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Employees Cooperative as interested bidder

Post by firstlady_5167 on Wed Mar 03, 2010 11:08 am

Good Day! Soliciting your opinion on a particular procurement wherein the only interested bidder is the Employees Cooperative in our Unit. Will they be allowed to join considering that the items to be procured are Patrol Boats, Handheld Radio, Cellular Phone and Global Positioning System. Same thing also with the Traffic Enforcers Uniform wherein the interested bidder is a newly organized Cooperative of the said Group of Traffic Enforcers. With me is a copy of The 2008 Cooperative Code or RA 9520 which states that "Cooperative transacting business with the Government of the Philippines etc. . . . SHALL BE EXEMPT FROM PRE-QUALIFICATION BIDDING REQUIREMENTS. If so, how are we going to determine if they are legally, technically & financially capable to transact business considering that the ABC is above 1M.
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Re: Employees Cooperative as interested bidder

Post by Guest on Wed Mar 03, 2010 11:31 am

The provision of the COOP Code pertains to pre qualification under the IRR there is no prequalification.

Under the IRR determining the qualification of the COOP/bidder is done during Bid evaluation and Post qualification.

No conflict whatsoever.

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Re: Employees Cooperative as interested bidder

Post by charlie brown on Wed Mar 03, 2010 11:34 am

firstlady_5167 wrote:Good Day! Soliciting your opinion on a particular procurement wherein the only interested bidder is the Employees Cooperative in our Unit. Will they be allowed to join considering that the items to be procured are Patrol Boats, Handheld Radio, Cellular Phone and Global Positioning System. Same thing also with the Traffic Enforcers Uniform wherein the interested bidder is a newly organized Cooperative of the said Group of Traffic Enforcers. With me is a copy of The 2008 Cooperative Code or RA 9520 which states that "Cooperative transacting business with the Government of the Philippines etc. . . . SHALL BE EXEMPT FROM PRE-QUALIFICATION BIDDING REQUIREMENTS. If so, how are we going to determine if they are legally, technically & financially capable to transact business considering that the ABC is above 1M.

Well for one thing RA 9184 replaced prequalification with preliminary evaluation (non-dicretionary pass/fail criteria) for the eligibility and bid docs. Also it is very clear in the eligibility requirements that cooperatives are allowed to participate provided it submits a reg cert from the CDA as part of the elig docs. In short, coops may participate in government procurement oppurtunities provided it submits the required documents just like any other prospective bidder
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Re: Employees Cooperative as interested bidder

Post by Niwram on Wed Mar 03, 2010 11:59 am

I agree with pritong kandule and charlie brown that the pre-qualification will no longer apply because RA 9184 will apply for cooperatives when joining a bidding.
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Re: Employees Cooperative as interested bidder

Post by amang'65 on Wed Mar 03, 2010 12:16 pm

agree likewise here, capability of the cooperative may be determined from the documents to be submitted like DTI cert., business permit etc., from these documents you could determine if the line of business is on the sale of communication equipment, boats and so on, baka naman yung cooperative nyo ay pang catering naman o credit coop so how could this particular coop participate in a bidding for say commuication equipment?
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Re: Employees Cooperative as interested bidder

Post by charlie brown on Wed Mar 03, 2010 5:01 pm

amang1965 wrote:agree likewise here, capability of the cooperative may be determined from the documents to be submitted like DTI cert., business permit etc., from these documents you could determine if the line of business is on the sale of communication equipment, boats and so on, baka naman yung cooperative nyo ay pang catering naman o credit coop so how could this particular coop participate in a bidding for say commuication equipment?

I was also a bit apprehensive looking at the items to be procured. Patrol boats for instance can best be procured directly from manufacturers as there are certification requirements. But then maybe its a very big coop with manufacturing capabilities...
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Re: Employees Cooperative as interested bidder

Post by engrjhez® on Wed Mar 03, 2010 8:51 pm

Pritong Kandule wrote:The provision of the COOP Code pertains to pre qualification under the IRR there is no prequalification.

Under the IRR determining the qualification of the COOP/bidder is done during Bid evaluation and Post qualification.

No conflict whatsoever.

I searched and read RA.9520 and found charlie brown's argument in Section 5 Article 62.(10)

"(10) Cooperatives transacting business with the Government of the Philippines or any of its political subdivisions or any of its agencies or instrumentalities, including government-owned and controlled corporations shall be exempt from prequalification bidding requirements notwithstanding the provisions of Republic Act No.9184, otherwise known as, the Government Procurement Act;
Being a more recent law. Does the phrase "... notwithstanding the provisions of RA.9184..." absolute in all respects? I am worried not on the exemption. I am worried on the legal, technical, and financial capabilities of a cooperative to deliver patrol boats? communication equipment? and even GPS? Hindi ba mas makakamura ang gobyerno kung direct sa manufacturers instead of buying it thru cooperatives? (no offense meant, but syempre may patong na yun, di ba?)
Very Happy
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Re: Employees Cooperative as interested bidder

Post by Guest on Thu Mar 04, 2010 8:46 am

I believe it only pertains to the PRE QUALIFICATION and under the RA 9184 the law is silent on the Pre qual. Pre qualification exist on the old IRR but not in the present IRR.

Until the pre qualification is again revived in the IRR of RA 9184 there is no issue to be answered yet.

Maraming exemption ang COOP which would affect the bidding for example the preference of coop from certain goods (agricultural good) and exemption from taxes.

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Re: Employees Cooperative as interested bidder

Post by charlie brown on Thu Mar 04, 2010 10:13 am

Pritong Kandule wrote:I believe it only pertains to the PRE QUALIFICATION and under the RA 9184 the law is silent on the Pre qual. Pre qualification exist on the old IRR but not in the present IRR.

Until the pre qualification is again revived in the IRR of RA 9184 there is no issue to be answered yet.

Maraming exemption ang COOP which would affect the bidding for example the preference of coop from certain goods (agricultural good) and exemption from taxes.

As i understand it, the prequalification was replaced by the non-discretionary eligibility checking and the post qualification even in the previous IRR of RA 9184. As to the exemption from taxes my understanding is that these coops are not exempted from paying taxes when the transaction will allow them the realization of profit. I had a bidding before which involved cooperatives and our accountant deducted the corresponding EVAT. I have yet to check though the specific applicable BIR rulings
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Re: Employees Cooperative as interested bidder

Post by Niwram on Thu Mar 04, 2010 10:37 am

When a cooperative joins a bidding it include taxes for purposes of evaluation but after such cooperative was declared the winner this taxes will be remove in the contract.
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Re: Employees Cooperative as interested bidder

Post by Guest on Thu Mar 04, 2010 11:39 am

charlie brown wrote:
Pritong Kandule wrote:I believe it only pertains to the PRE QUALIFICATION and under the RA 9184 the law is silent on the Pre qual. Pre qualification exist on the old IRR but not in the present IRR.

Until the pre qualification is again revived in the IRR of RA 9184 there is no issue to be answered yet.

Maraming exemption ang COOP which would affect the bidding for example the preference of coop from certain goods (agricultural good) and exemption from taxes.

As i understand it, the prequalification was replaced by the non-discretionary eligibility checking and the post qualification even in the previous IRR of RA 9184. As to the exemption from taxes my understanding is that these coops are not exempted from paying taxes when the transaction will allow them the realization of profit. I had a bidding before which involved cooperatives and our accountant deducted the corresponding EVAT. I have yet to check though the specific applicable BIR rulings

COOPs are exempted from VAT, however when a COOP submits their bid the computations should include the VAT and in case their is a NOA to them the VAT will not be included in the contract price. (agree with niwram)

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Re: Employees Cooperative as interested bidder

Post by charlie brown on Thu Mar 04, 2010 1:56 pm

Pritong Kandule wrote:
charlie brown wrote:
Pritong Kandule wrote:I believe it only pertains to the PRE QUALIFICATION and under the RA 9184 the law is silent on the Pre qual. Pre qualification exist on the old IRR but not in the present IRR.

Until the pre qualification is again revived in the IRR of RA 9184 there is no issue to be answered yet.

Maraming exemption ang COOP which would affect the bidding for example the preference of coop from certain goods (agricultural good) and exemption from taxes.

As i understand it, the prequalification was replaced by the non-discretionary eligibility checking and the post qualification even in the previous IRR of RA 9184. As to the exemption from taxes my understanding is that these coops are not exempted from paying taxes when the transaction will allow them the realization of profit. I had a bidding before which involved cooperatives and our accountant deducted the corresponding EVAT. I have yet to check though the specific applicable BIR rulings

COOPs are exempted from VAT, however when a COOP submits their bid the computations should include the VAT and in case their is a NOA to them the VAT will not be included in the contract price. (agree with niwram)

i cant anymore push my position as i am not in possession of the relevant facts. i shall check again with our accountant and the bid docs as it happened maybe 2 years ago. But offhand i can say that including EVAT for evaluation purposes and taking it out again during actual payment merely creates a veneer of competitiveness. If I am the coop and i am aware of these facts, i can intentionally lower my price even below cost so long as these can be recouped from the evat. that does not create the kind of free and honest competition aspired by ra 9184
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Re: Employees Cooperative as interested bidder

Post by sunriser431 on Thu Mar 04, 2010 2:16 pm

firstlady_5167 wrote:Good Day! Soliciting your opinion on a particular procurement wherein the only interested bidder is the Employees Cooperative in our Unit. Will they be allowed to join considering that the items to be procured are Patrol Boats, Handheld Radio, Cellular Phone and Global Positioning System. Same thing also with the Traffic Enforcers Uniform wherein the interested bidder is a newly organized Cooperative of the said Group of Traffic Enforcers. With me is a copy of The 2008 Cooperative Code or RA 9520 which states that "Cooperative transacting business with the Government of the Philippines etc. . . . SHALL BE EXEMPT FROM PRE-QUALIFICATION BIDDING REQUIREMENTS. If so, how are we going to determine if they are legally, technically & financially capable to transact business considering that the ABC is above 1M.
Regarding your concern, try this link, you 'll will find the information useful. http://www.gppb.gov.ph/opinions/view_opinion.asp?o_id=228. bounce
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Re: Employees Cooperative as interested bidder

Post by sunriser431 on Thu Mar 04, 2010 2:24 pm

Pritong Kandule wrote:
charlie brown wrote:
Pritong Kandule wrote:I believe it only pertains to the PRE QUALIFICATION and under the RA 9184 the law is silent on the Pre qual. Pre qualification exist on the old IRR but not in the present IRR.

Until the pre qualification is again revived in the IRR of RA 9184 there is no issue to be answered yet.

Maraming exemption ang COOP which would affect the bidding for example the preference of coop from certain goods (agricultural good) and exemption from taxes.

As i understand it, the prequalification was replaced by the non-discretionary eligibility checking and the post qualification even in the previous IRR of RA 9184. As to the exemption from taxes my understanding is that these coops are not exempted from paying taxes when the transaction will allow them the realization of profit. I had a bidding before which involved cooperatives and our accountant deducted the corresponding EVAT. I have yet to check though the specific applicable BIR rulings

COOPs are exempted from VAT, however when a COOP submits their bid the computations should include the VAT and in case their is a NOA to them the VAT will not be included in the contract price. (agree with niwram)
try this link, regarding Tax treatment for Cooperatives http://www.gppb.gov.ph/opinions/view_opinion.asp?o_id=583
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Re: Employees Cooperative as interested bidder

Post by engrjhez® on Thu Mar 04, 2010 7:32 pm

Pritong Kandule wrote:I believe it only pertains to the PRE QUALIFICATION and under the RA 9184 the law is silent on the Pre qual. Pre qualification exist on the old IRR but not in the present IRR.

Until the pre qualification is again revived in the IRR of RA 9184 there is no issue to be answered yet.

Maraming exemption ang COOP which would affect the bidding for example the preference of coop from certain goods (agricultural good) and exemption from taxes.

I beg to disagree. Since RA.9184 was passed into law, and the 1st IRR issued, there is never a provision for Pre-qual. RA.9184 actually repealed the law that creates Prequalification, Bids and Awards Committee (PBAC).

I wonder how the crafters of the Cooperative Law overlooked this. Notwithstanding is a very repealing word. Very Happy
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Re: Employees Cooperative as interested bidder

Post by Guest on Fri Mar 05, 2010 8:57 am

Yes there is no exact provision of "PRE-QUALIFICATION" of the bidders. Let me change it, In the old IRR the ELigibility check for civil works and consulting services is done before the actual submission of bids.

Please check the ANNEX "C" of the old IRR for the period of action on procurement activities.

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Re: Employees Cooperative as interested bidder

Post by RDV @ GP3i on Fri Mar 05, 2010 9:07 am

Pritong Kandule wrote:Yes there is no exact provision of "PRE-QUALIFICATION" of the bidders. Let me change it, In the old IRR the ELigibility check for civil works and consulting services is done before the actual submission of bids.

Please check the ANNEX "C" of the old IRR for the period of action on procurement activities.

Even in the revised IRR, for Consulting Services, eligibility check is still done before actual bid submission.
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Re: Employees Cooperative as interested bidder

Post by Guest on Fri Mar 05, 2010 9:26 am

Good Day! Soliciting your opinion on a particular procurement wherein the only interested bidder is the Employees Cooperative in our Unit. Will they be allowed to join considering that the items to be procured are Patrol Boats, Handheld Radio, Cellular Phone and Global Positioning System. Same thing also with the Traffic Enforcers Uniform wherein the interested bidder is a newly organized Cooperative of the said Group of Traffic Enforcers. With me is a copy of The 2008 Cooperative Code or RA 9520 which states that "Cooperative transacting business with the Government of the Philippines etc. . . . SHALL BE EXEMPT FROM PRE-QUALIFICATION BIDDING REQUIREMENTS. If so, how are we going to determine if they are legally, technically & financially capable to transact business considering that the ABC is above 1M.

We should also consider the provisions of conflict of interest here. Under Section 47 it provides that the bidder is not related to the HOPE, BAC,TWG etc... and END-USER.

If the provision prohibits relatives of those provided under the rules howmuch more if they are the same person?

If the employees of the agency who are also member of the COOP must be disqualified under the rule.

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Re: Employees Cooperative as interested bidder

Post by Niwram on Fri Mar 05, 2010 10:44 am

I think that's right Pritong Kandule.. because it will not redound to the provisions of R.A. 9184 that a Bidding must be Competitive, Transparency under Section 3 of its Revised IRR..
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Re: Employees Cooperative as interested bidder

Post by charlie brown on Fri Mar 05, 2010 4:49 pm

engrjhez® wrote:
Pritong Kandule wrote:I believe it only pertains to the PRE QUALIFICATION and under the RA 9184 the law is silent on the Pre qual. Pre qualification exist on the old IRR but not in the present IRR.

Until the pre qualification is again revived in the IRR of RA 9184 there is no issue to be answered yet.

Maraming exemption ang COOP which would affect the bidding for example the preference of coop from certain goods (agricultural good) and exemption from taxes.

I beg to disagree. Since RA.9184 was passed into law, and the 1st IRR issued, there is never a provision for Pre-qual. RA.9184 actually repealed the law that creates Prequalification, Bids and Awards Committee (PBAC).

I wonder how the crafters of the Cooperative Law overlooked this. Notwithstanding is a very repealing word. Very Happy

I believe 2 issues have already been settled by the link provided by sunriser:
1. Coops do pay taxes when they get the contract as opposed to just including the same in the computation of the tender
2. Yours and my position that the pre-qual has already been replaced by simple eligibility checking even in the previous IRR
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Re: Employees Cooperative as interested bidder

Post by charlie brown on Fri Mar 05, 2010 4:50 pm

RDV @ GPPPI wrote:
Pritong Kandule wrote:Yes there is no exact provision of "PRE-QUALIFICATION" of the bidders. Let me change it, In the old IRR the ELigibility check for civil works and consulting services is done before the actual submission of bids.

Please check the ANNEX "C" of the old IRR for the period of action on procurement activities.

Even in the revised IRR, for Consulting Services, eligibility check is still done before actual bid submission.

Tama po. Tsaka kahit na nga sa infra (and i believe for goods tho it is not supported in the PBD) when the PE maintains a registry of suppliers, the prospective bidder submits the eligibility docs on the date prescribed in the PBD before the bid opening
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Re: Employees Cooperative as interested bidder

Post by RDV @ GP3i on Fri Mar 05, 2010 5:05 pm

charlie brown wrote:
RDV @ GPPPI wrote:
Pritong Kandule wrote:Yes there is no exact provision of "PRE-QUALIFICATION" of the bidders. Let me change it, In the old IRR the ELigibility check for civil works and consulting services is done before the actual submission of bids.

Please check the ANNEX "C" of the old IRR for the period of action on procurement activities.

Even in the revised IRR, for Consulting Services, eligibility check is still done before actual bid submission.

Tama po. Tsaka kahit na nga sa infra (and i believe for goods tho it is not supported in the PBD) when the PE maintains a registry of suppliers, the prospective bidder submits the eligibility docs on the date prescribed in the PBD before the bid opening

If the procuring entity is maintaining an electronic registry (for goods/infra/consulting services), the prospective bidder will have to submit within the date prescribed in the bidding documents its Letter of Intent (LOI) first (if it is already registered) and/or application for eligibility (if it is not yet registered or if it has to update its registration), before it could be allowed to submit its bid.
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