2017-02-10

NPM No. 002-2017

Requesting Entity: Land Registration Authority (LRA)

Issues Concern: Change in Procurement

 

Details

Whether the procurement action taken by LRA in changing its procurement from purchase to modernization is allowed under the procurement law and its associated rules.


At the outset, we would like to clarify that the Government Procurement Policy Board (GPPB) and its Technical Support Office (TSO) render policy and non-policy opinions, respectively, on issues purely pertaining to the interpretation and application of procurement laws, rules and regulations. Moreover, we adhere to the position that we cannot, nor any other agency, authority, or official, encroach upon or interfere with the exercise of the functions of the Head of the Procuring Entity (HOPE) and the Bids and Awards Committee (BAC), since these duties and responsibilities fall solely within the ambit of their authority and discretion. In this regard, we shall limit our discussion on the interpretation of relevant procurement rules and regulations pertinent to the issues presented.


Pursuant to Sections 35.2 and 35.3 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184, whenever a failure of bidding has occurred, the Procuring Entity (PE) is required to conduct a mandatory review of the terms, conditions, and specifications in the bidding documents, including its cost estimates. Based on the findings during the mandatory review, the procuring entity may revise and agree on a new set of technical specifications; and, if necessary, may adjust the amount of the Approved Budget for the Contract (ABC), subject to the required approvals under the IRR.


In sum, during the conduct of the mandatory review, the specifications provided for in the first failed bidding may be revised, and the PE may agree on a new scope of work or specifications, and adjust the ABC, if necessary, for the second competitive bidding or a more applicable alternative method of procurement, subject to the required approvals under existing budgeting, accounting and auditing rules.