NPM 005-2012

Requesting Entity: Philippine Science High School - Central Visayas Campus

Issues Concern: Request for Exemption from Resort to Negotiated Procurement (Take-Over of Contracts)



Request for exemption from resorting to Negotiated Procurement (Take-Over of Contracts) under Section 53.3 of the revised Implementing Rules and Regulations (IRR) or Republic Act (RA) 9184 after the contract for the design and construction of water system with the winning bidder was terminated.

At the outset, we wish to clarify that Government Procurement Policy Board (GPPB) does not have the authority to grant exemption from the application of RA 9184 and its IRR. Its mandate is to effectuate the purpose and intent of the procurement law through its quasi-legislative fiat and render contemporaneous interpretation and construction of the rules and regulations pursuant to such function.


Since the general rule is public bidding, the procuring entity is not precluded from applying such method regardless of conditions warranting the use of any of the alternative methods of procurement. However, the decision to resort to any alternative method of procurement is a matter that rests upon the sound decision of the head of the procuring entity, for which decision she may be lauded or held accountable and responsible.

In view of the foregoing, we are of the opinion that the recommendation of the Honorable Assistant for FALA of the DOST to re-bid the contract for the design and construction of water system for PSHC-CVC may be complied with without need of prior approval from this office or the GPPB.