NPM 002-2009

Requesting Entity: Philippine International Trading Corporation

Issues Concern: Direct Contracting



1. When is resort to Direct Contracting proper?

It is only upon the determination of the BAC that the items to be procured are of a proprietary nature and available only from a proprietary source, that it shall recommend to the HOPE the use of the alternative method of Direct Contracting for the procurement of the double folded tents and ammunitions. Further, resort to this alternative mode must be included in the procuring entity's Annual Procurement Plan (APP) and approved by the HOPE.

2. Limitations on technical specifications.

[W]hile procuring entities can make the technical specifications in their bid documents more detailed, to encourage competition, however, they cannot "tailor fit" to a particular brand.

Inclusion in the bid documents of such detailed design and technical descriptions that leave the procuring entity no other option but to procure from a particular brand or supplier defeats the very essence and purpose of public bidding. In such case where the procurement from a specific brand is necessary, indispensable and justified under the pertinent Rules, alternative methods may be availed of.