Requesting Entity: Department of Budget and Management-National Capital Region
Issues Concern: Warranty for the Procurement of Goods under Section 62(a) of Republic Act No. 9184 (R.A. 9184) and Section 62.1 of its Implementing Rules and Regulations Part A (IRR-A)
Whether or not the requirement for a warranty under Sections 62 (a) of R.A. 9184 and 62.1 of its IRR-A is applicable to all types of goods procured, regardless of the kind, amount, quantity, and method of procurement used, whether competitive bidding or alternative method of procurement.
By virtue of these provisions (Sections 62(a) of R.A. 9184 and 62.1, IRR-A), procuring entities are mandated to retain a part of the contract price, or require a bank guarantee from its suppliers, manufacturers or distributors in the procurement of goods. This provision is generic in application and provides for no exception such that even procurement of goods in small amounts and quantity including those acquired through the alternative methods of procurement are subject to this requirement. It must be noted that the above-quoted section has no specific price threshold as to when warranty for goods may be applicable, likewise, it does not restrict the application of warranty exclusively to goods procured under competitive bidding.
With the foregoing elucidations, we reiterate that the requirement for a warranty under Sections 62 (a) of R.A. 9184 and 62.1 of its IRR-A is mandatory for all types of goods, regardless of the kind, amount, quantity and method of procurement used for the goods procured.