NPM 082-2014

Requesting Entity: Marikina City

Issues Concern: Direct Contracting



What are the conditions to be satisfied before the BAC may resort to Direct Contracting as a mode of procurement.

[T]he fact alone that the technical specifications resembles or is similar to the specifications of a specific good or equipment does not sanction the immediate resort to procurement through Direct Contracting in lieu of Competitive Bidding. Under the rules, the procuring entity must first justify the necessity for Direct Contracting and must be able to prove that there is no suitable substitute in the market that can be obtained at more advantageous terms to government. It is important to stress that RA 9184 and its associated IRR adopt "Competitive Bidding" as the primary method of procurement, and any alternative method of procurement may be employed only under highly exceptional circumstances to address economy and efficiency.