SPLITTING OR NOT

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SPLITTING OR NOT

Post by Recks1925 on Thu Jun 14, 2012 11:05 pm

Is this a splitting instance?

Having a single PR for repainting of a building with ABC 500k and deciding to conduct SVP for Labor and Materials separately to save cost. Savings can be attributed to materials since exact qty of materials will be procured and released by the PE to the winning labor provider.

Since the ABC is 500k and procurement is still eligible for SVP mode, will division of the requirement into two major parts (which is different in nature) violate any provision or fall into splitting?

PLease enlighten me. Thanks
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Recks1925
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Re: SPLITTING OR NOT

Post by Recks1925 on Fri Jun 15, 2012 11:21 am

Oops I forgot to tell how are we planning to procure the materials to save cost - It will be delivery-on-demand basis. Meaning the materials needed on a particular period will only be ordered for delivery, PE may not purchase all items stated in the canvass and in no instance go over the original qty. This will benefit the PE since exact materials for the project will be used. I dont know if this process also violates any provision. Your opinion is very much appreciated.
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