Requesting Entity: Office of the Naval Judge Advocate Bonifacio Naval Station
Issues Concern: Compliance with Sections 23.11.1 paragraphs 2 and 3 of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act No. 9184 (R.A. 9184)
Whether or not a particular bidder, whose largest single contract, valued at Sixteen Million One Hundred Ten Thousand Pesos (Php16,110,000.00) and whose Net Financial Contracting Capacity (NFCC) amounts to Four Hundred Thirty Four Million Fifty One Thousand Three Hundred Seventy Pesos (Php434,051,370.00), may be declared eligible to participate in the said project.
Eligibility Criterion Under Section 23.11.1 (2) of the IRR-A of R.A. 9184
If the value of a prospective bidder’s largest single contract is lower than fifty percent (50%) of the approved budget for the contract (“ABC”) to be bid, said prospective bidder cannot be declared eligible for failing to satisfy the eligibility criterion for track record and capacity to perform, although such largest single contract is similar in nature and complexity as to the subject of the public bidding concerned. Hence, in the procurement of the BO-105C Helicopter Upgrade Project, which has an approved budget of Php 50,006,400.00, only prospective bidders with largest single contracts amounting to at least Twenty Five Million Three Thousand Two Hundred Pesos (Php 25,003,200.00), representing 50% of the ABC are eligible to participate in the public bidding thereof. Obviously, a prospective bidder, which has a largest single contract of Php 16,110,000.00, does not meet the 50% requirement and fails to satisfy the eligibility criterion under Section 23.11.1 (2) of the IRR-A.
Eligibility Criterion under Section 23.11.1 (3) of the IRR-A of R.A. 9184
If a prospective bidder’s NFCC level, after having been computed based on the afore-stated provision, is equal to or above the ABC, then said prospective bidder complies with the eligibility criterion under Section 23.11.1 (3) of the IRRA.
Thus, a prospective bidder in the BO-105C Helicopter Upgrade Project, which has an NFCC of Php 434,051,370.00 is eligible to participate therein under this criterion.
However, although the bidder may have satisfied the NFCC requirement, the fact that the bidder failed to meet the largest single contract criterion makes it ineligible to participate in the said project. The requisites constituting the eligibility criteria for the procurement of goods under Section 23.11.1 of the IRR-A should not be taken in the alternative, but should altogether be complied with. Hence, should the prospective proponent fail to satisfy any of the requirements prescribed under the said provision, it will be declared ineligible to participate in the ensuing public bidding.