Arithmetical corrections

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Arithmetical corrections

Post by rtdd on Tue May 29, 2012 10:55 am

During the conduct of detailed bid evaluation our TWG for infrastructure found out that the quantity of one of the item of the lowest submitted bid did not follow the required quantity as indicated in the bidding document. To have an equal footing of the bid, the TWG corrected the quantity of that item which resulted in the increase of bid. The lowest submitted bid remains the lowest calculated bid.

However, after arithmetical corrections the corrected amount is higher than the submitted bid. What will be awarded then? Its submitted bid is more advantageous to the government. Where can we find in the RA 9184 what should be followed after arithmetical corrections has been conducted?

Thanks.

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Re: Arithmetical corrections

Post by regina avelino on Tue May 29, 2012 11:53 am

Hi madam, had this event happened to us, we would disqualify the bidder due to the following reason: We interpret the law as computational errors only which we can correct and not errors on quantity. for example. if our terms of reference requires 5 columns and the bidder's bid is 5 columns at P50.00/column which should be P250.00 (5 x 50) but written as P240.00, then we correct it as P250.00. However, if the bidder's bid is 3 columns at P40.00/column which should be P120.00 (3 x 40) and written correctly as P120.00, then we fail the bid as this is not compliant with the terms of reference of the agency. I based this from our actual practice.


Last edited by regina avelino on Tue May 29, 2012 12:03 pm; edited 1 time in total (Reason for editing : wrong grammar)

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Re: Arithmetical corrections

Post by rtdd on Tue May 29, 2012 12:49 pm

Thank you madam for your immediate reply.

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Re: Arithmetical corrections

Post by sunriser431 on Tue May 29, 2012 2:08 pm

rtdd wrote:During the conduct of detailed bid evaluation our TWG for infrastructure found out that the quantity of one of the item of the lowest submitted bid did not follow the required quantity as indicated in the bidding document. To have an equal footing of the bid, the TWG corrected the quantity of that item which resulted in the increase of bid. The lowest submitted bid remains the lowest calculated bid.

However, after arithmetical corrections the corrected amount is higher than the submitted bid. What will be awarded then? Its submitted bid is more advantageous to the government. Where can we find in the RA 9184 what should be followed after arithmetical corrections has been conducted?

Thanks.
After taking into consideration the section 32 of the IRR for the Bid evaluation, apply the rule in section 34.4 of the IRR of RA#9184. bounce
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Arithmetical Corrections

Post by rtdd on Tue May 29, 2012 4:40 pm

Thank you sunriser431. Wink

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Re: Arithmetical corrections

Post by Marilou Lacsina on Sat Jun 30, 2012 1:49 pm

May I have a follow-up question on this? what if the item was bidded out on a per lot basis? is the ABC the lot price or the unit cost of the bidded item? Embarassed
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Re: Arithmetical corrections

Post by engrjhez® on Sun Jul 01, 2012 10:33 pm

rtdd wrote:During the conduct of detailed bid evaluation our TWG for infrastructure found out that the quantity of one of the item of the lowest submitted bid did not follow the required quantity as indicated in the bidding document. To have an equal footing of the bid, the TWG corrected the quantity of that item which resulted in the increase of bid. The lowest submitted bid remains the lowest calculated bid.

However, after arithmetical corrections the corrected amount is higher than the submitted bid. What will be awarded then? Its submitted bid is more advantageous to the government. Where can we find in the RA 9184 what should be followed after arithmetical corrections has been conducted?

Thanks.

You should consider which must rule first:
  1. the non-compliance to the schedule of requirements, or
  2. the arithmetical corrections


Based on the above, (a) must be ruled first being "patently insufficient" as to the requirement. We should understand that arithmetical corrections, whenever there is a need to apply, only arises from compliance of the eligibility and technical component, thus the consequence of the financial component. If in any case the ground for technical disqualification was not seen during preliminary bid submission, the ruling must still be the same - disqualification.

It must be emphasized that arithmetical corrections are made to ensure that prices, not quantities, are consistent. In complying bids with price discrepancies, such arithmetical correction must be applied accordingly to fit the submitted bid price or calculated bid price whichever is lower (Sec.34.4) for purposes of award. From there, arithmetical correction will seek to reconcile the proper pricing for the purposes of detailed implementation and execution of contract Smile
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