2004-04-12

NPM 047-2004

Requesting Entity: Romblon Engineering District

Issues Concern: Valid and Current Mayor’s Permit or Municipal License

 

Details

Whether or not submission of a valid and current mayor’s permit or municipal license of a bidder issued by the city or municipality where such bidder is located is sufficient even if the project being bid out is situated in another province, city or municipality.

The legal documents required under Section 23.6 of the IRR-A of R.A. 9184 are intended to establish the legal capacity of bidders to engage in its line of business and operate as such. As regards the mayor’s permit or municipal license requirement, the IRR-A only requires a valid and current permit or license. It does not provide that the permit or license should be from the province, city or municipality where the project is located. Since physical presence in the locality is a requirement before a permit or license may be issued, requiring a mayor’s permit or municipal license issued by the province, city or municipality where the project is located would limit the competition to those entities established in that particular locality or those which have a branch situated thereat. In this light, the IRR-A requires only the minimum qualification that the permit or license submitted by a prospective bidder should be valid and current.

It should be noted, however, that considering that the IRR-A provides only for the minimum requirements, procuring entities may require additional requirements aside from those provided therein. In this regard, unless specified by the procuring entity in its bidding documents, the requirement for a valid and current mayor’s permit or municipal license is complied with even if the permit or license submitted was issued by a province, city or municipality other than the province, city, or municipality where the project is located.