Resolution Recommending Award of Contract to J.D. LEGASPI CONSTRUCTION for the REPAIR/STRENGTHENING OF MARCOS BRIDGE ALONG MARCOS HIGHWAY, MARIKINA CITY (Contract ID # 14O00029) RESOLUTION No. 0009-2015 WHEREAS, the DPWH-National Capital Region advertised the Invitation to Bid for the REPAIR/STRENGTHENING OF MARCOS BRIDGE ALONG MARCOS HIGHWAY, MARIKINA CITY (Contract ID # 14O00029) in the Manila Times issue of December 12, 2014 and in the Department of Public Works and Highways website, the G-EPS on December 10 to 17, 2014 and in a conspicuous places at the premises of the Department of Public Works and Highways -NCR continuously for 7 days; WHEREAS, in response to the said advertisements, TWO (2) contractors purchased Bid Tender Documents, namely: J.H. PAJARA CONSTRUCTION CORPORATION and J.D. LEGASPI CONSTRUCTION, and all were found eligible based on the eligibility screening using the CWR made by this office on December 29, 2015; WHEREAS, two (2) bids were submitted on December 29, 2015 that resulted in the following: Bid Amount % Variance Name of Bidder (As Read) from ABC 1. J.D. LEGASPI CONST. P62,509,801.00 (-)20.02% 2. J.H. PAJARA CONST. P71,577,760.95 (-)8.41% CORP. WHEREAS, the detailed evaluation of bids conducted by the BAC-TWG on January 12, 2015 resulted in the following: Name of Bidder 1. J.D. LEGASPI CONST. 2. J.H. PAJARA CONST. CORP. Bid Amount (As Corrected/ Calculated/Evaluated) P62,509,801.00 P71,577,760.95 Page 1 of 7 % Variance from ABC (-)20.02% (-)8.41% Resolution Recommending Award of Contract to J.D. LEGASPI CONSTRUCTION for the REPAIR/STRENGTHENING OF MARCOS BRIDGE ALONG MARCOS HIGHWAY, MARIKINA CITY (Contract ID # 14O00029) WHEREAS, the Approved Budget for the Contract (ABC) for this project is SEVENTY EIGHT MILLION ONE HUNDRED FIFTY FOUR THOUSAND THREE HUNDRED FIFTY FIVE PESOS AND 03/100 (Php 78,154,355.03) ONLY; WHEREAS, J.D. LEGASPI CONSTRUCTION was evaluated as the lowest calculated bidder in the Arithmetical Correction/Evaluation amount of P62,509,801.00 with a 20.02% variance below ABC and will proceed with the post qualification; WHEREAS, based on post qualification report of all the eligibility and technical requirements of J.D. LEGASPI CONSTRUCTION as the lowest calculated bidder was submitted by the BAC-Technical Working Group (BACTWG) on May 12, 2015 to determine the contractor’s compliance (particularly for equipment and manpower) and responsiveness to all requirements and conditions as specified in the bid documents, its bid has been found to be responsive; WHEREAS, based on the DPWH Consolidated Performance Summary Reports from the Bureau of Construction, J.D. LEGASPI CONSTRUCTION has no unsatisfactory rating on their completed projects. WHEREAS, per Physical Status of Project Implementation of DPWH Region V Implemented Projects as of January 31, 2015, J.D. LEGASPI CONSTRUCTION has incurred negative slippages of more than 15% on the following projects: 1. Quiamlong Bridge along Catanduanes Cir. Rd. (0504-14-H-00015), being implemented by the Catanduanes District Engineering Office Negative slippage - 33.10% Reasons - Work was suspended last January 1-4, 2015, due to continuous heavy rains and January 1620, 2015 Typhoon Amang Action of IO - Revised target accomplishment is 42% Request for Revision of Planned Implementation Schedule in the Project Page 2 of 7 Resolution Recommending Award of Contract to J.D. LEGASPI CONSTRUCTION for the REPAIR/STRENGTHENING OF MARCOS BRIDGE ALONG MARCOS HIGHWAY, MARIKINA CITY (Contract ID # 14O00029) Monitoring System (PMS) sent through the Region V dated September 26, 2014 In a letter dated February 20, 2015 of Engr. Romeo O. Doloiras, District Engineer, DPWH Catanduanes District Engineering Office, it was informed that per record of their office, the aforementioned project incurred a negative slippage of 13.60% as of January 31, 2015. 2. Cabungahan 2 Bridge along Catanduanes Cir Road (0504-14-H-00016), being implemented by the Catanduanes District Engineering Office Negative slippage - 16.24% Reasons - Work was suspended last January 16-20, 2015, due to Typhoon Amang Action of IO - Revised target accomplishment is 97% Request for Revision of Planned Implementation Schedule in the Project Monitoring System (PMS) sent through the Region V dated September 26, 2014 In a letter dated February 20, 2015 of Engr. Romeo O. Doloiras, District Engineer, DPWH Catanduanes District Engineering Office, it was informed that per record of their office, the aforementioned project incurred a negative slippage of 13.24% as of January 31, 2015. WHEREAS, in a letter dated February 5, 2015 of Asst. Regional Director EDGAR B. TABACON, DPWH Region VIII, J.D. LEGASPI CONSTRUCTION incurred a negative slippage of more than 15% on the following project: 1. Construction of Pinut-an Bridge and Approaches, Southern Leyte Negative slippage - 56.67% Reasons - Project is suspended due to RROW problems Page 3 of 7 Resolution Recommending Award of Contract to J.D. LEGASPI CONSTRUCTION for the REPAIR/STRENGTHENING OF MARCOS BRIDGE ALONG MARCOS HIGHWAY, MARIKINA CITY (Contract ID # 14O00029) Action of IO - Documents for payment of RROW damages are still on process. Request for contract time suspension for RROW problems is still on process. If approved, the negative slippage will be eliminated. WHEREAS, the Construction of Lower Pigkutin Bridge and Approaches under the Spanish-assisted DPWH Bridge Construction/Replacement Project is currently under contract with J.D. LEGASPI CONSTRUCTION. a. On February 17, 2014, a Request for Clearance to issue a Deductive Variation Order which seeks to delete the remaining works for the project. Reasons Action of IO - due to inaccessibility of the road leading to the project site brought about by heavy rains and typhoon Agaton. - Clearance was approved by Secretary Rogelio L. Singson. However, up to date, No Deductive Variation Order has been issued despite the Secretary’s approval. b. Subsequently, on November 24, 2014, DPWH-Region X, through its Regional Director Evelyn T. Barroso, recommended that the contract package (CP: CP4.1- construction of Bangcud Bridge and Approaches, and CP4.2 - construction of Lower Pigkutin Bridge and Approaches), be terminated. Reason - failure of the contractor to complete the project despite additional time granted to the contractor and the same has incurred a negative slippage of 55.77% for the construction of Bangcud Bridge and Approaches. Action of IO - in the March 11, 2015 memorandum of Dir. Estrella Zaldivar, the Legal Service, this Page 4 of 7 Resolution Recommending Award of Contract to J.D. LEGASPI CONSTRUCTION for the REPAIR/STRENGTHENING OF MARCOS BRIDGE ALONG MARCOS HIGHWAY, MARIKINA CITY (Contract ID # 14O00029) Department, noted that the Notice to Terminate is non-compliant with the requirements of RA 9184. Thereafter, in another memorandum dated April 30, 2015, the Legal Service directed Regional Director Evelyn T. Barroso to re-submit the Notice to Terminate Contract with the required verified report. To date, no Notice to Terminate was issued by this Department and received by the contractor. Moreover, in a letter dated February 20, 2015, Mr. Jesusito D. Legaspi requested for a mutual termination of the said contract considering the fact that half of the project may no longer be implemented. Thus, such circumstances has rendered the project implementation to be economically, financially, and technically impractical. Said request, however, remains to be unresolved as of to date. Then, in a Memorandum dated May 8, 2015, Project Director Estrella T. Villar, UPMO Bridges Management Cluster (UPMO-BMC), informed this Office that in view of the Memorandum dated March 11, 2015 of the Legal Service, UPMO-BMC shall have to further review/validate the Verified Report to be submitted by the Regional Office and the provisions of the IRR of RA 9184 have to be complied in establishing their position. Remarks - the non-issuance of the said Deductive Variation Order has significantly contributed to the increase of the negative slippage even in the absence of fault on the part of the Page 5 of 7 Resolution Recommending Award of Contract to J.D. LEGASPI CONSTRUCTION for the REPAIR/STRENGTHENING OF MARCOS BRIDGE ALONG MARCOS HIGHWAY, MARIKINA CITY (Contract ID # 14O00029) contractor especially so when no suspension order was issued in the process. In light of the mentioned circumstances, the actual accomplishment or any corresponding negative slippage entirely attributable to the contractor, if any, cannot be determined yet with finality. Hence, there exist no substantiated basis with respect to the disputed issue of negative slippage and actual performance of J.D. Legaspi Construction with respect to the mentioned contract package. WHEREAS, J.D. LEGASPI CONSTRUCTION passed all the criteria in the post qualification and has been found to be responsive; NOW, THEREFORE, We, the Members of the Bids and Awards Committee, hereby RESOLVE as it is hereby RESOLVED; a) To declare J.D. LEGASPI CONSTRUCTION as the bidder with the Lowest Calculated Responsive Bid for the REPAIR/STRENGTHENING OF MARCOS BRIDGE ALONG MARCOS HIGHWAY, MARIKINA CITY (Contract ID # 14O00029) in the amount of SIXTY TWO MILLION FIVE HUNDRED NINE THOUSAND EIGHT HUNDRED ONE PESOS (P62,509,801.00) ONLY. b) To recommend the award of contract for the aforementioned project by the Bids and Awards Committee (BAC), Dept. of Public Works and Highways-National Capital Region to J.D. LEGASPI CONSTRUCTION subject to the approval by the Regional Director of the foregoing findings. Page 6 of 7 Resolution Recommending Award of Contract to J.D. LEGASPI CONSTRUCTION for the REPAIR/STRENGTHENING OF MARCOS BRIDGE ALONG MARCOS HIGHWAY, MARIKINA CITY (Contract ID # 14O00029) RESOLVED, at the DPWH-National Capital Region-Conference Room, this 13th day of May 2015. TIBURCIO L. CANLAS OIC, Assistant Regional Director Chairman MICHAEL S. VILLAFRANCA Administrative Officer V Vice Chairman REYNALDO V. ROSARIO Chief, Maintenance Division Regular Member AUDENCIO B. REYES Chief, QAHD Provisional Member EDWIN M. LUZON OIC, Construction Division Provisional Member APPROVED, this 15th Philippines. day of May, 2015 in the City of Manila, REYNALDO G. TAGUDANDO Regional Director 6.1.4.7 Page 7 of 7