NPM 048-2007

Requesting Entity: Philippine Postal Corporation

Issues Concern: Application of Section 54. 2 (b) and (d) of the IRR-A of R.A. 9184



Correct application/interpretation of Section 54.2 paragraphs (b) and (d) of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act No. 9184 (R. A. 9184) in relation to Section 53 (b) of the IRR-A.

Section 54.2 (b) is applicable when there has been failure of public bidding for the second time as provided in Section 53 (a) of the IRR-A. In such instance, the procuring entity shall draw up a list of at least three (3) suppliers or contractors in good standing, which will be invited to submit bids and negotiate with the bidder who has submitted the lowest calculated bid. If the offer of the bidder who submitted the lowest calculated bid is not responsive to the original specification and ABC, negotiation shall be made in the ascending order starting from the lowest offer. The bidder whose bid is found to be responsive to the original specifications and the ABC shall be considered for award.

On the other hand, Section 54.2 (d) is proper when negotiated procurement is justified and resorted to under Section 53 (b) of the IRR-A or in case of imminent danger to life or property during a state of calamity, or when time is of the essence arising from natural or man-made or other causes where immediate action is necessary to prevent damage to or loss of life or property, to restore vital public services, infrastructure facilities and other public utilities. In such case, the procuring entity may directly negotiate with a previous supplier or contractor of good standing of the procuring entity, or a supplier or contractor or consultant of good standing situated within the vicinity where the calamity or emergency occurred.

In both methods, the award of contract shall be posted at the GEPS website, website of the procuring entity, if any, and in conspicuous place within the premises of the procuring entity (Section 54.2 (b) and (d), IRR-A). The BAC must also ensure the most advantageous price is obtained for the Government (Section 48, IRR-A).