Government Procurement Policy Board Official Website

NPM No.

NPM 062-2009

Date

11/27/2009

Requesting Entity

Department of Transportation & Communications Metrostar Express

Subject

Eligibility Requirements for Joint Ventures

Issues/Concern

Whether a joint venture should be disqualified if one of its members failed to comply with a technical requirement and another failed to comply with the financial requirement.

[F]rom past rulings of GPPB, it is clear that each member of the joint venture shall submit the legal documents under the eligibility requirements. This is to ensure that all the parties thereto have the requisite legal personality to conduct business.

However, inasmuch as the Government recognizes the need to encourage small and medium businesses, which are unable, either technically or financially, to carry out a business undertaking on its own, to solicit the assistance of capable or bigger businesses through a joint venture. Hence, it is sufficient that the technical documents under the eligibility requirements should be complied with by at least one of the members of the joint venture for purposes of determining the joint venture’s eligibility.

Stated differently, therefore the required eligibility requirements that must be submitted by each member of the joint venture under Section 23.6 (2) of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act No. 9184, refer to the legal documents specified under Section 23.6 (1). With respect to the technical and financial eligibility documents, submission of these documents by any member of the joint venture constitutes substantial compliance.