SUB-CONTRACTING OF A PROJECT/S

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SUB-CONTRACTING OF A PROJECT/S

Post by leogirl on Mon Dec 10, 2012 3:48 pm

Good day!

The Legal Officer of our Office is an initial signatory of all contracts before our REgional Director approves it, as per DepEd Order (number and date issued I cannot recall). After post qualification and bid evaluation, last September 7 2012, the BAC has recommended the award of contract to the second lowest bidder of the Construction of Pre-school Building with Toilet and Furniture. However, our Legal Officer placed his comments/findings that the said bidder failed to comply with the requirement on eligibility that a bidder must have completed a single largest contract equivalent to at least 50% of the ABC, since its largest completed contract amounting to Php 3,165,640.00 as indicated in its statement of completed contracts, was sub-contracted from a contractor. The said contract was implemented by a LGU. The said contractor issued a certificate of completion and acceptance to the sub-contractor that it has satisfactorily completed the sub-contract package. But the opinion of our Legal Officer states that the said project being sub-contracted should not be credited to the winning bidder but to the contractor who directly had the contract with the LGU.

The BAC now would like to inquire if the said contract (sub-contract) may or may not be credited to the sub-contractor, or whether granting the said bidder as eligible be interpreted as an irregularity on the part of the BAC.

Thank you for your prompt response.




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Re: SUB-CONTRACTING OF A PROJECT/S

Post by RDV @ GP3i on Mon Dec 10, 2012 5:56 pm

leogirl wrote:Good day!

The Legal Officer of our Office is an initial signatory of all contracts before our REgional Director approves it, as per DepEd Order (number and date issued I cannot recall). After post qualification and bid evaluation, last September 7 2012, the BAC has recommended the award of contract to the second lowest bidder of the Construction of Pre-school Building with Toilet and Furniture. However, our Legal Officer placed his comments/findings that the said bidder failed to comply with the requirement on eligibility that a bidder must have completed a single largest contract equivalent to at least 50% of the ABC, since its largest completed contract amounting to Php 3,165,640.00 as indicated in its statement of completed contracts, was sub-contracted from a contractor. The said contract was implemented by a LGU. The said contractor issued a certificate of completion and acceptance to the sub-contractor that it has satisfactorily completed the sub-contract package. But the opinion of our Legal Officer states that the said project being sub-contracted should not be credited to the winning bidder but to the contractor who directly had the contract with the LGU.

The BAC now would like to inquire if the said contract (sub-contract) may or may not be credited to the sub-contractor, or whether granting the said bidder as eligible be interpreted as an irregularity on the part of the BAC.

Thank you for your prompt response.

Yes, although the bidder was only a sub-contractor, it could be credited to the said bidder up to the amount sub-contracted to the latter, not the entire cost of the project.

The BAC should be able to validate this during post-qualification, as to the amount of completed project to be credited to the bidder (although he is just a sub-contractor in that project), such as asking for a copy of the contract agreement between the main contractor and the sub-contractor.
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