Eligibility check

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Eligibility check

Post by icecastle98 on Fri Oct 30, 2009 4:26 pm

Can a new construction firm who was given a PCAB license November 2008 be allowed to participate in the bidding process July 2009 even if he has no track record yet? The project is worth more than P 450,000.00 and the other more than P 550,000.00. The financial statement submitted was that of his merchandising firm since his new construction firm have no transaction for 2008. Is that allowed?
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Re: Eligibility check

Post by RDV @ GP3i on Fri Oct 30, 2009 8:17 pm

icecastle98 wrote:Can a new construction firm who was given a PCAB license November 2008 be allowed to participate in the bidding process July 2009 even if he has no track record yet? The project is worth more than P 450,000.00 and the other more than P 550,000.00. The financial statement submitted was that of his merchandising firm since his new construction firm have no transaction for 2008. Is that allowed?

The answer would normally depend on the eligibility requirement set by the procuring entity. The requirement for the track record for the procurement of infra projects, as provided in the revised IRR, is contained in the following provisions:

"23.5.2.5. The prospective bidder must have an experience of having completed, within a period of ten (10) years from the date of submission and receipt of bids , at least one (1) contract that is similar to the contract to be bid, and whose value, adjusted to current prices using the NSO consumer price indices , must be at least fifty percent (50%) of the ABC to be bid: Provided, however, That contractors under Small A and Small B categories without similar experience on the contract to be bid may be allowed to bid if the cost of such contract is not more than fifty percent (50%) of the Allowable Range of Contract Cost (ARCC) of their registration based on the guidelines as prescribed by the PCAB."

From the quoted provisions, experience is a MUST. A contractor has to have a completed contract, which is similar to the contract to be bid, which value (adjusted to current prices) must be at least 50% of the ABC to be bid. Obviously, he doesn't have that yet.

However, there is also a succeeding proviso that contractors under Small A and Small B categories without similar experience MAY BE ALLOWED to bid if the cost of the contract is not more than 50% of the ARCC of their registration based on PCAB guidelines. Since the term used is "may be allowed" it connotes that it will depend on the procuring entity concerned. You will have to look at the bidding documents whether the procuring entity is allowing the participation of Small A and Small B contractors. Since the cost of the projects are P450,000 and P550,000, they comply with the requirement that the cost of the contract is not more than 50% of the Allowable Range of Contract Cost (ARCC) of Small A and Small B contractors.

As far as the financial statement is concerned, it should be the financial statement of the contracting firm already and not of the merchandising firm. Even if the contracting firm has no transaction for 2008, the financial statement will still contain its Current Assets and Current Liabilities (and Networth).
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