Owned or Leased Equipment

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Owned or Leased Equipment

Post by nemiranda on Mon Oct 22, 2012 2:47 pm


Hi, i noticed recently that most Government agency's bidding ads calls for too much "owned" equipments, thus limiting the contracts to be bid to a few contractors. Is this allowed under RA 9184? as stated in the IRR all equipments pledges should be " owned, leased and/or under purchase agreements...", should it be interpreted as agency's prerogative and discretion? Is there a control or guideline on what they could say as owned or leased or under purchase agreements? I was browsing through several ads and saw several equipments that are not needed to be owned but are required to be owned by the contractor, For example- requiring a transit mixer, when a bonafide batching plant has transit mixers of their own (you can;t even use your own, even if you wanted too), or requiring the ownership of a batching plant, when the amount to be concreted are around 4 days work for the model that is being specified. Set up cost alone is not justifiable. Any answer will be highly appreciated. bounce bounce bounce

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Re: Owned or Leased Equipment

Post by engrjhez® on Tue Oct 23, 2012 10:08 pm

nemiranda wrote:
Hi, i noticed recently that most Government agency's bidding ads calls for too much "owned" equipments, thus limiting the contracts to be bid to a few contractors. Is this allowed under RA 9184? as stated in the IRR all equipments pledges should be " owned, leased and/or under purchase agreements...", should it be interpreted as agency's prerogative and discretion? Is there a control or guideline on what they could say as owned or leased or under purchase agreements? I was browsing through several ads and saw several equipments that are not needed to be owned but are required to be owned by the contractor, For example- requiring a transit mixer, when a bonafide batching plant has transit mixers of their own (you can;t even use your own, even if you wanted too), or requiring the ownership of a batching plant, when the amount to be concreted are around 4 days work for the model that is being specified. Set up cost alone is not justifiable. Any answer will be highly appreciated. bounce bounce bounce

Under R.A. No. 9184, procuring entities should have minimal or no discretion at all in setting the requirements. The law provides for the eligibility criteria for infra under Sec.25.2.b.iii(3) of the IRR:

List of contractor’s equipment units, which are owned, leased,
and/or under purchase agreements, supported by certification of
availability of equipment from the equipment lessor/vendor for the
duration of the project;
The law does not require exclusive ownership. It must only be shown that the equipment, if leased or rented, should be made available in the proper periods of project duration. Smile
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Re: Owned or Leased Equipment

Post by nemiranda on Thu Oct 25, 2012 6:38 pm

Thanks for the reply, so as a recourse, could a contractor write a letter of clarification/correction to the owner/agency regarding their rather erroneous interpretation on ownership of equipment? Has the GPPB issued an official interpretation of the same? because the query will be forwarded to them anyways.

Also, as the reconsideration timeline was reduced to only 3 days after the bidding, these query will have no direct impact on the bidding procedures, considering in the past that GPPB replies takes a long time.

Will the GPPB upon query, suspend such biddings until they give their opinion or answer?

thanks a lot for giving time to answer.

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Re: Owned or Leased Equipment

Post by elib on Thu Oct 25, 2012 7:05 pm

hi nemiranda,

engrjhez® totally hits the bulls eye with his response.

as for your additional queries:

yes, you could write an MR to the agency that what they are asking was not in compliance with what the irr provides. and in my opinion, you will not need any interpretation from the gppb as the law is clear on this provisions....

if they insist with what they stand,then you could take the next step in the protest mechanism.

cheers....
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