NPM No. 112-2016
Requesting Entity: National Housing Authority (NHA)
Issues Concern: Revision of Terms of Reference; Eligibility Documents for SVP
1. Whether or not the Bids and Awards Committee (BAC) may revise the Terms of Reference with a condition that the winning bidder undertakes to submit an affidavit that it has no tax liability with the Bureau of Internal Revenue (BIR) and that it will submit its Tax Clearance before the final payment in the conduct of Small Value Procurement (SVP)
[I]f based on the BAC`s findings, the requirement on the submission of the Tax Clearance in the conduct of SVP for the project is the reason for the failed procurement, the BAC may revise the Terms of Reference or the requirement for Tax Clearance with a condition that the winning bidder undertakes to submit an affidavit that it has no tax liability with the BIR and that it will submit its Tax Clearance before the final payment, provided such revision is in accordance with the documentary requirements for SVP.
2. Whether or not the BAC has the discretion to change the list of eligibility documents to be submitted for SVP since no bidder can submit its Tax Clearance Certificate from the BIR.
The procuring entity is given a wide discretion on the documents that will be submitted by the consultant to prove that it is technically, legally and financially capable to execute the procurement at hand. This does not however absolve the procuring entity from validating or determining if it is entering into an agreement with a capable and legitimate consultant. The procuring entity is still bound to exercise due diligence in contracting with the consultant through the documents to be submitted by the latter.
Please note, however, that Appendix A of the Consolidated Guidelines for Alternative Methods of Procurement or Annex "H" of the 2016 revised Implementing Rules and Regulations of Republic Act No. 9184 prescribes the documents that the BAC shall require from suppliers, contractors and consultants for Alternative Methods of Procurement. The BAC shall indicate in the Request for Quotation or Request for Proposal at what stage of the procurement process the documents shall be submitted, i.e. submission of offer/s, evaluation of offer/s, before issuance of Notice of Award or prior to payment.