2017-12-21

NPM No. 069-2017

Requesting Entity: BANGKO SENTRAL NG PILIPINAS (BSP)

Issues Concern: Procurement of Publication Service

 

Details

Whether the procurement of a publication service in a foreclosure sale should undergo the usual process of competitive bidding if the expense is capitalized as cost of the property in case the BSP is declared the winning bidder by the Court.


In this case, the foreclosure sale has to be advertised in compliance with the provisions of the Mortgage Law. It is our considered view that at the time of the advertisement of the foreclosure sale, BSP will have to shoulder the cost for the advertisement. Thus, regardless of the arrangement as to who ultimately bears the cost of advertisement when the foreclosure sale is completed, per requirement of the Mortgage Law, BSP is mandated to advertise the foreclosure sale; and in the process use its own funds to pay for the advertisement cost, as the foreclosure sale cannot commence without the opportunity being first published or advertised. For this reason, the procurement law and its associated rules shall apply in the procurement of the advertising services.


As regards the procurement modality, BSP may submit the advertisement opportunity to competitive bidding as the primary mode of procurement under Section 10 of RA 9184, and its 2016 IRR; or, adopt the appropriate alternative modalities of procurement, e.g., Negotiated Procurement under the Small Value Procurement modality sanctioned by Section 53.9 of the 2016 IRR, or Negotiated Procurement under the Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services modality embodied under Section 53.6 of the 2016 IRR of RA 9184.