NPM 019-2014

Requesting Entity: Philippine General Hospital

Issues Concern: Shopping



Whether the contract can be awarded to the lone supplier who submitted a price quotation.

When the procurement falls under Section 52.1(b), no award of contract can be made if only one supplier submitted a price quotation. It is imperative upon the PE to obtain at least three (3) quotations before awarding a contract that is procured through Shopping under Section 52.1(b).

Whether the quantity can be reduced to accommodate the price quotation which is higher than the Approved Budget for the Contract (ABC).

The quantity of a particular item cannot be reduced to accommodate the price proposal of one supplier. It is the supplier who should conform to the requirements of the PE and not otherwise. In the event that no supplier submits quotation that conforms with the requirement of the PE, the proper step to be undertaken is to extend the deadline for the submission of price quotations, subject to required approvals, but not to adjust the quantity of the items to be procured to accommodate the price proposal of one supplier.