NPM 040-2007

Requesting Entity: Manila International Airport

Issues Concern: Single Largest Similar Contract



Whether a bidder which submitted a single contract with a group of companies has complied with Section 23.11.1 (2) of the IRR-A of R.A. 9184.

The rationale for Section 23.11.1 (2) of the IRR-A, or the requirement to submit a Single Largest Similar Contract, is to establish a tangible gauge for the bidder's track record and capacity to perform contractual obligations. It seeks to safeguard the interest of the procuring entity by ensuring that the bidder has the experience and resources to perform the contract to be awarded strictly in accordance with the terms thereof and to complete the project to be bid.

In the instant case, [the group of companies] is not a registered corporation with the SEC. It has also been admitted that it is merely an aggrupation of six (6) affiliated companies. In addition, it cannot be ascertained if the bidder delivered the required manpower services to said affiliated companies at the same time or in a staggered basis. It appears that the bidder billed the affiliated companies separately and the corresponding payments for the services rendered by the bidder were given by the individual affiliated companies. Based on the foregoing, it has not been clearly shown by the bidder that it has the capacity and the resources to perform the manpower services required by the MIAA. Thus, the Manpower Service Agreement submitted by the bidder cannot be considered the Single Largest Similar Contract for purposes of compliance with Section 23.11.1. (2) of the IRR-A.