Requesting Entity: Department of Finance
Issues Concern: Negotiated Procurement under Section 53 (b)
Whether or not Negotiated Procurement under Section 53 (b) of IRR-A may be resorted to in case of an electric power shutdown due to a breakdown of a transformer.
In accordance with Section 10 of R.A. 9184, the procuring entity shall, as a general rule, adopt public bidding as a mode of procurement. However, in order to promote efficiency and economy, the procuring entity may resort to any alternative mode of procurement, subject to the approval of the head of the procuring entity, whenever justified by the conditions provided therein (Section 48, R.A. 9184). x x x
[U]nder Section 12 of R.A. 9184, it is the Bids and Awards Committee (BAC) which shall recommend to the head of the procuring entity the use of any of the alternative methods of procurement. Consequently, the determination and accountability for the use of any of the alternative methods rest with the BAC and the head of the procuring entity since they are in the best position to determined the existence of conditions and validate the urgency of the situation.
The BAC may, thus, recommend the use of the alternative method of negotiated procurement after ascertaining that said method is justified pursuant to Section 53 (b), subject to the approval of the head of the procuring entity. No approval from the Government Procurement Policy Board is required unless said resort involves a contract amounting to at least Five Hundred Million Pesos (P500,000,000).