NPM 065-2012

Requesting Entity: National Center for Mental Health (NCMH)

Issues Concern: Negotiated Procurement



Whether the NCMH can adopt Negotiated Procurement (Emergency Cases) or (Small Value) in its procurement of liquefied petroleum gas (LPG) fuel refill while waiting for the conclusion of its scheduled public bidding for the same project under Republic Act (RA) 9184 and its Implementing Rules and Regulations (IRR).

x x x Resort to alternative methods of procurement such as negotiated procurement is acceptable subject to the prior approval of the Head of the Procuring Entity (HOPE) and whenever justified by the conditions to promote economy and efficiency.

[P]rocurement through Negotiated Procurement (Emergency Cases) or (Small Value) entirely depends on the surrounding circumstances attending the specific procurement activity. However, in both cases, the procuring entity should remember that splitting of government contracts is strictly prohibited.

x x x NCMH should ensure the efficient conduct of public bidding for the procurement of its LPG fuel refill. However, in the interim, NCMH may continue resort to alternative methods of procurement pending award of contract for its LPG requirements, but NCMH should ensure that all the conditions or circumstances for the alternative methods adopted duly exist.