NPM 008-2005

Requesting Entity: Bessang Pass Security Agency, Inc.

Issues Concern: Eligibility Criterion under Section 23.11.1 (2) of the Implementing Rules and Regulations Part-A (IRR-A) of Republic Act 9184 (R.A. 9184)



Whether or not the renewal of Bessang Pass Security Agency, Incorporated’s (BPSAI’s) security services contract with the Department of Public Works and Highways (DPWH) every two (2) years pursuant to Section 10 of their existing contract should be deemed as compliance with the Eligibility Requirement under Section 23 of the aforementioned law.

As Section 23.6 of the IRR-A of R.A. 9184 is very clear and emphatic on the bases of the eligibility of a prospective bidder, it is mandatory for a prospective bidder to show that the value of its largest single completed contract similar to contract to be bid is at least 50% of the approved budget for the contract to qualify it to bid in such project. Thus, this eligibility criterion cannot be dispensed with or waived by the procuring entity as this is one of the minimum requirements that a prospective bidder has to satisfy to establish its track record and capacity to perform contractual obligations.

[P]rospective bidder[s] cannot be declared eligible for failing to satisfy the eligibility criterion for track record and capacity to perform. The fact that [a] 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 have to be declared ineligible to participate in the ensuing public bidding.