Legal basis and rule-making basis
- Republic Act No. 9184 is identified as the Government Procurement Reform Act, signed on January 10, 2003.
- Section 75 of Republic Act No. 9184 establishes the role of the Government Procurement Policy Board (GPPB) in formulating the IRR-A.
- The IRR-A is described as approved by the President on July 11, 2003.
- The amendment is anchored on the need to adjust procurement rules concerning Allowable Ranges of Contract Costs (ARCC) in relation to a prospective bidder’s largest single completed contract.
- The issuance references the Supreme Court ruling Macalintal vs. Comelec, G.R. No. 157013, July 2003 as declaring unconstitutional the congressional oversight committee’s joint participation in formulating implementing rules.
Purpose of the amendment
- The amendment modifies Section 23.11.2 No. 3 to provide Allowable Ranges of Contract Costs (ARCC) rules linked to a prospective bidder’s largest single completed contract.
- The amendment is directed toward enabling prospective bidding participation rules under specified contractor categories where similar experience is not available.
Amended operative procurement standard
- Section 23.11.2 No. 3 (as amended) requires that the value of the prospective bidder’s largest single completed contract—adjusted to current prices using National Statistics Office consumer price indices available at the G-EPS website—and similar to the contract to be bid must be at least fifty percent (50%) of the approved budget for the contract to be bid.
- The computation standard applies using the bidder’s largest single completed contract and requires similarity to the contract to be bid.
- A statutory exception is provided for certain small contractor classifications: a contractor 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 the contract is more than fifty percent (50%) of the contractor’s Allowable Ranges Contract Cost (ARCC) of registration.
- The rule for how the contractor’s classification relates to ARCC is determined using the Guidelines prescribed by the Philippine Contractors Accreditation Board (PCAB).
Contractor classification link to ARCC
- Contractor classification vis-à-vis ARCC is based on Guidelines prescribed by PCAB.
- The Small A and Small B exception applies only to contractors that lack similar experience on the contract to be bid.
- The ARCC-based allowance uses the contract cost being more than fifty percent (50%) of the contractor’s registered ARCC.
Remaining provisions, separability, and duration
- Section 2 preserves all other provisions of the IRR-A of Republic Act No. 9184 as unchanged.
- Section 3 makes the amendment effective immediately.
- The issuance does not provide a separate repeal, sunset, separability clause, or transitional savings beyond the immediate effect rule in Section 3.