Joint Venture Agreement Ra 9184

1. Is each party to a joint enterprise agreement responsible for submitting all documents in the eligibility condition of the R.A. 9184 agreement-A-a; [T] his office decided in NPM Opinion 18-2005 that the requirement to submit legal documents should mean the individual presentation of all businesses that include the joint venture. Since joint ventures have generally become a means of increasing the competitiveness of small businesses and, finally, of executing the contract, the financial and technical document submissions required by one of the firms are a meeting of these requirements. That is why we reiterate our decision that each member of the joint venture will present the legal documents as part of the eligibility requirements. The aim is to ensure that all parties to the joint venture have the legal personality necessary to carry out transactions. 2. That the required percentage of Philippine and foreign ownership, participation or participation in a joint venture be mandatory. In the event that potential bidders form a joint venture, the Philippines` ownership or participation in the joint venture is generally equal to 60% (60%) when it comes to purchases of goods and advice, or 70% (75%) for the purchase of goods and advice. The ownership or interest of Filipinos in the allocation of infrastructure projects (section 23.11.1 [d], section 24.1.1 [e] and section 23.11.2 [d], IRR-A).

However, if the products to be obtained are not available from local sources, such as certified by the purchasing entity manager, or if situations affecting competition or limiting trade are avoided, this purchasing entity may invite foreign suppliers, producers and/or distributors (section 23.11.1, IRR-A). Foreign consultants who set up a joint venture can also benefit from consulting services under the conditions provided for in Section 24.1.2 of ACCORD-A. On the other hand, joint ventures in which Filipino holdings are less than 75% may be eligible for infrastructure projects where the structures to be put in place require the application of techniques and/or technologies, provided that the Philippine property or interest is not less than 25% (section 23.11.2 [d], IRR-A).3. Whether the non-registration of financial support documents in the aid framework but, moreover, in the technical proposal constitutes compliance with the eligibility requirement. Under ACCORD-A, IBC determines whether each bidder has the right to participate in the tender by verifying the completeness of the requirements or declarations eligible for participation using a checklist of requirements using a non-discretionary “passport/defect” test. Therefore, if the authorization documents are incomplete because the financial documents have not been included, the IBC is obliged to inform the bidder that he or she has not been deemed eligible to participate in the tender and the reasons for its ineligibility. The IBC may not receive, maintain and/or open the technical proposal for ineligible offers. If the ineligible bidder indicates its intention to apply for reconsideration, the IBC will not open the bid of this ineligible bidder and will close it properly until the request for reconsideration is resolved. (point 23.3, IRR-A; Section 24.13, IRR-A) In summary, failure to register financial documents as part of the aid would result in the bidder being declared “ineligible” because of the absence of such a financial document. The IBC cannot receive and open the technical proposal framework of the ineligible bidder until the request for reconsideration, if any, has been resolved.

The problems concern: eligibility requirements for joint ventures applying for an establishment: Philippine Charity Sweepstakes Office.

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