Requesting Entity: Good Governance Books
Issues Concern: Exclusive Distributorship
Whether the immediate resort to Direct Contracting in the procurement of books authored by a particular author is justified by the fact that they are published and distributed by an exclusive distributor.
[T]he Procuring Entity must justify the necessity for an item that may only be procured through Direct Contracting, and it must be able to prove that there is no suitable substitute in the market that can be obtained at more advantageous terms. It is only after the BAC has conducted its survey and determined that one of the conditions under Section 50 of RA 9184 is present that proper recommendation to the HOPE for the use of Direct Contracting may be made.
Based on the foregoing, the fact alone that Good Governance Books is the publisher and exclusive distributor of all the books authored by a particular author does not sanction the immediate resort to procurement through Direct Contracting, in lieu of Competitive Bidding. Under the rules, the PE must first justify the necessity for purchasing the copyrighted books, and must be able to prove that there is no suitable substitute in the market that can be obtained at more advantageous terms, before the PE may decide to procure through Direct Contracting.