Requesting Entity: Bureau of Immigration (BI)
Issues Concern: Trade-in Transactions
Whether the proposal of a supplier to replace the existing passport readers with brand new units in lieu of the repair and replacement of its spare parts, which the procuring entity seeks to procure, should be considered by the BI for contract award.
[T]he proposed transaction is akin to a trade-in transaction. x x x, trade-in transaction involves two distinct, but relatively connected activities of government agencies, namely, disposal of government property and procurement, which are covered by different rules. Disposal of government property is governed by Executive Order No. 888, dated 18 March 1983, and Commission on Audit (COA) Circular No. 89-296, dated 27 January 1989, while procurement is covered by Republic Act No. 9184 and its associated revised Implementing Rules and Regulations.
BI cannot consider the proposal of a supplier to replace BI's existing units with brand new units in lieu of the repair and replacement of its spare parts, as it does not comply with the technical requirements of BO, and will entail the disposal of government property and procurement of brand new equipment without undertaking the mandatory processes required by applicable governing law, rules and regulations.