NPM No. 099-2016

Requesting Entity: Bureau of Soils and Water Management (BSWM)

Issues Concern: Lease Agreement; Purchase Order; Authority to Procure Vehicles



Whether there is an existing Guidelines on the procurement of field or laboratory equipment through lease agreement.


There exists no specific guidelines on the procurement of field or laboratory equipment through lease agreement, the relevant provisions on competitive bidding and alternative methods of procurement under RA 9184 and the 2016 revised Implementing Rules and Regulations remain applicable depending on the circumstances at hand.


Whether the issuance of a Purchase Order (PO) instead of a contract is sufficient for Negotiated Procurement under two-failed biddings modality.


The contract may be embodied in the form of a Purchase Order. A Purchase Order will constitute an accepted offer that will give rise to a perfected contract when the winning bidder received the same and agreed to its terms and conditions, and the bidder acted upon it.


Whether there is a need to secure an authority to procure vehicles from the Office of the President (OP) if the funds are released to the agency under the General Appropriations Act (GAA).


The procuring entity shall secure the appropriate authority to purchase vehicles based on Budget Circular No. 2010-2 (Guidelines on the Acquisition and Use of Government Motor Vehicles) issued by the DBM, as revised by Budget Circular 2016-5.