NPM 061-2007

Requesting Entity: National Food Authority Regional Office II

Issues Concern: Contract by Administration



1. Whether the NFA can procure the material components of its the Integration of Dehuller RM/Polisher Project (the "Project") through shopping.

It is a general policy of the government that procurement shall be competitive and transparent, and therefore through public bidding (Section 10 of R. A. 9184). Thus, Section 3.5 of the Revised Guidelines on Implementation of Infrastructure Projects By Administration expressly state that procurement of tools and construction equipment for infrastructure projects undertaken by administration shall be subject to the rules on public bidding. Alternative methods of procurement are resorted to only in highly exceptional cases as set forth under R.A. 9184 and its IRR-A, subject to the approval of the head of the procuring entity (Section 48 of R. A. 9184).

Hence, the material component of the Project should be procured through competitive bidding, unless the conditions provided under Section 52 of the IRR-A are present, as recommended by the BAC and duly approved by the head of the procuring entity.

2. Whether the NFA may source the labor component through pakyaw system.

Section 3.7 of the Revised Guidelines for the Implementation of Infrastructure Projects by Administration expressly states that the manual labor component of infrastructure projects to be implemented by administration may be undertaken in-house by the implementing agency concerned, by job-order or through the pakyaw contracting system, in accordance with Section 4 thereof.