2004-07-26

NPM 099-2004

Requesting Entity: Bangko Sentral ng Pilipinas

Issues Concern: Queries on Republic Act No. 9184 (R.A. 9184) and its Implementing Rules and Regulations Part A (IRR-A)

 

Details

1. Whether or not the BSP may create separate and additional Bids and Awards Committees (BACs) to handle projects falling under the category of (a) infrastructure projects and (b) non-infrastructure projects.

Based on the aforequoted provision (Section 11.1, IRR-A, R.A. 9184), the BSP through its head may create separate BACs provided that the number and complexity of the items to be procured by such agency requires the need for multiple or separate BACs. In fact, the creation of separate BACs by BSP for infrastructure projects and non-infrastructure projects may be validly considered as “creation of BACs according to nature of procurement,” which is expressly allowed under the aforecited provision.


2. Whether or not in procurement through Shopping, the procurement procedures may be undertaken by an office/unit other than the BAC after its recommendation to the head of the procuring entity that such method of procurement should be used for the project to be procured.

Under Section 12.1 of the IRR-A of R.A. 9184, one of the responsibilities entrusted to the BAC is to recommend the award of contracts to the head of the procuring entity or his duly authorized representative. However, this responsibility is performed by the BAC in cases where the agency procures through competitive bidding or under the alternative methods of procurement where public bidding procedures are required to be adopted, such as Limited Source Bidding under Section 49 of the IRR-A of R.A. 9184, and Negotiated Procurement under Section 53 (a) and (b) of the same rules.

On the other hand, with respect to those alternative methods of procurement where public bidding procedures are not prescribed to be undertaken, such as, Direct Contracting, Repeat Order and Shopping, under Sections 50, 51 and 52 of the IRR-A of R.A. 9184, respectively, we are of the opinion that there is no need for the BAC to perform such function.

As such, on the second issue raised, we agree with the position of the BSP that the duty of the BAC to recommend award of contract to the head of the procuring entity in their procurement through Shopping may be dispensed with or may be undertaken by another office or unit such as the end-user unit.

Be that as it may, it must be noted that such alternative methods of procurement should be resorted to only upon recommendation of the BAC to the head of the procuring entity that such method should be adopted and upon determination that any of the exceptional circumstances mentioned in the IRR-A of R.A. 9184 justifying the use of such alternative methods of procurement is present.