NPM No. 130-2015
Requesting Entity: Polytechnic University of the Philippines (PUP)
Issues Concern: Procurement By Lot
Whether a quotation submitted by a supplier may be accepted if it exceeds the budget of an individual item if such quotation does not exceed the Approved Budget for the Contract (ABC) of a contract procured through Small Value Procurement under Section 53.9 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184
In the identification of lots to be included in the Request for Quotation (RFQ), the Procuring Entity (PE) may opt to group several items into one package consisting of several lots, and award the contract per lot; in which case, the ABC shall be based on the budget for each lot that will be awarded separately. In this wise, quotations shall be evaluated per lot, such that any price offer that exceeds the ABC for a particular lot shall be disqualified for that respective lot. However, the same bidder may be awarded other lots where it is found to have submitted the lowest calculated and responsive quotation.
On the other hand, the PE may group several items into a single lot and award the same as one contract. In such case, the sum of the respective budgets or ABCs for the items aggregated into one lot becomes the ABC for such lot. Thus, bids that exceed the ABC for the lot shall be disqualified per Section 31 of RA 9184 and its IRR. Bids or quotations that are within the ABC, regardless if the price offered for other items in the lot exceeds their respective ABC per item, may be considered for award if proven to be the lowest calculated and responsive quotation among all other quotations.
In Small Value Procurement, it must be emphasized that the ABC, grouping of items; forming of lots; and, the allowance for a bidder to make an offer per item or per lot, shall be based on the RFQ provided to the suppliers.