NPM 087-2012

Requesting Entity: Migo Construction

Issues Concern: Small B Category under the Allowable Range of Contract Cost (ARCC)



Whether a bidder was improperly declared ineligible for failure to comply with the Single Largest Completed Contract requirement despite the fact that it falls under the Small B category which may be allowed to bid if the cost of the contract is not more than fifty percent (50%) of the ARCC of its registration based on the guidelines prescribed by the PCAB.

[T]he GPPB and its Technical Support Office (TSO) only render policy and non-policy opinions, respectively, on issues purely relating to the interpretation and application of our procurement laws, rules and regulations. It has no jurisdiction to rule over actual controversies with regard to the conduct of the bidding since it has no quasi-judicial functions under the law. Hence, the determination of a bidder's qualification, eligibility and compliance with the requirements for a procurement opportunity lies within the responsibility and discretion of the BAC of the procuring entity concerned.

For guidance, Section of the IRR lays down the rule on SLCC wherein two requirements must be met - (i) It must be similar to the contract to be bid; and (ii) It must be at least fifty percent (50%) of the approved budget for the contract to be bid. However, in case a contractor has no similar experience on the contract to be bid, and is registered with the PCAB under Small A or Small B category, it may be allowed to bid on contracts costing not more than fifty percent (50%) of its registration's ARCC. This rule provides opportunity for small contractors to participate and gain experience in government procurements without running the risk of having inexperienced contractors doing projects for the Government; and ensures that only those with sufficient capability are awarded the contract.