NPM No. 161-2015

Requesting Entity: Kalinga-Apayao State College (KASC)

Issues Concern: Discount on Bid Price



Whether the discount offered by a bidder should be deducted from the bidder's original bid price or the Approved Budget for the Contract (ABC).

[T]he offer of discount contemplated under the IRR of RA 9184 shall be deducted from the total bid price and not from the ABC. The discount can be validly considered in the computation of the total calculated bid price during the bid evaluation stage. In addition, since the offered discount does not qualify the methodology of its application, it can be presumed that the discount will apply to the whole amount of the identified total bid price, that is, PhP 21,585,308.30. Thus, the total calculated bid may be determined by deducting PhP 2,585,305.30 from the bid price of PhP 21,585,308.30.