What is the acceptable definition of "Similar Contract'

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What is the acceptable definition of "Similar Contract'

Post by Lord_007 on Thu Jul 05, 2012 3:35 pm

We just have a Bid with one of the Government Hospital for the "Supply and Delivery of Linen (Textile) Supplies" wherein we submitted as part of our Completed Contracts and Single Largest Contracts items we sold including Fitted Sheets, Bed Sheets and Hospital Linens.

BAC claimed that our submission as described above are not similar in nature to the item under Bid which was "Textile Material for patient Gown, OR Gowns etc".

Similar Contract was was not discussed nor clarified during the Pre-Bid knowing under "industry lingo" such items are similar in nature.

Need help, Thanks
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Re: What is the acceptable definition of "Similar Contract'

Post by regina avelino on Thu Jul 05, 2012 5:26 pm

The determination to consider a project as being similar or not similar in nature and complexity being bid out lies entirely within the sound discretion of the procuring entity. As such, procuring entities are given wide discretion in identifying the specifications and requirements of the project, including the determination of what is regarded as similar.

In order for you to know if you are complying even if it is not discussed during the pre-bid conference is by referring to the bidding documents whether the procuring entity has defined the meaning of the project being bid out.

As the title suggests, the project being bid out is textile materials which are in rolls. This textile in rolls is the "raw materials" used in making patient gowns, etc. From my understanding of Fitted sheets, bed sheets and hospital lines, these are final products that you are supplying. The procuring entity wants supplier of raw materials not suppliers of final product.

Unless the bidding documents defines the items being bid out or your hospital linens is also the same as textiles in rolls which are not yet cut, then you may file a motion for reconsideration. If not, then they are right disqualifying you per my understanding.

Just my opinion.

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Re: What is the acceptable definition of "Similar Contract'

Post by alpha1 on Fri Jul 06, 2012 12:58 pm

I agree with Mam Regie, I think the scenario is the same if a procuring entity is requiring to supply "palay" for planting and the bidder's previous contract is delivery of rice & other food supply which is entirely different.
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Re: What is the acceptable definition of "Similar Contract'

Post by RDV @ GP3i on Sat Jul 07, 2012 10:53 am

Lord_007 wrote:We just have a Bid with one of the Government Hospital for the "Supply and Delivery of Linen (Textile) Supplies" wherein we submitted as part of our Completed Contracts and Single Largest Contracts items we sold including Fitted Sheets, Bed Sheets and Hospital Linens.

BAC claimed that our submission as described above are not similar in nature to the item under Bid which was "Textile Material for patient Gown, OR Gowns etc".

Similar Contract was was not discussed nor clarified during the Pre-Bid knowing under "industry lingo" such items are similar in nature.

Need help, Thanks

Bidders should see the importance of the pre-bid conference because it is the opportunity given to them to clarify anything necessary for them to be able to submit responsive bids. The law (RA 9184) makes it mandatory for the BAC to conduct pre-bid if the ABC is at least P1 million to give the bidders that opportunity. Bidders are paying for the bid docs and spending money preparing for their bids that is why the law grants them that opportunity.

What the procuring entity would consider "similar" contracts should be important to the bidders. The procuring should have clearly indicated what they will consider as "similar" but if the same is not quite evident, it is the responsibility of bidders to clarify those things during the pre-bid or by sending letters of clarifications within the prescribed period.

The bidders should not rely on their own "industry lingo" as the members of the BAC are not in the same industry they move in. Bidders erroneous interpretations of the instructions will work for their disadvantage. They could not blame anybody else, but themselves, as the Instructions to Bidders provides that erroneous interpretations of the bid docs will be the responsibility of the bidders themselves. It does not work to the advantage of bidders that important matters are not clarified during the pre-bid conference or if they fail to take advantage of the opportunity granted them by the law to make clarifications.
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Re: What is the acceptable definition of "Similar Contract'

Post by engrjhez® on Sat Jul 07, 2012 10:38 pm

Lord_007 wrote:We just have a Bid with one of the Government Hospital for the "Supply and Delivery of Linen (Textile) Supplies" wherein we submitted as part of our Completed Contracts and Single Largest Contracts items we sold including Fitted Sheets, Bed Sheets and Hospital Linens.

BAC claimed that our submission as described above are not similar in nature to the item under Bid which was "Textile Material for patient Gown, OR Gowns etc".

Similar Contract was was not discussed nor clarified during the Pre-Bid knowing under "industry lingo" such items are similar in nature.

Need help, Thanks

In addition to my agreement with RDV, there is a provision under the Bidding Documents (BDS 5.4) that defines what "similar contract" is. If in the said stipulation is not clear, you should seek clarification by raising whether or not your thought "similar contract" falls under the intentions and purposes of the procurement at hand. The BAC may issue a bid bulletin to settle the issue and inform all bidders of the ruling.
Smile
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Re: What is the acceptable definition of "Similar Contract'

Post by Lord_007 on Mon Jul 09, 2012 10:54 am

Thanks for the information.

We have been bidding in other hospitals for the same items and they have been accepting our definition of similar items as mentioned above. It was only on this particular bid that the BAC issued a different interpretation.

Yes I agree that it is our responsibility to have cleared the issue during the pre-bid or we should have written a letter to clarify the issue but we didn't expecting the same interpretation will be followed.

At any rate, can we still write a motion for reconsideration to that effect? or just charged it to experience?
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Re: What is the acceptable definition of "Similar Contract'

Post by engrjhez® on Mon Jul 09, 2012 11:29 am

Lord_007 wrote:Thanks for the information.

We have been bidding in other hospitals for the same items and they have been accepting our definition of similar items as mentioned above. It was only on this particular bid that the BAC issued a different interpretation.

Yes I agree that it is our responsibility to have cleared the issue during the pre-bid or we should have written a letter to clarify the issue but we didn't expecting the same interpretation will be followed.

At any rate, can we still write a motion for reconsideration to that effect? or just charged it to experience?

That depends if you are still within the 3-day period allowed under the IRR to file your motion or request for reconsideration.
55.1. Decisions of the BAC at any stage of the procurement process may be questioned by filing a request for reconsideration within the three (3) calendar days upon receipt of written notice or upon verbal notification. The BAC shall decide on the request for reconsideration within seven (7) calendar days from receipt thereof.

If a failed bidder signifies his intent to file a request for reconsideration, the BAC shall keep the bid envelopes of the said failed bidder unopened and/or duly sealed until such time that the request for reconsideration has been resolved.
If it is already lapsed, then you may have to charge it to experience Smile
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Re: What is the acceptable definition of "Similar Contract'

Post by orlan747 on Thu Jul 12, 2012 11:37 am

Lord_007 wrote:Thanks for the information.

We have been bidding in other hospitals for the same items and they have been accepting our definition of similar items as mentioned above. It was only on this particular bid that the BAC issued a different interpretation.

Yes I agree that it is our responsibility to have cleared the issue during the pre-bid or we should have written a letter to clarify the issue but we didn't expecting the same interpretation will be followed.

At any rate, can we still write a motion for reconsideration to that effect? or just charged it to experience?

Ah, Lord, since the window of opportunity for filing your motion may have already lapsed, go ahead and charge it to experience. However, one bidder to another, in an academic discussion, you only file a motion for recon if your bid price is lower than the lowest bid as read. Since it seems that your expertise is more on finished product, it is probably safe to say that the lowest bid as read was lower than your bid. No need to antagonize the BAC. Yeah, to experience...
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