NPM 038-2014

Requesting Entity: Caveat Law

Issues Concern: Expendable Supplies



Whether Maintenance Free Lead Acid Batteries and Retrofit Led Flasher Lights are considered as expendable supplies under Republic Act (RA) No. 9184 and its revised Implementing Rules and Regulations (IRR).

The determination of the classification of the goods as expendable or non-expendable is material to the procurement activity, in that it affects the bidding requirements, such as the warranty security. Section 62.1 of the IRR requires that the warranty security be retained for a minimum of three (3) months in the case of expendable supplies, and one (1) year in the case of non-expendable supplies.

Alongside definitive crucibles under the procurement law and rules, the procuring entity should be guided by the classification of the goods to be procured as either expendable or non-expendable pursuant to Section 5(m) and 5(w) of IRR of RA 9184.