NPM No. 051-2017


Issues Concern: Request for Quotation; Employees’ Cooperative



   1. Whether it is allowed to acknowledge an e-mailed quotation for Small Value Procurement (SVP)

   In the preparation of the RFQ, the manner by which the price quotations are to be submitted shall also be prescribed as part of the terms and conditions, i.e., sealed or open quotation. Further, the RFQ shall also indicate whether the quotation shall be received in person or through other means such as registered mail, facsimile or e-mail. We note that affording bidders more options on the means of sending quotations, e.g., by electronic means, will encourage more competition among market participants and will enable the procuring entities to effectively use modern technology to facilitate procurement. This notwithstanding, the question on whether a quotation sent via e-mail is acceptable depends on whether such means of sending quotation is specifically allowed in the RFQ for the project.

   2. Whether a cooperative is eligible to participate in the procurement activities of a Local Government Unit (LGU) if some of its members are also members of the Bids and Awards Committee (BAC).

   It is our considered view that a cooperative, whose members are also part of the BAC of an LGU, shall not be allowed to participate in the procurement activities of such LGU because such participation will run counter to the principles of competition, in terms of access to information that are generally not available to outside bidders, and it will create a conflict of interest that is prohibited by the provisions of RA 6713, the 2016 Revised IRR of RA 9184, GPM and PBDs. To reiterate, however, the determination of the existence of a conflict of interest that will lead to the disqualification of a bidder is essentially and primarily lodged with the BAC of the Procuring Entity.