NPM No. 032-2017

Requesting Entity: Mr. Alfred Leo Ancheta

Issues Concern: Required Conditions for Small Value Procurement and Shopping



Whether in Negotiated Procurement - Small Value Procurement (SVP) under Section 53.9 of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184, a Procuring Entity (PE) may award a contract, if among the three suppliers, only one supplier offered a price within the Approved Budget for the Contract (ABC), and the other two bidders exceeded the ABC.

[W]hen the procurement method is SVP, the PE is required to obtain at least one (1) quotation. Failure to comply with this requirement renders the procurement invalid, and the responsible officials are accountable for non-compliance with relevant rules and regulations. A quotation that exceeds the ABC is still considered a price quotation for purposes of the requirement. Award of contract shall then be made to the lowest quotation which complies with the specifications and other terms and conditions stated in the RFQ, provided it is within the ABC.

Whether the procurement of air conditioning falls under Negotiated Procurement - SVP or Shopping.

If the Procuring Entity is procuring readily available off-the-shelf goods or ordinary/regular equipment, the proper modality is through alternative method of Shopping, otherwise, negotiated modality of SVP may be resorted to.