NPM 027-2009

Requesting Entity: Metro Iloilo Water District

Issues Concern: Procurement of Bulk Water Supply



Requesting policy guidance relative to the proposed adoption of Negotiated Procurement for the Bulk Water Supply Contract.

Pursuant to Section 48.2 in accordance with Section 10 of the IRR-A of R.A. 9184, all procurement, as a general rule, shall be done through Competitive Bidding. Alternative methods shall be resorted to only in highly exceptional cases provided under the law. In other words, while the mandates that public bidding be conducted by the government, it allows procurement through alternative modes provided that any of the conditions that warrant the same exists. Thus, apart from public bidding, procurement of water supply by bulk may be undertaken through Negotiated Procurement under Section 53.

In availing this mode of procurement, the procuring entity shall undertake negotiations with previous supplier, contractor or consultant in good standing, or a supplier, contractor or consultant of good standing situated within the vicinity where the calamity or emergency occurred. The award of the contract shall be posted at the G-EPS website, website of the procuring entity, if any, and in conspicuous place within the premises of the procuring entity.

One other alternative mode is procurement through another agency of the government under Section 53 (e), which may be adopted subject to the conditions and the procedure laid down in the implementing guidelines on Agency-to- Agency as per GPPB Resolution 018-2007, dated 31 May 2007. Please note that it is only upon determination of the BAC, subject to the prior approval of the head of the procuring entity that the foregoing conditions exist, that negotiated procurement may be undertaken under the said paragraph.