2004-04-12

NPM 049-2004

Requesting Entity: Government Service Insurance System

Issues Concern: Audit Observation Memorandum No. 2003-01 dated May 19, 2003 Relative to the Audit of Government Service Insurance System for Calendar 2003

 

Details

Whether or not the designation of Vice-Presidents of the GSIS as Chairpersons of its Bids and Awards Committees (BAC), specifically the Physical Resourcesí BAC (PRBAC) and the Information Technology BAC (ITBAC), conform with Republic Act No. 9184 (R.A. 9184) and its Implementing Rules and Regulations Part A (IRR-A).

We have observed that the GSIS has opted to adopt the multi-BAC structure, considering that the GSIS procurement functions are spread out to lower level or decentralized offices, known as the functional groups. Consequently, under this arrangement, there shall be a variation in the BAC composition, considering that the ranking of officials for such purpose would be different from procuring entities adopting the single BAC structure.

Applying the aforequoted provision (Section 5(j), IRR-A) to the GSIS BAC structure, the Senior Vice-Presidents, which are the top-ranking officials in functional groups or decentralized units performing procurement functions through its separate BACs shall be treated as the head of such procuring entities. Accordingly, in this set-up, the Vice-Presidents for such functional groups, which are regarded as second ranking permanent official thereof, are qualified to be appointed as the Chairpersons of its separate BACs, since the minimum requirement set forth by the IRR-A is that the Chairman of the BAC should be at least a third ranking official of the procuring entity. Thus, we sustain the view of the Legal and Adjudication Office of the Commission on Audit that the appointment of the Vice-Presidents of the Physical Services Groups and Business Application System Services of the GSIS as Chairpersons of its PBAC and ITBAC meets the minimum requirements provided for under Section 11.2.1 of the IRR-A of R.A. 9184.