NPM 008-2014

Requesting Entity: Department of National Defense (DND)

Issues Concern: Net Financial Contracting Capacity (NFCC) and Statement of Ongoing Government and Private Contracts



1.Is an incorrect NFCC computation, due to a mistakenly lifted figure from the Audited Financial Statements (AFS), considered "passed" if the entries in the AFS are used, the NFCC will still be more than the Approved Budget for the Contract (ABC)?

During preliminary examination of bids, the BAC shall examine the NFCC computation submitted by the bidder based on a non-discretionary "pass/fail" criterion. Bidders shall be deemed compliant with the requirement if the submitted NFCC computation is at least equal to the ABC; otherwise, it will be declared "failed" regardless of the fact that the computation was based on an erroneous data or a mistake in arithmetical computation.

2. Is the list of "selected and relevant" ongoing and completed government and contracts instead of a "statement of all ongoing and completed government and private contracts" considered substantial compliance; hence, can be rated "passed"?

The statement of ongoing government and private contracts to be submitted by the bidder should include all of its ongoing government and private contracts, even if they are immaterial or dissimilar to the contract to be bid.

3. What is the meaning of "current" assets and liabilities that is required in the NFCC computations?

The NFCC is computed using the values of the current assets and liabilities appearing in the bidder's submitted AFS stamped "received" by the BIR or its duly accredited and authorized institutions for the preceding calendar year.