CITING inflation and the rising cost of construction materials, two firms failed to qualify in the negotiated procurement that Capitol entered into for its proposed four-story parking area.
In an interview last Monday, April 8, Provincial General Services Office chief and Bids and Awards Committee vice chairman Jone Sepe said the two firms offered a bid price that was much higher than the project’s approved budget contract (ABC) of P91 million.
“Their reason is that the price of steel bars rose, the inflation, Train law and the peso-dollar exchange rate. They think the project is not doable at that ABC. From an original ABC of P84 million, the ABC was raised to P91 million after the Engineering (Office of the Provincial Engineer) adjusted it,” he said.
The Cebu-based bidders are Dakay Construction and Development Corp. and WT Construction Inc.
To resolve the issue, the project plans were resubmitted to the Office of the Provincial Engineer for their reevaluation and to come up with a final program of works and estimates, which will also be the basis for the new ABC.
Sepe said they can’t determine yet if the ABC will increase because they have to conform to the standard pricing of the Department of Public Works and Highways.
But whether or not the engineering office comes up with a new ABC, the Capitol will have to enter into a renegotiated procurement.
Negotiated procurement, which is undertaken after two failed biddings, is different from a public bidding wherein a contractor is required to submit its legal, technical and financial documents once the bidding process opens.
Negotiated procurement only requires bidders to submit a financial proposal during the submission of their offer. Other documentary requirements are submitted only after it’s determined that a bidder’s offer is responsive and below the ABC.
The multi-level parking structure, which will have a gross floor area of 3,342 square meters, will be able to accommodate 96 cars.
The winning bidder will have 225 calendar days to construct the car parking facility within the Capitol compound.
Asked about the election ban on public works, Sepe replied: “As to the election ban, the Commission on Elections only prohibits the awarding of the contract. The bidding process can continue.”
Promulgated last March 20, Comelec Resolution 10511 provides the rules and regulations governing the ban on public works and disbursement of funds in connection with the May 13 elections.
Item b Section 1 of the resolution provides the prohibition on release, disbursement or expenditure of public funds from March 29 to May 12, except for works undertaken by contract through public bidding held, or by negotiated contract awarded, before March 29. (RTF)