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bid docs unrealistic price

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Re: bid docs unrealistic price

Post by Scanner on Thu Sep 09, 2010 3:57 pm

jcolas wrote:May I inquire what section in R.A. 9184 that state or implied that "payments of biddocs should not be an amount that will deter greater participation." .. I had been browsing through the pages of this documents but I have to find any provision/s that Biddocs price shoud not be exorbitant enough to discourage more bidders to enter into public biddings...

Sir Scanner, as answered by Sir Engrjhez,kung hahanapin mo yung phrase na "payments of biddocs should not be an amount that will deter greater participation" wala ka talaga makikita, but if you read the Basic Principles of Procurement, you will realize that it is gunning for the participation of the many and the Procuring Entity should not make it difficult for the bidders to participate and one is, by charging a very exorbitant fee. I hope I have made myself clear.

- cheers Ok , I've got the context of the provisions..!, seem I've been losing the analytical capacity to extrapolate what it's aiming for in general ..
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Re: bid docs unrealistic price

Post by sunriser431 on Sun Sep 12, 2010 10:19 pm

Scanner wrote:
jcolas wrote:May I inquire what section in R.A. 9184 that state or implied that "payments of biddocs should not be an amount that will deter greater participation." .. I had been browsing through the pages of this documents but I have to find any provision/s that Biddocs price shoud not be exorbitant enough to discourage more bidders to enter into public biddings...

Sir Scanner, as answered by Sir Engrjhez,kung hahanapin mo yung phrase na "payments of biddocs should not be an amount that will deter greater participation" wala ka talaga makikita, but if you read the Basic Principles of Procurement, you will realize that it is gunning for the participation of the many and the Procuring Entity should not make it difficult for the bidders to participate and one is, by charging a very exorbitant fee. I hope I have made myself clear.

- cheers Ok , I've got the context of the provisions..!, seem I've been losing the analytical capacity to extrapolate what it's aiming for in general ..
well, another satisfied forum member walks away happy, cheers. Hope to hear more from you in this forum. Peace.
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Re: bid docs unrealistic price

Post by Mike on Mon Sep 20, 2010 5:24 pm

Based on my understanding the payment of bid documents goes to the national goverment treasury it will not directly goes to the agency. That's why I don't think that they used of it for their honoraria's or other expenses. Some agency take advantage for highering the bid docs fee to discourage contractors in entering the bidding so that their favorates would have big chance of winning or to do other things. That's why it should not be abused by the agency if they have no malice for it in declaring fees for the bid docs.
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Re: bid docs unrealistic price

Post by fe a. araya on Mon Sep 20, 2010 6:49 pm

I understand the predicament of Mike that the agency may tend to abuse the discretion to determine the cost of the bidding docs . However, I have to disagree to his statement (PEACE!) that the proceeds from the sale of bid docs may not be used for the honorarium but to discourage contractors from joing the bidding activities. DBM Budget Circular No. 2004-5A dated Oct. 7, 2005 is very specific on the authority to the BAC members, BAC Secretriat and TWG to be granted the honorarium for their participation in the completion of the bidding process for projects of the agency. Let me quote the Rationale behind the granting of such compensation:

"Sec. 4.0 Honoraria is a form of compensation granted to individuals for the performance of tasks or involvement in activities beyond their regular functions. Equity calls for equal compensation for performance of substantially similar duties, with substantially similar degrees of responsibility. Propriety dictates that only persons who have successfully completed their tasks or participated in accomplished activities ought to be compensation"

To deprive the BAC members, BAC SEcretariat and TWG this compensation which is lawfully granted just because there are some people who doubt the intention of the fee, would be unfair. On the other hand why would a prospective bidder/contractor be affected by the thought that the agency's way of discouraging them is to sell the bid docs at a very exorbitant price. If a bidder is really interested, and believes that his company can deliver the required goods and services, why think of the price. In any business there is always the risk. Let us not linger on the thought that our government is being unfair to our partners in the procurement activities but rather let us think that RA 9184 was promulgated in the interest of both the government and the bidders/suppliers/contractors. PEACE!
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Re: bid docs unrealistic price

Post by sunriser431 on Mon Sep 20, 2010 9:45 pm

Mike wrote:Based on my understanding the payment of bid documents goes to the national goverment treasury it will not directly goes to the agency. That's why I don't think that they used of it for their honoraria's or other expenses. Some agency take advantage for highering the bid docs fee to discourage contractors in entering the bidding so that their favorates would have big chance of winning or to do other things. That's why it should not be abused by the agency if they have no malice for it in declaring fees for the bid docs.
Guidelines on BC NO. 2004-5 and BC NO. 2004-5A as amended. For your guidance. bounce Peace
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Re: bid docs unrealistic price

Post by jcolas on Mon Sep 20, 2010 10:05 pm

Well said Maam Fe and to Sir Mike, the notion that procuring entity sometimes raises the price of bid docs in order that it will only be the more affluent contractors who can join the bidding is understandable and this practice is limited to only, I think, one agency.
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Re: bid docs unrealistic price

Post by Mike on Tue Sep 21, 2010 3:01 pm

I did not mean that the Members in the Procuring Entity must not be granted for honoria's if that is so. I just want to pointed out it must be fair and just computation in declaring the price of bid documents. So that it will not burden to bidders and to have more participants to have a good competitive bidding. Infact that why many bidders complain about this unrealistic bid documents fee.
Sample some Agency charge bid documents 1500 pesos for a 1M project, but some Agency charge 4 to 5 thou. or more for same amount of project.
That's why the bidders can not understand how they compute their expenses.
That is why I said that some agencies had a malice in doing such higher fee for bid document. please take note I said some but not all agencies, to be fair with other who have doing right.
thank you....
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Re: bid docs unrealistic price

Post by jcolas on Tue Sep 21, 2010 6:41 pm

Sample some Agency charge bid documents 1500 pesos for a 1M project, but some Agency charge 4 to 5 thou. or more for same amount of project

A bid doc for Four to five thousand for a !.5M project is too much. It is unconscionable but unless the GPPB will come out with a definite stand in arriving at the price of bid docs, there will be agencies which will take advantage of the situation. Thank you sir Mike for pointing this out.
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Re: bid docs unrealistic price

Post by engrjhez® on Tue Sep 21, 2010 6:48 pm

True that bid docs should be priced as to minimal cost of producing and developing the document. But there are several aspects of development that need to be addressed more than just selling the document. Although not directly chargeable, trainings and the likes are needed to maintain a required proficiency. Of course there's the honoraria. Unfortunately in some agencies, the increase of honoraria was simply to attain the maximum honoraria for a number of BAC, TWG and ad-hoc Secretariats which do not actually perform on 'equal work, equal pay' basis.

But never to worry. Just in case the collection of bid docs proved to be excessive, it will simply go back to General Fund (for LGUs) or the National Treasury (for NGAs...)

But generally speaking, bid docs that ranges from 0.1% to 0.5% of ABC may still be reasonable at thresholds. And for me, the lesser the amount of bid docs, the more efficient the procurement system in an agency is. Smile
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