NPM 002-2005

Requesting Entity: Philippine International Trading Corporation

Issues Concern: Proposed Standard Sourcing Procedure for Pharmaceuticals Trading and Marketing Operations of the Philippine International Trading Corporation



1. Proposal to adopt Limited Source Bidding for the procurement of its pharmaceutical needs.

PITC cannot resort to Limited Source Bidding because medicines are not considered highly specialized type of goods as contemplated under Section 49(a) of the IRR-A of R.A. 9184.

2. Proposal to resort to Repeat Order for the purchases of medicines of more than twenty five percent (25%) of the original contract.

[S]uch proposal cannot be favorably considered since it is clearly provided in Section 51 of R.A. 9184 and Section 51(d) of its IRR-A that repeat order shall not exceed twenty five percent (25%) of the quantity in the original contract. Instead, the PITC may conduct a single order procurement through public bidding or direct contracting, in case of exclusive distributorship, for its pharmaceutical requirements the deliveries for which shall be staggered based on the periodic receipt of purchase orders from LGUs and other government clients.

3. Accredit suppliers in various categories according to product lines to become part of the “Registry of Suppliers” from whom PITC will source their requirements.

[T]he GPPB is agreeable to the use of a mechanism for accreditation of suppliers in various categories according to product lines prior to its participation in competitive biddings; but is against the proposal of having very restrictive requirements for accreditation to its Registry of Suppliers. It is also suggested by the GPPB that PITC’s registry of local pharmaceutical suppliers be limited to manufacturers.