, even with the BIR Certificate being inapproriate , I am pretty sure, that your Auditor will issue an AOM for your office to explain if and when during post audit the infirmity would be discovered. It is of no value in your case that the legal document passed scrutiny during the post qualfications made by other offices and that eventually, the contractor was awarded the contract as, still that legal document has an infirmity which could not be cured by the fact that it has been used in other offices for the same item of work. Forarmed is forewarned.
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Re: Line of Business

Post by christ_bugs on Sat Jan 07, 2012 5:19 pm

In one of our recent bidding for the reflectorized/rubberized paints for the maintenance of municipal streets, one of our bidders who is a SEC registered submitted a mayor's/business permit in their principal place of business particularly in Davao City. However, the kind of business cited under the mayors permit are only fire extinguishers, firefighting equipments and the likes, nothing mentioned about hardwares or construction supplies that is similar to the contract to be bid. But to support their bid, they opined that it is cited under their Articles of Incorporation that they are engaged in buying/selling in all kinds of goods/items.. one of which is hardwares and construction supplies....And Further commented that their business name as "..........INDUSTRIAL SALES & ......., INC.", the contract to be bid (i.e. reflectorized/rubberized paints) falls on the same business category...My question now is: as the procuring entity of the municipality of Labason Zambo. Norte, can we consider their mayor's permit as complying to the legal requirements considering those mentioned above?Hoping we will be enlightened to this matter...tnx a lot. Question
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Re: Line of Business

Post by Jovinal on Sun Jan 08, 2012 10:03 pm

I think during the post qualification process your BAC can validate the actual items sold in their business area if the items are displayed.
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Line Of Business

Post by sonia2010 on Mon Jan 09, 2012 1:21 pm

Hello,
This is my first day in this forum and I hope that you'll welcome me here. Line of business (LOB) is a common phrase that sometimes refers to a set of one or more highly related products which service a particular customer transaction or business need. In some industry sectors, like insurance, "line of business" also has a regulatory and accounting definition to mean a statutory set of insurance policies. It may or may not be a strategically relevant business unit. "Line of business" sometimes refers to an internal corporate business unit, whereas the term "industry" refers to an external view that includes all competitors competing in a similar market. A line of business will often examine its position within an industry utilizing a Porter five forces analysis or other industry-analysis method and other relevant industry information.
Thanks.


Last edited by sonia2010 on Sun Jan 15, 2012 6:44 pm; edited 1 time in total

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Re: Line of Business

Post by sonia2010 on Tue Jan 10, 2012 8:17 pm

Hi,
n the context of computing, a "line-of-business application" is one of the set of critical computer applications perceived as vital to running an enterprise. For example: "Governance has become the hot topic in SOA over the past year. As companies' SOA usage becomes real, widespread and line-of-business, the requirement to ensure that the systems are properly governed has emerged as the number one concern for SOA adopters."

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Re: Line of Business

Post by sonia2010 on Wed Jan 11, 2012 9:22 pm

If it does not include. then I think it should be blocked by himself..

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Re: Line of Business

Post by riddler on Fri May 10, 2013 10:37 am

mika07 wrote:What happens if the prospective bidder bidded for a contract which is not within its line of business?

We have one project, siphoning of sludge at the Septic Tank. The project was already awarded to the lone bidder but upon verification of its BIR certificate, its line of business includes only the following:
- Building of constructions or parts, civil engineering
- retail sale of hardware paints and glass and
- other retail sale in specialized stores
Verification with the BIR would show that under the Philippine Standard Industrial Code, siphoning activities fall under the separate line of business specifically on SEWAGE & REFUSE DISPOSAL, SANITATION & SIMILAR ACTIVITIES
90 01 WASTE COLLECTION, DISPOSAL ON A FEE/CONTRACTUAL BASIS
90 09 SANITARY AND SIMILAR SERVICES N.E.C.

With the the above data, can this still be awarded to the lone bidder, considering that he has also submitted a statement of all completed government contract which are similar n nature? Is there a violation of RA 9184?

Very Happy Here's an interesting link for the abovementioned query from the non-policy opinion of the gppb


http://www.gppb.gov.ph/opinions/view_nonpolicy.php?id=957 Very Happy
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Re: Line of Business

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