NPM 022-2007

Requesting Entity: Central Luzon State University

Issues Concern: Sealed Canvass Bidding



1. Whether the implementation of an infrastructure project may be conducted by procuring entity through sealed canvass bidding.

These alternative methods of procurement are resorted to only in highly exceptional cases as set forth in Sections 49-54 of R.A. 9184 and its IRR-A, subject to the approval of the head of the procuring entity (Section 48 of R. A. 9184).

Sealed canvass bidding is not one of the alternative methods of procurement. Therefore, the procurement of an infrastructure project cannot be through sealed canvass bidding.

2. Whether an infrastructure project may be implemented through a "Contract of Services" wherein the contractor shall provide labor, equipment, and materials needed by the procuring entity.

Under Circular No. 04-2005 dated 16 May 2005 issued by the GPPB, all branches and instrumentalities of Government, its department, offices and agencies, including government-owned and controlled corporations, government financial institutions, state universities and colleges and local government units are mandated to use the PBDs effective 01 July 2005. A state university is likewise covered by GPPB Circular 04-2005.

Thus, the infrastructure project cannot be implemented through the Contract of Services attached to your letter.

3. What is the allowable ceiling or contract amount of the infrastructure project?

All procurement should be within the ABC of the procuring entity. No procurement shall be undertaken unless it is in accordance with the Annual Procurement Plan. The ABC shall be at all times consistent with the appropriations authorized in the GAA/corporate budget approved by the governing boards (Section 7 of R. A. 9184 and its IRR-A). If the submitted total bid price exceeds the ABC, the Bids and Awards Committee shall rate the bid concerned as "failed" (Section 30.2, IRR-A).