NPM 045-2008

Requesting Entity: Calumpit Water District

Issues Concern: Negotiated Procurement under Section 53(d)



Request for clarification on the application of negotiated procurement under Section 53 (d) in relation to Section 54.2 of the IRR-A.

Under Section 53 (d) of the IRR-A, the procuring entity may directly negotiate a contract with a technically, legally, and financially capable contractor where the subject contract is adjacent or contiguous to an on-going infrastructure project subject to the following conditions:

  1. the original contract is the result of competitive bidding;
  2. the subject contract to be negotiated has similar or related scopes of work;
  3. it is within the contracting capacity of the contractor;
  4. the contractor uses the same prices or lower unit prices as in the original contract less mobilization cost;
  5. the amount involved does not exceed the amount of the on-going project;
  6. the contractor has no negative slippage; and
  7. the negotiations for the procurement are commenced before the expiry of the original contract.

Likewise, Section 54.2 (f) of the IRR-A explicitly states that the terms "adjacent" and "contiguous" are synonymous and shall mean that the projects concerned must be in actual physical contact with each other.