NPM 019-2008

Requesting Entity: Office of the President

Issues Concern: Definition of Exclusive Dealer



Definition of "exclusive dealer" in the context of Section 50 (c) of the IRR-A.

[N]either RA 9184 and its IRR-A nor the Generic Procurement Manuals (GPMs) provides for a categorical definition of the term "exclusive dealer". Likewise, the GPPB has not issued any resolution, circular, or guideline defining such.

Notwithstanding the foregoing, Section 50 (c) of RA 9184 and its IRR-A expressly qualifies an "exclusive dealer" as one which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the government.

In addition, GPM Volume II provides guidance in determining the exclusivity of a dealer. It states that the procurement unit or office should first study the supply market by conducting an extensive survey of the industry in order to confirm the exclusivity of the source, prior to engaging in Direct Contracting. The GPM also emphasizes that exclusive dealership does not per se give rise to the use of Direct Contracting. The supplier/contractor/manufacturer must prove, through proper documentation, that it is the sole source of said goods, equipment or services required.