NPM 096-2004

Requesting Entity: Government Service Insurance System

Issues Concern: Applicability of Repeat Order for the Procurement of General Support Services



Cursory reading of the above-quoted provision (Section 51, IRR-A, R.A. 9184) reveals that repeat order applies to procurement of goods only. However, it should be noted that careful analysis of the provision reveals that repeat order as an alternative method of procurement finds its application only to procurement of tangible goods, such as items, supplies, materials, and equipment; but excludes procurement of goods in the nature of general support services, i.e. janitorial services, security services, and health maintenance. The inclusion of the phrase “procured item is clearly superior to the other bids not only in terms of the price quoted but also in terms of equipment reliability, availability of spare parts, after-sales service and delivery period,” apparently limits the application of the provision so as to exclude general support services. This interpretation is furthermore corroborated by the fourth condition imposed by law for repeat order, wherein the percentage limit is based on quantity of the items procured. Obviously, this condition cannot be straightforwardly applied to general support services considering that services procured are not quantified, hence there is no accurate gauge by which the twenty five percent (25%) limit for repeat order can be determined.

In this regard, we are of the opinion that only tangible goods, such as supplies, materials, and equipment may be the subject of procurement using repeat order. General support services like janitorial and security service, therefore, are beyond the contemplation of this alternative method of procurement.