NPM 118-2012

Requesting Entity: Jodaar Cottage Industries

Issues Concern: Domestic Preference and the Single Largest Completed Contract (SLCC) Requirement for Goods



Whether local suppliers offering foreign products are barred from participating in government procurement.

Section 43.1.1 of the revised IRR of RA 9184 x x x provides that in the interest of availability, efficiency and timely delivery of goods, the PE may give preference to the purchase of domestically-produced and manufactured goods, supplies and materials that meet the specified or desired quality, in accordance with the provisions of CA 138. Thus, the PE shall give preference to Domestic Bidders/Entities, provided, among others, that his bid is not more that fifteen percent (15%) in excess of the lowest Foreign Bid. In all, it is clear that bidders offering foreign products shall not be excluded outright from public bidding.

Whether the submission of a Purchase Order may be deemed sufficient compliance with the SLCC requirement for Goods.

x x x The purchase order, which is the contract between the parties, embodies the terms and conditions of their transaction.

[M]ere submission of a Purchase Order as the same is deemed a contract in all respects. However, it must be shown that there was full compliance with the requirements of the law in the statement of ongoing and completed contracts, otherwise, the bidder will be declared ineligible to participate, as the requisites constituting the eligibility criteria for the procurement of goods should not be taken in the alternative but should altogether be complied with.