8.6. The mandatory SLCC requirement is specified in Section 23.4.1.3 of the Revised
IRR of RA 9184, which states that:
“The bidder must have completed, within the period specified in the
Invitation to Bid, an SLCC that is similar to the contract to be bid, and
whose value, adjusted to current prices using the Philippine Statistics
Authority (PSA) consumer price indices, must be at least fifty percent (50%)
of the ABC.”
8.7. The SLCC is a mandatory technical eligibility requirement designed to assess a
bidder’s track record and capacity to meet contractual obligations. It ensures that
only eligible and qualified private contractors can participate in public bidding,
safeguarding the interests of procuring entities. By requiring bidders to show
sufficient experience and a reliable track record, it reduces the risk of awarding
contracts to inexperienced parties. This measure provides the government with
greater assurance that the prospective bidder is not undertaking such a project for
the first time and, therefore, provides the Government a level of security that if
awarded the contract, the bidder can successfully fulfill all the contract
requirements.
8.8. The eligibility criterion for the SLCC cannot be waived or compromised. This is the
position of the Government Procurement Policy Board (GPPB), the entity
responsible for formulating and implementing government procurement policies.
The GPPB has issued several Non-Policy Matter (NPM) opinions addressing
specific procurement issues regarding the SLCC.
8.9. However, this general rule on the SLCC requirement for the procurement of goods
is subject to an exception under the second paragraph of Section 23.5.1.3 of the
revised Implementing Rules and Regulations (IRR) of Republic Act No. 9184
which states as follows:
“If, at the outset and after conducting market research, the procuring entity
can already determine that imposing the same will likely result to: (a) failure
of bidding, or (b) monopoly that will defeat the purpose of public bidding,
the procuring entity, in lieu of the above, may require the following:
a) The prospective bidder should have completed at least two (2) similar
contracts and the aggregate contract amounts should be equivalent to at
least the percentage of the ABC as required above; and
b) The largest of these similar contracts must be equivalent to at least half
of the percentage of the ABC as required above.
For this purpose, the similar contracts mentioned under (a) and (b) above
must have been completed within the period specified in the Invitation to
Bid. The procuring entity may clarify in the Bidding Documents the
definition or description of what it considers to be a similar project.”
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