Requesting Entity: V.G. Roxas Co., Inc. (VGRCI)
Issues Concern: Computation of Net Financial Contracting Capacity (NFCC) based on the Approved Budget for the Contract (ABC)
Whether the NFCC of a bidder participating in the procurement of several lots should be at least equal to the ABC of all the lots to which it participated in.
[T]he NFCC, as a financial eligibility requirement under Sections 22.214.171.124 and 126.96.36.199 is approached differently because the eligibility criteria for compliance is the same for all the lots, i.e., that the NFCC is at least equal to the ABC to be bid out. The NFCC is intended as a financial eligibility requirement in order to determine whether the participating bidder is financially capable to carry out the subject matter of the contract to be awarded. Thus, if a procuring entity divides its procurement activity by lots, and each of these lots have their own specific ABCs and are treated as separate procurements, consequently, the participating bidder should be required to submit an NFCC that is at least equal to all the lots to which it participated in, in order to establish that it is financially capable of carrying out the contractual obligations required by the lots to which it participated in.