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PRocurement on gasoline

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PRocurement on gasoline

Post by magmarlofil on Mon Nov 14, 2011 5:58 pm

I just want to clarify as regards the procurement of gasoline in our office. What will be the most advantageous method to be done in the procurement thereof.
This is the scenario: In our office, they cash advance for the gasoline whenever they on travel and go to the gasoline station with credit line access for a full tank of RPV. As pertains to the credit line what the office has been doing is, they are forging a memorandum of agreement (MOA) with that gasoline station which is renewable yearly. I advised them to go the usual procurement such as floating RFQs to identify the LCB,etc. What their predicament is what ABC to put since the price is fluctuating. Your advise on this matter is very much appreciated.

Thank you.


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Re: PRocurement on gasoline

Post by Jovinal on Wed Dec 14, 2011 1:34 am

I think there is no legal bases on the Memorandum of Agreement with gasoline station because it was not based on Procurement Process. The ABC is based on the amount of Purchase Request every time your purchase and the appropriate mode is shopping.
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Re: PRocurement on gasoline

Post by accounting on Thu Dec 15, 2011 1:58 pm

As long as the procurement of gasoline is in the APP, the MOA with gasoline station is legal. Though the prices of gasoline fluctuates as long as the total procured gasoline do not exceed the amount ABC or in the APP. everytime you make payment with the gasoline station, the needed procurement documents must be present starting from the PR to PO and BAC resolution. the only variable for this is the number of liters procured but it should not exceed the cieling in a certain procurement method.
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Re: PRocurement on gasoline

Post by Jovinal on Tue Dec 27, 2011 1:51 pm

I think the MOA with gasoline station is illegal even the procurement of gasoline is in the APP, because with the MOA to a particular gasoline station ,the essence of competitiveness is no longer exit.
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Re: PRocurement on gasoline

Post by Jovinal on Tue Dec 27, 2011 1:52 pm

I think the MOA with gasoline station is illegal even the procurement of gasoline is in the APP, because with the MOA to a particular gasoline station ,the essence of competitiveness is no longer exist.
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Re: PRocurement on gasoline

Post by alpha1 on Tue Dec 27, 2011 2:06 pm

Jovinal wrote:I think the MOA with gasoline station is illegal even the procurement of gasoline is in the APP, because with the MOA to a particular gasoline station ,the essence of competitiveness is no longer exist.
What if gasoline stations does not want to received any RFQ, what will the agency do. In our case we also enter a MOA with a certain gasoline station because no GS wants to make a price quotation with GOL as the prices are always fluctuating.
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Re: PRocurement on gasoline

Post by Jovinal on Tue Dec 27, 2011 2:48 pm

That is why I suggest that the Procurement of Gasoline and Diesel should be direct contracting Mode, because the prices of Gasoline and Diesel are controlled by the Government ,the GPPB resolution No. 11-2007 on Index Based Pricing for gasoline is of no help.
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Re: PRocurement on gasoline

Post by alpha1 on Tue Dec 27, 2011 3:41 pm

Maybe that is a good suggestion that GPPB-TSO should look into.
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Re: PRocurement on gasoline

Post by njimenez on Mon Feb 20, 2012 10:43 pm

A MOA with any supplier is illegal in the sense that it deviates from the principle of competitiveness which is the main principle of RA 9184. It restricts other suppliers from participating in a competitive bidding process. A fluctuating price cannot be used as a reason of not following standard bidding process since a supplier considered as the LCRB is bound to the contract/P.O. issued by the procuring entity including the price they have bid.

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Re: PRocurement on gasoline

Post by sunriser431 on Tue Feb 21, 2012 10:46 pm

magmarlofil wrote:I just want to clarify as regards the procurement of gasoline in our office. What will be the most advantageous method to be done in the procurement thereof.This is the scenario: In our office, they cash advance for the gasoline whenever they on travel and go to the gasoline station with credit line access for a full tank of RPV. As pertains to the credit line what the office has been doing is, they are forging a memorandum of agreement (MOA) with that gasoline station which is renewable yearly. I advised them to go the usual procurement such as floating RFQs to identify the LCB,etc. What their predicament is what ABC to put since the price is fluctuating. Your advise on this matter is very much appreciated.
Thank you.
The general mode of procurement would be as always Public bidding. You may also use the Fleet cards for control purposes. Follow the LINK ,for us GOCCs we been using the Fleet cards methods and its been successful. bounce
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Re: PRocurement on gasoline

Post by Recks1925 on Wed Feb 22, 2012 10:55 am

Utilizing fleet card is the same as having credit line (w/o card) in a gasoline station. We also used fleet card once or twice but our transport div prefered to monitor the fuel purchase order on a per refueling basis. It really worked just fine, very convenient and less the hassle.
About the MOA in GS, if the essence of competiveness is being questioned, canvassing stations in the area and contracting with gasoline station that offers the best price per liter (at the time of canvass), discounts or added services will solve that issue.
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Re: PRocurement on gasoline

Post by sunriser431 on Wed Feb 22, 2012 1:32 pm

The use of Fleet card still pass thru the process of Public bidding, with the methods adopted in procuring the fuel, oils and lubricants, for sure it will attract suppliers/ dealers. For us GOCCs it works just fine. bounce
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Re: PRocurement on gasoline

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