NPM 103-2013

Requesting Entity: Windfall Construction

Issues Concern: Audited Financial Statement (AFS)



Whether a newly established construction firm may be allowed to participate in the public bidding for an infrastructure project in the absence of an AFS dated not earlier than two (2) years from the date of bid submission.

The submission of an AFS that complies with the requirements under Section 23.1(a)(v) of the IRR of RA 9184, namely, (i) showing the prospective bidder’s current assets and liabilities, (ii) stamped “received” by the BIR or its duly accredited and authorized institutions, and (iii) for the preceding calendar year which should not be earlier than two (2) years form the date of bid submission, is a mandatory requirement that must be complied with by prospective bidders, such that failure to submit any of the documents or the submission of an otherwise incomplete or patently insufficient document, will disqualify the bidder based on the non-discretionary “pass/fail” criterion under Section 30.1 of the IRR.

It is clarified that the term “earlier” means that if the bid submission date is on 2013, an AFS for the year 2011 can be considered compliant, provided that such AFS is the most recent document that can be produced by the bidder without fault or delay on its part in filing the same with the BIR.