Are newly transferred/owned business qualified for bidding?

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Are newly transferred/owned business qualified for bidding?

Post by meijunji on Sat Jul 30, 2011 10:21 pm

Good evening po,

We would like to inquire so that our decision will be guided accordingly, here is our case:

In our recent bidding, there were two bidders who joined, let us say Bidders A and B.

Bidder A turned out to be the LCB, however, Bidder B questioned the qualifications of the bidder A. Same issues which was brought up in the pre-bid but sad to say, the BAC didn't resolve the issue.

So Bidder B, brought up the issue that Bidder A is a new business and that it misrepresented its qualifications.

Here is the case. Bidder A was formerly let us say Sole Proprietorship (SA) 1, which later changed its name to Sole Proprietorship (SA) 11. In the case, Bidder A claimed that they are one and the same, however, upon perusal of the documents it turned out SA 1 and SA 11 have two different owners. SA 1 was owned by the father and SA 11 was owned by the daughter. According to Bidder B, the owners are different but the management are still the same. They claimed there is only change of name. Thus, Bidder B is not a new business.

During the opening of the bid documents, the Bidder A submitted the following:

a. FINANCIAL STATEMENT under the SA 1, and not SA 11
b. NFCC based on the foregoing FS

Bidder B pointed such issue that the FS and NFCC are applicable only for SA 1 and not SA 11, thus, Bidder A should not have passed in those criteria. Furthermore, SA 1 and SA 11 have two different TINs, thus, they can't use the Financial Capacity of the former.

Further queries, led that Bidder B can only provide the Tax Clearance for SA 1 and not SA 11, because they claim they SA 11 is still 6 months in existence, so no tax clearance under SA 11.

I think the BAC is leaning towards Bidder A since it is the LCB, and post qualification reveals per our legal opinion that the claim of Bidder A is correct and Bidder B has no merit. Will our decision be correct? Please advise us. What will be our basis. Hope you can help us. Thank you.

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Male Number of posts : 21
Company/Agency : Pag-ibig
Occupation/Designation : Manager
Registration date : 2011-04-11

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