NPM 125-2013

Requesting Entity: Overseas Workers Welfare Association (OWWA)

Issues Concern: Arithmetical Corrections



1. Is the process of rounding off number considered an arithmetical correction?

2. Can the TWG do an arithmetical correction during bid evaluation?

Arithmetical correction of bids are done in accordance with Section 32.2.1 (b) of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184. In order to enable proper comparison of all eligible bids, arithmetical corrections are done by considering computational errors and omissions, including bid modifications and discrepancies in bid prices. Necessarily, the process of rounding off numbers may be construed as an arithmetical correction for the determination of the LCB. However, the details on how the prices should be rounded off should be clearly stated by the procuring entity in its Invitation to Bid (IB) , and applied similarly to all bids so as to ensure that bids are evaluated on equal footing, to ensure fair and competitive bid evaluation .

3. What action may the BAC take if the bidder does not accept the arithmetical correction made by the BAC/TWG?

The bidder with the LCRB who fails, refuses, or is unable to accept the bid price as awarded and enter into a contract with the procuring entity shall be sanctioned by forfeiting its bid security and imposing appropriate penalties provided in the IRR and existing laws.