NPM 018-2013

Requesting Entity: National Development Company (NDC)

Issues Concern: Wage Adjustment in the Approved Budget for the Contract (ABC)



Whether NDC can reflect the new minimum wage rates/adjustments in the original ABC prior to the conduct of the second bidding for security services.

Section 35.2 of the revised Implementing Rules and Regulations (IRR) of Republic Act 9184 provides that whenever failure of bidding is declared the BAC shall conduct a mandatory review and evaluation of the terms, conditions, and specifications in the bidding documents, including cost estimates, in order to determine the reason for the failed bidding. Moreover, Section 35.3 of the IRR provides that, based on the findings of the BAC in such review, it shall revise the terms, conditions, and specifications, and if necessary, the ABC, subject to the required approvals, and conduct a re-bidding with re-advertisement and/or posting.

In this regard, x x x, prior to its second bidding, NDC may modify the ABC for its procurement of security services to incorporate the new minimum wage rate/adjustment, subject to the necessary approval process in changing the APP to reflect the revised ABC for the project.