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Amendments to Contract and BAC Resolution

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Amendments to Contract and BAC Resolution

Post by juv2 on Tue Jun 29, 2010 4:16 pm

here is the case:

A bidding was held and a contract was signed. in 4 months time, the total amount of actual services rendered is almost within the bid price of the contractor. so, the contractor and the gov't mutually agreed to amend the BAC resolution on the amount stated therein but to the extent of the ABC for the services AND to amend the contract to indicate the total contracted price based on the amended BAC resolution.

the contract allows amendment.

Question/s:
is it proper/allowed to amend the BAC resolution to accommodate the request for additional budget?

thanks. Embarassed im a newbie to this thing.
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Re: Amendments to Contract and BAC Resolution

Post by engrjhez® on Tue Jun 29, 2010 8:37 pm

juv2 wrote:here is the case:

A bidding was held and a contract was signed. in 4 months time, the total amount of actual services rendered is almost within the bid price of the contractor. so, the contractor and the gov't mutually agreed to amend the BAC resolution on the amount stated therein but to the extent of the ABC for the services AND to amend the contract to indicate the total contracted price based on the amended BAC resolution.

the contract allows amendment.

Question/s:
is it proper/allowed to amend the BAC resolution to accommodate the request for additional budget?

thanks. Embarassed im a newbie to this thing.

NO.

The procurement process and the contract are integral with each other. This means you cannot amend one without amending the other - and amending BAC Resolution and/or Contract is NOT permitted under existing rules.

In your case, it seems like you need to extend services. The applicable method is "Repeat Order". But be careful. Aside from some restrictions, you should be able to show that the scope of the original contract remains on the original contract and that you are not extending the terms as a result of delay or fault of the contractor. Moreover, the need to amend your Annual Procurement Plan (APP) should be done/accomplished prior to the procurement process of this new contract (that is, if there are still available funds for it).

Smile

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Re: Amendments to Contract and BAC Resolution

Post by fe a. araya on Wed Jun 30, 2010 5:21 pm

I agree with sir engrjhez. However, do I understand that the bidding is for the procurement of goods? If it is, then "Repeat Order' is supposed to be in order provided all conditions are met. If it is not procurement of goods, then "REpeat Order" will not apply.

As I understand, BAC REsolutions reflects the proceedings of the actual bidding on the date it was conducted and can never be amended for agreement made after the actual bidding in the same way that the contract cannot be amended on the premise that the BAC Resolution was allowed to be amended.
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Re: Amendments to Contract and BAC Resolution

Post by juv2 on Thu Jul 01, 2010 10:51 am

Sir engrjhez®: Im sorry i didnt put what procurement it is. it is for the procurement of delivery services.
New Developments:
1. the agency recommends to us to amend the BAC resolution on the amount stated therein but to the extent of the ABC to cover the remaining period of the contract.
2. the agency recommends to amend the contract to indicate the total contracted price based on the amended BAC resolution.

thanks.
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Re: Amendments to Contract and BAC Resolution

Post by Niwram on Thu Jul 01, 2010 12:25 pm

You can use amendment to order under Annex D of the revised IRR.

1. Amendment to Order
1.1. Subject to the conditions set forth below, amendments to order may be issued at any time by the procuring entity concerned. If any such order increases or decreases the cost of, or the time required for executing any part of the work under the original contract, an equitable adjustment in contract price and/or delivery schedule shall be mutually agreed upon between the parties concerned, and the contract modified in writing.
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Re: Amendments to Contract and BAC Resolution

Post by juv2 on Thu Jul 01, 2010 1:14 pm

is Services covered under Annex D? Annex pertains to procurement of goods, supplies and materials and not services.
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Re: Amendments to Contract and BAC Resolution

Post by sunriser431 on Thu Jul 01, 2010 11:37 pm

juv2 wrote:is Services covered under Annex D? Annex pertains to procurement of goods, supplies and materials and not services.
excerpt from the Revised IRR of RA#9184 for your guidance.
Section 5. Definition of Terms
a) xxxx
r) Goods. Refer to all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind, including non-personal or contractual services, such as, the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplies provided by the procuring entity for such services. The term “related” or “analogous services” shall include, but not be limited to, lease or purchase of office space, media advertisements, health maintenance services, and other services essential to the operation of the procuring entity.
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Re: Amendments to Contract and BAC Resolution

Post by engrjhez® on Fri Jul 02, 2010 9:11 am

fe a. araya wrote:I agree with sir engrjhez. However, do I understand that the bidding is for the procurement of goods? If it is, then "Repeat Order' is supposed to be in order provided all conditions are met. If it is not procurement of goods, then "REpeat Order" will not apply.

As I understand, BAC REsolutions reflects the proceedings of the actual bidding on the date it was conducted and can never be amended for agreement made after the actual bidding in the same way that the contract cannot be amended on the premise that the BAC Resolution was allowed to be amended.

As sunriser clearly pointed out, the term "goods" is defined as "...all items, supplies, materials and general support services, except consulting services and infrastructure projects...". Hence, Repeat Order may still apply. Smile
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Re: Amendments to Contract and BAC Resolution

Post by sunriser431 on Fri Jul 02, 2010 12:06 pm

engrjhez® wrote:
fe a. araya wrote:I agree with sir engrjhez. However, do I understand that the bidding is for the procurement of goods? If it is, then "Repeat Order' is supposed to be in order provided all conditions are met. If it is not procurement of goods, then "REpeat Order" will not apply.

As I understand, BAC REsolutions reflects the proceedings of the actual bidding on the date it was conducted and can never be amended for agreement made after the actual bidding in the same way that the contract cannot be amended on the premise that the BAC Resolution was allowed to be amended.

As sunriser clearly pointed out, the term "goods" is defined as "...all items, supplies, materials and general support services, except consulting services and infrastructure projects...". Hence, Repeat Order may still apply. Smile
agree the opinion of engrjhez, Peace bounce
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Re: Amendments to Contract and BAC Resolution

Post by juv2 on Fri Jul 02, 2010 3:44 pm

thanks guys. you guys making my work easy.. for now. Razz
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Re: Amendments to Contract and BAC Resolution

Post by juv2 on Fri Jul 02, 2010 4:01 pm

ouch. i cant use Repeat Order.

Sec . 51 Repeat Order.

c)Except in cases duly approved by the GPPB, the repeat order shall be availed of only within 6 months from the contract effectivity date stated in the notice to Proceed arising from the original contract;

the delivery services contract will end in 3 months.

Sir, any suggestion/s on this urgent matter? thanks.
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Re: Amendments to Contract and BAC Resolution

Post by fe a. araya on Fri Jul 02, 2010 5:51 pm

I think 3 mos is still within the allowable 6 month-period.
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Re: Amendments to Contract and BAC Resolution

Post by juv2 on Fri Jul 02, 2010 6:05 pm

The delivery services contract was executed last sept 15,2009.
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Re: Amendments to Contract and BAC Resolution

Post by fe a. araya on Fri Jul 02, 2010 7:51 pm

Ops, sorry. If that is the case, then Repeat Order is indeed not applicable. I based my reply on the phrase, "the delivery services contract will end in 3 months. Future tense ba, Peace!
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Re: Amendments to Contract and BAC Resolution

Post by juv2 on Thu Jul 08, 2010 2:54 pm

Guys, is there any other way to extend the contract and amend the contract price? since Repeat order is already out of the picture.

can direct contracting be availed of?

sec. 50 b) when the procurement of critical plant components from a specific condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of its contract;

thanks
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Re: Amendments to Contract and BAC Resolution

Post by sunriser431 on Thu Jul 08, 2010 7:46 pm

juv2 wrote:Guys, is there any other way to extend the contract and amend the contract price? since Repeat order is already out of the picture.

can direct contracting be availed of?

sec. 50 b) when the procurement of critical plant components from a specific condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of its contract;

thanks
Please elaborate further scratch Peace
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