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Changes in the amount of ABC

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Changes in the amount of ABC

Post by wolfpit on Tue Nov 03, 2009 3:53 pm

Good day,

If i may ask, is it possible to change the amount of ABC after two consecutive failures in the biddings? If in case after a few months the prices of the items being bidded has already increased and has exceeded the previous amount of ABC, what would be the best way to do so?
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Re: Changes in the amount of ABC

Post by riddler on Tue Nov 03, 2009 4:25 pm

wolfpit wrote:Good day,

If i may ask, is it possible to change the amount of ABC after two consecutive failures in the biddings? If in case after a few months the prices of the items being bidded has already increased and has exceeded the previous amount of ABC, what would be the best way to do so?

The BAC can always increase/decrease the ABC after the 1st bidding as long the following criteria of the New IRR are met;

Section 35. Failure of Bidding

35.1. The BAC shall declare the bidding a failure when:
a) No bids are received;
b) All prospective bidders are declared ineligible;
c) All bids fail to comply with all the bid requirements or fail post-qualification, or,
in the case of consulting services, there is no successful negotiation; or
d) The bidder with the Lowest Calculated Responsive Bid/Highest Rated
Responsive Bid refuses, without justifiable cause, to accept the award of
contract, and no award is made in accordance with Section 40 of the Act and
this IRR.
35.2. In order to determine the reason for the failed bidding, the BAC shall conduct a
mandatory review and evaluation of the terms, conditions, and specifications in the
Bidding Documents, including its cost estimates
.(a)
35.3. Based on its findings, the BAC shall revise the terms, conditions, and specifications,
and if necessary, adjust the ABC, subject to the required approvals, and conduct a
re-bidding with re-advertisement and/or posting, as provided for in Section 21.2 of
this IRR.(a)35.4.


All bidders who have initially responded to the Invitation to Bid/Request for
Expression of Interest and have been declared eligible or short listed in the previous
biddings shall be allowed to submit new bids. The BAC shall observe the same
process and set the new periods according to the same rules followed during the
previous bidding(s).
(a)
35.5. Should there occur a second failure of bidding, the procuring entity may resort to
negotiated procurement, as provided for in Section 53.1 of this IRR.

The adjusted ABC must not exceed the appropriation of the project.
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Re: Changes in the amount of ABC

Post by RDV @ GP3i on Tue Nov 03, 2009 4:47 pm

wolfpit wrote:Good day,

If i may ask, is it possible to change the amount of ABC after two consecutive failures in the biddings? If in case after a few months the prices of the items being bidded has already increased and has exceeded the previous amount of ABC, what would be the best way to do so?

Welcome to the forum, wolfpit.

Even after first failure of bidding, unlike in IRR-A, under the revised IRR the procuring entity may already adjust the ABC.

Under Sec. 35.1 of the revised IRR, the first step is to conduct a mandatory review and evaluation of the terms, conditions, and specifications in the Bidding Documents, including its cost estimates in order to determine the reason for the failed bidding.

Based on its findings, under Sec. 35.2, the BAC shall revise the terms, conditions, and specifications , and if necessary, adjust the ABC, subject to the required approvals , and conduct a re-bidding with re-advertisement and/or posting, as provided for in Section 21.2 of this IRR.

The "required approvals" would pertain to approvals on fund realignments to augment the original appropriation for the project, if necessary, or a sanggunian appropriation ordinance (for LGUs), if the original appropriation is also insufficient. There is no limitation on how much the ABC could be increased, so long as it is based on the results of the mandatory review and evaluation.

If the rebidding resulted again to a failure of bidding (2nd failure), the procuring entity may already proceed to Negotiated Procurement (Sec. 53.1). Sec. 53.1.1 provides that after the 2nd failure, the procuring entity shall conduct a mandatory review of the terms, conditions, specifications, and cost estimates, as prescribed in Section 35 of the revised IRR. Based on the results of the second mandatary review, the BAC shall revise and agree on the minimum technical specifications , and if necessary, adjust the ABC, again subject to the required approvals. This time, however, the ABC cannot be increased by more than twenty percent (20%) of the ABC for the last failed bidding .

I hope I have clarified you on the question you have raised.
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Re: Changes in the amount of ABC

Post by Guest on Tue Nov 03, 2009 5:37 pm

Answered already

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Re: Changes in the amount of ABC

Post by wolfpit on Tue Nov 03, 2009 5:47 pm

Gentlemen,

Thank you so much for your enlightenment. It means so much to us.

Keep it up and more power!

Best regards,

Wolfpit
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Re: Changes in the amount of ABC

Post by misty on Wed Nov 04, 2009 8:46 am

good morning.

if it is not possible to increase the abc, can the quantity be decreased instead?

thank you.
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Re: Changes in the amount of ABC

Post by Guest on Wed Nov 04, 2009 9:06 am

misty wrote:good morning.

if it is not possible to increase the abc, can the quantity be decreased instead?

thank you.

yes.

35.2. In order to determine the reason for the failed bidding, the BAC shall conduct a
mandatory review and evaluation of the terms, conditions, and specifications in the
Bidding Documents, including its cost estimates.(a)
35.3. Based on its findings, the BAC shall revise the terms, conditions, and specifications x x x.

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Re: Changes in the amount of ABC

Post by riddler on Wed Nov 04, 2009 9:56 am

RDV wrote:
x x x x xx.

If the rebidding resulted again to a failure of bidding (2nd failure), the procuring entity may already proceed to Negotiated Procurement (Sec. 53.1). Sec. 53.1.1 provides that after the 2nd failure, the procuring entity shall conduct a mandatory review of the terms, conditions, specifications, and cost estimates, as prescribed in Section 35 of the revised IRR.

I dont get it right RDV (i am makulit). Given the above section you quoted, Can the BAC increase/decrease the specifications/scope of work of the project/goods and subject them for negotiated procurement after the 2nd failure of bidding? If i get it right, negotiation shall only happen if the same specs/scope of work is used in the 2nd Bidding, otherwise, if the BAC increase/decrease the scope of work/specification of the goods/project, it should be procured again through competitive bidding and treat them as the 1st bidding. Question Question

RDV wrote:xx xx x x x. Based on the results of the second mandatary review, the BAC shall revise and agree on the minimum technical specifications , and if necessary, adjust the ABC, again subject to the required approvals. This time, however, the ABC cannot be increased by more than twenty percent (20%) of the ABC for the last failed bidding


I also thought that there is no limit in setting the ABC as long as the additional appropriation for the project is approved by authorities. Can you provide me your thoughts on this RDV?

P.S. Congrats, OIC Regional Director ka na pala, ngayon ko lang napansin. Very Happy Very Happy


Last edited by ruel on Wed Nov 04, 2009 10:04 am; edited 1 time in total
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Re: Changes in the amount of ABC

Post by RDV @ GP3i on Wed Nov 04, 2009 10:03 am

ruel wrote:
RDV wrote:
x x x x xx.

If the rebidding resulted again to a failure of bidding (2nd failure), the procuring entity may already proceed to Negotiated Procurement (Sec. 53.1). Sec. 53.1.1 provides that after the 2nd failure, the procuring entity shall conduct a mandatory review of the terms, conditions, specifications, and cost estimates, as prescribed in Section 35 of the revised IRR.

I dont get it right RDV (i am makulit). Given the above section you quoted, Can the BAC increase/decrease the specifications/scope of work of the project/goods and subject them for negotiated procurement after the 2nd failure of bidding? If i get it right, negotiation shall only happen if the same specs/scope of work is used in the 2nd Bidding, otherwise, if the BAC increase/decrease the scope of work/specification of the goods/project, it should be procured again through competitive bidding and treat them as the 1st bidding. Question Question

Unlike in IRR-A, where after 2nd failure you either (a) proceed to negotiated procurement using the same ABC as of the last failure, or (b) adjust the ABC but conduct a 3rd bidding, in the revised IRR, you may also adjust the ABC (but not more than 20% of the ABC for the last failed bidding) and then proceed to negotiated procurement using the adjusted ABC in the negotiation.

ruel wrote:
RDV wrote:xx xx x x x. Based on the results of the second mandatary review, the BAC shall revise and agree on the minimum technical specifications , and if necessary, adjust the ABC, again subject to the required approvals. This time, however, the ABC cannot be increased by more than twenty percent (20%) of the ABC for the last failed bidding


I also thought that there is no limit in setting the ABC as long as the additional appropriation for the project is approved by authorities. Can you provide me your thoughts on this RDV?

There is no limit in adjusting the ABC after the first failed bidding (for any of reasons stated in Sec. 35) so long as the necessary approval is obtained, but after the 2nd failure there is already that limit in adjusting the ABC which is no more than 20% of the ABC for the last failed bidding (Sec. 53.1)
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Re: Changes in the amount of ABC

Post by riddler on Wed Nov 04, 2009 10:41 am

Alright, i get your point RDV... Now i would like to present this "another such proposed negotiated procurement in our area" just a while ago;

This is regarding the procurement of England made Armalite rifles, magazines, etc of our PNP (local funds). The 1st bidding failed, because no bidder complied with the specifications, the BAC pursued the 2nd Bidding with the same result and negotiated the same. However, the negotiation also failed because the bidders cannot comply the specifications. The end user recommend to reduce the number of unit of rifles (U.S. made) with the same ABC.. Is the BAC allowed to negotiate for this particular matter?

Do we need to post the subject for negotiated procurement? By how many cal days?
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Re: Changes in the amount of ABC

Post by RDV @ GP3i on Wed Nov 04, 2009 11:06 am

ruel wrote:Alright, i get your point RDV... Now i would like to present this "another such proposed negotiated procurement in our area" just a while ago;

This is regarding the procurement of England made Armalite rifles, magazines, etc of our PNP (local funds). The 1st bidding failed, because no bidder complied with the specifications, the BAC pursued the 2nd Bidding with the same result and negotiated the same. However, the negotiation also failed because the bidders cannot comply the specifications. The end user recommend to reduce the number of unit of rifles (U.S. made) with the same ABC.. Is the BAC allowed to negotiate for this particular matter?

Do we need to post the subject for negotiated procurement? By how many cal days?

If the specification was the problem (because bidders cannot comply with the specifications), reducing the number of unit of riles will not solve the problem. That is the reason why, after each failed bidding, there must be a "mandatory review and evaluation of the terms, conditions, and specifications in the Bidding Documents, including the cost estimates" (Sec. 35.2 and 53.1.1). If the reason for the failure is because the ABC is understated (that is why nobody wanted to join the bidding process) and the ABC cannot be adjusted upwards because of lack of funds, then reducing the number of units of rifles with the same ABC is allowed. If it is already after the 2nd failure, the answer is YES, you are allowed to conduct a negotiated procurement afterwards. Of course, the BAC has first to recommend, through a BAC Resolution, the change in the mode of procurement from Public Bidding to Negotiated Procurement, for approval of the HOPE. Thereafter, the approved APP should be updated.

Posting (in the PhilGEPS, procuring entity's website, if any, and conspicuous place) is still required for a period of seven (7) c.d.(Sec. 54.2).
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Re: Changes in the amount of ABC

Post by misty on Wed Nov 04, 2009 2:08 pm

Now I get it!

Salamat po ulit.
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Re: Changes in the amount of ABC

Post by RDV @ GP3i on Wed Nov 04, 2009 2:18 pm

misty wrote:Now I get it!

Salamat po ulit.

My pleasure, misty.

RDV Very Happy
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Re: Changes in the amount of ABC

Post by riddler on Wed Nov 04, 2009 2:29 pm

RDV wrote:
ruel wrote:Alright, i get your point RDV... Now i would like to present this "another such proposed negotiated procurement in our area" just a while ago;

This is regarding the procurement of England made Armalite rifles, magazines, etc of our PNP (local funds). The 1st bidding failed, because no bidder complied with the specifications, the BAC pursued the 2nd Bidding with the same result and negotiated the same. However, the negotiation also failed because the bidders cannot comply the specifications. The end user recommend to reduce the number of unit of rifles (U.S. made) with the same ABC.. Is the BAC allowed to negotiate for this particular matter?

Do we need to post the subject for negotiated procurement? By how many cal days?

If the specification was the problem (because bidders cannot comply with the specifications), reducing the number of unit of riles will not solve the problem. That is the reason why, after each failed bidding, there must be a "mandatory review and evaluation of the terms, conditions, and specifications in the Bidding Documents, including the cost estimates" (Sec. 35.2 and 53.1.1). If the reason for the failure is because the ABC is understated (that is why nobody wanted to join the bidding process) and the ABC cannot be adjusted upwards because of lack of funds, then reducing the number of units of rifles with the same ABC is allowed. If it is already after the 2nd failure, the answer is YES, you are allowed to conduct a negotiated procurement afterwards. Of course, the BAC has first to recommend, through a BAC Resolution, the change in the mode of procurement from Public Bidding to Negotiated Procurement, for approval of the HOPE. Thereafter, the approved APP should be updated.

Posting (in the PhilGEPS, procuring entity's website, if any, and conspicuous place) is still required for a period of seven (7) c.d.(Sec. 54.2).

i'm sorry my query is not clear RDV. THe Bidders during the 1st failure of bidding would like to supply China made Armalite(no offense to China ha) rifles. during the Bid Eval, our Chief of Police insisted that what they need are England made rifles due to its durabilty, effeciency, stability, etc.etc.. and there is an availability of the England made rifle in the market at that time of posting.. However, during the 2nd bidding di naman ulit available yung England made so failure kami the 2nd time around at failure din ulit sa negotiation for that Made in England bratatat... Ang nangyari recommend ulit yung COP na U.S. made na lang na bratatat ang i-procure, kaya lang mdyo may kamahalan kaya ni reduce yung number of units but the BAC retained the ABC,, can this process be done through negotiation given to that kind of situation? nosebleed gid kaayo!
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Re: Changes in the amount of ABC

Post by RDV @ GP3i on Wed Nov 04, 2009 3:09 pm

ruel wrote:
i'm sorry my query is not clear RDV. THe Bidders during the 1st failure of bidding would like to supply China made Armalite(no offense to China ha) rifles. during the Bid Eval, our Chief of Police insisted that what they need are England made rifles due to its durabilty, effeciency, stability, etc.etc.. and there is an availability of the England made rifle in the market at that time of posting.. However, during the 2nd bidding di naman ulit available yung England made so failure kami the 2nd time around at failure din ulit sa negotiation for that Made in England bratatat... Ang nangyari recommend ulit yung COP na U.S. made na lang na bratatat ang i-procure, kaya lang mdyo may kamahalan kaya ni reduce yung number of units but the BAC retained the ABC,, can this process be done through negotiation given to that kind of situation? nosebleed gid kaayo!

Let me make the following assumptions first:
1. The reasons for the two (2) failures are any one of the situations under Sec. 35;
2. A review of the terms, conditions, and specifications, including the ABC, was done after the 2nd failure of bidding (which became the basis for reducing the quantity of the items to be procured); and
3. Negotiation is done under the revised IRR regime (after September 2, 2009).

If those assumptions are correct, i would say that Negotiated Procurement could proceed. Under the revised IRR, a "sufficient number" of suppliers should be invited for negotiation. If you invited only one supplier of U.S. made rifles, I don't think that could be considered as a sufficient number. In IRR-A the requirement is to invite at least three (3) suppliers. While the determination of what is a sufficient number is left to the procuring entity, inviting only one and directly negotiating with only one, I am afraid, is not in accordance with Sec. 53.1.
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Re: Changes in the amount of ABC

Post by sunriser431 on Wed Nov 04, 2009 3:18 pm

For purpose of Clarification/Discussion. Section 35.2 and 35.3
35.2 In order to determine the reason for the failed bidding, the BAC shall conduct a mandatory review and evaluation of the terms, conditions, and specifications in the Bidding Documents, including its cost estimates.
35.3. Based on its findings, the BAC shall revise the terms, conditions, and specifications, and if necessary, adjust the ABC, subject to the required approvals, and conduct a re-bidding with re-advertisement and/or posting, as provided for in Section 21.2 of this IRR.

For Clarification:
Sir RDV,I need clarification on section 35.2, and 35.3 respectively. Is this within the mandate of the BAC (adjust of its cost estimates/ABC for the project?) if in Section 12 of the revised IRR of 9184 provides clearly the main Functions of the BAC.

I still believe its the end-user units of the procuring entity is responsible in preparing their respective Project procurement Management Plan (PPMP) for their different programs, activities, and projects (PAPs). If any adjustment on the cost estimates/ABC, this unit(end-user unit) should be first properly inform/ or coordinated, so there is a need for them to prepare a revised PPMP and updating of the APP (BAC secretariat). I might be wrong, any input/clarification would be appreciated.
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Re: Changes in the amount of ABC

Post by riddler on Wed Nov 04, 2009 3:27 pm

RDV wrote:
xxx x x x xx.
Let me make the following assumptions first:
1. The reasons for the two (2) failures are any one of the situations under Sec. 35;
2. A review of the terms, conditions, and specifications, including the ABC, was done after the 2nd failure of bidding (which became the basis for reducing the quantity of the items to be procured); and
3. Negotiation is done under the revised IRR regime (after September 2, 2009).

If those assumptions are correct, i would say that Negotiated Procurement could proceed. Under the revised IRR, a "sufficient number" of suppliers should be invited for negotiation. If you invited only one supplier of U.S. made rifles, I don't think that could be considered as a sufficient number. In IRR-A the requirement is to invite at least three (3) suppliers. While the determination of what is a sufficient number is left to the procuring entity, inviting only one and directly negotiating with only one, I am afraid, is not in accordance with Sec. 53.1.


Right, your assumptions are correct RDV. (salamat at na gets mo.. Very Happy Very Happy )

But here's the problem.. granting that after posting the matter for "Negotiation" only one or two supplier/s responded, what shall we do? Can the BAC proceed with the Nego? Do we need to "invite" them for the Nego, or shall the BAC post it na lang sa Website and in conspicous place/s? Actually only 2 supplier from DAvao city signified their intent during the Bidding before.
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Re: Changes in the amount of ABC

Post by RDV @ GP3i on Wed Nov 04, 2009 3:33 pm

ruel wrote:
RDV wrote:
xxx x x x xx.
Let me make the following assumptions first:
1. The reasons for the two (2) failures are any one of the situations under Sec. 35;
2. A review of the terms, conditions, and specifications, including the ABC, was done after the 2nd failure of bidding (which became the basis for reducing the quantity of the items to be procured); and
3. Negotiation is done under the revised IRR regime (after September 2, 2009).

If those assumptions are correct, i would say that Negotiated Procurement could proceed. Under the revised IRR, a "sufficient number" of suppliers should be invited for negotiation. If you invited only one supplier of U.S. made rifles, I don't think that could be considered as a sufficient number. In IRR-A the requirement is to invite at least three (3) suppliers. While the determination of what is a sufficient number is left to the procuring entity, inviting only one and directly negotiating with only one, I am afraid, is not in accordance with Sec. 53.1.


Right, your assumptions are correct RDV. (salamat at na gets mo.. Very Happy Very Happy )

But here's the problem.. granting that after posting the matter for "Negotiation" only one or two supplier/s responded, what shall we do? Can the BAC proceed with the Nego? Do we need to "invite" them for the Nego, or shall the BAC post it na lang sa Website and in conspicous place/s? Actually only 2 supplier from DAvao city signified their intent during the Bidding before.

There is really that requirement, not just to directly invite the available local suppliers, but post the invitation for negotiation in the PhilGEPS, procuring entity's website (if any) and conspicuous bulletin boards.
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Re: Changes in the amount of ABC

Post by riddler on Wed Nov 04, 2009 3:46 pm

sunriser431 wrote:For purpose of Clarification/Discussion. Section 35.2 and 35.3
35.2 In order to determine the reason for the failed bidding, the BAC shall conduct a mandatory review and evaluation of the terms, conditions, and specifications in the Bidding Documents, including its cost estimates.
35.3. Based on its findings, the BAC shall revise the terms, conditions, and specifications, and if necessary, adjust the ABC, subject to the required approvals, and conduct a re-bidding with re-advertisement and/or posting, as provided for in Section 21.2 of this IRR.

For Clarification:
Sir RDV,I need clarification on section 35.2, and 35.3 respectively. Is this within the mandate of the BAC (adjust of its cost estimates/ABC for the project?) if in Section 12 of the revised IRR of 9184 provides clearly the main Functions of the BAC.

I still believe its the end-user units of the procuring entity is responsible in preparing their respective Project procurement Management Plan (PPMP) for their different programs, activities, and projects (PAPs). If any adjustment on the cost estimates/ABC, this unit(end-user unit) should be first properly inform/ or coordinated, so there is a need for them to prepare a revised PPMP and updating of the APP (BAC secretariat). I might be wrong, any input/clarification would be appreciated.

I think this is still the function of the BAC as this is mandatory unders Sec. 35.2, the End-user naman is a provisional member of the BAC kaya kasama sila sa mandatory review of the terms and conditions of the bid including its cost estimates.. we have a case here na pinabayaan namin sa end-user yung determination ng ABC, ang nagyari eh na AOM kami ng Auditor dahil over priced daw ang ABC.
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Re: Changes in the amount of ABC

Post by RDV @ GP3i on Wed Nov 04, 2009 3:51 pm

sunriser431 wrote:For purpose of Clarification/Discussion. Section 35.2 and 35.3
35.2 In order to determine the reason for the failed bidding, the BAC shall conduct a mandatory review and evaluation of the terms, conditions, and specifications in the Bidding Documents, including its cost estimates.
35.3. Based on its findings, the BAC shall revise the terms, conditions, and specifications, and if necessary, adjust the ABC, subject to the required approvals, and conduct a re-bidding with re-advertisement and/or posting, as provided for in Section 21.2 of this IRR.

For Clarification:
Sir RDV,I need clarification on section 35.2, and 35.3 respectively. Is this within the mandate of the BAC (adjust of its cost estimates/ABC for the project?) if in Section 12 of the revised IRR of 9184 provides clearly the main Functions of the BAC.

I still believe its the end-user units of the procuring entity is responsible in preparing their respective Project procurement Management Plan (PPMP) for their different programs, activities, and projects (PAPs). If any adjustment on the cost estimates/ABC, this unit(end-user unit) should be first properly inform/ or coordinated, so there is a need for them to prepare a revised PPMP and updating of the APP (BAC secretariat). I might be wrong, any input/clarification would be appreciated.

I agree with you, sunriser. I think we should not read too literally on those provisions that the responsibility is done exclusively by the BAC, since the roles of the other stakeholders, particularly the end-user unit if (after the mandatory review) there is a need to revise the specifications/reduce the quantities, terms and other conditions, including the adjustment of the ABC. They are done initially by the end-user units prior to the BAC making the appropriate recommendations (thru BAC Resolutions/updating of APP) for approval of the HOPE.
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Re: Changes in the amount of ABC

Post by riddler on Wed Nov 04, 2009 3:54 pm

RDV wrote:
ruel wrote:
RDV wrote:
xxx x x x xx.
Let me make the following assumptions first:
1. The reasons for the two (2) failures are any one of the situations under Sec. 35;
2. A review of the terms, conditions, and specifications, including the ABC, was done after the 2nd failure of bidding (which became the basis for reducing the quantity of the items to be procured); and
3. Negotiation is done under the revised IRR regime (after September 2, 2009).

If those assumptions are correct, i would say that Negotiated Procurement could proceed. Under the revised IRR, a "sufficient number" of suppliers should be invited for negotiation. If you invited only one supplier of U.S. made rifles, I don't think that could be considered as a sufficient number. In IRR-A the requirement is to invite at least three (3) suppliers. While the determination of what is a sufficient number is left to the procuring entity, inviting only one and directly negotiating with only one, I am afraid, is not in accordance with Sec. 53.1.


Right, your assumptions are correct RDV. (salamat at na gets mo.. Very Happy Very Happy )

But here's the problem.. granting that after posting the matter for "Negotiation" only one or two supplier/s responded, what shall we do? Can the BAC proceed with the Nego? Do we need to "invite" them for the Nego, or shall the BAC post it na lang sa Website and in conspicous place/s? Actually only 2 supplier from DAvao city signified their intent during the Bidding before.

There is really that requirement, not just to directly invite the available local suppliers, but post the invitation for negotiation in the PhilGEPS, procuring entity's website (if any) and conspicuous bulletin boards.

what about if only "one bidder" responded for that Nego RDV? Can the BAC proceed the Nego to only one supplier?
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Re: Changes in the amount of ABC

Post by RDV @ GP3i on Wed Nov 04, 2009 4:00 pm

ruel wrote:
RDV wrote:
ruel wrote:
RDV wrote:
xxx x x x xx.
Let me make the following assumptions first:
1. The reasons for the two (2) failures are any one of the situations under Sec. 35;
2. A review of the terms, conditions, and specifications, including the ABC, was done after the 2nd failure of bidding (which became the basis for reducing the quantity of the items to be procured); and
3. Negotiation is done under the revised IRR regime (after September 2, 2009).

If those assumptions are correct, i would say that Negotiated Procurement could proceed. Under the revised IRR, a "sufficient number" of suppliers should be invited for negotiation. If you invited only one supplier of U.S. made rifles, I don't think that could be considered as a sufficient number. In IRR-A the requirement is to invite at least three (3) suppliers. While the determination of what is a sufficient number is left to the procuring entity, inviting only one and directly negotiating with only one, I am afraid, is not in accordance with Sec. 53.1.


Right, your assumptions are correct RDV. (salamat at na gets mo.. Very Happy Very Happy )

But here's the problem.. granting that after posting the matter for "Negotiation" only one or two supplier/s responded, what shall we do? Can the BAC proceed with the Nego? Do we need to "invite" them for the Nego, or shall the BAC post it na lang sa Website and in conspicous place/s? Actually only 2 supplier from DAvao city signified their intent during the Bidding before.

There is really that requirement, not just to directly invite the available local suppliers, but post the invitation for negotiation in the PhilGEPS, procuring entity's website (if any) and conspicuous bulletin boards.

what about if only "one bidder" responded for that Nego RDV? Can the BAC proceed the Nego to only one supplier?

Had you asked that question under the regime of IRR-A, I would have answered YES, the BAC can proceed with the negotiation if only one supplier responded to the invitation.

However, under the revised IRR, Sec. 53.1.2 provides that "The BAC shall invite and engage in negotiation with a sufficient number of suppliers, contractors, or consultants to ensure effective competition."

From that provision, the requirement is not only to invite but also to engage in negotiation with a sufficient number. If only one supplier responded, then you can no longer comply with the requirement that you engage in negotiation with a sufficient number. Therefore, my answer, under the revised IRR, is a NO.
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Re: Changes in the amount of ABC

Post by riddler on Wed Nov 04, 2009 4:13 pm

OK. Parang mahirap ata para sa LGU namin sa palagay ko yung condition under the new IRR. Sad our location is almost four hours away from DAvao City.. mahirap din maghanap ng suppliers with sufficient documents for this kind of procurement. Well, anyway thanks a lot RDV... i think i would have to recommend na lang for another competitive bidding (3rd time) for this bratatat.. Smile
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Re: Changes in the amount of ABC

Post by sunriser431 on Wed Nov 04, 2009 4:26 pm

RDV wrote:
Had you asked that question under the regime of IRR-A, I would have answered YES, the BAC can proceed with the negotiation if only one supplier responded to the invitation.

However, under the revised IRR, Sec. 53.1.2 provides that "The BAC shall invite and engage in negotiation with a sufficient number of suppliers, contractors, or consultants to ensure effective competition."

From that provision, the requirement is not only to invite but also to engage in negotiation with a sufficient number. If only one supplier responded, then you can no longer comply with the requirement that you engage in negotiation with a sufficient number. Therefore, my answer, under the revised IRR, is a NO.
Sir RDV, I have clarification (Negotiation) Do we have to follow the Annex "C" period of action on procurement timelines?
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Re: Changes in the amount of ABC

Post by RDV @ GP3i on Wed Nov 04, 2009 4:29 pm

sunriser431 wrote:
RDV wrote:
Had you asked that question under the regime of IRR-A, I would have answered YES, the BAC can proceed with the negotiation if only one supplier responded to the invitation.

However, under the revised IRR, Sec. 53.1.2 provides that "The BAC shall invite and engage in negotiation with a sufficient number of suppliers, contractors, or consultants to ensure effective competition."

From that provision, the requirement is not only to invite but also to engage in negotiation with a sufficient number. If only one supplier responded, then you can no longer comply with the requirement that you engage in negotiation with a sufficient number. Therefore, my answer, under the revised IRR, is a NO.
Sir RDV, I have clarification (Negotiation) Do we have to follow the Annex "C" period of action on procurement timelines?

The period of action timelines in Annex C is applicable for Public Biddings only. If you are asking for Negotiated Procurement, the answer is NO, but you can use it as a guide, I think.
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Re: Changes in the amount of ABC

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