Requesting Entity: Department of Health
Issues Concern: Request for clarification on Section 53, Negotiated Procurement and Section 46, Lease Contracts, of the Implementing Rules and Regulations Part A of Republic Act No. 9184
1. Whether or not consultancy contracts may be concluded with other government agencies through negotiated procurement under Section 53(e) of the Implementing Rules and Regulations (IRR-A) of Republic Act No. 9184 (R.A. 9184).
As expressly stated in the above-quoted provisions (Sections 53(e) and 54.2(g), IRR-A), a negotiated contract with other government agency is allowed if the procurement involves purchases of goods. Accordingly, the Department of Health (DOH) cannot avail of Section 53(e) of the IRR-A of R.A. 9184 considering that it seeks to procure consulting services, and not goods, from other government agency. It must be noted that R.A. 9184 and its IRR-A prescribe competitive bidding as the general mode of procurement and the alternative methods should be resorted to only in highly exceptional cases, hence, the provisions in the law allowing such modes must be strictly construed.
2. Whether or not Section 46 of R.A. 9184 and its IRR-A, which governs lease of computers, communication, information technology and other equipments, is applicable to medical equipments as well.
Section 46 of R.A. 9184 and its IRR-A specifies that lease of construction, office, communication and information technology equipments shall be subject to the same public bidding procedures and processes prescribed therein.
Considering that public bidding is the general mode of procurement, all lease contracts should also be subject thereto. As such, even if medical equipments are not specifically mentioned in Section 46 of R.A. 9184 and its IRR-A, the lease of such equipments should be subject to the same rules for competitive bidding provided in R.A. 9184 and its IRR-A.