Splitting of Contracts

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Splitting of Contracts

Post by vivi_11 on Wed Aug 05, 2015 11:45 am

I am a researcher and a client requested for an opinion on the matter. For purposes of confidentiality, I hope you don't mind if I redact the names.

Facts are as follows:

The client conducted a bidding but the same was declared as a failure. Reason: No prospective bidder responded to the advertisements

There are two kinds of units being bidded out, say, units A and B.

In all the documents, they stated the Aggregate ABC for both items, say, 10,000,000.00
As far as I can see, they only stated the breakdown of the ABC on the Bid Form: Item A - 5,000,000.00 || Item B - 5,000,000.00
I still can't get a hold of the details on the ITB posted on PhilGeps. All I know is that there was only one ITB.
LET US ASSUME THAT THE ITB stated the breakdown of the ABC.

They conducted a negotiated procurement requesting for quotations from various companies. Again, the request for quotations stated an ABC of 10,000,000.00.

Company A bidded for Item A for 5,000,000.00.
Company B bidded for Item B for 6,000,000.00.

Company A was awarded the contract for Item A, while company B was disqualified.

From the viewpoint of the researcher, I can only speculate whether the prospective bidders were informed that they were dealing with two contracts and the ABC PER ITEM. Same goes for Company A and B during negotiated procurement.

Is this considered splitting of contracts?

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Re: Splitting of Contracts

Post by pluma on Mon Aug 10, 2015 4:48 pm

I'm not sure but I think they bid it by lot (which means no contract splitting), you can have 1 ITB for different item (by lot), as long as the purpose of it is related. (e.g. "construction of 1 unit classroom at Juan dela Cruz Elementary School", you'll have 1 ITB for it and segregate the items by lot like lot1 aggregates, lot2 cements, lot3 others) each lots can be awarded to different bidder/supplier.
Also if it is by lot they should inform  the bidder/supplier to quote the items by lot and it should be clear on the Request for Quotations (or in section VIII Bidding Forms).
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