NPM 140-2012

Requesting Entity: Technology Resource Center (TRC)

Issues Concern: Direct Contracting under Section 50(c) of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184



Whether TRC can resort to Direct Contracting as provided in Section 50 of RA 9184 and its IRR in the procurement of equipment exclusively designed, developed and produced by a manufacturer based abroad but the components of which are not exclusively produced or manufactured by said manufacturer.

In resorting to Direct Contracting on the basis of Section 50(c) of the revised IRR, it is imperative for the PE to establish that, aside from the fact that the item to be procured is sold by an exclusive dealer or manufacturer, which does not have sub-dealers selling at lower prices, such item also has no suitable substitute that can be obtained at more advantageous terms to the government.

[I]t is within the authority and responsibility of the PE to determine the applicability of any alternative method of procurement to a particular acquisition, and it is incumbent upon such PE, through the relevant end-user office, to provide the necessary justifications and supporting documents to establish the existence of conditions warranting resort to the identified alternative modality. Thus, for Section 50(c) of the revised IRR to apply in this particular procurement, all the conditions for its use must be satisfied by TRC.