Requesting Entity: LCV Design and Fabrication Corp.
Issues Concern: Floor Price or Lower Limit
Clarification on whether there is a floor price or lower limit on a bid offer.
[U]nder Section 31 of Republic Act (RA) No. 9184 and its revised Implementing Rules and Regulations (IRR), there shall be no lower limit or floor on the amount of award. Accordingly, the rules do not sanction the fixing of a certain percentage or amount of the Approved Budget for the Contract (ABC) to be the minimum bid price. The ABC serves as the upper limit or ceiling for bid prices, such that bid prices exceeding the ABC shall be disqualified outright during bid opening, but no lower limit or floor shall be fixed.