NPM 013-2004

Requesting Entity: Regional Office No. VI – Pavia, Iloilo, Office of the State Auditor II

Issues Concern: Composition of the Bids and Awards Committee (BAC) in the Barangay Level and Other Matters



1. Who are the members of the BAC for barangays?

Republic Act No. 9184 (R.A. 9184) and its Implementing Rules and Regulations Part A (IRR-A) are silent as to the composition of the BAC in the barangay level. However, recognizing the need to create the barangay BAC, the matter was brought to the Government Procurement Policy Board (GPPB) for appropriate action. At present, the BAC membership in the barangay is still being determined and studied by the Government Procurement Policy Board-Technical Support Office (GPPB-TSO) and the Department of Interior and Local Government (DILG). Meanwhile, pending the issuance of such guidelines, barangays may procure through “outsourcing,” an alternative method allowed under section 53 (e) of the IRR-A of R.A. 9184.

2. In the LGU, can the Sanggunian member be a member of the BAC?

It must be stressed that a member of the local Sanggunian cannot be designated by the LCE as a member of the BAC for the simple reason that the officials enumerated in Section 11.2.2 of the IRR-A of R.A. 9184 does not include any member from the local legislative body.

3. Shall all purchase orders passed (sic) through the BAC for the determination of which methods of procurement shall be undertaken?

It is not clear to us what procurement method for the utilization of the “purchase orders” is being referred to, however, for purposes of clarification, if the procurement is to be conducted through any of the alternative methods, the same should be recommended by the BAC to the head of the procuring entity for approval.

4. In the five (5) alternative methods of procurement, who will undertake the purchase/negotiation, the head of the procuring entity or the BAC?

[I]t must be pointed out that if the alternative method adopted requires a bidding procedure, such as in limited source bidding, the BAC shall undertake the procurement, otherwise the procurement may be conducted by the end-user or any office or department duly authorized by the head of the procuring entity to effect transactions by way of alternative method. However, it is imperative that the use of any of the alternative methods should be recommended by the BAC and approved by the head of the procuring entity.

5. How are we going to resolve in case of tie in the Lowest Calculated Bid/ Highest Rated Bid?

[I]t must be noted that a tie between two (2) or more bidders is not contemplated in R.A. 9184 and its IRR-A for lack of any provision relating thereto. However, we believe that you have also raised a theoretical problem regarding a circumstance wherein two (2) or more bidders submit identical offers. Should this peculiar situation occurs, we recommend the following actions, to wit:
1. Award portions or components of the project to each of the bidders, if the bidders agree, provided that the project is divisible; or
2. Exercise the remedy under Section 35.2 of the IRR-A, which is to declare a failure of bidding and re-bid the contract with re-advertisement while maintaining the approved budget for the contract if the project is indivisible.