2010-03-08

NPM 008-2010

Requesting Entity: Davao City Water District

Issues Concern: Repeat Order

 

Details

Clarification on the following:

1) Does the fact that there are still water meters to be delivered affect the requirement of the "need to replenish"?


It bears stressing that the determination of whether to engage in any of the alternative modes of procurement is vested on the procuring entity. Section 48.1 of the IRR clearly states that the procuring entity may, in order to promote economy and efficiency, resort to any of the alternative methods of procurement whenever justified by the conditions prescribed in the law and rules. Thus, while there is no precise definition of the phrase "need to replenish," it is sufficient that the procuring entity can justify and is prepared to be held accountable for its proposed resort to repeat order.

2) If we can proceed to use repeat order, under what price should we consider, P1,190 or P1,180?

One of the conditions prescribed for repeat order is that unit prices must be the same as or lower than those in the original contract, provided that such prices are still the most advantageous to the government after price verification. Considering that the 4th and 5th bidding resulted to a lower bid price, we thus advise the procuring entity to negotiate for a lower bid price (for instance, P1,180) that P1,190 or the price stated in the original contract.