2013-12-27

NPM 123-2013

Requesting Entity: Nikka Trading

Issues Concern: Single Largest Completed Contract for Several Lots

 

Details

Whether one Single Largest Completed Contract (SLCC) may be considered for several lots for the purpose of evaluating compliance with Section 23.5.1.3 of the revised Implementing Rules and Regulations (IRR) of Republic Act No. (RA) 9184.

It will be noted that the reference of the required minimum percentage of the amount of the SLCC to be complied with is the Approved Budget for the Contract (ABC). The reason behind such policy is that the ABC is a factor that appropriately reflects the magnitude and complexity of a contract, such that a bidder who has completed a similar contract of a reasonable percentage may be presumed capable of performing the obligations under the contract subject of the bidding.

In the case of a procurement activity that is divided into several lots, where each lot may result in a separate contract, the ABC for each lot becomes the reference of such requirement. However, since the eligibility criteria only seek to filter suitable bidders from those unfit to perform the contract, it is not necessary for a bidder to present a corresponding SLCC for each lot that it participates in. Verily, requiring a bidder to submit and identify one SLCC per lot or per bidding will result in the procuring entity verifying whether the SLCC presented for a particular lot or bidding has not yet been used for another bidding activity of other procuring entities - a task that is not only arduous, but also inconsequential in establishing a bidder's experience.