Republic of the Philippines

ENERGY
REGULATORY
COMMISSION

BAC RESOLUTION NO. 144, SERIES OF 2020 CB1

A Resolution Declaring the Second (2nd) Negotiated Procurement for

the Consulting Services for the Technical Review and Audit of the
Net Settlement Surplus (NSS) Allocation of the Wholesale Electricity
Spot Market (WESM) a Failure

WHEREAS, Republic Act (R.A.) No. 9184, otherwise known as the

“Government Procurement Reform Act” provides that each procuring entity shall
establish a single Bids and Awards Committee (BAC) for its procurement and that
all procurement of the national government, its departments, bureaus, offices
and agencies, including state universities and colleges, government-owned
and/or controlled corporations, government financial institutions and local
government units, shall, in all cases be conducted in accordance therewith and its
2016 Revised Implementing Rules and Regulations (Revised IRR);

WHEREAS, on 11 February 2020, the Honorable Commission, as the

Head of Procuring Entity (HoPE), approved the Annual Procurement Plan
(APP) for Fiscal Year (FY) 2020 – Supplement No. 1 for the purpose of
procuring projects, activities, and programs, as contained therein, of the Energy
Regulatory Commission (ERC);

WHEREAS, the said APP for FY 2020 – Supplement No. 1 includes a

procurement project entitled “Technical Review and Audit of the Net
Settlement Surplus (NSS) Allocation of the Wholesale Electricity
Spot Market (WESM)” to be procured through Competitive Bidding with an
Approved Budget for the Contract (ABC) in the amount of Three Million Pesos
(P3,000,000.00.), inclusive of all government taxes, other fees and charges;

WHEREAS, on 28 February 2020, the ERC Bids and Awards

Committee (ERC BAC) received from the Market Operations Service (MOS) a
Purchase Request (PR) with PR No. 2020-08-124 requesting for the
Procurement of Technical Review and Audit of the Net Settlement
Surplus (NSS) Allocation of the Wholesale Electricity Spot Market
(WESM). In support of the PR, the MOS submitted the revised Terms of
Reference (“TOR”) on 25 July 2020;

WHEREAS, on 04 August 2020, the Request for Expression of Interest

(REI) and the Philippine Bidding Documents (PBD) for the first (1st) bidding of
the subject procurement under Lot No. 2020-06 were posted on the websites
of the Philippine Government Electronic Procurement System (PhilGEPS) and
the ERC, as well as in the latter’s conspicuous place reserved for the purpose
consistent with Section 21 Rule VII of the 2016 Revised Implementing Rules and
Regulations (R-IRR) of Republic Act (RA) No. 9184;

WHEREAS, the said REI and PBD indicated that the deadline for
submission of Eligibility documents for the subject procurement is on 13 August
2020 at twelve noon (12:00 P.M.);

1 Competitive Bidding
Pacific Center Building, San Miguel Avenue, Pasig City Trunk line: 689-5-372 (ERC)
Website: http://www.erc.gov.ph Fax Nos. 633-32-53 / 634-86-41

Digitally signed by
Heiddi Venecia R. Barrozo Dr. August
Anthony N.
Balute
BAC RESOLUTION NO. 144, SERIES OF 2020 CB
A Resolution Declaring the Second (2nd) Negotiated Procurement for the Consulting Services for the Technical Review and Audit of the Net Settlement Surplus
(NSS) Allocation of the Wholesale Electricity Spot Market (WESM) a Failure

WHEREAS, on 13 August 2020, the ERC BAC issued Bid Bulletin No.
02 extending the deadline for submission of Eligibility documents for the subject
procurement to 17 August 2020 at twelve noon (12:00 P.M.) due to the temporary
closure of the ERC Main Office for disinfection and preventive quarantine;

WHEREAS, on 17 August 2020, the ERC BAC issued Bid Bulletin No.
05 extending further the deadline for submission of Eligibility documents for the
subject procurement to 28 August 2020 at twelve noon (12:00 P.M.) due to the
continued temporary closure of the ERC Main office for disinfection and
preventive quarantine;

WHEREAS, on the said deadline, the ERC BAC did not receive any
submission of eligibility documents from any prospective bidder;

WHEREAS, on 08 September 2020, the ERC BAC issued BAC

Resolution No. 58, Series of 2020, declaring the First (1st) Bidding for
the Technical Review and Audit of the Net Settlement Surplus (NSS)
Allocation of the Wholesale Electricity Spot Market (WESM) under
Lot No. 2020-06 a FAILURE as no bids/eligibility documents submission
were received;

WHEREAS, on 11 September 2020, the REI and the PBD for the
Second (2nd) bidding of the subject procurement under Lot No. 2020-17
were posted on the websites of the PhilGEPS and the ERC, as well as in the latter’s
conspicuous place reserved for the purpose;

WHEREAS, the said REI and PBD indicated that the deadline for
submission of eligibility documents for the Second (2nd) bidding for the subject
procurement is on 22 September 2020 at twelve noon (12:00 P.M.);

WHREAS, on 22 September 2020, the BAC through its Secretariat,

received only one (1) sealed envelope containing the eligibility documents
submission from Roxas Cruz Tagle and Co. at fifteen minutes past nine
o’clock in the morning (09:15 A.M.), which is within the deadline set for the
submission of eligibility documents;

WHEREAS, during the scheduled Opening and Checking of

Eligibility Documents for the subject procurement on 22 September 2020
at one o’clock in the afternoon (01:00 P.M.), the ERC BAC opened in
public the sealed envelope from the sole prospective bidder, Roxas Cruz Tagle
and Co., to determine its compliance with the eligibility requirements stated in
the REI and Bidding Documents;

WHEREAS, during the said opening and eligibility checking, the ERC
BAC, with the assistance of the TWG, examined the submitted documents of the
sole prospective bidder versus a checklist of required documents in order to
ascertain if the required documents were all submitted, using a non-discretionary
“pass/fail” criterion;

WHEREAS, after examining the said eligibility documents, the ERC BAC,
with the assistance of the TWG, initially found that Roxas Cruz Tagle and Co.
complied with the eligibility requirements stated in the Bidding Documents and
initially declared the said sole prospective bidder ELIGIBLE;

Digitally signed by Heiddi

Venecia R. Barrozo
Dr. August
Page 2 of 7
Anthony N.
Balute
BAC RESOLUTION NO. 144, SERIES OF 2020 CB
A Resolution Declaring the Second (2nd) Negotiated Procurement for the Consulting Services for the Technical Review and Audit of the Net Settlement Surplus
(NSS) Allocation of the Wholesale Electricity Spot Market (WESM) a Failure

WHEREAS, the ERC BAC, with the assistance of the TWG, proceeded to
conduct the shortlisting evaluation of the sole eligible bidder pursuant to Sec.
24.5 of the R-IRR of R.A. No. 9184, using the following criteria and rating system
stated in the TOR and the REI:
Checklist Shortlisting Criteria Points
I. Education and Expertise 30
II. Experience and Capability of Consultant 30
III. Plan of Approach and Methodology 40
Total 100
Hurdle Rate 70

WHEREAS, on 29 September 2020, the TWG submitted its Eligibility

Evaluation stating that upon evaluation of the submitted documents, proposal,
and expertise of the personnel and of the firm, Roxas Cruz Tagle and Co.
obtained a total score of 76.30%, which is above the minimum Technical Score
(St) of 70% as set in the TOR, as shown in the table below:

Checklist Shortlisting Criteria Points

I. Education and Expertise (30%) 27.60
II. Experience and Capability of Consultant (30%) 17.10
III. Plan of Approach and Methodology (40%) 31.60
Total 76.30

WHEREAS, on 30 September 2020, the TWG presented to the ERC

BAC the results of the evaluation they conducted and explained each of the score
per criterion that they have given to the sole prospective bidder. One of the
criteria on the experience factor is that the consultants must have been engaged
in managing/administering similar or relevant professional and consulting
services with the submission of at least five (5) Certificates of Satisfactory Service
from completed similar projects, of which the prospective bidder received a low
score;

WHEREAS, upon further clarification by the ERC BAC as to why the said
prospective bidder received a low score, the TWG explained that while the sole
prospective bidder submitted a statement/list of its completed, ongoing, and
awarded not yet started government and private contracts, a perusal of such
statement did not indicate any certification of satisfactory service nor were there
any attached Certificates. Thus, the ERC BAC directed the TWG to re-examine
and further evaluate the eligibility documents submitted by the sole prospective
bidder;

WHEREAS, Clause 2.1.a (ii.5) and Clause 2.1.a (ii.7) of the PBD provides
that for purposes of determining the eligibility of prospective bidders, the
Statement of the prospective bidder of all its ongoing and completed government
and private contracts shall include the amounts of contract and the certificates of
satisfactory completion issued by the client or equivalent document specified in
the Eligibility Data Sheet (EDS), in the case of a completed contract, to wit:

2. Eligibility Requirements

2.1. The following eligibility requirements, together with the

Eligibility Documents Submission Form, shall be submitted on
or before the date of the eligibility check specified in the Request
for Expression of Interest and Clause 5 for purposes of
determining eligibility of prospective bidders:

Digitally signed by Heiddi

Venecia R. Barrozo Dr. August
Anthony N. Page 3 of 7
Balute
BAC RESOLUTION NO. 144, SERIES OF 2020 CB
A Resolution Declaring the Second (2nd) Negotiated Procurement for the Consulting Services for the Technical Review and Audit of the Net Settlement Surplus
(NSS) Allocation of the Wholesale Electricity Spot Market (WESM) a Failure

a) Class “A” Documents –

xxx xxx xxx

Technical Documents

(ii) Statement of the prospective bidder of all its ongoing

and completed government and private contracts,
including contracts awarded but not yet started, if
any, whether similar or not similar in nature and
complexity to the contract to be bid, within the
relevant period provided in the EDS. The statement
shall include, for each contract, the following:

(ii.1) the name and location of the contract;

(ii.2) date of award of the contract;

(ii.3) type and brief description of consulting services;

(ii.4) consultant’s role (whether main consultant,

subconsultant, or partner in a JV)

(ii.5) amount of contract;

(ii.6) contract duration; and

(ii.7) certificate of satisfactory completion or

equivalent document specified in the EDS
issued by the client, in the case of a
completed contract;

WHEREAS, Clause 2.1.a (ii.7) of the EDS of the PBD of the subject
procurement states:

2.1(a)(ii.7) Must have been engaged in managing/administering

similar or relevant professional and consulting services
with at least five (5) Certificates of Satisfactory Service
from completed similar projects

WHEREAS, on 7 October 2020, the TWG submitted to the ERC BAC its
Supplemental Report on the Eligibility Evaluation of the sole prospective
bidder, wherein they stated that they found Roxas Cruz Tagle & Co. ineligible
since it failed to submit Certificates of Satisfactory Service from all completed
similar projects, which are part of the eligibility requirements.

WHEREAS, during the special meeting of the ERC BAC on 12 October

2020, the TWG presented its supplemental reported and further manifested that
Roxas Cruz Tagle and Co. also failed to specify all the amounts of the contracts
stated in their Statement of all its ongoing and completed government and
private contracts, which are also part of the eligibility requirements;

WHEREAS, on 12 October 2020, the ERC BAC issued BAC

Resolution No. 83, Series of 2020, declaring Roxas Cruz Tagle and Co.
INELIGIBLE to undergo shortlisting for failure to submit all the eligibility
requirements stated in the PBD, particularly, (a) the Certificates of Satisfactory
Service from completed similar projects and (b) the required Statement of all its
ongoing, awarded, and completed government and private contracts which

Digitally signed by Heiddi Dr. August

Venecia R. Barrozo
Anthony N. Page 4 of 7
Balute
BAC RESOLUTION NO. 144, SERIES OF 2020 CB
A Resolution Declaring the Second (2nd) Negotiated Procurement for the Consulting Services for the Technical Review and Audit of the Net Settlement Surplus
(NSS) Allocation of the Wholesale Electricity Spot Market (WESM) a Failure

should indicate all the information required in the PBD, particularly the amounts
of each of the contracts;

WHEREAS, on 21 October 2020, the ERC BAC issued BAC

Resolution No. 92, Series of 2020, declaring the Second (2nd ) Bidding
for the Procurement of Consulting Services for the Technical Review
and Audit of the Net Settlement Surplus (NSS) Allocation of
the Wholesale Electricity Spot Market (WESM) under Lot No. 2020-17 a
FAILURE as the sole prospective bidder failed to comply with all the eligibility
requirements and recommended to the HoPE, through its duly authorized
signatory, ERC Chairperson and CEO AGNES VST DEVANADERA, the approval
of the change in the method of procurement for the “Consulting Services for the
Technical Review and Audit of the Net Settlement Surplus (NSS) Allocation
of the Wholesale Electricity Spot Market (WESM)” to Negotiated Procurement
in view of the two (2) consecutive failed competitive biddings for the subject
procurement project and reflect the said change in the APP for Fiscal Year 2020–
Supplement No. 1.

WHEREAS, on 27 October 2020, the HoPE approved the Annual

Procurement Plan (APP) for Fiscal Year (FY) 2020 – Amendment No.
9, which included a procurement project entitled “Technical Review and
Audit of the Net Settlement Surplus (NSS) Allocation of the
Wholesale Electricity Spot Market (WESM)” to be procured through
Negotiated Procurement with an Approved Budget for the Contract (ABC) in
the amount of Three Million Pesos (P3,000,000.00.), inclusive of all
government taxes, other fees and charges;

WHEREAS, on 05 November 2020, the ERC BAC received from the

MOS PR No. 2020-12-1214 requesting for the Negotiated Procurement of the
Technical Review and Audit of the Net Settlement Surplus (NSS)
Allocation of the Wholesale Electricity Spot Market (WESM). In
support of the PR, the MOS submitted the TOR for the subject procurement on
06 November 2020;

WHEREAS, on 11 November 2020, the Invitation for Negotiations and

the PBD for the subject negotiated procurement project under Lot No. 2020-
33 were posted on the websites of the PhilGEPS and the ERC, as well as in the
latter’s conspicuous place reserved for the purpose;

WHEREAS, on the same date, the ERC BAC sent Invitations to three
consultants, namely: Navarro Amper and Co., Reyes Tacandong and Co., and
Roxas Cruz Tagle and Co.;

WHEREAS, the said Invitation and PBD indicated that the deadline for
submission of Eligibility Requirements, Technical Proposal and Financial
Proposal for the subject procurement is on 01 December 2020 at eight
o’clock in the morning (08:00 A.M.);

WHEREAS, on the said date, Roxas Cruz Tagle and Co. submitted one
(1) sealed envelope at three minutes past eight o’clock in the morning
(08:03 A.M.). However, considering that the said submission was beyond the
deadline set, the said sealed envelope was not accepted by the ERC BAC,
consistent with Section 25.6, Rule VIII of the 2016 R-IRR of RA No. 9184, which
states:

Digitally signed by Heiddi

Venecia R. Barrozo
Dr. August Page 5 of 7
Anthony N.
Balute
BAC RESOLUTION NO. 144, SERIES OF 2020 CB
A Resolution Declaring the Second (2nd) Negotiated Procurement for the Consulting Services for the Technical Review and Audit of the Net Settlement Surplus
(NSS) Allocation of the Wholesale Electricity Spot Market (WESM) a Failure

25.6. Bids, including the eligibility requirements under Section 23.1 of

this IRR, submitted after the deadline shall not be accepted by the
BAC. The BAC shall record in the minutes of bid submission and
opening, the bidder’s name, its representative and the time the late bid
was submitted.

WHEREAS, no other submissions were received by the BAC, through the

BAC Secretariat, on the deadline set;

WHEREAS, on 01 December 2020, the ERC BAC issued BAC

Resolution No. 116, Series of 2020, declaring the First (1st) Negotiated
Procurement for Consulting Services for the Technical Review and
Audit of the Net Settlement Surplus (NSS) Allocation of the
Wholesale Electricity Spot Market (WESM) under Lot No. 2020-33 a
FAILURE as no bids were received.

WHEREAS, on 02 December 2020, the Invitation for Negotiations and

the PBD for the subject negotiated procurement project under Lot No. 2020-
46 were posted on the websites of the PhilGEPS and the ERC, as well as in the
latter’s conspicuous place reserved for the purpose;

WHEREAS, on the same date, the ERC BAC sent RFPs to three
consultants, namely: Navarro Amper and Co., Reyes Tacandong and Co., and
Roxas Cruz Tagle and Co.;

WHEREAS, the said RFP and PBD indicated that the deadline for
submission of Eligibility Requirements, Technical Proposal and Financial
Proposal for the subject procurement is on 21 December 2020 at nine
o’clock in the morning (09:00 A.M.);

WHEREAS, on 16 December 2020, the ERC BAC through its

Secretariat, received one (1) sealed envelope from Roxas Cruz Tagle & Co. at
fifteen minutes past ten o’clock in the morning, which is within the said deadline;

WHEREAS, during the said scheduled opening of Eligibility Documents

and Technical Proposals on 21 December 2020 at ten o’clock in the
morning (10:00 A.M.), Roxas Cruz Tagle & Co. was declared
“INELIGIBLE” to be considered for short listing as the audited financial
statements it submitted were not stamped “received” by the Bureau of Internal
Revenue (BIR), which is required under Section 24.1(a)(vi) of the of R-IRR of
R.A. No. 9184, to wit:

Section 24. Eligibility Requirements and Short Listing for Consulting

Services

24.1. For purposes of determining the eligibility and short list of

bidders in accordance with Sections 24.4 and 24.5 of this IRR, only
the following documents shall be required by the BAC, using the
forms prescribed in the Bidding Documents:

a) Class “A” Documents

xxx xxx xxx

Digitally signed by
Heiddi Venecia R. Barrozo Dr. August
Anthony N. Page 6 of 7
Balute
 BAC RESOLUTION NO. 144, SERIES OF 2020 CB
A Resolution Declaring the Second (2nd) Negotiated Procurement for the Consulting Services for the Technical Review and Audit of the Net Settlement Surplus
(NSS) Allocation of the Wholesale Electricity Spot Market (WESM) a Failure

Financial Documents

vi) The consultant’s audited financial statements, showing,

among others, the consultant’s 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.

WHEREAS, Section 35.1(b), Rule X of the the 2016 R-IRR of RA No. 9184
provides that the BAC shall declare a failure of bidding when all prospective
bidders are declared ineligible, to wit:

Section 35. Failure of Bidding

35.1. The BAC shall declare the bidding a failure when:

a) No bids are received;

b) All prospective bidders are declared ineligible;

c) All bids fail to comply with all the bid requirements or fail post-
qualification, or, in the case of Consulting Services, there is no
successful negotiation; or

d) The bidder with the LCRB, HRRB, SCRB or SRRB refuses,

without justifiable cause, to accept the award of contract, and no
award is made in accordance with Section 40 of the Act and this
IRR.

NOW, THEREFORE, We, the Members of the Bids and Awards

Committee, hereby RESOLVE to DECLARE the Second (2nd) Negotiated
Procurement for the Consulting Services for the Technical Review
and Audit of the Net Settlement Surplus (NSS) Allocation of
the Wholesale Electricity Spot Market (WESM) under Lot No. 2020-
46 a FAILURE as the sole prospective bidder was declared ineligible.

RESOLVED at the ERC Main Office, Pasig City, this 21st day of December
2020.
Digitally signed by Heiddi
Venecia R. Barrozo
HEIDDI VENECIA R. BARROZO
BAC Chairperson

(TOOK NO PART)
SHARON O. MONTAÑER
BAC Vice Chairperson

Dr. August
Anthony N. Balute
MARINA A. CRUZ-BUGAYONG AUGUST ANTHONY N. BALUTE
BAC Member BAC Member

(TOOK NO PART)
JOSE ROMULO L. CASTRO
BAC Member

kphsa/asg/abc -BAC Resolution No. 144, Series of 2020 CB

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