Cancellation of Notice of Award

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Cancellation of Notice of Award

Post by engrlanz on Sat Mar 14, 2015 4:05 pm

good day everyone!

Please guide us on this issue.

A project on the procurement of goods has been conducted by the BAC through Public Bidding. Two (2) bidders joined the bidding and submitted bid docs on the scheduled bid opening. After bid evaluation and post qualification by the TWG, the BAC issued Notice of Award to bidder 1 being the Lowest calculated and Rated Bid. During the stage of posting of performance security by the winning bidder, the BAC Secretariat drafted the Contract so that upon receipt of performance security, the Contract will be forwarded to the HOPE for approval. However, it was during this stage that the BAC Secretariat found out a discrepancy between the stated total price and the sum of prices of component items (lapses both by the TWG and BAC in the bid evaluation process). The issue now is that, based on Section 32.2.3 "In case of discrepancies between: (c) stated total price and the sum of prices of component items, the latter shall prevail"; with this, the corrected sum of prices of the component items of bidder 1 is higher of 100k compared to the bid offer of bidder 2 (but still within the ABC). This means, bidder 2 will be the LCB and not bidder 1 as previously declared by the BAC.

It is on this point that we seek for your guidance, what's the right thing to do?
1) Cancellation of NOA to bidder 1? (if such, under what provision in the IRR?)
2) Non-cancellation or Proceed with the issuance of contract to bidder 1? In this case, what will be the price to be used in the per item component to be reflected in the contract? Are we gonna use the same figures stated in the bid offer per item?

Please guide us...Thank you.


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Re: Cancellation of Notice of Award

Post by engrlanz on Sat Mar 14, 2015 6:07 pm

allow me to correct the LCRB as Lowest Calculated and Responsive Bid....

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Re: Cancellation of Notice of Award

Post by engrjhez® on Sun Mar 15, 2015 8:30 pm

engrlanz wrote:good day everyone!

Please guide us on this issue.

A project on the procurement of goods has been conducted by the BAC through Public Bidding. Two (2) bidders joined the bidding and submitted bid docs on the scheduled bid opening. After bid evaluation and post qualification by the TWG, the BAC issued Notice of Award to bidder 1 being the Lowest calculated and Responsive Bid. During the stage of posting of performance security by the winning bidder, the BAC Secretariat drafted the Contract so that upon receipt of performance security, the Contract will be forwarded to the HOPE for approval. However, it was during this stage that the BAC Secretariat found out a  discrepancy between the stated total price and the sum of prices of component items (lapses both by the TWG and BAC in the bid evaluation process). The issue now is that, based on Section 32.2.3 "In case of discrepancies between: (c) stated total price and the sum of prices of component items, the latter shall prevail"; with this, the corrected sum of prices of the component items of bidder 1 is higher of 100k compared to the bid offer of bidder 2 (but still within the ABC). This means, bidder 2 will be the LCB and not bidder 1 as previously declared by the BAC.  

It is on this point that we seek for your guidance, what's the right thing to do?
1) Cancellation of NOA to bidder 1? (if such, under what provision in the IRR?)
2) Non-cancellation or Proceed with the issuance of contract to bidder 1? In this case, what will be the price to be used in the per item component to be reflected in the contract? Are we gonna use the same figures stated in the bid offer per item?

Please guide us...Thank you.  

   


1. Award to Bidder 1 must be cancelled based on procedural infirmities. If indeed the calculated bid price is not the lowest, it should be Bidder 2 and not Bidder 1 which should be the LCB, and who will undergo post-qualification. Basis is Sec.32.3 "After all bids have been received, opened, examined, evaluated, and ranked, the BAC shall prepare the corresponding Abstract of Bids. All members of the BAC shall sign the Abstract of Bids and attach thereto all the bids with their corresponding bid securities and the minutes or proceedings of the bidding."

2. I will not recommend the premise (non-cancellation). However, in any event Bidder No. 2 will be disqualified, Bidder 1 should be awarded at the submitted bid price (if it is lower). Basis is Sec.34.4 "If the BAC determines that the bidder with the Lowest Calculated Bid/Highest Rated Bid passes all the criteria for post-qualification, it shall declare the said bid as the Lowest Calculated Responsive Bid/Highest Rated Responsive Bid, and recommend to the Head of the Procuring Entity the award of contract to the said bidder at its submitted bid price or its calculated bid price, whichever is lower xxx"
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Re: Cancellation of Notice of Award

Post by engrlanz on Tue Mar 17, 2015 7:03 pm

thank you engrjhez for the reply.

however, to explore further: Can the BAC declare a failure of bidding (instead of your suggestion to proceed with the post qualification of bidder 2) based on Section 41 (b) "If the BAC is found to have failed in following the prescribed bidding procedures"... And if we declare failure of bidding, there is a possibility that bidder 2 will request for a copy of minutes of BAC meeting on the declaration of failure. With this, are we safe to have Section 41 as our basis for that? Or is it more proper and safer to proceed with your suggestion to post qual bidder 2?

P.S..... Engrjhez, Sections 32.2 and 34.4 you cited refers to bid evaluation and post qualification stage. As per opinion of the BAC members, it is not substantial as basis considering that the error has been found after the post qualification stage..are we correct on the way we understand it?

Again, Thank you so much for your support.

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Re: Cancellation of Notice of Award

Post by marsgera on Wed Mar 18, 2015 4:34 pm

please refer to Section 41 of the Revised IRR

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