NPM 032-2012

Requesting Entity: Office of the City Planning and Development Coordinator - Danao City

Issues Concern: Infrastructure Projects by Administration



(1) Can the Office of the City Planning & Development Coordinator (OCPDC) include in the preparation of Program of Work and Estimates the cost of rental of equipment and tools to be used in the project construction considering that such tools are not available in OCPDC?

x xx Inasmuch as the Guidelines allow the procuring entity to borrow the construction equipment and tools to be used in the project construction, these items need not form part of the Program of Work that contains the materials to be used for the project. Ordinarily, and as required in the Guidelines, the construction equipment and tools must be owned by the procuring entity. However, if the procuring entity does not have its own construction equipment and tools, it is allowed to borrow them from another government agency that owns them.

(2) Is the OCPDC limited by law to implement all its infrastructure projects by administration?

[T]he OCPDC is not restricted by the Guidelines in implementing its infrastructure projects by "administration" only. It is the general rule under Section 10 of RA 9184 and its IRR that all procurement activities, whether goods, infrastructure projects or consulting services, must be done through competitive bidding. Consequently, infrastructure projects by administration will be allowed only if the conditions and requirements for its use have been satisfactorily met by the procuring entity.