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Query on SLCC

Query on SLCC

by Jenny Malitao -
Number of replies: 3

Good Afternoon Po.

This pertains to our Procurement of (general) services. We only require in our bid documents the submission of SLCC  "For the procurement of Non-expendable Supplies and Services: The Bidder must have completed a single contract that is similar to this Project, equivalent to at least fifty percent (50%) of the ABC."

We have 6 bidders and the lowest calculated bidder however submitted 2 similar contracts, each contract is below 50% of the ABC of the bid project instead of the required "single largest  contract" of at least 50% of the ABC as  per our requirement. 

The Bidder asserted Section 23.4.1.3  (a) The bidder should have completed at least two (2) similar  contracts and the aggregate contract amounts should be equivalent to at least the percentage of the ABC as required above; and..........

In my understanding, we will only resort to letter "(a)" option if, at the outset and after conducting market research, the Procuring  Entity can already determine that imposing the same will likely result  to: (a) failure of bidding, or (b) monopoly that will defeat the purpose  of competitive bidding, the Procuring Entity, in lieu of the above, may require the options (a) or (b)......

Since we have 6 bidders, and detailed evaluation is ongoing, and the next lowest bidders (some) are seemingly  responsive in terms of Tech and financial documents, and  we can not yet say that there is already a failure of bidding at this stage, can we deny the argument of the bidder? 

Thank you for your positive response  to our query.

In reply to Jenny Malitao

Re: Query on SLCC

by Jessie Salvador -

First, the procurement of services fall under EXPENDABLE goods. Hence, the SLCC requirement is 25% and not 50%.

Second, you are correct to apply the SINGLE contract and NOT the Aggregate contracts rule, unless you specifically mentioned the latter in your bidding documents.

Lastly, the market research must be conducted AT THE OUTSET and not in the middle of the procurement process. Such research will be the basis to use the Aggregate Contract Rule if the result will be more likely a failure or monopoly in bidding. 

I hope these answered your query.

In reply to Jessie Salvador

Re: Query on SLCC

by Jenny Malitao -
Thank you Sir for the clarification and for your immediate response.
In reply to Jenny Malitao

Re: Query on SLCC

by Jessie Salvador -

First, the procurement of services fall under EXPENDABLE goods. Hence, the SLCC requirement is 25% and not 50%.

Second, you are correct to apply the SINGLE contract and NOT the Aggregate contracts rule, unless you specifically mentioned the latter in your bidding documents.

Lastly, the market research must be conducted AT THE OUTSET and not in the middle of the procurement process. Such research will be the basis to use the Aggregate Contract Rule if the result will be more likely a failure or monopoly in bidding. 

I hope these answered your query.

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