NPM 068-2012

Requesting Entity: OCM Steel Corporation

Issues Concern: Requirement on Similar Contract under Section of the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184



(1) Whether the Bids and Awards Committee (BAC) is allowed to limit eligible bidders to those who have completed at least one (1) healthcare facility of similar nature and magnitude.

[T]he determination to consider a civil works project as being similar or not similar in nature and complexity to the project (healthcare facility) being bid out lies entirely within the sound discretion of the procuring entity taking into consideration major categories of work. As such, procuring entities are given wide discretion in identifying the specifications and requirements of the project, including the determination of what is regarded as similar, provided these are clearly indicated in the bidding documents.

Emphasis must be made, however, that in identifying the actual project or work to be constructed, to such an extent of specifically limiting similar contracts to “healthcare facility contracts”, the works to be performed on the structure to be constructed must be so different, special, particular and/or exclusive that its components do not ordinarily fall within the usual, ordinary or standard engineering practice, construction methodology and/or architectural design such that the ultimate construction output seeks to address a special or particular need, demand and/or concern. Elsewise put, we are of the view that the project desired and the intended construction output can be attained without necessarily qualifying the term “contract” as “healthcare facility contract” since this can be well-addressed by the phrase “similar to the contract to be bid.”

(2) Whether it is sufficient for a bidder to show that it has completed a similar project worth at least 50% of the ABC but not a healthcare facility.

[P]rospective bidders have the responsibility to strictly comply with the requirements prescribed by the procuring entity pursuant to RA 9184 and its IRR. Specifically, in complying with the requirement on single largest similar contract under Section of the IRR of RA 9184. However, it is enough that bidders must establish in the statement of all ongoing and completed contracts that it has at least one (1) contract that is similar to the contract to be bid and whose value must be at least fifty percent (50%) of the ABC to be bid.