How do you calculate NFCC?

How do you calculate NFCC?

NFCC = [(Current asset minus current liabilities) (15)] minus the value of all outstanding or uncompleted portions of the projects under ongoing contracts, including awarded contracts yet to be started coinciding with the contract to be bid.

What does it mean if NFCC is negative?

Hence, a prospective bidder with a negative NFCC should be declared ineligible to bid in such project under the non-discretionary pass/fail criteria sanctioned by the IRR of E.O. 9184, the financial requirement under the IRRA shall apply in the eligibility check of prospective bidders for such project.

What is NFCC?

computation for its Net Financial. Contracting Capacity (NFCC) or a. commitment from a Universal or. Commercial Bank to extend a credit. line in favor of the prospective bidder.

What is the purpose of NFCC?

The required submission of NFCC computation OR committed Line of Credit is for the purpose of establishing the bidder’s liquidity, its capacity to absorb the additional obligations in connection with the contract submitted for bids, and to finance its implementation or completion.

What is K in NFCC computation?

Statement) = NFCC (which must not exceed the ABC) The NFCC computation requires current asset and current liabilities only. The variable “K” would pertain to the duration of the project that you are bidding out, or the number of months/years you are requiring the contractor to complete the project.

What is outstanding contract?

A futures or options contract that has not expired, been closed by a covering purchase or sale, or in the case of an option, exercised (cf. open interest).

What is K NFCC?

= NFCC (which must not exceed the ABC) The NFCC computation requires current asset and current liabilities only. The variable “K” would pertain to the duration of the project that you are bidding out, or the number of months/years you are requiring the contractor to complete the project.

What is a bid securing declaration?

The bid securing declaration is a non-monetary form of bid security. It is a notarized sworn statement made by a bidder committing to sign the contract if they are selected before the end of the bid validity period stipulated in the bidding documents.

Is the NFCC legitimate?

NFCC is a nonprofit credit counseling agency offering help to student loan borrowers. To help student loan borrowers avoid scams, NerdWallet is rounding up information on legitimate sources of help, like this one. The NFCC and its member agencies are all nonprofit 501(c)(3) organizations.

What is NFCC in procurement?

Duly signed Net Financial Contracting Capacity Computation (NFCC) per Annex II, in accordance with ITB Clause 5.5 NFCC = [(Current Assets minus Current Liabilities) (15)] minus the value of all outstanding or uncompleted portions of the projects under ongoing contracts, including awarded contracts yet to be started …

What is CLC bidding?

1. Whether a prospective bidder which submitted a Credit Line Commitment (CLC) equivalent to ten percent (10%) of the Approved Budget for the Contract (ABC), must likewise submit a CLC as part of the contract.

What is value of outstanding contracts?

The “value of all outstanding works” would refer to the ongoing contracts and contracts awarded and not yet started of the bidder- contractor. It would be the same amount as reflected in the Statement of Ongoing and Completed contracts, which the bidder will submit as part of his Class A – Technical Documents.