2004-06-11

NPM 081-2004

Requesting Entity: National Food Authority

Issues Concern: Request for Approval on the Use of Negotiated Procurement as an Alternative Method of Procurement

 

Details

Whether or not prior GPPB approval of the alternative method of procurement to be used in projects costing at least Three Hundred Million Pesos (P300,000,000.00) is necessary.

As mentioned above, GPPB approval on the use of a particular alternative method of procurement is not necessary. As provided in Section 48.1 in correlation with Section 12.1 of the IRR-A, the approval on the use of alternative method of procurement shall be that of the head of the procuring entity concerned upon recommendation of the BAC.

However, emphasis should be made that E.O. 109-A, which applies suppletorily, provides that before proceeding with the alternative method of procurement for projects costing at least three hundred million pesos (P300,000,000.00), a Government agency should first obtain an opinion from the Secretary of Justice that said Government contract falls within the exceptions from public bidding and an approval from the Director-General of the National Economic and Development Authority (NEDA) to proceed with a specific alternative method of procurement.

Based on the above-quoted provision, the request for approval on the use of alternative method of procurement should be lodged with NEDA until such time that the GPPB informs the former of its decision to exercise such authority. Please be informed that as of this date, no such decision has been made by the GPPB and communicated to NEDA.

In view of the foregoing, considering that there has not yet been any decision from the GPPB to exercise the authority to approve the use of alternative method of procurement for project costing at least Three Hundred Million Pesos (P300,000,000.00), the request of NFA for approval on the use of negotiated procurement as an alternative method of procurement in the importation of rice should be directed to NEDA in compliance with Section 4(a) of E.O. 109-A.