NPM 010-2006

Requesting Entity: 911 Alarm

Issues Concern: Correction of Arithmetical Errors in Computation and Remedies available to the bidder



1. Whether or not the Bids and Awards Committee (BAC) can do the correction on arithmetical errors in the computation of the NFCC as submitted by the bidders.

As can be readily seen from the expressed provision of Section 32.4.1 of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act No. 9184 (R.A. 9184) the BAC can make corrections on arithmetical errors in the financial proposals of the bidders during the detailed evaluation of bids.

Based on the afore-quoted provisions, it is clearly within the ambit of the BAC's authority to make the necessary corrections on the bidder's financial proposals since the corrected computations by the BAC shall be the basis for the determination of the Lowest Calculated Bid.

2. What constitutes the term "on-going contracts" in accordance with law?

[I]t is evident in the language of the law that the term "on-going contracts" as used to describe the NFCC formula, shall be taken to mean or include all contracts that have been awarded to the contractor even those which are yet to be started. The extent of the term "on-going contracts" was further emphasized by the succeeding phrase in the provision quoted herein as "including awarded contracts yet to be started".

3. Whether or not the BAC's decision of awarding the contract to the lowest calculated bidder, pending resolution of the Motion for Reconsideration filed by another bidder constitutes abuse of authority.

[T]he foregoing provisions explicitly outlined the proper remedies available to any complaining bidder on issue or controversies involving the bidding process. Thus, any complaining bidder is advised to direct its complaint to the BAC which has the jurisdiction to decide on the matter. Subsequently, the said decision of the BAC may be the subject of a Motion for Reconsideration (MR) to be filed by the same bidder. Upon the denial of the MR, a valid protest in accordance with the requisites prescribed by law consists of the submission of verified position paper accompanied by the payment of a non-refundable protest fee equivalent to 1% of the ABC should be complied with by the bidder so that it may be properly acted upon by the [head of the procuring entity]. In the absence of any formal complaint/protest filed regarding the questioned decision of the BAC, the award of the contract to the lowest calculated and responsive bidder shall not be interrupted nor stayed. Significantly, the corresponding reglementary periods for each of the said remedies must be strictly observed.

If after exhausting all the available administrative remedies, the complaining bidder is still unsatisfied with the outcome of his complaint, said bidder can always file an appropriate action in court.