NPM 081-2012

Requesting Entity: Department of Education (DepED)

Issues Concern: Insufficient Net Financial Contracting Capacity (NFCC)



Whether the insufficiency of the NFCC of the bidder may result to its ineligibility or disqualification.

[T]he financial documents required to be submitted for purposes of determining the financial eligibility of the prospective bidders are the following: (1) the prospective bidders' audited financial statements (AFS), and (2) the computation for the NFCC or a CLC commitment from a Commercial or Universal Bank. Clearly, the prospective bidder has the option to submit a computation of its NFCC or a CLC commitment, aside from the submission of the AFS.

If the bidder opts to submit a CLC commitment from a Commercial or Universal Bank, the bidder shall be required to submit an actual CLC from the same bank when awarded the contract in amount equal to at least 10% of the ABC of the project to be bid. On the other hand, if the prospective bidder submits a computation of its NFCC, the NFCC must be at least equal to the ABC to be bid.

From the foregoing, the determination of a bidder's financial eligibility depends on the financial documents submitted in support of its bid. Since the bidder opted to submit an NFCC computation, its submission should comply with the requirement that the NFCC computation should be at least equal to the ABC to be bid. Failure to comply with the financial eligibility requirements and/or criteria set by law and the rules shall result to the ineligibility or disqualification of the bidder concerned.