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Bidding by LOT

Bidding by LOT

by Jet Cariaga -
Number of replies: 3
1. Whether or not the BAC can perform a lot bidding considering that it might limit competition due to the following reasons:
a. not all bidders do have particular items/goods to be procured which is included the lot, thus the automatic awardee is the bidder with complete set of items.
b. If one item (specification) on the lot would point out to a particular item/bidder then automatically it would be awarded to them.
 
Is this justifiable under RA 9184, or should the procuring entity ensure widest participation among bidders and avoid LOT bidding since it would be leading towards a particular bidder. Thank you.
In reply to Jet Cariaga

Re: Bidding by LOT

by Edita Nota -

One of the governing principles in procurement is Competitiveness - extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in competitive bidding. Before deciding on whether to divide a procurement project into lots, a market study should be conducted to determine if it would be more efficient and effective such that many bidders can bid for all the items in a lot. If dividing a project into lots would limit competition and only one supplier will be able to bid, then it would be tantamount to tailor-fitting which is prohibited.

  

In reply to Jet Cariaga

Re: Bidding by LOT

by Jessie Salvador -
I would assume that "lot", as used in the question, is synonymous to "lumpsum".

The general rule is lumpsum bidding. Bids must be complete. The exception is LINE ITEM bidding where partial bids are allowed. The decision to choose the scheme is lodged to the BAC with the assistance of their TWG. If there are no express provisions in the Bidding Documents allowing partial bids, then the lumpsum bidding shall automatically apply.

a) I agree that items should not be lumped especially if by the nature of the goods, they are not ordinarily available to one supplier or contractor.

b) If an item has specifications that refers to a brand name or tailor-fitted for a particular bidder or bidders, then that will be a violation of Sec.18 of RA 9184.
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