Amendment to Section 23.11.2 No. 3 of IRR-A of RA 9184

Section 75 of Republic Act No. 9184 provides for the issuance of the IRR-A through the Government Procurement Policy Board (GPPB) and the Joint Congressional Oversight Committee.
The Implementing Rules and Regulations Part A (IRR-A) of Republic Act No. 9184 were approved on July 11, 2003.
The participation of the Joint Congressional Oversight Committee in formulating the implementing rules is treated as unconstitutional based on Macalintal vs. Comelec, G.R. No. 157013, July 2003.
GPPB-Technical Support Office formulates the amendment, which is endorsed by GPPB Resolution No. 013-2004 dated August 20, 2004.

The amendment ensures rules provide Allowable Ranges of Contract Costs (ARCC) tied to a prospective bidder’s largest single completed contract.
The amendment modifies the qualification standard in Section 23.11.2 No. 3 to account for specific circumstances for Small A and Small B contractors.

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 fifty percent (50%) benchmark applies where the bidder’s largest single completed contract is similar to the contract to be bid, and after adjustment using the NSO consumer price indices.
For contractors under Small A and Small B categories without similar experience on the contract to be bid, the contractor may be allowed to bid if the cost of the contract to be bid is more than fifty percent (50%) of the Allowable Ranges Contract Cost (ARCC) of his registration.
The classification of contractors vis-à-vis the ARCC is based on Guidelines prescribed by the Philippine Contractors Accreditation Board (PCAB).

All other provisions of the IRR-A of Republic Act No. 9184 remain unchanged.
Memorandum Order No. 171 becomes effective immediately upon issuance.