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Domestic Preference

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Domestic Preference

Post by Pids on Wed Nov 05, 2008 8:35 am

Required po ba ang section on Domestic Preference na lagyan sa BDS? Kung hindi, anu-anong cases ito dapat lagyan at kailan naman puedeng "No Further Instructions"?

Can someone enlighten me on this? Thanks.

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Domestic Preference

Post by RDV @ GP3i on Wed Nov 05, 2008 12:37 pm

The answer is YES.

There are two (2) sections in the ITB, Philippine Bidding Documents (PBDs), 2nd Ed., directly or indirectly referring to Domestic Preference, which are as follows:

“5.3 Unless otherwise indicated in the BDS, citizens or organizations of a country the
laws or relations of which grant similar rights or privileges to citizens of the Philippines are
eligible pursuant to R.A. 5183 and subject to C.A. 138.” (underscoring mine)

“33.1 If the BDS so specifies and for the purpose of comparison of Bids, the PROCURING
ENTITY will grant a margin of preference in accordance with the procedures outlined in the
BDS.” (underscoring mine)

Under Sec. 5.3, which is on Eligible Bidders, the reference to the BDS is on who are the eligible bidders who could participate in our bidding process. If the funding source of the Project being bidded out is the GOP (funding is sourced domestically), “No further instructions” is to be placed in the corresponding section of the BDS. That only means that citizens or organizations of another country, where their laws or regulations grant similar rights or privileges to Filipino citizens to participate in their own bidding processes, are also eligible to participate in our bidding process (pursuant to R.A. 5183), aside from those eligible under Sec. 5.1. However, these foreign citizens or organizations, who are allowed to participate in our bidding process, will be subject to C.A. 138, otherwise known as the “Flag Law,” or to Domestic Preference.

Under Sec. 33.1, if the funding source is again the GOP, Domestic Preference shall be applied in accordance with C.A. 138. You will then need to copy in your own bidding documents, specifically the BDS, exactly the same wordings reflected the BDS of the PBDs and not “No further instructions” because those provisions will guide the prospective bidders, specifically foreign bidders who chose to participate, how the procuring entity is going to apply Domestic Preference in the comparison of bids. Those provisions reflected in the BDS were taken from C.A. 138 itself.

What is the basis in applying C.A. 138, you may ask? The answer is Sec. 4 of R.A 9184 and Sec. 4.2 of its IRR-A.

I hope I was able to enlighten you on the matter.
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