NPM 158-2004

Requesting Entity: Bureau of Fire Protection

Issues Concern: Application of Republic Act 9184 and its Implementing Rules and Regulations Part A



Whether or not it is proper for the BFP-BAC to disqualify a bidder whose total bid after computation (unit price x number of units) exceeds by two pesos and sixty eight centavos (P2.68) the Approved Budget of the Contract (ABC)
In case of discrepancy between total prices and unit prices: the latter shall prevail. Section 32.4.3 of IRR-A explicitly provides:

In case of discrepancies between: (a) bid prices in figures and in words, the latter shall prevail; (b) total prices and unit prices, the latter shall prevail; (c) unit cost in the detailed estimate and unit cost in the bill of quantities, the latter shall prevail.

Under Section 31 of the IRR-A, bid price higher than the approved budget for the contract under bidding disqualifies the bidder from said bidding.

Hence, the disqualification of the bidder at focus in this issue is well within the meaning of the law and the contemplation of its provisions. Sadly though, what appears to be an oversight in the arithmetical preparations of the bid proposal results to a loss of a potential gain by the government. Nonetheless, there is no better way to protect the interest of the government than to strengthen the measures against loose discretions. The law and its strict implementation remain to be the ultimate mechanism with which the government interest is advanced.