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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:
One of the modes of procurement under the New Government Procurement Act (NGPA) or Republic Act (R.A.) No. 12009 is competitive bidding, which is open to participation by any eligible bidder. The government procuring entity, through its Bids and Awards Committee (BAC), conducts an eligibility screening of prospective bidders, and measures their financial eligibility, legal eligibility, and technical eligibility.
The New Government Procurement Act (NGPA) or Republic Act (R.A.) No. 12009, which was signed into law on July 20, 2024, provides that procurement by the national government shall be governed by the principles of “transparency, competitiveness, efficiency, proportionality, accountability, public monitoring, procurement, professionalization, sustainability, and value for money in government procurement” (Secs. 2-3, R.A. No. 12009).
One of the modes of procurement under the NPGA is competitive bidding, which is open to participation by any eligible bidder. Competitive bidding consists of the following steps:
- Publication;
- Pre-bid conference;
- Eligibility screening of prospective bidders;
- Receipt and opening of bids;
- Evaluation of bids;
- Post-qualification; and
- Award of contract. (Sec/ 27, R.A. No. 12009)
Interested participants of competitive bidding may wonder: How can a company become an eligible bidder in a government procurement process?
To be sure, a “bidder” under the NGPA refers to a supplier, manufacturer, distributor, contractor, consultant, and service provider who submits a bid in response to the requirements of the bidding documents issued by the government procuring entity (Sec. 5(d), R.A. No. 12009).
The government procuring entity, through its Bids and Awards Committee (BAC), conducts an eligibility screening of prospective bidders, and measures, among others, their financial eligibility, legal eligibility, and technical eligibility. According to the straightforward definitions of the NGPA:
(k) Financial Eligibility refers to having the financial capacity to manufacture, distribute, or deliver the Goods, Infrastructure Projects, and Consulting Services being procured;
xxx
(q) Legal Eligibility refers to having the legal capacity to act as an entity as evidenced by permits, licenses, and/or registrations required by law to engage in the business of manufacturing, distributing, or delivering the Goods, Infrastructure Projects, and Consulting Services being procured;
xxx
(y) Technical Eligibility refers to having the experience or expertise to undertake the services, manufacturing, distribution, or delivery of the Goods, Infrastructure Projects, and Consulting Services being procured.
(Sec. 5, R.A. No. 12009).
To assess eligibility, the BAC, or under special circumstance specified in the IRR, its duly designated organic office, requires the submission of the prospective bidder’s valid and updated PhilGEPS Certificate of Registration and Membership.
The NGPA likewise provides that joint venture may participate in competitive bidding for the procurement of goods and infrastructure projects, so long as the primary purpose of each member of the joint venture must be similar or related to the requirement of the project to be out; and, so long as each member of the joint venture shall be jointly and severally liable to the Procuring Entity in cases of breach or failure to comply with the requirements of the project. (Sec. 52, R.A. No. 12009)
As regards the short-listing of prospective bidders for consulting services, the NPGA details that the eligible prospective bidders for the procurement of Consulting Services shall be evaluated using numerical ratings on the basis of the short-listing requirements prescribed for the Competitive Bidding concerned, within the period stated in the Invitation to Bid to determine the short-list of bidders that shall be allowed to submit their respective bids. (Sec. 53, R.A. No. 12009)
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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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