NPM No. 073-2016
Requesting Entity: Kemanlee General Merchandise
Issues Concern: Single Largest Completed Contract (SLCC)
Clarification on the rule that the required SLCC need not be 50% of the Approved Budget for the Contract (ABC), and that accumulated similar contracts which sums up to 50% of the ABC would suffice. It is in this wise that you ask for clarification on the matter.
[T]he SLCC requirement under Section 184.108.40.206 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. RA 9184, as technical eligibility criterion, is imposed for the purpose of establishing a tangible gauge for the bidder`s track record and capacity to perform contractual obligations. This is a guarantee to all Procuring Entities (PEs) that only eligible and qualified private contracting parties can participate in public bidding. Nonetheless, this general rule on the SLCC requirement for the procurement of goods is subject to exception.
In this regard, if it is determined by the procuring entity that imposing the SLCC requirement will likely result in failure of bidding, or monopoly that will defeat the purpose of public bidding, the exception under the second paragraph of Section 220.127.116.11 of the IRR of RA 9184 may be utilized, provided that it is clearly indicated in BDS Clause 5.4 of the PBDs for the Procurement of Goods.