2014-10-09

NPM 036-2014

Requesting Entity: Ms. Teresita M. Mistal

Issues Concern: Application of RA 9184 to Local Government Units (LGUs)

 

Details

Whether the Members of the BAC in LGUs may come from offices other than those included in the enumeration in Sec 11.2.3 of the IRR of RA 9184.

The list of offices mentioned in Sec 11.2.3 of the IRR of RA 9184 is not exclusive. Members of the BAC may come from offices other than those included in the enumeration, except the Chief Accountant and any personnel from the Accounting Unit because of the existence of conflict of interest .

While the list of offices mentioned in Sec 11.2.3 of the IRR of RA 9184 is not exclusive, it is necessary that the BAC members shall come from the regular offices under the Office of the Local Chief Executive (LCE), except the Chief Accountant and any personnel from the Accounting Unit.

Whether the term of office of BAC Members can be limited to a maximum of two (2) years.

RA 9184 and its IRR are clear on the limit of the term of office of BAC Members. The Law and the rules gave the LCE the discretion to designate the members of the BAC for the period of one (1) year, and to extend the terms of office of BAC Members granting that the extension will be most desirable and advantageous for the PE. More so, the designation of the BAC members is within the exclusive prerogative and discretion of the LCE and inevitably, the extension as well.

Whether the Period of Action on Post Qualification Process is mandatory.

[T]he application of mandatory periods under the IRR of RA 9184, such as the seven (7) calendar day and thirty (30) calendar day period mentioned in Section 34.8 thereof, must be complied with. Should the BAC decide to extend the same, it must show and provide compelling, sufficient, valid, reasonable, and justifiable cause for such extension. Such valid justification, however, will only free officials from penal sanction or liability, but not from applicable administrative and civil sanctions or liabilities under existing laws, rules and regulations.

How should the procurement of street signs or house plates purely finished products, with or without installation, be categorized?

It is the PE who is in the best position to determine the correct classification of its procurement based on its identified needs, guided by the parameters and conditions in the relevant provisions of RA 9184 and its IRR on what should be considered as goods, infrastructure project or consulting services procurement

Whether the LGU can still charge for the acquisition of Bidding Documents for Re-bidding.

[T]he PE can still charge for the acquisition of Bidding Documents in the second bidding to cover the cost and expenses for its development after the conduct of the mandatory review and evaluation. On the other hand, the PE may likewise decide to simply distribute the bidding documents for free.

Applicability of Retention Money to the procurement of goods, infrastructure projects, and consulting services; Sanction for refusal of Procuring Entity to release Retention Money.

Retention money is applicable only to Procurement of Goods and Infrastructure Projects, and may only be released to the contractors after satisfying the requirements of the IRR of RA 9184.

[R]efusal by the PE to release the retention money may be justified if all the conditions for its release are not fully met. However, unjust refusal to release the retention money when the required conditions are all present will subject the concerned official to applicable administrative and civil sanctions or liabilities under existing laws, rules and regulations.

Adjustment of Approved Budget for the Contract (ABC)

In the case of a failure of bidding, mandatory review and evaluation of the terms, conditions, and specifications in the bidding documents, including its cost estimates should be conducted by the BAC. Should the reason for the failed bidding be due to a low Approved Budget for the Contract (ABC), the BAC can adjust the ABC, subject to the required approvals and conduct of re-bidding with re-advertisement.