NPM No. 123-2017


Issues Concern: Discounts



Clarification on whether or not a bid offer that exceeds the ABC shall be considered valid considering that the bid offer includes a thirty-two percent (32%) discount which when applied, will make bid offer within the ABC.

[A]n offer of discount in the Bid Form can be validly considered in the computation of the total calculated price. Accordingly, a bidder whose Bid Price is initially higher than the Project’s ABC may still be qualified if after computation of the total bid price, including the discount, the resultant amount is below the ABC. Thus, if the bidder offered the discount as part of its bid proposal or in the Bid Form, it shall be deducted from the total bid price, and this will be the basis for the determination of whether its bid price is within the ABC. Note, however, that the discount offered must be submitted and included as part of the bid proposal, and not made or offered as a mere afterthought or after the bids are opened.