exception on required experience of at least 50% of ABC (permissive only?)

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exception on required experience of at least 50% of ABC (permissive only?)

Post by kaka on Mon Nov 09, 2009 4:08 pm

good day!

My PCAB license is very new, hence does not yet have a completed project. I am encountering difficulties in applying for eligibility as some procuring entities stringently require an experience of at least 50% of their project's ABC.

I am aware though of Sec. 23.5.2.5 of the revised IRR of RA 9184 allowing contractors without experience to be eligible to bid for a project, provided that the cost of such contract is not more than 50% of their Allowable Range of Contract Cost (ARCC). The provision in the IRR however states 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 50% of the ARCC of their registration..."

And so, I have the following questions that I hope you can help me with:

1. Does the phrase "may be" really mean that this provision is only permissive and not exactly mandatory ?
2. Do procuring entities have the option to allow or disallow contractors without experience to participate in their biddings?
3. How do i go about formally requesting that this be part of the proposed amendements to the RA 9184 and the phrase "may be" be changed to "shall be", to prohibit procuring entities from using this as their loophole in their efforts to favor selected contractors only to qualify for their projects?
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Re: exception on required experience of at least 50% of ABC (permissive only?)

Post by sunriser431 on Mon Nov 09, 2009 9:08 pm

kaka wrote:good day!

My PCAB license is very new, hence does not yet have a completed project. I am encountering difficulties in applying for eligibility as some procuring entities stringently require an experience of at least 50% of their project's ABC.

I am aware though of Sec. 23.5.2.5 of the revised IRR of RA 9184 allowing contractors without experience to be eligible to bid for a project, provided that the cost of such contract is not more than 50% of their Allowable Range of Contract Cost (ARCC). The provision in the IRR however states 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 50% of the ARCC of their registration..."

And so, I have the following questions that I hope you can help me with:

1. Does the phrase "may be" really mean that this provision is only permissive and not exactly mandatory ?
2. Do procuring entities have the option to allow or disallow contractors without experience to participate in their biddings?
3. How do i go about formally requesting that this be part of the proposed amendements to the RA 9184 and the phrase "may be" be changed to "shall be", to prohibit procuring entities from using this as their loophole in their efforts to favor selected contractors only to qualify for their projects?
Welcome to the forum kaka. Smile
For similar topic click this link http://gppb.topicsolutions.net/competitive-bidding-f26/eligibility-check-t478.htm#3383
Additional information regarding section 23.5.2.5. of the revised IRR of RA 9184. excerpt are as follows
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.
Click this link for the latest Implementation of the second stage of adjustment on Allowable Ranges of Contract Costs and single Largest Project completed/Track record requirements http://www.dti.gov.ph/uploads/DownloadableForms/2ndstage_arcc.pdf bounce
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Re: exception on required experience of at least 50% of ABC (permissive only?)

Post by kaka on Tue Nov 10, 2009 7:28 pm

Thank you sunriser!

I just read the reply from the other similar post and yes, the phrase may be really does connote that it's really up to the procuring entity if they'll allow contractors without experience to participate in their biddings.

But isn't this giving them the discretion that they shouldn't even have in the first place since eligibility criteria for all government procurement should have been standardized and therefore no procuring entity should have the freedom to decide independently the eligibility / ineligibility of a contractor based on their own personal judgements?

How can this be formally requested as one of the proposed amendments to the RA 9184?
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Re: exception on required experience of at least 50% of ABC (permissive only?)

Post by engrjhez® on Tue Nov 10, 2009 10:01 pm

kaka wrote:good day!

My PCAB license is very new, hence does not yet have a completed project. I am encountering difficulties in applying for eligibility as some procuring entities stringently require an experience of at least 50% of their project's ABC.

I am aware though of Sec. 23.5.2.5 of the revised IRR of RA 9184 allowing contractors without experience to be eligible to bid for a project, provided that the cost of such contract is not more than 50% of their Allowable Range of Contract Cost (ARCC). The provision in the IRR however states 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 50% of the ARCC of their registration..."

And so, I have the following questions that I hope you can help me with:

1. Does the phrase "may be" really mean that this provision is only permissive and not exactly mandatory ?
2. Do procuring entities have the option to allow or disallow contractors without experience to participate in their biddings?
3. How do i go about formally requesting that this be part of the proposed amendements to the RA 9184 and the phrase "may be" be changed to "shall be", to prohibit procuring entities from using this as their loophole in their efforts to favor selected contractors only to qualify for their projects?

Welcome to the forum kaka!

Your understanding on the term "may be allowed" as applied to the 50% requirement is correct, that it is left to the Procuring Entity's discretion. We understand your sentiments but you also have also to understand the government. I will try to answer your question one by one:

  1. Let's try to reconcile "permissive" and "mandatory". Permissive is to bid evaluation/post-qualification as mandatory is to eligibility check. But since eligibility check comes before any evaluation of bids, what is being checked instantly is the presence of PCAB license, as well as other requirements. In eligibility check, documents are rated PASS or FAIL based on the presence or absence of requirements. At this point, the criteria of 50% will not be checked until bid evaluation (up to post qualification).

  2. Referring to No.1, you may pass the Eligibility Check (from the presence of PCAB license), but you MAY fail later on bid evaluation if you cannot make it to the criteria set by the Procuring Entity as reflected in the Bidding Documents.

  3. You try to post your proposal to the "Proposed Amendments..." section of this forum (look on home page).

In reference to No.3 above, however, I have doubt that it could be openly permitted in the future. No government (or even private entity) would allow a contractor with no experience (as in your case) to be awarded and implement construction projects of moderate scale. You really have to start somewhere, and start where you can drive your way in - like example sub-contracting. When sufficient sub-contracting experience gained some "pogi points" on your contracting firm, start with small projects (waiting sheds, barangay streetlights, landscaping, repair works, small buildings, etc.). It would be also important to point out that, aside from PCAB license, you will also be required to submit:

a) List of on-going, and/or completed projects from private and the government;
b) Audited financial statement;

which in turn be needing some time to establish. If you are really new, then you may not have an any or both of them. If so, you will automatically fail the eligibility check even before they look on the 50% criteria.

Hope it helps.

Very Happy

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Re: exception on required experience of at least 50% of ABC (permissive only?)

Post by kaka on Thu Nov 12, 2009 1:23 pm

thank you engrjhez! that was helpful Very Happy
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Re: exception on required experience of at least 50% of ABC (permissive only?)

Post by Tony Ramirez on Wed Sep 17, 2014 3:16 pm

We recently conducted a negotiated bidding of GI Pipes for an LGU, to be delivered there within 15 days after receipt of the NTP. (We conducted the bidding because the fund was released to us). Three bidders submitted their bids.
One bidder submitted a quotation that is above the ABC of P2,120,810.00), with only its one-page letter/quotation contained in its submitted bid envelop. Further, it stated that the price is only for delivery in Metro Manila.
The second bidder, stated a delivery period of 30 days (requirement is 15 days). It also was not able to submit a Mayor’s permit for the 3rd quarter (apparently, business/Mayor’s permit is being paid on a quarterly basis in Valenzuela where it is registered).
The third bidder, (a hardware in the LGU) was not able to comply with the following eligibility requirements:
• Statement of all its on-going government and private contracts, including contracts awarded but not yet started, if any, whether similar or not similar in nature and complexity to the contract to be bid, within the relevant period; and
• Statement identifying the bidders single largest completed contract similar to the contract to be bid, within the relevant period (five years).
The financial envelop of the two latter bidders were not opened.
Re topic quoted "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 50% of the ARCC of their registration...",
- because of a query/request from the LGU Mayor (who will be the end-user), the BAC requested the Secretariat to make a query to GPPB if the quoted “principle” be applied as well to procurement of goods, in this case, a negotiated procurement (after 2 failed biddings). Any advice/opinion, please?

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Re: exception on required experience of at least 50% of ABC (permissive only?)

Post by amang'65 on Sat Sep 20, 2014 5:25 pm

...i would want to add some scenario for purposes of discussion... suppose this new contractors employed "top caliber" engineers with high flying colors and soooooo many years of experience as far as the project to be bid is concerned.... hindi pa rin ba papasa?
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Re: exception on required experience of at least 50% of ABC (permissive only?)

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