Question & AnswerQ&A (MEMORANDUM ORDER NO. 171)
Republic Act No. 9184 is officially known as the Government Procurement Reform Act.
Republic Act No. 9184 was signed into law on January 10, 2003.
The Government Procurement Policy Board (GPPB), jointly with the members of the Joint Congressional Oversight Committee, originally formulated the IRR-A of R.A. No. 9184.
The Supreme Court declared it unconstitutional in Macalintal vs. Comelec, G.R. No. 157013, July 2003, which invalidated the Congressional Oversight Committee's joint participation in the IRR formulation.
Section 23.11.2 No. 3 of the Implementing Rules and Regulations Part A (IRR-A) of R.A. No. 9184 was amended.
The amendment provides for Allowable Ranges of Contract Costs (ARCC) in relation to a prospective bidder's largest single completed contract and specifies conditions under which Small A and Small B category contractors without similar experience can be allowed to bid.
It must be adjusted to current prices using the National Statistics Office consumer price indices available at the Government Electronic Procurement System (G-EPS) website.
The largest single completed contract must be at least fifty percent (50%) of the approved budget for the contract to be bid.
They may be allowed to bid if the cost of such contract exceeds fifty percent (50%) of the Allowable Ranges Contract Cost (ARCC) of their registration.
The classification is based on the guidelines prescribed by the Philippine Contractors Accreditation Board (PCAB).
The amendment was approved by then-President Gloria Macapagal-Arroyo.
The amendment took effect immediately upon approval on May 19, 2005.
The GPPB-Technical Support Office formulated and proposed the amendment.
They are used to adjust the value of the prospective bidder's largest single completed contract to current prices for accurate comparison.