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Bid Prices and ABC

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Bid Prices and ABC

Post by cristem on Wed Feb 18, 2015 10:02 am

Is it a valid bid if the contractor states below his proposal that he is willing to give a 10% discount? This is a bid on an infra project. If this is valid, will the discount be applied on the unit cost of each item? Isn't this a violation of the instruction to bidders? What if there is a minimal difference between his bid and the lowest bidder and applying the 10% discount would make him the lowest bidder?

Hope this merits your attentions. Thanks.

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Re: Bid Prices and ABC

Post by engrjhez® on Wed Feb 18, 2015 1:08 pm

cristem wrote:Is it a valid bid if the contractor states below his proposal that he is willing to give a 10% discount? This is a bid on an infra project. If this is valid, will the discount be applied on the unit cost of each item? Isn't this a violation of the instruction to bidders? What if there is a minimal difference between  his bid and the lowest bidder and applying the 10% discount would make him the lowest bidder?

Hope this merits your attentions. Thanks.

Alternative bid is an offer made by a bidder in addition to or as a substitute to its original bid which may be included as part of its original bid or submitted separately therewith for purposes of bidding. A bid with options is considered an alternative bid regardless of whether said bid proposal is contained in a single envelope or submitted in two (2) or more separate bid envelopes. (NPM 001-2007) An alternative bid amounts to modification of bid after opening of bids which should not be allowed.

The disqualification would depend on the facts and circumstances arising from the 10% discount. The procuring entity is in the best position to determine the applicability of the rule.
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