Requesting Entity: Bangko Sentral ng Pilipinas (BSP)

Issues Concern: Delegation of the Conduct of Limited Source Bidding (LSB)

Details

Whether the Bids and Awards Committee (BAC) may delegate the conduct of LSB to another office.

The BAC cannot delegate the conduct of LSB to another office/body in the procuring entity. Section 12.1 of the IRR of RA 9184 categorically vests upon the BAC the authority to process and evaluate the procurement requirements of bidders. Even the BAC Secretariat cannot be delegated with the functions expressly conferred upon the BAC by Republic Act No. (RA) 9184 and its revised Implementing Rules and Regulations (IRR). An exception to this policy was established for procurement using Shopping and Negotiated Procurement (Small Value Procurement) for the reason that these particular methods of procurement are used for contracts that are of considerably small amount and are generally simple/routinary, such that delegating the functions to another unit will be more efficient and economical for the procuring entity. Said exception is not applicable to the LSB inasmuch as the circumstances surrounding procurement activities using LSB are not similar to those covered by Shopping and Negotiated Procurement (Small Value Procurement).