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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Prior to Bid evaluation, the Bids and Awards Committee (BAC) shall first examine the technical components of the bids using a “pass/fail” criteria to determine whether all required documents are present. Only bids that are determined to contain all the bid requirements of the technical component shall be considered for opening and evaluation of their financial component.
Ceiling for Bid Prices
The Approved Budget for the Contract (ABC) shall be the upper limit or ceiling for the Bid prices. Bid prices that exceed this ceiling shall be disqualified outright from further participating in the bidding. There shall be no lower limit to the amount of award.
Bid Evaluation for the Procurement of Goods and Infrastructure Projects
For the procurement of Goods and Infrastructure Projects, the BAC shall evaluate the financial component of the bids.
For contracts to be awarded to the Lowest Calculated Responsive Bid (LCRB), the bids that passed the preliminary examination shall be ranked from the lowest to highest in terms of their corresponding calculated prices. The bid with the lowest calculated price shall be referred to as the Lowest Calculated Bid (LCB).
For the contracts to be awarded to the Most Economically Advantageous and Responsive Bid (MEARB), the BAC shall evaluate the bid using a predetermined quality-price ratio. The quality component shall be assessed on the basis of criteria that may include qualitative , environmental, and/or social aspects linked to the subject matter of the contract. These may comprise the following:
- Quality and technical merit, including technical competence and a creditable track record;
- Aesthetic and functional design and characteristics;
- Approach and methodology;
- Accessibility;
- Tools and equipment;
- Social, environmental, economic, and innovative characteristics;
- Organization, qualification, and experience of employees or staff assigned to perform the contract;
- On-going contracts and work commitments;
- After-sales service and technical assistance;
- Delivery conditions, such as delivery period and delivery process;
- Disposal measures;
- Other relevant criteria in relation to the subject Goods and Infrastructure Projects to be procured.
The BAC shall specify in the invitation to bid the quality-price ration and the criteria for assessing the quality component. The bidder with the best overall score using the quality-price ration shall be referred to as the Most Economically Advantageous Bid (MEAB). The quality and price proposals shall be given corresponding weights. The price proposal shall be given a minimum weight of fifteen percent (15%) up to a maximum of forty percent (40%).
The entire evaluation process for the procurement of Goods and Infrastructure Projects shall be completed within seven (7) calendar days from the deadline for receipt of proposals.
Bid Evaluation of Short-Listed Bidders for Consulting Services
For the procurement of Consulting Services under a quality-based evaluation procedure, the Bids of the short-listed bidders shall be evaluated and ranked using numerical ratings in accordance with the evaluation criteria stated in the Bidding Documents, which shall include factors such as, but not limited to, experience, performance, quality of personnel, price, and methodology. The Bids shall be ranked from the highest to lowest in terms of their corresponding calculated ratings. The Bid with the highest calculated rating shall be the Highest Rated Bid (HRB).
The BAC shall invite the bidder concerned for negotiation and/or clarification on the following items: financial proposal submitted by the bidder, terms of reference, scope of services, methodology and work program, personnel to be assigned to the job, services/facilities/data to be provided by the procuring Entity concerned, and provisions of the contract. When negotiations with the first-in-rank bidder fails, the financial proposal of the second rank bidder shall be opened for negotiations: Provided, That the amount indicated in the financial envelope shall be made as the basis for negotiations and the total contract amount shall not exceed the amount indicated in the envelope and the ABC. Whenever necessary, the same process shall be repeated until the bid is awarded to the winning bidder.
Related Articles:
- Key Takeaways from the New Government Procurement Act (II) – Search
- Key Takeaways from the New Government Procurement Act (PART I) – ALBURO ALBURO AND ASSOCIATES LAW OFFICES
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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