on September - Energy Regulatory Commission BAC RESOLUTION No. 24, S… · Procurement Under Section 53.1 of R. A. No. 9184 (Government Procurement Reform Act or GPRA) Regarding the

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ERC 2015 BACResolution No. 24, Series of 2015

Resolution Recommending the Mode of NegotiatedProcurement Under Section 53.1 of R. A. No. 9184(Government Procurement Reform Act or GPRA)Regarding the Two Failed Biddings that Occurred for theProcurement of Consultancy Services for the RegulatoryOperations Service - Tariffs & Rates Division (ROS-TRD)for the Promulgation of the Distribution System Loss Cap

WHEREAS, the Energy Regulatory Commission (ERC) 2015Bids and Awards Committee (2015 BAC) issued its second (2nd)

Request for Expression of Interest (REI) on September 21,2015 for the Procurement of the Consultancy Services forthe Promulgation of the Distribution System Loss Cap withan approved budget for contract (ABC) of Three Million Pesos(P3,000,000.00), at the ERC bulletin boards in the premises of theERC and published as well at the Daily Tribune - a newspaper ofgeneral circulation. This 2nd REI was posted after the failure of thefirst bidding on September 4, 2015 as documented under ERC BACResolution No. 17,Series of 2015 on even date;

WHEREAS, on September 25, 2015, the ERC 2015 BACposted Bid Bulletin No. 04, Series of 2015 at the PhilGEPS and ERCwebsite resetting the schedule of submission of EligibilityRequirements which was originally scheduled on September 28, 2015but then had to be moved to October 2, 2015 in compliance withSection 21.2.1 of the revised Implementing Rules and Regulations(IRR) of R.A. 9184 (Government Procurement Reform Act orGPRA) which requires the posting of a REI for seven (7) calendardays;

WHEREAS,during the duly scheduled Opening of EligibilityRequirements on October 2, 2015 at two-thirty in the afternoon(2:30 P.M.) at the 16th FIr. ERC Board room, San Miguel Ave.,Ortigas Ctr. Pasig City, there were two (2) bidders namelyPricewaterhouseCoopers Private Ltd (in association withIsla Lipana & Co. which carries the business style PWC,Philippines) and PowerSolv Inc. which submitted their Lettersof Intent (LO!) together with their Eligibility Requirements;

Pacific Center Building, San Miguel Avenue, Pasig CityMailing Address: P.O. Box 181 Greenhills, Metro ManilaFax Nos.\Vebsite: http://www.crc.gov.ph

Trunk line: 689-5-372 (ERC)633-32-53 • 634-86-41638-45-17 • 631-58-06

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ERG BAG RESOLUTION, '.' _ Series of 2015. Resolution of the Bids and. ,rds Committee (BAC)Recommending Negotiated Procurement Per Section 53.1 (1Wo Failed Bidding) for the Procurement ofConsultancy Services/or the Promulgation of the Distribution System Loss Cap

WHEREAS, PowerSolv Inc. submitted its eligibilitydocuments at exactly 2:25 p.m., which was way past the cut-off timeof 2:00 p.m. PowerSolv Inc was thereby, deemed late in itssubmission of its eligibility requirements. The 2015 BACSecretariatthus returned the documents to PowerSolv Inc ..

WHEREAS, Item NO.6 of the ERC20015 BACInstruction toBidders in the REI states that "Any eligibility documents submittedafter the deadline for submission and receipt prescribed in Clause 5shall be declared late and shall not be accepted by theProcuring Entity". Since PowerSolv was late in it submission, onlyPricewaterhouseCoopers Private Ltd (in association withIsla Lipana & Co. which carries the business style PWC,Philippines) considered the only prospective bidder ALLOWEDto submit its Eligibilityenvelopes;

WHEREAS, on October 2, 2015 (Friday), the BACconductedthe opening of the Eligibility envelopes in a public conference andconducted a presence or absence check of the required documentsusing the non-discretionary "pass or fail" criteria;

WHEREAS, on October 5, 2015 (Monday) the ERC 2015BAC Technical Working Group (TWG), together with the end-user representative Regulatory Operations Service (ROS) - Tariffsand Rates Division (TRD), conducted an Eligibility CheckEvaluation to determine if the prospective bidder is eligible toparticipate in the bidding at hand;

WHEREAS, thenafter the 2015 BACTWG submitted a reportdated October 8, 2015 that stated a finding thatPricewaterhouseCoopers Private Ltd (in association withIsla Lipana & Co. which carries the business style PwC,Philippines) failed to submit a complete set of the documentaryrequirements as listed in the ERC's Request for Expression of Interest(REI) and Section 24 (Eligibility Requirements and ShortListing for Consulting Services) of the GPRA IRR. The BACTWG recommended that PricewaterhouseCoopers Private Ltd(in association with Isla Lipana & Co. which carries thebusiness style PWC, Philippines) since it is a foreign bidder, didnot submit equivalent Class "A"documents stated in the GPRAIRRSection 24.7.1, such as a permit to operate business, tax clearance

Pacific Center Building, San Miguel Avenue, Pasig CityMailing Address: P.O. Box 181 Greenhills, Metro ManilaFax Nos.\Vebsite: http://www.crc.gov.ph

Trunk line: 689.5.372 (ERC)633-32-53 • 634-86.41 IP\ --:-638-45-17 • 631.58.06 I .r-

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..ERC BAC RESOLUTION No. _ Series of 2015. Resolution of the Bids and Awards Committee (BAC)Recommending Negotiated Procurement Per Section 53.1 (Two Failed Bidding)for the Procurement ofConsultancy Services for the Promuigatl'on of the Distribution System Loss Cap

or payments, or a certification from a similar agency of their countrysaying that such documents were not being issued by an appropriateagency of their country, it then be declared not qualified to beincluded in the short list of eligible bidders;

WHEREAS, this failure by PricewaterhouseCoopersPrivate Ltd Ltd (in association with Isla Lipana & Co.which carries the business style PwC, Philippines) hascaused a failure of public bidding for the second (2nd) time;

WHEREAS, this Resolution seeks to justify the change in themode of procurement following Section 35.5 of the IRR of R. A. No.9184 which states that "Should there occur a second failure ofbidding, the procuring entity may resort to negotiatedprocurement, as provided for in Section 53.1 (NegotiatedProcurement, Two Failed Biddings) of this IRR".

NOW, THEREFORE,in view of the above premises, WE, themembers of the 2015 Bids and Awards Committee (2015 BAC) herebyRESOLVE to recommend to ERC Chairman and ChiefExecutive Officer (CEO) Jose Vicente B. Salazar to declarePricewaterhouseCoopers Private Ltd (in association withIsla Lipana & Co. which carries the business style PWC,Philippines) DISQUALIFIED for its failure to give a completesubmission of the documentary requirements stated in Section 24(Eligibility Requirements and Short Listing for ConsultingServices) of the GPRA IRR and direct the 2015 BAC to nowcommence the mode of negotiated procurement in view ofthis occurrence of two consecutive failures of publicbidding.

RESOLVEDat the ERC Main Office, Pasig City, this 29th dayof October 2015.

fS~FRANCISCOJOSE S. VILLA,JR.

Chairman

Pacific Center Building, San Miguel Avenue. Pasig CityMailing Address: P.O. Box 181 Greenhills. Metro ManilaFa.x Nos.\Vebsite: http://vtww.crc.2.ov.ph

Trunk line: 689-5-372 (ERC)633.32.53 ' 634-86-41638-45.17 • 631-58-06

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"ERC BAC RESOLUTION No, _ Series of 2015, Resolution of the Bids and Awards Committee (BAC)Recommending Negotioted Procurement Per Section 53,1 (Two Failed Bidding) for the Procurement ofConsultancy Servicesfor the Promulgation of the Distribution System Loss Cap

ALF op.lf!J;:Vice Chairman

~LEGARIO L. GALANG, JR.

MemberALATE, JR.

Member

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~SHARON O. MONTANER

Member

Approved By:

-_....r-JOSE VICENTE B. SALAZARChairman & CEO YApproved on: _

jda/clsg

EReOffice a/the Chairman

!IIIIIIIIIII,II ~Ilm HIJI~ml~K-2015-013-01454

Pacific Center Building, San Miguel Avenue, Pasig CityMailing Address: P.O. Box 181 Greenhills, Metro ManiiaFax Nos.\Vebsite: http://www.crc.eov.ph

Trunk line: 689-5-372 (ERC)633-32-53' 634-86-41 tf5:!.~-638-45-17 • 631-58-06 7 ..r

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