NPM No. 039-2017
Requesting Entity: Boy Scouts of the Philippines (BSP)
Issues Concern: Consignment Agreements
Whether BSP can continue to market and sell Scout paraphernalia through consignment agreement.
The arrangement between BSP and its various suppliers may fall within the coverage of RA 9184 and its 2016 IRR if there is acquisition of goods and public funds were spent for that purpose. Additionally, consignment agreements are not procurement activities within the coverage of RA 9184 and its 2016 IRR since it does not involve the acquisition of goods and public expenditure on the part of the Procuring Entity; provided, that all the elements of consignment agreement under Section 7.3.2 of the 2016 IRR of RA 9184 are present. Under the circumstances presented, it is prudent, however, for BSP to carefully review the contractual arrangements entered into with various suppliers for purposes of determining whether it is actually a consignment, which is not subject to public bidding, or procurement, in which case the procurement rules and procedures under RA 9184 and its 2016 IRR shall apply.