2009-06-10

NPM 031-2009

Requesting Entity: San Juan, San Juan and San Juan

Issues Concern: Single Largest Completed Contract

 

Details

Whether or not Section 23.11.1(2) may be liberally interpreted so as to allow, during post-qualification, ongoing contracts despite the wording in the said provision which require largest single completed contract.

Section 23.6 of the IRR-A of R.A. 9184 is clear and emphatic on the bases of the eligibility of the prospective bidder, it is mandatory for a prospective bidder to show that the value of its largest single completed contract similar to the contract to be bid is at least 50% of the approve budget for the contract to qualify it to bid in such project. Thus, this eligibility criterion cannot be dispensed with or compromised as this is one of the minimum requirements that a prospective bidder has to satisfy to establish its track record and capacity to perform contractual obligations.

For proper guidance, we are giving you these parameters to consider in verifying, validating, and ascertaining whether the largest single completed contract submitted by the bidder satisfies the eligibility criterion prescribed by the IRR-A of R.A. 9184, to wit:

First, the largest single contract submitted must be "completed" within the period stated in the invitation to Apply for Eligibility and to Bid. We are of the opinion that this requirement, guided by the spirit behind the provision, should be interpreted strictly for the purpose of establishing a tangible gauge for the bidder's track record and capacity to perform contractual obligations;

Second, the largest single completed contract must be at least fifty percent (50%) of the approved budget for the contract to be bid;

Third, the largest completed contract must be similar to the contract to be bid. For the procurement of goods, a contract shall be considered similar to the contract to be bid if it involves goods or services of the same nature and complexity as those which are the subject of the public bidding concerned.