Requesting Entity: Metro Kalibo Water District (MKWD)
Issues Concern: Optional Submission of Tax Clearance in Negotiated Procurement (Two Failed Biddings)
Whether the Bids and Awards Committee (BAC) of MKWD may validly allow the optional submission of Tax Clearance for the two (2) projects being procured through Negotiation Procurement under Section 53.1 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 (Two Failed Biddings).
MKWD should require the submission of a Tax Clearance when it resorts to Negotiated Procurement (Two Failed Biddings) under Section 53.1 of the IRR of RA 9184, and indicate this requirement in its invitation to negotiate to prospective suppliers, contractors, and consultants, who must provide said document upon submission of their proposals or quotations; otherwise disqualification is in order.
Moreover, even if a Tax Clearance is not initially included as one of the eligibility documents in the invitation to negotiate by the PE for Negotiated Procurement (Two Failed Biddings), the latter could still require the mandatory submission of the same as it is necessary in determining the legal and financial capability of the prospective suppliers, contractors, and consultants to undertake the procurement at hand.