QuestionsQuestions (GPPB Resolution NO. 20-2013)
Sections 23.1(a)(vi), 23.5.1.4, and 23.5.2.6 of the Revised IRR of RA 9184.
For Goods: Clauses 5.5 and 12.1(a)(v). For Infrastructure: Clauses 5.5 and 12.1(a)(vi).
It establishes the bidder’s financial capability to undertake the contract by requiring submission of NFCC computation, or (at the time of earlier rules) a credit line commitment from a bank if NFCC is not computed.
The credit line commitment (CLC) from a Universal or Commercial Bank was an alternative; the GPPB resolved that CLC shall no longer be accepted as an alternative to the bidder’s NFCC computation.
NFCC = [(Current assets − Current liabilities) × K] − value of all outstanding or uncompleted portions of projects under ongoing contracts, including awarded contracts yet to be started coinciding with the contract to be bid.
K=10 for contract duration of one year or less; K=15 for more than one year up to two years; and K=20 for more than two years.
The values of current assets and current liabilities shall be based on data submitted to the BIR through its Electronic Filing and Payment System (EFPS).
The resolution states that government should only enter contracts with potential bidders who are actually contributing to government coffers through payment of correct taxes.
BIR presented a proposed NFCC formula based on the prospective bidder’s average net income after taxes for three (3) years; the NFCC Committee was also created to study alternatives in lieu of NFCC and the CLC.
The multipliers 10, 15, and 20 were retained, subject to future review by the Board of their efficiency and accuracy in relation to NFCC.
It states: “This resolution shall take effect immediately.” This implies that the amended provisions should be applied upon effectivity for procurement actions covered by the amended rules, subject to procurement timelines and any applicable transitional rules.
The resolution lists representatives from the Department of Budget and Management, Department of Education, Department of Energy, Department of Finance, Department of the Interior and Local Government, Department of National Defense, Department of Public Works and Highways, Department of Transportation and Communications, and a Private Sector Representative; it was attested by the Board Secretary/Executive Director.
They show the deliberative process: initial adoption of policy direction, committee study of alternatives, technical review and recommendation by an inter-agency working group, and final Board discussion and resolution adoption.