NPM No. 012-2018

Requesting Entity: National Housing Authority (NHA)

Issues Concern: Procurement of Goods and Services; List of Equipment and Proof of Ownership Procurement of Goods



Whether the Bids and Awards Committee (BAC) correctly disqualified a bidder for the procurement of trucking services because of non-submission of the list of equipment and proof of ownership of at least 25% of the trucks.

Procuring Entities (PEs) are proscribed from requiring additional eligibility requirements. For purposes of determining the eligibility of bidders, only the documents mentioned in Section 23.1 for the procurement of Goods and Infrastructure projects and Section 24.1 for the procurement of Consulting Services of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 are required. The PE cannot include another requirement to, nor delete any requirement from, the identified list of eligibility requirements. This is because the list of minimum eligibility requirements under the 2016 IRR of RA 9184 has already been streamlined alongside the governing principle of government procurement, i.e. a streamlined government procurement process. The rationale for this is to allow greater participation, enhance competition among prospective bidders, and reduce transaction costs.

On the other hand, the authority of PEs in imposing additional documentary requirements during competitive bidding stage is recognized. But this is limited only to those sanctioned by the 2016 IRR of RA 9184, i.e. duly notarized Secretary’s Certificate pursuant to Section 25.3 of the same IRR, other documents related to the financial component as stated in the BDS, and other appropriate licenses and permits required by law and stated in the Bidding Document pursuant to Section 34.2 of the 2016 IRR of RA 9184.

Nonetheless, the list of equipment and proof of ownership of at least 25% of the trucks to be utilized for the project may be included as part of the requirements under the Technical Specifications of the Bidding Documents, if based on PEs determination, such requirement is necessary for the procurement at hand. The Bidding Documents contain all the specific requirements, limitations and parameters of the procurement activity, as determined by the PE, which bids will be compared and evaluated for determination of compliance or responsiveness. Thus, Section 17.2 of the 2016 IRR provides that “[T]he specifications and other terms in the Bidding Documents shall reflect the necessary specifications required to meet the needs of the Procuring Entity in clear and unambiguous terms.”

As such, additional specifications may be required by the procuring entity as long as it is necessary to meet its needs and must not unduly restrict competition. Moreover, the technical specifications must be based on relevant characteristics, functionality and/or performance requirements, as stated in Section 18 of the 2016 IRR. Accordingly, non-compliance by the bidder with the Technical Specifications would be a ground for disqualification.