NPM 052-2009

Requesting Entity: National Electrification Administration

Issues Concern: Adjustment of Technical Specifications and ABC; Honoraria



1. Whether the BAC can adjust, prior to re-bidding, the technical specifications and ABC of one (1) lot, which failed out of the five (5) lots bidded out.

It is clear [under Sec. 35 of the revised IRR] that the BAC can make adjustments in the specifications and cost estimates, as well as in the ABC, after every failure of bidding, provided, that the same is based on findings arrived at after a prior mandatory review and evaluation of the terms, conditions, and specifications in the Bidding Documents, including its cost estimates, is undertaken; and provided, further, that the required approvals are secured.

2. Whether the BAC of NEA can claim honoraria for the procurement of vehicles in two (2) lots which were conducted through public bidding and negotiated procurement.

[H]onoraria can only be given for "successfully completed procurement projects" which have undergone competitive bidding. (See Sec. 5.1 of DBM Budget Circular 2004-5A)

The same circular likewise limits the payment of honoraria to procurement that involves competitive bidding, and for this purpose, has identified the activities wherein the same is present.