Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

View previous topic View next topic Go down

Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by msm326 on Thu Jun 11, 2009 9:50 am

As indicated in RA 9184 manual for LGUs , financial proposal submitted which was above the ABC is outright disqualified ...In this view can we still reconsider recalculation of his bids?
msm326 Very Happy
avatar
msm326
Valued Contributor
Valued Contributor

Female Number of posts : 264
Company/Agency : LGU SANTA CRUZ
Occupation/Designation : MUNICIPAL GENERAL SERVICES OFFICE
Registration date : 2009-06-03

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by RDV @ GP3i on Thu Jun 11, 2009 10:26 am

msm326 wrote:As indicated in RA 9184 manual for LGUs , financial proposal submitted which was above the ABC is outright disqualified ...In this view can we still reconsider recalculation of his bids?
msm326 Very Happy

During the opening, when the bid (as read) already exceeds the ABC, the bid should be declared non-responsive outright. The BAC should no longer allow recalculation of the bid. That is not allowed under IRR-A, the manuals, and the PBDs.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by engrjhez® on Thu Jun 11, 2009 10:38 am

RDV wrote:
msm326 wrote:As indicated in RA 9184 manual for LGUs , financial proposal submitted which was above the ABC is outright disqualified ...In this view can we still reconsider recalculation of his bids?
msm326 Very Happy

During the opening, when the bid (as read) already exceeds the ABC, the bid should be declared non-responsive outright. The BAC should no longer allow recalculation of the bid. That is not allowed under IRR-A, the manuals, and the PBDs.
Can you clarify to us the significance of this provision:

  • Section 31. Ceiling for Bid Prices
    The approved budget for the contract under bidding shall be the upper limit or ceiling for
    acceptable bid prices. If a bid price, as evaluated and calculated in accordance with this
    IRR-A, is higher than the approved budget for the contract under bidding, the bidder
    submitting the same shall be automatically disqualified.
    There shall be no lower limit or
    floor on the amount of the award.

Because this sounded like "due process" must be served first. Intentional or not to submit a bid exceeding the ABC, the bid price may still be actually below (or may be a winner in disguise) if evaluation and calculation is applied.
Very Happy
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2480
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by RDV @ GP3i on Thu Jun 11, 2009 11:07 am

engrjhez wrote:Can you clarify to us the significance of this provision:

  • Section 31. Ceiling for Bid Prices
    The approved budget for the contract under bidding shall be the upper limit or ceiling for
    acceptable bid prices. If a bid price, as evaluated and calculated in accordance with this
    IRR-A, is higher than the approved budget for the contract under bidding, the bidder
    submitting the same shall be automatically disqualified.
    There shall be no lower limit or
    floor on the amount of the award.

Because this sounded like "due process" must be served first. Intentional or not to submit a bid exceeding the ABC, the bid price may still be actually below (or may be a winner in disguise) if evaluation and calculation is applied.
Very Happy [/justify][/color]

The first sentence, "The approved budget for the contract under bidding shall be the upper limit or ceiling for acceptable bid prices." could already mean that the bid price (as read), in order to be acceptable, should not exceed the ABC. That provision is also supported by a provision in Sec. 30.2, the pertinent portion of which is quoted as follows: "...if the submitted total bid price exceeds the approved budget for the contract, the BAC shall rate the bid concerned as failed."

If the bid passes the preliminary examination; i.e., it does not exceed the ABC, during bid evaluation, the rule on minor arithmetical corrections will apply. If during bid evaluation, the calculated bid exceeds the ABC, if will be declared failed. If the calculated ABC which does not exceed the ABC is later on declared the LCB and passed post-qualification, the contract will be awarded at the submitted bid price or the calculated bid price, whichever is lower (Sec. 37.1).
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by msm326 on Thu Jun 11, 2009 11:43 am

Sir RDV ,
We then rate it as failed bid then when we informed them that they are disqualified they ask for reconsideration since the bids will be subject for post evaluation .... Is is still proper to consider them at that stage ..
thank you very much for the quick response
msm
avatar
msm326
Valued Contributor
Valued Contributor

Female Number of posts : 264
Company/Agency : LGU SANTA CRUZ
Occupation/Designation : MUNICIPAL GENERAL SERVICES OFFICE
Registration date : 2009-06-03

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by RDV @ GP3i on Thu Jun 11, 2009 11:52 am

msm326 wrote:Sir RDV ,
We then rate it as failed bid then when we informed them that they are disqualified they ask for reconsideration since the bids will be subject for post evaluation .... Is is still proper to consider them at that stage ..
thank you very much for the quick response
msm

After the bidder has been disqualified during the opening of the bid, because his bid as read has exceeded the ABC, the BAC shall no longer include that disqualified bidder in the detailed evaluation, even if there is a possibility that if it will be evaluated its calculated bid price will no longer exceed the ABC. It is not proper and will be a violation of IRR if it will still be considered during bid evaluation if its bid as read is already in excess of the ABC.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by msm326 on Thu Jun 11, 2009 12:09 pm

thank you for the information sir....
msm
avatar
msm326
Valued Contributor
Valued Contributor

Female Number of posts : 264
Company/Agency : LGU SANTA CRUZ
Occupation/Designation : MUNICIPAL GENERAL SERVICES OFFICE
Registration date : 2009-06-03

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by tindero on Tue Oct 18, 2011 10:35 am



My query Sir are these:
under Sec. 37.1 "If the bid passes the preliminary examination; i.e., it does not exceed the ABC, during bid evaluation, the rule on minor arithmetical corrections will apply. If during bid evaluation, the calculated bid exceeds the ABC, if will be declared failed. If the calculated ABC which does not exceed the ABC is later on declared the LCB and passed post-qualification, the contract will be awarded at the submitted bid price or the calculated bid price, whichever is lower".
My queries are:
1. how do we call it minor arithmetical corrections?
2. in the phrase " the contract will be awarde at the submitted bid price or the calculated bid price, which ever is lower", is the submitted bid price refer to the bid price original bid price as read?
I am asking these because the there was a discrepancy of the bid submitted and bid as calculated and the agency says that the amount of the contract shall be the as read bid price since this is lower than the calculated bid price.. thank you and more power

tindero
New Member
New Member

Male Number of posts : 4
Company/Agency : the stable
Occupation/Designation : seller
Registration date : 2011-10-17

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by engrjhez® on Tue Oct 18, 2011 10:50 am

tindero wrote:

My query Sir are these:
under Sec. 37.1 "If the bid passes the preliminary examination; i.e., it does not exceed the ABC, during bid evaluation, the rule on minor arithmetical corrections will apply. If during bid evaluation, the calculated bid exceeds the ABC, if will be declared failed. If the calculated ABC which does not exceed the ABC is later on declared the LCB and passed post-qualification, the contract will be awarded at the submitted bid price or the calculated bid price, whichever is lower".
My queries are:
1. how do we call it minor arithmetical corrections?
2. in the phrase " the contract will be awarde at the submitted bid price or the calculated bid price, which ever is lower", is the submitted bid price refer to the bid price original bid price as read?
I am asking these because the there was a discrepancy of the bid submitted and bid as calculated and the agency says that the amount of the contract shall be the as read bid price since this is lower than the calculated bid price.. thank you and more power

First, there is no such thing as 'minor arithmetical corrections' as far as RA 9184 is concerned. It does not distinguish a minor from a major error. What is clear in the provisions are:

32.2.2. The BAC shall evaluate all bids on an equal footing to ensure fair and
competitive bid comparison. For this purpose, all bidders shall be required to
include the cost of all taxes, such as, but not limited to, value added tax (VAT),
income tax, local taxes, and other fiscal levies and duties which shall be itemized
in the bid form and reflected in the detailed estimates. Such bids, including said
taxes, shall be the basis for bid evaluation and comparison.(a)

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.

Second, you concern can already be answered by Sec.34.4:

34.4. If the BAC determines that the bidder with the Lowest Calculated Bid/Highest Rated
Bid passes all the criteria for post-qualification, it shall declare the said bid as the
Lowest Calculated Responsive Bid/Highest Rated Responsive Bid, and recommend to
the Head of the Procuring Entity the award of contract to the said bidder at its
submitted bid price
or its calculated bid price, whichever is lower x x x

Hope it is clear and self explanatory Smile
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2480
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by RDV @ GP3i on Tue Oct 18, 2011 3:34 pm

tindero wrote:

My query Sir are these:
under Sec. 37.1 "If the bid passes the preliminary examination; i.e., it does not exceed the ABC, during bid evaluation, the rule on minor arithmetical corrections will apply. If during bid evaluation, the calculated bid exceeds the ABC, if will be declared failed. If the calculated ABC which does not exceed the ABC is later on declared the LCB and passed post-qualification, the contract will be awarded at the submitted bid price or the calculated bid price, whichever is lower".
My queries are:
1. how do we call it minor arithmetical corrections?
2. in the phrase " the contract will be awarde at the submitted bid price or the calculated bid price, which ever is lower", is the submitted bid price refer to the bid price original bid price as read?
I am asking these because the there was a discrepancy of the bid submitted and bid as calculated and the agency says that the amount of the contract shall be the as read bid price since this is lower than the calculated bid price.. thank you and more power
If there is a discrepancy between the submitted bid price (bid as read) and the calculated bid, it is the calculated bid that will be considered as basis for comparison among other calculated bids. The Lowest Calculated Bid (LCB) will then undergo the process of post-qualification to determine if that bid is responsive to be declared the LCRB.

The LCRB then will be the one to be recommended by the BAC for award of contract. However, if the calculated price is now different from the original submitted price (which you refer to as the discrepancy) you will then apply the following rule:

a) if the submitted price is lower than the calculated price, award at the original submitted price; or
b) if the submitted price is higher than the calculated price, award at the calculated price.

That is the essence of the 'whichever is lower' rule in the particular section of the IRR.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by tindero on Wed Oct 19, 2011 12:39 pm

thank you very much..

tindero
New Member
New Member

Male Number of posts : 4
Company/Agency : the stable
Occupation/Designation : seller
Registration date : 2011-10-17

Back to top Go down

Re: Can the LGU consider a request for consideration ask by a contractor due to errors in computations but his inital BID was above the ABC?

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum