NPM No. 018-2016

Requesting Entity: Municipality of Pagsanjan, Laguna

Issues Concern: Method of Procurement



Whether it is correct to use NGO Participation as a modality of Negotiated Procurement under Section 53.11 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 for the procurement of supply and installation of three (3) phase primary line (a5 construction assembly) and installation of three (3) units 15 KVA distribution transformer.

At the outset, we wish to clarify that the determination of the appropriate method of procurement rests within the sole authority and accountability of the Head of the Procuring Entity (HOPE), as the approving authority, and the Bids and Awards Committee (BAC), as the recommendatory body. We adhere to the position that no other agency, office or official may interfere with these functions of the HOPE and the BAC, and dictate the method of procurement to be used for a particular project.

[T]he question of whether NGO Participation, as a modality of Negotiated Procurement, can be resorted to depends on whether the appropriation law or ordinance earmarking an amount for the procurement of supply and installation of 3 phase primary line (a5 construction assembly) and installation of 3 units 15 KVA distribution transformer specifically requires that it be contracted out to NGOs. If so, the procuring entity may resort to such method of procurement, following the provisions of Sections 48 and 53.11 of the IRR of RA 9184, as well as the Guidelines on Non-Governmental Organization Participation in Public Procurement. Otherwise, competitive bidding, as the default mode of procurement, or other applicable method of procurement shall be resorted to.

It also bears stressing that the GPPB issued Resolution No. 19-2006, dated 6 December 2006, prescribing the Guidelines on Procurement of Water, Electricity, Telecommunications and Internet Service Providers. Under Section 3.1 thereof, considering that water and electricity service providers are granted exclusive franchises to operate within a specific territory, procurement of water and electricity services shall be done through Direct Contracting under Section 50(c) of the IRR of RA 9184. For guidance, you may refer to the provisions of the said Guidelines to determine its applicability to your procurement project.