NPM 118-2013

Requesting Entity: Edro Construction (Edro)

Issues Concern: Statement of On-going and Completed Contracts Exception to the Single Largest Completed Contract (SLCC) Requirement; Mayor's Permit from the Local Government Unit (LGU)-Procuring Entity; Review of Bids and Awards Committee (BAC) Resolution



1.Request to review the Bids and Awards Committee (BAC) resolution issued by the Municipality of Sta. Teresita, Cagayan.

At the outset, the Government Procurement Policy Board (GPPB) and its Technical Support Office (TSO) do not have the authority to decide for and on behalf, or overturn a decision, of a procuring entity.

2. Correct interpretation of Section of the revised Implementing Rules and Regulations (IRR) of Republic Act No. (RA) 9184 on the SLCC requirement.

Section of the IRR of RA 9184 provides that, as a general rule, "[t]he prospective bidder must have an experience of having completed at least one (1) contract that is similar to the contract to be bid, and whose value, adjusted to current prices using the NSO consumer price indices, must be at least fifty percent (50%) of the (Approved Budget for the Contract) ABC to be bid." By way of exception, a bidder will be qualified even if it does not have at least fifty percent (50%) SLCC if such bidder is either a Small A or Small B contractor participating in a project the ABC for which is within fifty percent (50%) of its Allowable Range of Contract Cost (ARCC).

In connection with this, through Government Procurement Policy Board (GPPB) Resolution No.11-2012 dated 1 June 2012, bidders may now identify and use similar contracts completed more than ten (10) years earlier than the date of the submission of bids for purposes of compliance with the SLCC requirement.

3. The propriety of requiring a mayor's permit from the LGU conducting the procurement.

Section 23.1(a)(ii) of the revised IRR of RA 9184 provides that the bidder is required to submit, as part of its legal eligibility requirements, a "mayor's permit issued by the city or municipality where the principal place of business of the prospective bidder is located." Clearly, the requirement is for a mayor's permit from the bidder's principal place of business, and not from the LGU conducting the procurement.