Requesting Entity: Department of Tourism
Issues Concern: Request for Ratification of the Creation of a Special Bids and Awards Committee (BAC)
Creation of a Special BAC
Section 7.1 of the Implementing Rules and Regulations (“IRR”) of Executive Order No. 40, series of 2001 (“E.O. 40”) provides for the creation of a separate BAC, as follows:
7.1 BAC Structure
Each agency shall establish in its head office a single Bids and Awards Committee (BAC) for the procurement of goods, supplies, materials and related services; civil works; and consulting services. However, to expedite the procurement process for practical intents and purposes, the agency head may create separate BACs where the number and complexity of the items to be procured shall so warrant. The BACs shall be organized either according to: (a) source of funding; (b) geographical location of PMO or end-user units of the agency; or (c) in the case of infrastructure agencies, nature of procurement. Similar committees for decentralized and lower level offices may also be formed when deemed necessary by the head of the agency.
Clearly, this section provides for the authority of the head of the agency to create separate BACs either by reason of the number and complexity of the items to be procured or when necessary for decentralized and lower level offices. This was later on reiterated in Republic Act No. 9184 (“R.A. 9184”), otherwise known as the “Government Procurement Reform Act,” which provides as follows:
Sec. 11. The BAC and its Composition. – Each procuring entity shall establish a single BAC for its procurement. The BAC shall have at least five (5) members, but not more than seven (7) members. It shall be chaired by at least a third ranking permanent official of the procuring entity other than its head and its composition shall be specified in the IRR. Alternatively, as may be deemed fit by the head of the procuring entity, there may be separate BACs where the number and complexity of the items to be procured shall so warrant. Similar BACs for decentralized and lower level offices may be formed when deemed necessary by the head of the procuring entity. The members of the BAC shall be designated by the Head of the Procuring Entity. However, in no case shall the approving authority be a member of the BAC.
x x x x
The above provision clearly establishes the authority of the head of the procuring entity to create a separate BAC, without the need of securing any approval or ratification from the GPPB. As such, during the above-mentioned meeting, the members of the GPPB expressed the opinion that the Secretary of Tourism has the sole discretion, as head of the agency, to determine the need to create a separate or special BAC and to provide for its composition, thereby requiring no ratification from the GPPB. Of course, this necessarily implies that it would also be the responsibility of the Secretary to ensure compliance with all applicable rules and regulations.