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Can sister company with one owner participate in the bidding?

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Can sister company with one owner participate in the bidding?

Post by bunsojhmc on Wed Sep 12, 2012 12:17 pm

Currently we are in the process of bidding Security Services. we have a little problem on bidders with sister company, we have 10 bidders and 4 of them are partly owned by one bidder.. are the 3 bidder can participate? what provisions? is there a conflict of interest?

bunsojhmc
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Re: Can sister company with one owner participate in the bidding?

Post by elib on Wed Sep 12, 2012 12:38 pm

hi bunsojhmc,

welcome to GPPB Online Forum.

imo,gpra evaluates the elegibility of the juridical entity not the owners/shareholders of a compnay.

the 4 of your bidders mentioned are i think unique and distinct with each other, even they are all partly shared by an individual.

and as far as i know, there is none in the irr prohibiting bidders to join for that ground.

from this, they are all entitled to participate...


cheers.....
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Re: Can sister company with one owner participate in the bidding?

Post by bunsojhmc on Wed Sep 12, 2012 12:46 pm

Thank you for your immediate reply, but according to ITB clause 4.1 Conflict of Interest that "
"4.1. All Bidders found to have conflicting interests shall be disqualified to participate in the procurement at hand, without prejudice to the imposition of appropriate administrative, civil, and criminal sanctions. A Bidder may be considered to have conflicting interests with another Bidder in any of the events described in paragraphs (a) through (c) below and a general conflict of interest in any of the circumstances set out in paragraphs (d) through (f) below:
(a) A Bidder has controlling shareholders in common with another Bidder;"

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Re: Can sister company with one owner participate in the bidding?

Post by bunsojhmc on Wed Sep 12, 2012 1:13 pm

to further the details, here is our situation:

Bidder x is a sole proprietor thus he is a shareholder in the company of bidder y, on the other hand bidder z is also one of the owner of the company of bidder x.

hopes u understand my explanation

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Re: Can sister company with one owner participate in the bidding?

Post by elib on Wed Sep 12, 2012 1:49 pm

hi bunsojhmc,

thank you for your further expalnation.

from my earlier post, what i have explained is that partly owning different company is not a ground for disqualification, however , conflict of interest is a different story....

if any of the list you mentioned under ITB clause 4.1 can be supported by a legit documentation and can guaranty that a conflict of interest comes into play then you can act upfront as the guidelines says;
All Bidders found to have conflicting interests shall be disqualified to participate in the procurement at hand

cheers......
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Re: Can sister company with one owner participate in the bidding?

Post by regina avelino on Wed Sep 12, 2012 2:35 pm

A Bidder would be considered as having a conflict of interest with another bidder if the bidder is a corporation or a partnership and it has officers, directors, controlling shareholders, partners or members in common with another bidder; or if the bidder is an individual or a sole proprietorship and he is the proprietor of another bidder, or officer, director or a controlling shareholder of another bidder; or if the bidder is a joint venture and it or any of its members has officers, directors, controlling shareholders or members in common with another bidder, or any of its members is a bidder

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Re: Can sister company with one owner participate in the bidding?

Post by bunsojhmc on Wed Sep 12, 2012 2:50 pm

Thank you so much.. could u please further explain what ITB clause 4.1.a means?
(a) A Bidder has controlling shareholders in common with another Bidder;" "controlling shareholder" means?

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