NPM 041-2004

Requesting Entity: Office of the Vice Mayor of the City of Tabaco, Albay

Issues Concern: Request for Deferment of the Implementation of R.A. 9184 and its IRR-A and Queries on R.A. 9184 and its IRR-A



1. Request for deferment of the implementation of R.A. 9184 and its IRR-A.

The request of the City of Tabaco for a grace period of three (3) months for the deferment of the implementation of R.A. 9184 and its IRR-A cannot be acted upon by the Government Procurement Policy Board (GPPB), since the law itself provides for its effectivity subject to no exceptions. The law does not provide that it can be suspended upon the happening of future specified contingencies, acts or conditions, nor does it give the GPPB or any government agency the power to ascertain the existence thereof as the basis of taking into effect or suspending the law.

2. Concerns regarding the procurement of common use goods and supplies from the Department of Budget and Management - Procurement Service (DBM-PS), particularly on the following matters: (1) the minimum required purchase; (2) delivery and freight expense; (3) unavailability of goods in the DBM-PS; (4) registry of Suppliers and Manufacturers; and (5) entities allowed to procure from DBM-PS.

Minimum Amount of Purchase

The above-quoted provisions (Sections 52 and 54.2(g), IRR-A) are silent as to the minimum amount of common use supplies that should be procured from the DBM-PS. Thus, all procuring entities are required to procure common use goods or supplies from the DBM-PS regardless of amount since R.A. 9184 and its IRR-A does not provide for any required minimum purchase.

Delivery and Freight Expense

DBM-PS delivers goods procured by government agencies therefrom free of charge within Metro Manila. However, outside Metro Manila, the procuring entity concerned has two options: First, the procuring entity may request the DBMPS to procure freight service for the delivery of the goods, in which case the latter shall include the cost of the freight service to the cost of the goods procured. Second, the procuring entity may directly procure freight service for the delivery of the goods and shall be responsible for the payment of the same.

Procurement of Common Use Supplies Not Available in DBM-PS

In case the ordinary or regular office supplies and equipment are not available in the DBM - PS, the procuring entity may obtain these items through the alternative method of procurement known as shopping under Section 52(b) of the IRR-A of R.A. 9184 afore-quoted. This is done by simply requesting for the submission of price quotations directly from the suppliers of known qualifications, provided that the amount thereof does not exceed Two Hundred Fifty Thousand Pesos (P250,000). Otherwise, if it exceeds such amount, the procuring entity must conduct public bidding as provided by Section 10 of R.A. 9184 to procure such items.

Shopping as an alternative method of procurement does not need the approval of the Government Procurement Policy Board (GPPB). However, it should be approved by the head of the procuring entity concerned upon the recommendation of the Bids and Awards Committee (BAC).

Registry of Manufacturers, Suppliers, Distributors, Contractors and Consultants

Manufacturers, suppliers, distributors and consultants interested in participating in government procurement are mandated to register with the G-EPS. (Section 8.5.1, IRR-A)

However, in cases of emergency when there is unforeseen contingency which requires immediate purchase of goods procuring entities are allowed to resort to shopping as an alternative method of procurement under Section 52(a) of the IRR-A of R.A. 9184.

In this type of alternative method of procurement, we are of the opinion that the procuring entity may procure from nonregistered suppliers or contractors since the procurement calls for an immediate action on the part of the procurement entity.

Entities that may procure from the Procurement Service

The DBM-PS was established by Letter of Instruction No. 755 (LOI 755) on October 18, 1978 to implement the integrated procurement system for supplies, materials and other items needed by the government. As such, the DBM-PS caters only to the need of government agencies and instrumentalities, not private entities, in terms of procurement of common use supplies and equipment. Thus, private individuals are not allowed to purchase goods from the DBM-PS.