The New Government Procurement Act (NGPA) or Republic Act No. 12009, introduces the “Most Economically Advantageous Responsive Bid” or MEARB as a new award criterion in addition to the existing Lowest Calculated Responsive Bid (LCRB).
The MEARB criterion may be used if the procuring entity gives high regard to both qualitative and economic values for the project. The basic consideration of MEARB under the NGPA is assigning weights for both the technical and financial aspects of the project which must be determined by the BAC, upon the recommendation of the End-user unit.
Under Section 42 of RA 12009, the LCRB criterion remains applicable in the awarding of contracts, especially when cost is the primary factor or when prioritizing budget considerations.
Having both LCRB and MEARB, the NGPA balances cost-effectiveness and broader value considerations in government procurement decisions, ensuring a fit-for-purpose approach to achieve value for money, procurement efficiency, and quality public services.
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