Rama insists bidding failed

CEBU, Philippines - Despite objection, the declaration of “failure of bidding” for the reconstruction of the Cebu City Medical Center remains in “full force and effect.”

Mayor Michael Rama, who made the declaration in a memorandum order on December 14, 2014, said there is no basis to grant the request of SCDI-MCEI joint venture to revoke his order for being “highly illegal and irregular.”

The Manila-based company was the second lowest bidder for the first phase of the project. It has a bid amount of P281 million.

“There is absolutely no basis to your allegation that the subject memorandum was issued to influence or exert undue pressure on the BAC-Infra members to favor a particular bidder,” read the two-page draft letter addressed to SCDI-MCEI managing officer Architect Henry Steve Olanan.

“I cannot give credence to your contention that it is now your company’s right to be awarded the contract of the project for jurisprudential principle,” Rama said.

 The principle states that “a bid partakes of the nature of an offer to contract with the government, the government agency involved may or may not accept it. Moreover, being the owner of the project subject of the bid, the government has the power to determine who shall be its recipient, as well as under what terms it may be awarded.”

 Rama explained that under section 41 of the Republic Act 9184 or the Government Procurement Act, the head of the procuring entity has the right to reject any and all bid, declare a failure of bidding or not to award the contract.

 Olanan said there is no ground to declare a failure of bidding. He argued that there is failure of bidding only if no bids are received; all prospective bidders are declared ineligible; all bids fail to comply with all the bid requirements or failed in the post-qualification evaluation.

The bidder with the lowest calculated responsive bid/highest rated responsive bid refuses, without justifiable cause, to accept the award of contract; and that no award is made in accordance with Section 35 and 41of RA 9184 and its revised implementing rules and regulations.

 Although, Rama contended that it was issued primarily to ensure the preservation of the state policy; to promote the ideals of good governance; and to espouse the principle of transparency and competitiveness in government procurement.

The order, he added is intended to give chance to all interested and qualified contractors and bidders the “fresh and equal opportunity” to participate in the re-bidding process.

The mayor, head of the procuring entity, assured that the rebidding will be strictly conducted in accordance with applicable law, rules and regulations in procuring government projects.

Cebu’s WTG Construction and Development Corp. and Manila’s E.M. Ureta, which gave the lowest bid of P274.98 million, were post-disqualified for allegedly being “non-responsive.”  This was after the BAC members found out that the documents submitted contained “discrepancies and false information.” (FREEMAN)