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Standardization of Bid Docs Fees Based on Project Amount

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Standardization of Bid Docs Fees Based on Project Amount

Post by msm326 on Wed Jun 03, 2009 2:15 pm

good day....hope the gppb can formulate a computation on the standard bid docs fees since forms have been also standardize Very Happy
MSM


Last edited by dlsn on Fri Jun 05, 2009 10:26 am; edited 1 time in total (Reason for editing : Unnecessary use of capital letters)
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Re: Standardization of Bid Docs Fees Based on Project Amount

Post by engrjhez® on Wed Jun 03, 2009 10:51 pm

msanmiguel wrote:GOOD DAY....HOPE THE GPPB CAN FORMULATE A COMPUTATION ON THE STANDARD BID DOCS FEES SINCE FORMS HAVE BEEN ALSO STANDARDIZE Very Happy
MSM
There is already a suggested computation formula in the LGU Procurement Manual (Vol.2 Page.21-22):

"In practice, cost recovery entails getting the sum of Direct and Indirect Costs and dividing the total by the expected number of prospective bidders who will purchase the bidding documents. This number is an estimate derived from the initial survey of the industry conducted by the end-user unit. The LGU may use this formula in determining cost recovery component:

Cost of Bidding Documents =

Direct Costs + Indirect Costs__
Number of short listed bidders

The BAC is discouraged from using the cost of bidding documents to limit the number of bidders. If the procurement involves a fairly large acquisition of goods of a particular complexity, and project implementation requires a higher level of size or capacity on the part of the supplier, it would be more advisable for the BAC to allow the project requirements to naturally limit competition among capable suppliers, by summarizing the qualification requirements in the IAEB and detailing these in the bidding documents, rather than for the BAC to unilaterally increase the price of the bidding documents and hope that this price discourages competition. As such, if the BAC wants to encourage the participation of as many bidders as possible to create competition, it should consider charging a lower price for the bidding documents, keeping in mind that this price should be sufficient to recover the aboveenumerated costs."

Very Happy
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