NPM 015-2005

Requesting Entity: Municipality of Patnanungan, Quezon

Issues Concern: Clarification on the provisions of Republic Act 9184 (R.A. 9184) and its Implementing Rules and Regulations Part A (IRR-A)



1. In cases specified under Section 53 (b) of R.A. 9184, who determines that immediate action is necessary to restore vital services -- is it the Sangguninang Bayan or the Local Chief Executive? After a resolution of the BAC recommending to the Local Chief Executive that the project (e.g. repair of wooden foot bridge, replacement of roofing sheets for school building and repair of any public places) be implemented “by administration,” is an authority of the Sanggunian still required?

R.A. 9184 merely prescribes the standard set of rules and regulations governing the procurement of infrastructure projects, goods, and consulting services for government projects and other related activities that embodies a streamlined procurement process. Incidentally, it is not concerned with the rules, processes or systems which may be adopted by and internal to the procuring entity in view of complying with the requirements of said law. Thus, the determination by the LGUs of the conditions under which any alternative method of procurement may be resorted to is outside the ambit or prescription of R.A. 9184 and its IRR-A.

The present procurement law requires the prior approval of the head of the procuring entity or his duly authorized representative in cases where resort to any of the alternative methods of procurement is sought. The process a procuring entity takes to arrive at a decision is to be governed by the internal rules of procedure of the procuring entity pursuant or subject to relevant laws and rules but without prejudice to the prescriptions provided under the procurement law. For lack of jurisdiction over the matter, we regret that we should defer to answer the questions.

Thus, whether authority of the Sanggunian is required in cases of resort by the local government unit to alternative methods of procurement is determined by the interplay of its internal rules and policies and applicable statutes.

2. In the case of Local Government Units, who is the approving authority frequently mentioned in R.A. 9184?

In the case of Local Government Units, the approving authority frequently mentioned in R.A. 9184 and its IRR-A refers to the Head of the Procuring Entity. In Section 5 (j) of R.A 9184, the Head of the Procuring Entity shall be the Local Chief Executive as defined in Republic Act 7160. The power of approval however of the Local Chief Executive does not preclude delegation by him to any authorized person of the local government unit pursuant to existing rules and policies.

3. What is the classification of ordinary or regular equipment in the context of Section 52 (b) of R.A. 9184? Does a generator set with an approved budget of One Hundred Fifty Thousand (P150, 000.00) qualify for resort to the alternative method of Shopping?

Ordinary or regular office supplies, in the context of Section 52 (b) of IRR-A, refer to those office materials, consumable or non-consumable, and repetitively used in the day to day administrative operations of the procuring entities. These are also supplies and materials which are expendable commodities, normally consumed within one year in connection with government operations. These contemplate those referred to as Common-Use Supplies in R.A. 9184 and those which have the potential of being included in the Price List of the Procurement Service (PS).

On the other hand office equipment include machineries and devices that can be employed in producing the results the procuring entity requires. These refer to those fixed assets having a useful life of more than one year, more or less capital in nature and which when used do not suffer any material or substantial change or alteration in size or in form. These include articles needed to outfit an individual organization. Parenthetically, these are items which do not lose their identity when used or applied. The term refers to typewriters, adding machines, and other similar items.

Clearly therefore, a generator set does not fall under the term “ordinary and regular office supplies and equipment” as contemplated under Section 52 (b) of the IRR-A of R.A. 9184 since these refer to those supplies repetitively used in the day-to-day operations of the office. Evidently, generator sets are not usual to the operation of an office. It is an equipment even without which the function of the office is not arrested or broken under ordinary order of things.

4. Does a purchase of medicine amounting to Two Hundred Thousand Pesos (P200,000.00) qualify for resort to Shopping as an alternative mode of procurement?

[Shopping] shall be employed only in any of the two (2) conditions prescribed by IRR-A.

In this vein, the purchase of medicine amounting to P200,000.00 does not qualify in any of the conditions allowing resort to shopping as an alternative method of procurement. First, the hypothetical issue does not raise as justification the attendance of any unforeseen contingency. Also, the purchase of medicine in this case exceeds the capital amount for the employment of shopping as a method of procurement. The amount of purchase in that case should not exceed fifty thousand pesos (P50, 000.00).

Second, regardless of the amount involved, purchase of medicines is not among the procurements contemplated in Section 52(b) of the IRR-A of R.A. 9184. What is contemplated in the second proviso of the said Section is the procurement of ordinary or regular office supplies which category medicine is not a specie of.

5. The Municipality of Patnanungan has no available technology to comply with requirements of electronic procurement. Is it still required to conduct bidding activities by electronic means?

Specifically, the law makes posting requirements and registration of manufacturers, suppliers, distributors, contractors and/or consultants to be complied with by full use of the G-EPS.

However, due to non-availability or non-readiness of the other technological features of the electronic system, the use of the same is practically limited by these conditions, and only to the extent available. This does not however imply an exemption of those procuring entities that do not have the technological capability for the system. To the extent available, the electronic system of procurement, by mandate, should be fully used by all procuring entities.

On this point, the procuring entities may adopt measures or means to be able to comply with the mandate. This is especially true in posting requirements where the procuring entity may outsource performance thereof. In fact, procuring entities may ask G-EPS to do the posting for them; or, in worse eventualities, seek the services of internet providers at minimal costs and for a limited time, for this purpose.