NPM No. 007-2017

Requesting Entity: Advance-Tech Commodities Phils, Inc.

Issues Concern: Valuation of Contracts for the Computation of the Net Financial Contracting Capacity (NFCC)



Guidance on how to determine the value of the outstanding or uncompleted portions of ongoing contracts in relation to the duration of the project being procured for the purpose of establishing its NFCC.

In computing the NFCC, only the value of the undelivered, uncompleted or unperformed portions of existing contracts shall be deducted from the working capital , but only with regard to the period overlapping with the contract being bid out.

Hence, if the project being procured is to be implemented in different phases within a determined schedule, the prospective bidders should indicate only the value of the unperformed portions of their respective ongoing contracts corresponding to, or overlapping with, the implementation period of the project being bid out. Accordingly, the values of the unperformed portion of ongoing contracts beyond the period for the implementation of the project being bid out are no longer part of the NFCC computation and will not be deducted from the working capital component of the NFCC.