2012-12-21

NPM 164-2012

Requesting Entity: Joint Venture of CM Countermeasures Equipages & Security Technologies, CESKA ZbrojovkA A.S. & Kolonwel Trading

Issues Concern: Single Largest Completed Contract (SLCC) Requirement for Joint Venture (JV)

 

Details

Whether a JV between a local company and a company organized under the laws of Hong Kong may be allowed to submit the SLCC of an Austrian distributor, a sister company of the latter for purposes of compliance with the requirements under Republic Act (RA) No. 9184 and its revised Implementing Rules and Regulations (IRR).

[T]he submission by a JV partner of an SLCC belonging and particular only to its distributor and sister or subsidiary company that is not a partner to the JV does not constitute compliance with Section 23.5.1.3 of the IRR of RA 9184 because the SLCC of the sister company cannot be credited to the JV partner or the JV itself, since the former is an entity that is separate and distinct from the latter entities.