NPM No. 119-2015

Requesting Entity: Ms. Apryl Aguilos

Issues Concern: Observers for Small Value Procurements (SVP)



Whether external observers are required for Negotiated Procurement (Small Value Procurement) under Section 53.9 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.

RA 9184, its revised IRR, and the Guidelines for Shopping and Small Value Procurement (Guidelines), which prescribe the general procedures for procurement through SVP, do not expressly require the invitation and/or presence of observers in the conduct of SVP by the procuring entity. Only in cases where competitive bidding or a semblance thereof is present, such as in Limited Source Bidding under Section 49 of the revised IRR of RA 9184 and Negotiated Procurement (Two-Failed Biddings) under Section 53.1 thereof, that procuring entities are mandated to invite observers.

This being the case, except in LSB and Two-Failed Biddings modalities where invitation of observers are mandatory, the PE has the discretion to invite observers in the procurement of goods, infrastructure projects, and consulting services using any of the alternative method of procurement, for purposes of enhancing transparency, which is one of the governing principles of government procurement under RA 9184, alongside public monitoring of the identified procurement activities.