Findings No.7 COA Annual Audit Report 2006

July 26, 2008

7. The bidding conducted on October 25, 2006 for the Iligan City Central Material Recovery Project (ABC P61.765 Million) was declared a failure, there being provisions embodied in its Bidding Documents inconsistent with the IRR-A of Republic Act 9184.

One of the flagship projects of the city is the “Construction, Supply & Installation of Iligan City Central Material Recovery & Compositing and Facility Equipment, Infrastructure and Its Appurtenance”. The Approved Budget for the Contract (ABC) of the project amounted to P61.765 Million. The project is funded from domestic borrowing/loan from the Development Bank of the Philippines.

Our initial review showed that the project’s Bidding Documents was defective, thus in this Office rejoinder letter of comments dated November 13, 2006 addressed to the City Mayor and the Members of the Bids and Awards Committee (Annex E), in reply to the BAC-TWG letter dated November 10, 2006, we reiterated the implementation of our recommendations contained in our letter dated October 31, 2006. Among others, were the cancellation of the bidding conducted on October 25, 2006, and the careful review/revision of the Bidding Documents aimed at rechecking with due care the relevance of its provisions against the requirements of the specific Works to be procured in accord with the provisions of the IRR-A of RA 9184.

The BAC, in its meeting on February 23, 2007 finally declared the bidding conducted on October 25, 2006 a failure, after almost four (4) months from date of the opening,.

Had the bidding been declared a failure at an earlier date, or at least during the bids evaluation process, which per regulation must be completed in not more than fifteen (15) days from the deadline for receipts of proposals (IRR-A Section 32.2), re-bidding of the project after rectifying the Bidding Documents in conformity with pertinent provisions of the IRR-A of Republic Act 9184 would have been made earlier than it would have been.

During the exit conference, we reminded management that observance to properly crafted Bidding Documents and timely resolution of issues would ensure a successful procurement. The types and sizes of contracts should be provided in the Bidding Documents.

Recommendation:

Require all concerned to properly craft project’s Bidding Documents in accordance with the IRR-A of Republic Act No. 9184 to ensure a successful procurement.

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Written by admin · Filed Under Commission on Audit, Iligan City