Submission of LOI

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Re: Submission of LOI

Post by RDV @ GP3i on Sat Mar 13, 2010 1:58 pm

firstlady_5167 wrote:hello GPPPI people! ang hirap talagang intindihin yung explanation regarding sa LOI. In our case we are requiring interested bidders to submit their LOI and Class "A" documents pero wala po kaming electronic registry system (papano ba gawin yon?) We only have the manual registry system. Can you pls explain it again? Baka kasi mali na ang ginagawa namin. Thank you po. . .happy weekend!!!

Good afternoon, firstlady.

Kung walang registry or manual lang ang registry, you should no longer require the submission of an LOI. The following situations should occur:

a) If there is no registry, what an interested bidder should do is buy the bidding documents and submit his bid, together with his Class A documents as part of his Technical Proposal.

b) If there is a manual registry but the prospective is not yet registered, the procedure in situation a) above should also happen.

c) If there is a manual registry and the prospective bidder is already registered, he will just secure the BAC Certificate of Registration which he submits as part of his Technical Proposal.

However, if there is an electronic registry, Sec. 23.4.3 and 24.4.3.3 provide that a prospective bidder, whether or not duly registered, shall submit a written letter of intent and/or application for eligibility and latest Class A documents to the BAC on or before the deadline specified in the bidding documents. If the prospective bidder submits his LOI after the deadline, he could no longer participate in the bidding.

Under the old IRR-A provision, that deadline is a week after the last day of posting. Under the revised IRR, the procuring entity will set the deadline in the bidding documents. There is a deadline for submission of LOI in the case of electronic registry because there are certain protocols that need to be followed by the system.

If we use the DPWH elecronic registry system as an example, their database is centralized. Part of their protocol is that the determination of whether a prospective bidder is eligible or not is done electronically. The determination, for example, of the single largest completed contract of a prospective bidder and computation of his NFCC is by electronic means; hence, there is a deadline because there is a need to update certain information into the system, such as the ABC for the project, the category of the project, etc. The amount of data to be processed and the complexity of the registry system being maintained will determine how much time the procuring entity will need; hence, setting the deadline for submission of LOI is left to the determination of the procuring entity but should be indicated in the bidding documents.

In the case of manual systems, there is no need for that LOI submission and for that deadline. But maybe, if maintaining a manual registry has become cumbersome due to the number of registered suppliers/contractors, the procuring entity should convert to an electronic registry and/or set a deadline for securing a certificate of registration.
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Re: Submission of LOI

Post by firstlady_5167 on Sat Mar 13, 2010 3:41 pm

thank you very much po for the very very clear explanation on submission of LOI. I will explain it to our BAC Members kasi nga iba ang interpretation nila sa Sec. 23.4.3 and 24.4.3.3 kaya lang i am hesitant to correct them kasi baka ako ang mali dahil BAC Sec lang ako. One thing pa po, can you give us an idea on how to do the Electronic Registry System? Thank you again. Good Day
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Re: Submission of LOI

Post by RDV @ GP3i on Sat Mar 13, 2010 7:20 pm

firstlady_5167 wrote:thank you very much po for the very very clear explanation on submission of LOI. I will explain it to our BAC Members kasi nga iba ang interpretation nila sa Sec. 23.4.3 and 24.4.3.3 kaya lang i am hesitant to correct them kasi baka ako ang mali dahil BAC Sec lang ako. One thing pa po, can you give us an idea on how to do the Electronic Registry System? Thank you again. Good Day

Welcome, first lady.

On your request for advice on how to set up and electronic registry, I am sorry I am not techie guy so I cannot provide you any advice on that, except maybe to hire or procure the services of an expert to do just that.
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Re: Submission of LOI

Post by charlie brown on Mon Mar 15, 2010 2:56 pm

RDV @ GPPPI wrote:
charlie brown wrote:
amang1965 wrote:if you dont mind, may i signify my intention?

can we not just simple treat the LOI as parang transmital letter na lang? wherein a bidder/supplier/manufactorer/contractor (o whatever) - signify his/her intention for whatever purpose it should serve whether for purposes of registration or for purposes of compliance in a bidding activity? whether manual o electronic pa yan? whether for goods/infra o consultancy pa yan? parang for formality's sake a bidder simply writes a letter signifying his/her intention kung ano man yung purpose nya (gaya ng na sabi ko - for registration or in compliance to a certain bidding activity) - talo ba ang gobyerno kung ang isang bidder ay nagbigay ng isang sulat na ngasasabing ito ang purpose ko sa sulat na ito? may violation ba? may kaso ba? Very Happy

your LOI is acknowledged sir amang1965 Smile

Yon na nga eh. As i see it the LOI has evolved from a document to trigger the process of eligibility checking for infra/consultancy to a document that could substitute the class a docs. the revision to remove the separate eligibility checking was smart and commendable given the notoriety of dpwh infra biddings (daw ha). However, if that is the case why not include those maintaining manual registries because as i see it other that the method of keeping and consolidating the data, parehas lang ang electronic and manual

I think the reason for removing the requirement for submission of LOI (except if procuring entity is maintaining an electronic registry) is because some procuring entities would only give a short period of time (less than a week) from advertisement/posting for the submission of LOI. Of course, failure to submit LOI would disqualify the bidder from buying bid docs. We cannot help but suspect that a favored bidder would be able to comply with the LOI submission requirement, to the detriment of the others. The revised IRR has made it clear that the bidding documents should be available from date of posting (for goods and infra) until bid submission, but that would be possible if submission of LOI before the stated deadline becomes the basis for allowing a bidder to purchase bid docs.

There would be no problem if the bidder still wishes to submit an LOI or any intention to participate or apply for eligibility even if it is not required, but there would be a problem if it will be required by the procuring entity even though it is not necessary. In short, the evolution in the requirement for the submission of LOI is to prevent its abuse by procuring entities by putting another hurdle in the participation of other qualified and interested bidders.

the issue that i know of (sa dpwh at least) in the old system was not a problem of not being able to submit the LOI. Rather how to ensure that a prospective bidder who submits the LOI and is declared eligible by the electronic registry will procure the bid docs. what happens kasi is that adetermined bidder will collude with all the other eligible bidders to ensure that he wins the bidding. the common strategies is for those in the loop not to buy the bid docs, buy the bid docs but not submit, submit with incomplete data or a higher bid etc. With a simultaneous submission of the elig and the tech proposal there is lesser chance for bidders to collude - at least on the elig submission stage as it would be difficult for one to keep tab of all those who intends to join. However, as i see it, gppb did not want to do away with the electronic system already in place with dpwh which was why it made an exception. However as i have said, the LOI before is no longer the same as the LOI now. per 12.1 BDS of the PBD for Infra, the LOI maybe submitted in lieu of the class A docs. the LOI now is not a separate step or another layer of activity - unlike before. Hence as it is, the purpose of the LOI would be to simplify the work, avoid repetitive tasks and to minimize the cost of a bid docs. My point is simply given this, why make a distinction between electronic and manual registries.
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Re: Submission of LOI

Post by charlie brown on Mon Mar 15, 2010 3:28 pm

RDV @ GPPPI wrote:
firstlady_5167 wrote:hello GPPPI people! ang hirap talagang intindihin yung explanation regarding sa LOI. In our case we are requiring interested bidders to submit their LOI and Class "A" documents pero wala po kaming electronic registry system (papano ba gawin yon?) We only have the manual registry system. Can you pls explain it again? Baka kasi mali na ang ginagawa namin. Thank you po. . .happy weekend!!!

Good afternoon, firstlady.

Kung walang registry or manual lang ang registry, you should no longer require the submission of an LOI. The following situations should occur:

a) If there is no registry, what an interested bidder should do is buy the bidding documents and submit his bid, together with his Class A documents as part of his Technical Proposal.

b) If there is a manual registry but the prospective is not yet registered, the procedure in situation a) above should also happen.

c) If there is a manual registry and the prospective bidder is already registered, he will just secure the BAC Certificate of Registration which he submits as part of his Technical Proposal.

However, if there is an electronic registry, Sec. 23.4.3 and 24.4.3.3 provide that a prospective bidder, whether or not duly registered, shall submit a written letter of intent and/or application for eligibility and latest Class A documents to the BAC on or before the deadline specified in the bidding documents. If the prospective bidder submits his LOI after the deadline, he could no longer participate in the bidding.

Under the old IRR-A provision, that deadline is a week after the last day of posting. Under the revised IRR, the procuring entity will set the deadline in the bidding documents. There is a deadline for submission of LOI in the case of electronic registry because there are certain protocols that need to be followed by the system.

If we use the DPWH elecronic registry system as an example, their database is centralized. Part of their protocol is that the determination of whether a prospective bidder is eligible or not is done electronically. The determination, for example, of the single largest completed contract of a prospective bidder and computation of his NFCC is by electronic means; hence, there is a deadline because there is a need to update certain information into the system, such as the ABC for the project, the category of the project, etc. The amount of data to be processed and the complexity of the registry system being maintained will determine how much time the procuring entity will need; hence, setting the deadline for submission of LOI is left to the determination of the procuring entity but should be indicated in the bidding documents.

If i may put in some observations in regard to the dpwh process of updating the registry. From what i know, the updating of the registry does not require the submission of the LOI, both in the previous system and in the current one. Registered constructors will send in their updates mostly for track record purposes (new projects completed) and the periodic updating of licenses and permits. In the previous system, once there is a bid upportunity these bidders submits their LOI and other necessary docs such as a CLC if the NFCC on file is not adequate for the particular bidding. The deadline for the submission of the LOI is just that. the actual processing/evaluation of elegibility has no deadline and the dpwh IMPLEMENTING UNITs will have to wait until the list of eligible bidders arrive before they can proceed to the next step which is the selling of the bid docs to the eligible bidders.

In the new system, if the prospective bidder already have updated eligibility docs with the PE maintaining an electronic registry, the LOI will substitute the submission of another set of eligibility docs (na dapat naman) And the bidder does not need to submit this LOI on or before the deadline kasi di ito kasama sa deadline if we read closely 12.1 BDS of Infra. What is to be submitted on or before the deadline is the application for eligibility and not the LOI.


In the case of manual systems, there is no need for that LOI submission and for that deadline. But maybe, if maintaining a manual registry has become cumbersome due to the number of registered suppliers/contractors, the procuring entity should convert to an electronic registry and/or set a deadline for securing a certificate of registration.

This is where im confused. given the reasons above why apply different rules? If anything dito sa manual mas kailangan in earlier submission of the application for eligibility simply because the process of cross checking and/or evaluating takes a longer time.
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Re: Submission of LOI

Post by firstlady_5167 on Mon Mar 15, 2010 9:37 pm

Good evening to everyone. What does procuring entity that maintains its own electronic system means? Is the input data we copied from the the bidders submitted Class A documents to our excel worksheet considered electronic registry system? Assuming that our unit has its own electronic registry system and an interested bidder (for goods) who purchased bid documents submitted his Class A together with other requirements during the opening of bids, is that a violation? Is Certification issued by the BAC as to the submission of their Class A Documents a mandatory requirement for reason that we have an electronic registry system? What if it is not an electronic registry system but just a manual system? I dont want to argue with our BAC members coz im only a BAC Secretariat. After furnishing them a photocopy of the topic in this forum on Submission of LOI, they still insist with the LOI and the Certification in lieu of Class A. Wala namang pinagka iba kung certification o mismong Class A documents ang ilagay mo sa 1st envelopeas long na ng comly ka either certification or the whole class A. Pls advise. . .nakaka stress talaga!
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Re: Submission of LOI

Post by RDV @ GP3i on Sun Mar 21, 2010 10:00 am

charlie brown wrote:
RDV @ GPPPI wrote:
However, if there is an electronic registry, Sec. 23.4.3 and 24.4.3.3 provide that a prospective bidder, whether or not duly registered, shall submit a written letter of intent and/or application for eligibility and latest Class A documents to the BAC on or before the deadline specified in the bidding documents. If the prospective bidder submits his LOI after the deadline, he could no longer participate in the bidding.

Under the old IRR-A provision, that deadline is a week after the last day of posting. Under the revised IRR, the procuring entity will set the deadline in the bidding documents. There is a deadline for submission of LOI in the case of electronic registry because there are certain protocols that need to be followed by the system.

If we use the DPWH elecronic registry system as an example, their database is centralized. Part of their protocol is that the determination of whether a prospective bidder is eligible or not is done electronically. The determination, for example, of the single largest completed contract of a prospective bidder and computation of his NFCC is by electronic means; hence, there is a deadline because there is a need to update certain information into the system, such as the ABC for the project, the category of the project, etc. The amount of data to be processed and the complexity of the registry system being maintained will determine how much time the procuring entity will need; hence, setting the deadline for submission of LOI is left to the determination of the procuring entity but should be indicated in the bidding documents.

If i may put in some observations in regard to the dpwh process of updating the registry. From what i know, the updating of the registry does not require the submission of the LOI, both in the previous system and in the current one. Registered constructors will send in their updates mostly for track record purposes (new projects completed) and the periodic updating of licenses and permits. In the previous system, once there is a bid upportunity these bidders submits their LOI and other necessary docs such as a CLC if the NFCC on file is not adequate for the particular bidding. The deadline for the submission of the LOI is just that. the actual processing/evaluation of elegibility has no deadline and the dpwh IMPLEMENTING UNITs will have to wait until the list of eligible bidders arrive before they can proceed to the next step which is the selling of the bid docs to the eligible bidders.

The provisions I mentioned above are already clear, I did not add or take out anything from it. Let me state it again here: However, if there is an electronic registry, Sec. 23.4.3 and 24.4.3.3 provide that a prospective bidder, whether or not duly registered, shall submit a written letter of intent and/or application for eligibility and latest Class A documents to the BAC on or before the deadline specified in the bidding documents.

Therefore, it just means that, if bidder is already registered, he has only to submit an LOI. If not yet registered, he has to submit an application for eligibility (not LOI), but still within the deadline. If already registered but will need to update, submit latest Class A documents.


charlie brown wrote:In the new system, if the prospective bidder already have updated eligibility docs with the PE maintaining an electronic registry, the LOI will substitute the submission of another set of eligibility docs (na dapat naman) And the bidder does not need to submit this LOI on or before the deadline kasi di ito kasama sa deadline if we read closely 12.1 BDS of Infra. What is to be submitted on or before the deadline is the application for eligibility and not the LOI.

I will quote here the wordings in the BDS, charlie brown mentioned:

If the Procuring Entity maintains a registry system using the PhilGEPS or its own electronic system: (This is what the procuring will place in BDS (12.1):

"The first envelope shall contain the eligibility and technical documents stated in the ITB Clause. However, if the Bidder maintains a current and updated file of his Class “A” Documents with the Procuring Entity, a written letter of intent may be submitted in lieu of the Class “A” Documents; otherwise, it shall submit an application for eligibility and its latest Class “A” Documents on or before [insert date]. Any application for eligibility or updates submitted after the deadline for the submission of the letter of intent shall not be considered for the bidding at hand."

Now, I see the point of charlie brown. It would now appear that if there is an electronic system and if the bidder is already registered under that system, what will be contained in the first envelope is the "written letter of intent."

I think, GPPB-TSO should clarify if it is really the intention that the LOI will just be included in his Class A, therefore there is no deadline for its submission. Of course I still do not subscribe to charlie brown's interpretation, but to end the ongoing "debate" on the matter and so as not confuse everybody else, including me and charlie brown, this should be better clarified asap.

If you will look closely at the bottom part of that BDS statement, it says: Any application for eligibility or updates submitted after the deadline for the submission of the letter of intent shall not be considered for the bidding at hand. To me, there is clearly an intention to set a deadline for the submission of LOI, but it would be better for TSO to referee the confusion that BDS statement has created. We know that in case of conflict in provisions between the IRR and the PBDs, the former shall prevail.


charlie brown wrote:
RDV @ GPPPI wrote:In the case of manual systems, there is no need for that LOI submission and for that deadline. But maybe, if maintaining a manual registry has become cumbersome due to the number of registered suppliers/contractors, the procuring entity should convert to an electronic registry and/or set a deadline for securing a certificate of registration.

This is where im confused. given the reasons above why apply different rules? If anything dito sa manual mas kailangan in earlier submission of the application for eligibility simply because the process of cross checking and/or evaluating takes a longer time.
See, the confusion we have all created? jocolor
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