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Joint Venture Documentary Requirement

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Joint Venture Documentary Requirement

Post by TealArcher on Fri Aug 21, 2009 12:44 pm

Hi,

Good day to you!

I would just like to ask regarding the the exact requirements of bidding document submission pertaining to a Joint Venture between a Foreign and a Local company for a tender under the Revised IRR. Under the Revised IRR, what are the documents the Foreign JV Partner needs to submit in a tender for goods? for infrastructure project? Does the law only requires the foreign JV partner to submit the Legal Documents under Eligibility Requirements? Are there any documents needed to be submitted by the foreign JV Partner under the Techincal and Financial Proposals? Please advise.

Thank you in advance for you kind assistance.
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Re: Joint Venture Documentary Requirement

Post by RDV @ GP3i on Sat Aug 22, 2009 8:01 am

TealArcher wrote:Hi,

Good day to you!

I would just like to ask regarding the the exact requirements of bidding document submission pertaining to a Joint Venture between a Foreign and a Local company for a tender under the Revised IRR. Under the Revised IRR, what are the documents the Foreign JV Partner needs to submit in a tender for goods? for infrastructure project? Does the law only requires the foreign JV partner to submit the Legal Documents under Eligibility Requirements? Are there any documents needed to be submitted by the foreign JV Partner under the Techincal and Financial Proposals? Please advise.

Thank you in advance for you kind assistance.

For the eligibility requirements for the procurement of GOODS and INFRA, consider the following provisions of Sec.23.1 of the revised IRR:

"Section 23. Eligibility Requirements for the Procurement of Goods and Infrastructure Projects

23.1. For purposes of determining the eligibility of bidders using the criteria stated in Sub-section 23.5 of this IRR, only the following documents shall be required by the BAC , using the forms prescribed in the Bidding Documents,:

a) Class “A” Documents
Legal Documents
i) Registration certificate from SEC, Department of Trade and Industry (DTI) for sole proprietorship, or CDA for cooperatives, or any proof of such registration as stated in the Bidding Documents.

ii) Mayor’s permit issued by the city or municipality where the principal place of business of the prospective bidder is located.

Technical Documents
iii) Statement of the prospective bidder of all its ongoing and completed government and private contracts, including contracts awarded but not yet started, if any, whether similar or not similar in nature and complexity to the contract to be bid, within the relevant period as provided in the Bidding Documents . The statement shall include all information required in the PBDs prescribed by the GPPB.

iv) In the case of procurement of infrastructure projects, a valid Philippine Contractors Accreditation Board (PCAB) license and registration for the type and cost of the contract to be bid.

Financial Documents
v) The prospective bidder’s audited financial statements, showing, among others, the prospective bidder’s total and current assets and liabilities, stamped “received” by the BIR or its duly accredited and authorized institutions, for the preceding calendar year which should not be earlier than two (2) years from the date of bid submission.

vi) The prospective bidder’s computation for its Net Financial Contracting Capacity (NFCC) or a commitment from a Universal or Commercial Bank to extend a credit line in favor of the prospective bidder if awarded the contract to be bid (CLC) .

b) Class “B” Document
Valid joint venture agreement (JVA), in case the joint venture is already in existence. In the absence of a JVA, duly notarized statements from all the potential joint venture partners stating that they will enter into and abide by the provisions of the JVA in the instance that the bid is successful shall be included in the bid. Failure to enter into a joint venture in the event of a contract award shall be ground for the forfeiture of the bid security . Each partner of the joint venture shall submit the legal eligibility documents. The submission of technical and financial eligibility documents by any of the joint venture partners constitutes compliance.
"

From the last 2 sentences of sub-section 23.1, it is clear that each (foreign and local) partner of the joint venture shall submit the legal eligibility documents. These legal eligibility requirements are the registrations certificate from the SEC/DTI/CDA and Mayor's Permit. Furthermore, the submission of technical and financial eligibility documents by any of the joint venture partners constitutes compliance.

In the case of the foreign partners, the subsequent sub-section reads:

"23.2. Subject to Section 37.1 of this IRR, in the case of foreign bidders, the foregoing eligibility requirements under Class “A” Documents may be substituted by the appropriate equivalent documents, if any, issued by the country of the foreign bidder concerned. The eligibility requirements or statements, the bids, and all other documents to be submitted to the BAC must be in English. A translation of the documents in English certified by the appropriate embassy or consulate in the Philippines must accompany the eligibility requirements under Class “A” and “B” Documents if they are in other foreign language."

Likewise, the following additional documentation requirements are required to be submitted within 3 c.d. upon receipt by the bidder that it has been declared the LCRB:

"34.2 Within three (3) calendar days from receipt by the bidder of the notice from the BAC that the bidder has the Lowest Calculated Bid or Highest Rated Bid, the bidder shall submit the following documentary requirements to the BAC:

a) Tax clearance;
b) Latest income and business tax returns;
c) Certificate of PhilGEPS Registration; and
d) Other appropriate licenses and permits required by law and stated in the Bidding Documents.

Failure to submit the above requirements on time or a finding against the veracity of such shall be ground for the forfeiture of the bid security and disqualify the bidder for award.


As to your question on the documents to be submitted for the technical and financial proposal, you need to read sub-section 25.2 of the revised IRR. The requirements are already contained in that particular sub-section. Please take note, however, that under the revised IRR, the eligibility requirements are already a part of the technical proposal.

I hope I have sufficiently answered your query, but if my explanations are not clear enough or if you need further clarifications, just post them here.
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Re: Joint Venture Documentary Requirement

Post by TealArcher on Sat Aug 22, 2009 11:35 am

Thank you for your kind response.

Just to clarify, regarding the technical and financial proposals, is it acceptable if only ONE partner in a JV submit the listed documentary requirements under sub-section 25.2 since there are documents such as - Bid Security, Project Requirements (in case of INFRA), "blacklisted" statements, Cert of Authentication, Authority to Verify, SPA, Disclosure Provision, Bidder's responsibilities, etc? Which docs are required to be submitted by both JV partners and which docs are sufficient if submitted by ONE JV Partner only (the local company)?

Regarding the following documents, which ones are sufficient if submitted by ONE JV Partner only (in my case the local company) and which ones are required to be submitted by both JV Partners (foreign and local):

a) Tax clearance;
b) Latest income and business tax returns;
c) Certificate of PhilGEPS Registration; and
d) Other appropriate licenses and permits required by law and stated in the Bidding Documents.

Again, thank you for kind assistance.
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Re: Joint Venture Documentary Requirement

Post by RDV @ GP3i on Sat Aug 22, 2009 11:52 am

TealArcher wrote:Thank you for your kind response.

Just to clarify, regarding the technical and financial proposals, is it acceptable if only ONE partner in a JV submit the listed documentary requirements under sub-section 25.2 since there are documents such as - Bid Security, Project Requirements (in case of INFRA), "blacklisted" statements, Cert of Authentication, Authority to Verify, SPA, Disclosure Provision, Bidder's responsibilities, etc? Which docs are required to be submitted by both JV partners and which docs are sufficient if submitted by ONE JV Partner only (the local company)?

As far as the technical (except for the eligibility requirements) and financial proposals are concerned, it is the JV itself or the "potential" JV that would be submitting all the requirements, such as the Bid Security.

Remember it is the bid/proposal of the JV itself and not one of the JV partners. The JV will, therefore, have to authorize one of the partners who will submit the proposal for the JV and such authority will be part of the sworn statement to be submitted by the JV.

TealArcher wrote:Regarding the following documents, which ones are sufficient if submitted by ONE JV Partner only (in my case the local company) and which ones are required to be submitted by both JV Partners (foreign and local):

a) Tax clearance;
b) Latest income and business tax returns;
c) Certificate of PhilGEPS Registration; and
d) Other appropriate licenses and permits required by law and stated in the Bidding Documents.

Again, thank you for kind assistance.

Those four (4) documents were originally part of the legal requirements under Class A in IRR-A, therefore, I surmise that all have to be submitted by each of the member of the JV.
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Re: Joint Venture Documentary Requirement

Post by brunomars on Sat Jul 28, 2012 2:55 pm

In relation to the above questions, in case a Joint Venture has been declared as LCRB, will each of the JV partners be required to submit post qualification documents or is it just the bidding partner who will be required to submit post qualification documents?

Please enlighten me on this. Thanks
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