11.3 Specifically, the contractor held a Philippine Contractors Accreditation Board
(PCAB) license classified under General Building, with General Engineering as a
secondary classification. However, rescue boat fabrication generally falls under
marine, mechanical, or specialized fabrication categories, which are not covered by
this license.
11.4 Additionally, the contractor’s BIR Certificate of Registration listed its line of business
as Construction of Buildings, and its Mayor’s Permit reflected business codes 41001
(Residential Building Construction) and 42100 (Construction of Roads and
Railways). These classifications are unrelated to the fabrication of watercraft or
rescue equipment.
11.5 By awarding the contract to a firm without an appropriate license for marine or
mechanical works, the Bids and Awards Committee (BAC) failed to ensure that the
contractor met the required technical eligibility standards outlined in Section 23.1.vi
of the 2016 Revised IRR of R.A. No. 9184.
11.6 Given the above, the absence of an appropriate PCAB license and relevant business
classification raises significant concerns about the contractor’s technical capacity to
fabricate rescue boats. It also suggests lapses in procurement due diligence and
impairs the Municipality’s assurance that public funds were used in accordance with
legal and technical requirements.
11.7 We recommended that Management:
11.7.1 Ensure that future contractors for specialized projects such as rescue
boat fabrication hold a PCAB license and business registration
specifically covering marine or mechanical works.
11.7.2 Require the BAC to thoroughly assess the technical and legal eligibility of
bidders before awarding contracts, including verification of appropriate
license classifications.
11.7.3 Obtain technical certification or clearance from relevant regulatory
agencies such as MARINA or the Bureau of Fire Protection (BFP) to
validate project specifications and contractor capability.
11.8 Management identified the contractor as one with a good track record and believed
that their General Engineering License would cover boat fabrication. Nevertheless,
they will communicate with the contractor to determine whether they hold another
license or certification that encompasses the completed project.
11.9 The Auditor would like to point out that it is the duty of the BAC to ensure that
contracts are awarded only to suppliers or contractors who are technically, legally,
and financially capable. The BAC must also ensure compliance with procurement
laws, rules, and guidelines to promote transparency and accountability.
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