Requesting Entity: Philippine Science High School – Zamboanga Peninsula Region Campus

Issues Concern: Transportation Costs for Department of Budget and Management-Procurement Service (DBM-PS) Purchases


1. How may procuring entities (PEs) purchase their common-use office supplies, materials and equipment?

PEs are mandated to purchase common-use supplies and equipment (CSEs) from the DBM-PS.

The DBM-PS is tasked with the implementation of a government-wide procurement system for common-use office supplies, materials and equipment on behalf of all government agencies by virtue of Administrative Order (AO) No. 17, Series of 2011.

Pursuant to Sections 2 and 4 of AO No. 17, all National Government Agencies, including Military and Police Units; Government-Owned and/or Controlled Corporation, Government Financial Institutions, State Universities and Colleges, and Local Government Units are mandated to procure common-use supplies directly from the DBM-PS without the need of public bidding, through an Agency-to-Agency Agreement under Section 53.5 of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.

Furthermore, AO No. 17’s requirement is a reiteration of the policy under Letter of Instruction No. 755, Series of 1978 and Executive Order No. 359, Series of 1989, that procurement of government supplies, materials, and equipment shall be done in the most transparent and competitive manner by purchasing from legally, technically, and financially capable sources in economic lot sizes, by observing optimum specifications and by making prompt payment.

2. In cases where the place of business of a PE is far from the DBM-PS, should the transportation expenses, which the PE will incur in purchasing goods from the DBM-PS, be imputed in the computation for the total cost which shall then be compared with the items that can be purchased within the PE’s vicinity or nearer area?

However, presently, in case the CSEs are not available or not listed in the Electronic Catalogue, the DBM-PS issues Certificates of Non-Availability of Stocks (CNAS) based on the physical unavailability of the supplies and equipment. Likewise, by virtue of the Government Procurement Policy Board Resolution No. 24-2014, dated 31 October 2014, the Board authorized the DBM-PS to issue CNAS, for both local and foreign based PEs, on the ground of efficiency, practicality, and/or economic viability, as may be reasonably determined by the DBM-PS, apart from actual non-availability of stocks.