NPM No. 149-2017


Issues Concern: Procurement of Defense Material from a Foreign Government



Whether PCG can enter into a contract with “Rosoboronoexport”, a government-owned Russian Company for the possible acquisition of vehicles, firearms and armaments.

Section 10 of RA 9184 mandates that all procurement shall be done through competitive bidding, except as provided for in Article XVI thereof, which enumerates the allowable alternative methods of procurement. Accordingly, alternative methods of procurement may be resorted to only upon prior approval of the HOPE, in order to promote economy and efficiency, and whenever justified by the conditions for each alternative method of procurement specified in Sections 49 to 53 of the IRR of RA 9184. This is consistent with the pronouncement of the Supreme Court that competitive bidding may not be dispensed with nor circumvented, and that alternative methods of procurement may only be resorted to in the instances provided for by law.

All told, it is our considered view that the PE, through the HOPE and the BAC, is in the best position to determine and verify, after careful and meaningful assessment, the existence of the conditions warranting the use of alternative methods of procurement.

At this juncture, it is worthy to note that the proposed Government-to-Government Contract may be covered by a Treaty or International or Executive Agreement. In such case, if the agreement expressly provides the use of procurement rules other than RA 9184 and its 2016 revised IRR, such will be observed pursuant to Section 4.2 of the 2016 revised IRR.