NPM 005-2015

Requesting Entity: Department of Health (DOH)

Issues Concern: Cluster Bids and Awards Committee (CBAC)



Creation of Cluster Bids and Awards Committee (CBAC) for the procurement of infrastructure projects and equipment of DOH under the Health Facilities Enhancement Program (HFEP)


1. Whether the creation of CBACs that are composed of members from different Procuring Entities (PEs) to conduct the procurement activities for DOH Regional Offices is sanctioned by Republic Act (RA) No. 9184.


The creation of separate BACs within the same PE does not contemplate the creation of a Cluster BAC where the members are drawn from offices or agencies of the PE that are in themselves treated as separate PEs.


In this regard, it is our considered view that the creation of a Cluster BAC that is composed of officials from various DOH PEs (Regional Offices and Hospitals) as members will run counter to, and does not find support in RA 9184 and its IRR.


2. Whether the appointment of an Undersecretary or Assistant Secretary as the HOPE for each cluster is allowed under RA 9184.


While x x x RA 9184 permits the head of the agency to duly authorize an official who will exercise the duties, responsibilities and functions of the HOPE, it does not explicitly authorize the head of the agency to create a cluster PE and appoint a HOPE. x x x. PEs, in contemplation of the provisions of RA 9184 and its IRR, exist as a creation of law and cannot be created motu proprio by aggregating PEs to form a singular or cluster PE. Under existing rules, PEs have their own respective HOPEs, and in the case of DOH, the HOPE for the Regional Offices and Hospitals shall be the Regional Directors and Chief of Hospitals, respectively.


3. What are the courses of action to be made by DOH on the pending procurements that were already paid, issued with Purchase Orders or Notices of Award, and those which were bid out.


[T]he Government Procurement Policy Board (GPPB) and its Technical Support Office (GPPB-TSO) only renders policy and non-policy matter opinions, respectively, on issues pertaining to the interpretation and application of our procurement laws, rules and regulations. It does not give specific courses of action to be undertaken by the PEs in completed and on-going procurement projects as the conduct of procurement activities, with reference to existing procurement rules and regulations, is within the sole authority and accountability of the PE, which we cannot encroach upon or interfere with, since the duties and responsibilities fall solely within the ambit of the PE`s authority and discretion as sanctioned by law.