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Bid Security

Post by incognito on Tue Nov 25, 2008 1:43 pm

Good day.
We had a bidding for a Infra Project and one of the bidders submitted a Managers Check as Bid Security but insufficient by almost Php500.00. The bidder requested for a reconsideration on the ground that he also submitted a Bank Certification in its Eligibility Documents certifying the credit line of the bidder which is more than the amount required. As I look at the certificates, it is a commitment from a licensed bank to extend to the bidder a credit line to finance the contract. The bidder also submitted a Cash Deposit Certificate and NFCC Computation in its eligibility document. Is it possible that the Credit Line Certificate be considered in lieu of the Bid Security which is insufficient?

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Re: Bid Security

Post by dlsn on Wed Nov 26, 2008 2:35 pm

incognito wrote:Good day.
We had a bidding for a Infra Project and one of the bidders submitted a Managers Check as Bid Security but insufficient by almost Php500.00. The bidder requested for a reconsideration on the ground that he also submitted a Bank Certification in its Eligibility Documents certifying the credit line of the bidder which is more than the amount required. As I look at the certificates, it is a commitment from a licensed bank to extend to the bidder a credit line to finance the contract. The bidder also submitted a Cash Deposit Certificate and NFCC Computation in its eligibility document. Is it possible that the Credit Line Certificate be considered in lieu of the Bid Security which is insufficient?
If you will note under Section 25 of the IRR-A, the submission of a cash deposit certificate and commitment by a bank to issue a credit line is required separately from the bid security. This is because these documents address different objectives. As such, the submission of a cash deposit certificate or a commitment by a bank to issue a credit line cannot remedy an insufficient bid security.
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Re: Bid Security

Post by incognito on Wed Nov 26, 2008 2:49 pm

thanks for the reply

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Bid Security

Post by RL on Wed Dec 10, 2008 3:21 pm

I have a similar question as this topic. Can a Bank Guarantee be considered as a replacement for an insufficient Bid Security in the form of Managers Check? If a Bank Guarantee is submitted together with the insufficient Bid Security (Managers Check), can I be considered complying? Thank you for the reply.

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Bid Security

Post by RDV @ GP3i on Fri Dec 12, 2008 12:13 pm

You mentioned that the Bank Guarantee was "submitted together with the insufficient Bid Security", which is in the form of a Manager’s Check.

If the Bank Guarantee was submitted also as part of the Technical Proposal and as another form of Bid Security, and it is one of the forms required by the procuring entity, then it could be considered. As to amount it should not be less than 1˝ percent of the ABC. If a combination of forms of bid securities (such as the manager’s check and the bank guarantee) is allowed by the procuring entity, the minimum amount of the combined bid securities should be 2˝ percent of the ABC.

Otherwise, if the Bank Guarantee was submitted belatedly and only as a replacement of an insufficient Manager's Check, then that is not allowed under R.A. 9184 and its IRR-A as it is tantamount to the improvement of a bid. The preliminary examination of the bid should be non-discretionary on the part of the BAC. The absence or incompleteness of the required documents will merit the bid to be declared "ineligible" or "non-complying", and no replacement shall be allowed in the process.
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