NPM 001-2015

Requesting Entity: Office of the Ombudsman

Issues Concern: Procurement of Motor Vehicle Fuel and Maintenance Services



Whether the Office of the Ombudsman may resort to Direct Contracting in the procurement of motor vehicle fuel and maintenance services

At the outset, we would like to clarify that the Government Procurement Policy Board (GPPB) and its Technical Support Office (TSO) render policy and non-policy opinions, respectively, on issues purely pertaining to the interpretation and application of procurement laws, rules and regulations. It has no authority to determine the specific procurement method to be adopted by Procuring Entity (PE) in the conduct of its procurement activity, which authority is specifically granted to the PE by Republic Act (RA) No. 9184.

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[T]he procurement of motor vehicle fuel and maintenance services can be conducted through Direct Contracting only if the PE, after conducting a diligent market survey, can establish the singularity of the supplier or manufacturer of such goods and services required by the PE. A negative finding on the singularity of the source of the goods and services sought to be procured shall be a caveat to PE from resorting to Direct Contracting. Given the recognizable fact that there are various suppliers of motor vehicle fuel and maintenance services existing in the market, procurement of these goods and services may find no legal support from the basic requirement of Direct Contracting or Single Source Procurement.

What is the most reasonable and possible mode of procurement for the mentioned services.

[T]he PE that has the sole authority and is in the best position to determine the appropriate method of procurement for a specific project based on the identified needs and requirements of the PE and the attendant circumstances. It bears stressing, however, that Section 10 of RA 9184 and its IRR mandates that all procurement shall be done through Competitive Bidding, except when resort to alternative methods of procurement is warranted by attending circumstances. More importantly, these alternative methods of procurement shall be resorted to only in highly exceptional cases provided in Sections 49 to 53 of RA 9184 and its IRR. In the absence of these exceptional cases, procurement shall be done through Competitive Bidding.