Government Procurement Policy Board Technical Support Office(GPPB)

Dear Mr. Labang, This refers to your electronic mail requesting proper interpretation of Section (Sec.) 23.4.2.4 of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184. As represented, you are currently bidding for a project in a certain local government unit. However, the LGU’s interpretation of Sec. 23.4.2.4 provision is that Small B construction companies can bid for a project without an SLCC, given that it does not exceed the range IN TOTAL AMOUNT OF ALL PROJECTS. On the other hand, your interpretation is that the range applies ONLY TO THAT CERTAIN CONTRACT TO BE BID. First, we refer you to Sec. 23.4.2.4 of the 2016 revised IRR of RA No. 9184, which states that: The prospective bidder must have completed an SLCC that is similar to the contract to be bid, and whose value, adjusted to current prices using the PSA consumer price indices, must be at least fifty percent (50%) of the ABC to be bid: Provided, however, That contractors under Small A and Small B categories without similar experience on the contract to be bid may be allowed to bid if the cost of such contract is not more than the Allowable Range of Contract Cost (ARCC) of their registration based on the guidelines as prescribed by the PCAB. Accordingly, you are correct. The submission of the SLCC is required to determine whether a bidder has the technical experience and capability to perform and accomplish the project at hand vis-à-vis the well-established concept in public procurement that the project shall be awarded to the bidder not only with the legal and financial capacity, but also the technical capability to undertake the project to its completion. Thus, to be eligible to participate in the procurement opportunity, a bidder must submit its SLCC that is similar to the contract to be bid whose value must be at least fifty percent (50%) of the ABC to be bid. Please note, however, that Small A and Small B contractors without similar experience on the contract to be bid may be allowed to bid if the cost of such contract is not more than the Allowable Range of Contract Cost (ARCC) of their registration based on the guidelines prescribed by PCAB. Presently, the ARCCs for the different categories are as shown in this link: http://ciap.dti.gov.ph/sites/default/files/BR%20No.%20201%20s%202017%20-%20Revisiting%20and%20Adjusting%20the%20Financial%20Requirements.pdf Clearly, the ARCC for Small B categories is up to Php 30,000,000.00. Thus, a contractor under Small B category without similar experience can participate in a bidding of up to Php 30,000,000.00. Each procurement activity is distinct and separate from each other, thus the cost of such contract refers to that one project that is to be bid. The foregoing reply was made based on existing Non-Policy Matter (NPM) Opinions[1] and the particular facts presented and circumstances availing, and may not, therefore, be applicable given a different set of facts and circumstances. We hope to have sufficiently clarified the matter at hand. Legal and Research Division GOVERNMENT PROCUREMENT POLICY BOARD-TECHNICAL SUPPORT OFFICE 2504 Raffles Corporate Center, F. Ortigas Jr. Road, Ortigas Center, Pasig City Tel. No.: (02) 7900-6741 to 44 1 NPM No. 143-2017 dated 29 Dec 2017; NPM No. 031-2017 dated 20 December 2017; NPM No. 124-2016 dated 06 December 2016; NPM No. 073-2016 dated 15 November 2016; and NPM No. 120-2015 dated 27 November 2015. Disclaimer: Please consider the environment before printing this email or its attachment(s). Note that this message may contain confidential or proprietary information, If you have received this message in error, please notify me and then delete it from your system. Any unauthorized disclosure in any form of the contents of this email shall be dealt with in accordance with applicable laws and rules. Moreover, the private views and opinions expressed in this email shall not be construed as the opinion or position of the Government Procurement Policy Board or its Technical Support Office.