December 15, 2012

Bids and Awards Committee

Department of Health
Center For Health Development For Ilocos
San Fernando City, La Union

Attention: JIMUEL S. CARDENAS, MD., MPH.

BAC Chairperson

Subject : Request for Reconsideration of Decision Declaring the Bid of

Gammadion Construction & Enterprises, Inc. as Non-
Complying

Name of Project: Procurement of Design and Build for the Construction of Various
Health Facilities in Region 1 under the Health Facility
Enhancement Program of the DOH for CY 2012

Project No. 1: Construction of OR/DR Building

Sinait District Hospital
Sinait, Ilocos Sur

Dear Ladies and Gentlemen:

Pursuant to Rule XVII, Section 55.1 of the Revised Implementing Rules and Regulations of R.A.
9184 (IRR RA 9184), our company, GAMMADION CONSTRUCTION & ENTERPRISES, INC.,
(“GAMMADION”) moves for a reconsideration of the Bids and Awards Committee’s (BAC)
decision to declare its bid as non-complying. Apparently, in making its ruling, the BAC treated
the following as non-compliance with the Eligibilty and Technical Components of the bid:

1. Absence of certification that the Mayor’s Permit and Securities and Exchange
Commission (SEC) Registration as True Copy of the Original;
2. Non- Inclusion of the Official Receipt of the Bidder’s Surety Bond; and
3. Absence of Certification by the Insurance Commission that the Surety or Insurance
Company is authorized to issue such instrument.

Gammadion has Complied

With the Eligibilty
Component of the Bid

During the Pre-Bid Conference last November 26, 2012, bidders were informed that the second
and third copy of the eligibility and technical documents shall be certified by the Bidder or
authorized representative/s of the Bidder as true copies of the original documents. Said
information, however, was made verbally.

Section II, 19.6 (Instructions to Bidders) upon which Gammadion relied upon in the preparation
of its bid clearly states as follow:

“ITB 19.6: The bid, except for unamended printed literature, shall be
signed, and each and every page thereof, shall be initialed, by
the duly authorized representative/s of the Bidder.” (Emphasis
supplied)
The bid submitted by Gammadion provides ample support of its compliance with the above
requirement. Nowhere in the Bid Documents which states that the same be certified as true
copy of the original.

“In December 17, 2011, the Government Procurement Policy Board (GPPB,) which is the
agency primarily tasked to ensure proper implementation of Republic Act 9184, issued an
opinion in GPPB NPM 028-2011 which states as follow:

“Section 22.4 of the IRR of RA 9184 provides that any statement made at the
pre-bid conference shall not modify the terms of the bidding documents, unless
such statement is specifically identified in writing as an amendment thereto
and issued as a supplemental/bid bulletin. Accordingly, the changes or
modifications to the bidding documents, specifically, the technical
specifications, discussed during the pre-bid conference must be issued
through a supplemental/bid bulletin in order for it to take effect.

Moreover, in instances where the procuring entity sees the need to introduce
any modifications or amendments to the bidding documents, it may do so motu
proprio through the issuance of a supplemental/bid bulletin pursuant to Section
22.5.2 of the same IRR.

The IRR allows the submission of a copy of the original documents required,
provided that the bidder certifies through the Omnibus Sworn Statemen t
that the document submitted is an authentic copy of the original, it is
complete, and the information and statements therein are true and correct. It
must be stressed, however, that the authenticity of the submitted copy must be
verified, validated, and ascertained by the procuring entity during the post-
qualification as prescribed in Section 34 of the IRR of RA 9184. (Emphasis
supplied)

Copy of said opinion is hereto attached and marked as Annex “A” and is made an integral part
hereof.

Equity and fair play dictates that the eligibility of a bidder should strictly adhere to the
representations of the procuring entity in the corresponding bid documents which it issued, and
not impose new terms after the submission of the bids. Hence, for purposes of amending the
bid documents, Section 22.5.2 of the IRR of R.A. 9184 prescribes that:

“Section 22.5.2 Supplemental/Bid Bulletin may be issued upon the

procuring entity’s initiative for purposes of clarifying or modifying any
provision of the Bidding Documents at least seven (7) calendar days before
the deadline for the submission and receipt of bids. Any modification to
the Bidding Documents shall be identified as an amendment”

Gammadion has Substantially

Complied with the Technical
Components of the Bid

The Bids and Awards committee (BAC) had, likewise, ruled that Gammadion as non-complying
when it failed to include the Official Receipt of the Bidder’s Surety Bond.
In ITB Clause 18.1, it clearly states as follow:

“If the Bid Security is in surety Bond callable upon demand issued by a surety or
insurance company duly certified by the Insurance Commission as authorized to
issue such security.”

Clearly, if the Official Receipt of the Bidder’s Surety Bond was required to be included or
submitted with the documents comprising the bid, the same should have been categorically
stated in the Bid Documents. Just like in the case of Audited Financial Statements (Class “A”
Documents of the Eligibility Documents), it is stated as follow:

(3) Audited financial statements, showing, among others, the prospective total
and current assets and liabilities, stamped “received” by the BIR or its duly
accredited and authorized institutions, for the preceding calendar year which
should not be earlier than two (2) years from the date of bid submission.
(Emphasis supplied)

With respect, however, to the requirement of a Certification by the Insurance Commission that
the Surety or Insurance Company is authorized to issue such instrument, we humbly submit
that the said certification has not been included by reason of the excusable negligence of the
undersigned Bidder’s secretary. The Official Receipt and Certification of the Insurance
Commission are hereto attached and marked as Annex “B” and “C”, respectively, and are made
an integral part hereof.

For what its worth in bringing this opinion of the Government Procurement Policy Board to the
attention of the Honorable Members of the DOH-BAC, NPM 083-2007 states as follow:

Under Section 45.1 of the IRR-A, a contractor who participates in the bidding of
provincial priority programs and infrastructure projects, whose principal office
is within the same province, and who submits the lowest bid among the
provincial bidders which is higher than the Lowest Calculated Bid made by
the contractor with principal office outside of said province shall be
given 48 hours from receipt of written notice from the BAC to match in
writing the Lowest Calculated Bid. If the provincial bidder is able to
match the submitted Lowest Calculated Bid within the specified
period, he shall be awarded the contract provided he passes the
post-qualification.

Under R. A. 9184 and its IRR-A, the right to match is limited to the bidding of
provincial projects as described above. (Emphasis supplied)

Copy of said opinion is hereto attached and marked as Annex “D” and is made an integral part
hereof.

In view of the foregoing, it is most respectfully requested that the BAC set aside its earlier ruling
and declaring Gammadion eligible and complying with the requirements of the bid documents.

Very truly yours,

Engr. Rayfield Ziggy F. Azurin

President
Gammadion Construction & Enterprises, Inc.