NPM 041-2009

Requesting Entity: CBCP - LAIKO Advocacy on Good Governance

Issues Concern: BAC Membership; Single Largest Contract



1. Whether or not provisional members of the BAC should be included in the determination of the latter's total number of membership.

It is clear from Sec. 11.2 of the IRR-A that membership in the BAC consists of both regular and provisional members. And while the law provides that BAC membership can be increased to a maximum of seven (7) members, the minimum requirement of three (3) regular members and two (2) provisional members must still be observed.

2. Whether or not votes of provisional members should be included/ considered in the existence of a quorum, and in the selection/ determination of the winning bidder.

Provisional members, which form part of the BAC's composition, are to be included in the determination of the existence of a quorum, and they likewise have the right to participate and vote on the matters leading to the determination/ selection of the winning bidder.

We would like to emphasize that provisional members of the BAC are true members of the BAC, in the same manner that the regular members are. For purposes of determining their functions, responsibilities, and accountabilities, as well as their entitlement to benefits as BAC members, no distinction is made.

3. Whether or not the required bidder's largest single completed contract maybe complied with by the collective contracts of the members of the consortium.

[I]n case of a consortium, just like in a joint venture, it is mandatory that at least one member company in the said consortium must be able to comply with the minimum value requirement with respect to its largest completed contract for purposes of aggregate amount of the completed contract of all members therein.