2005-03-17

NPM 021-2005

Requesting Entity: Counsellors’ Circle Law Firm

Issues Concern: Evaluation of the Eligibility Requirement for Largest Single Contract of Joint Ventures

 

Details

Whether the largest single contract of all parties to a joint venture may be combined and considered as one contract for purposes of complying with Section 23.11.1.2.

Although it is correct to state that a joint venture agreement is entered into by parties for purposes of collectively complying with the eligibility requirements by pooling its resources, qualifications, and assets, each resource, qualification, and assets, however, will be evaluated independently of others such that compliance of a party will be treated as compliance of the entire joint venture. This does not mean that the parties to a joint venture can add the amount of each of their largest single contract to be able to comply with the eligibility criterion for at least fifty percent (50%) of the approved budget for the contract to be bid.

The wisdom behind the allowance of joint ventures is to accord bidders greater opportunity to comply with the requirements for a particular procurement project. However, such opportunity cannot be used to circumvent the intention behind each eligibility criteria. (See NPM 020-2005, dated 17 March 2005)