2017-12-29

NPM No. 143-2017

Requesting Entity: MR. RAED CARAGA

Issues Concern: Single Largest Completed Contract (SLCC)

 

Details

Clarification on the interpretation of Section 23.5.2.5 of the 2009 IRR of RA 9184


It must be noted that Section 23.5.2.5 is found under the 2009 revised IRR, which provides that:


    The prospective bidder must have an experience of having completed at least one (1) contract that is similar to the contract to be bid, and whose value, adjusted to current prices using the NSO consumer price indices, must be at least fifty percent (50%) of the ABC to be bid: Provided, however, That contractors under Small A and Small B categories without similar experience on the contract to be bid may be allowed to bid if the cost of such contract is not more than fifty percent (50%) of the Allowable Range of Contract Cost (ARCC) of their registration based on the guidelines as prescribed by the PCAB.


Please note that Sec. 23.5.2.5 of the 2009 revised IRR is now Sec.23.4.2.4 of the 2016 revised IRR, which amended the second sentence, providing for the following, thus, “contractors under Small A and Small B categories without similar experience on the contract to be bid may be allowed to bid if the cost of such contract is not more than the ARCC of their registration based on the guidelines as prescribed by the PCAB.”


Based on the foregoing, we wish to stress the following:


1.    The SLCC criterion is required in order to ensure that the government is contracting with an entity that has accomplished at least one project with a value no less than fifty percent (50%) of the contract to be bid.


2.    A similar contract must be supported by a satisfactory CPES rating and/or an owner’s certificate of acceptance in order that the bidder may be considered fully compliant with the eligibility criteria of the 2016 revised IRR of RA 9184.


3.    It is within the discretion of the procuring entity to further define the word “similar” in SLCC requirement because it is in the best position to do so as it knows the technical components needed in the contract to be bid. However, similarity of contract should be interpreted liberally in the sense that it should not refer to an exact parallel but only to an analogous one of similar category.


4.    Bidders under Small A or Small B category who do not have a previous completed contract are allowed to participate if the cost of such contract is not more than the ARCC under their PCAB registration.