NPM No. 017-2015

Requesting Entity: Department of National Defense (DND)

Issues Concern: Armed Forces of the Philippines Engineering Equipment Acquisition Project (AFP EEA Project)



1. Whether the Notice of Award (NOA) for Lots 2, 5, and 6, which were procured through Negotiated Procurement (Emergency Cases) having an Approved Budget for the Contract (ABC) of less than PhP 500 Million, can still be issued to the winning bidder despite the revocation of GPPB Resolution No. 34-2013.

[I]n the case of a procurement activity that is divided into several lots, where each awarded lot gives rise to a separate contract, the ABC for each lot becomes the reference to determine whether it falls within the coverage of Executive Order (EO) No. 423, as amended, which requires GPPB's approval for contracts with at least PhP 500 Million that will be procured under Alternative Methods of Procurement. Considering that EO 423 speaks of "government contracts," it refers to each contract to be awarded, and should the corresponding ABC for each contract does not exceed PhP 500 Million, the approval of the GPPB need not be secured.

2. Whether Lots 1, 3 and 4, to which lots a failure of bidding was declared, can still be pursued through Negotiated Procurement.

[T]he PE may resort to negotiated procurement under the Emergency Cases modality provided that it can establish and justify the existence of the conditions warranting its use. As we have previously opined, the accountability and responsibility in identifying the existence of such conditions rest with the Head of the Procuring Entity, upon recommendation of the Bids and Awards Committee.