NPM No. 126-2016

Requesting Entity: Department of Agrarian Reform (DAR)

Issues Concern: Nature of Business of Supplier



1. Whether or not goods/services that are the subject of procurement should be included in the "line of business" of the suppliers` Bureau of Internal Revenue (BIR) Certificate of Registration and Mayor`s Permit


[I]t is necessary for the Bids and Awards Committee (BAC) to determine whether the Mayor`s Permit and BIR Certificate of Registration issued to the supplier authorizes it to engage in the business stated therein, such that a finding to the contrary would amount to non-compliance by the bidder and will result to its disqualification. A prospective bidder`s business as stated in the Mayor`s Permit should at the very least be similar to the project to be bid.


2. Whether or not a supplier registered as "trading firm" qualify to submit bids for goods/services under Shopping or Small Value Procurement


Sections 52 and 53.9 of the revised Implementing Rules and Regulations of Republic Act No. 9184 prescribed the rules on Shopping and Small Value Procurement. The Guidelines do not prohibit nor prescribe that suppliers engaged in the business of trading from qualifying to submit bids for supply of goods or services under the alternative modalities of Shopping and Small Value Procurement. So long as the bidders engaged in trading business are qualified under the guidelines, such supplier may not be prohibited from submitting its bid under these alternative modes of procurement.


3. Whether or not there is a need to conduct an on-site inspection of the office/place of business of suppliers to determine their capability to deliver and confirm the availability of goods to be procured.


[T]he act of the procuring entity in verifying, validating, and ascertaining the conformity of the goods/equipment to be delivered with the technical specifications is in accordance with the verification of technical requirements mandated under the rules for post-qualification. If, on the scheduled date of inspection, the bidder fails to present the subject equipment for examination or evaluation without justifiable cause, the BAC has the prerogative to declare the bidder post-disqualified for failure to comply with the requirements.