2003-08-19

NPM 017-2003

Requesting Entity: Alphaomega Integrated Corporation

Issues Concern: Basis to Adjust Prospective Bidder’s Largest Single Completed Contract to Current Prices

 

Details

Basis to Adjust Prospective Bidder’s Largest Single Completed Contract to Current Prices

A review of the provisions of Executive Order No. 40, series of 2001 (E.O. 40), and its Implementing Rules and Regulations (IRR), specifically Sections 16 and 16.2, respectively, reveal that the basis for the determination of the bidder’s largest single contract adjusted to current prices was not specified, both with respect to goods and civil works procurement.

Considering that E.O. 40 and its IRR are silent on the basis for the computation of the prospective bidder’s largest single contract adjusted to current price, it is our opinion that it is upon the discretion of the agency, in this case the National Transmission Corporation (TRANSCO), to determine the basis for such computation, but that it should be made known to prospective bidders through the appropriate bidding document. At any rate, considering further that the NSO consumer price index is considered as reflective of true price movements, it may be suggested that TRANSCO adopt the same at this time.