2004-08-12

NPM 112-2004

Requesting Entity: Philippine International Convention Center

Issues Concern: Conduct of Bidding Prior to Approval of Budget for the Contract

 

Details

Whether or not budget estimates may be included in IAEBs instead of the approved budget for the contract in case the appropriate authority has not yet approved the budget for the contract to be bid.

The amount of the budget for the contract to be included in the IAEB ought to be that which has been duly approved by the appropriate authority, not mere budget estimates. Furthermore, Section 20.1 of the IRR-A provides that during the pre-procurement conference the readiness of the procurement, which includes a determination of the availability of appropriations and programmed budget for the contract at hand, shall be determined before proceeding with the procurement activity.

In fine, a procuring entity cannot replace the requirement for the information on the approved budget for the contract with mere budget estimates. Corollarily, only upon approval by the appropriate authority of the budget for the contract may a procuring entity commence with its procurement activity. As such, PICC cannot use budget estimates as replacement for the approved budget for the contract in the IAEB. It must first secure the approval of its Board of Directors of its annual budget for the succeeding year in order to proceed with the procurement of its general services contracts.