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Splitting of Contract

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Splitting of Contract

Post by PERLITA G. HIMMIWAT on Mon Jul 20, 2009 5:24 pm

we have plan to procure construction material for a single project which includes cement and aggregates. The problem is that we have no hardware establishments in our locality and the nearest establishments are located 60 kms. from our place. There are quarry sites with in our locality available for construction purposes. Shall we stick to the no-splitting of contract policy and bundle the materials as one for bidding purposes even if we can produce aggregates locally.
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PERLITA G. HIMMIWAT
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Re: Splitting of Contract

Post by RDV @ GP3i on Mon Jul 20, 2009 6:16 pm

PERLITA G. HIMMIWAT wrote:we have plan to procure construction material for a single project which includes cement and aggregates. The problem is that we have no hardware establishments in our locality and the nearest establishments are located 60 kms. from our place. There are quarry sites with in our locality available for construction purposes. Shall we stick to the no-splitting of contract policy and bundle the materials as one for bidding purposes even if we can produce aggregates locally.

I don't think that could be considered "splitting of contract", if you could justify why are you separating the aggregates from the other construction materials for the reason that you just mentioned. It may, however, be construed as splitting if the other construction materials will no longer be bidded out also but purchased separately using the alternative methods.

My suggestion, therefore, is you package your contract by lots or you accept partial bids. You would have separate ABC for each lot or item. A bidder can bid on one lot/item only or on all of the lots. Bid evaluation shall be by lot/item.

In the case of the aggregates, your ABC would be based on the market price for the aggregates in your locality. A bidder located 60 kms away may not be able to bid in the amount of your ABC because of additional hauling cost. If no bidder would be able to bid on the aggregate because the ABC is based on the price within the locality, then you can just purchase it through any of the allowable alternative mode of procurement.
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