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consulting service or procurement of goods?

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consulting service or procurement of goods?

Post by nestrevencion on Mon Apr 16, 2012 10:43 am

which is which?

if procurement is combination of goods and services?
goods are IT equipment, services involved is the creation of a system and technology in the management of property/equipment from the start of inception or procurement till disposal or donation or end life of property/equipment.
thank you.
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Re: consulting service or procurement of goods?

Post by RDV @ GP3i on Mon Apr 16, 2012 1:00 pm

nestrevencion wrote:which is which?

if procurement is combination of goods and services?
goods are IT equipment, services involved is the creation of a system and technology in the management of property/equipment from the start of inception or procurement till disposal or donation or end life of property/equipment.
thank you.

(Oh, this could be the advice you were asking from me in your PM.)

For procurement projects, which is a mixed of, say goods and consulting services, let me refer you to the definition of terms, particularly that of the term Procurement, under Section 5(aa) of the IRR, as follows:

"Procurement. Refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by the procuring entity. In case of projects involving mixed procurements, the nature of the procurement, i.e., goods,
infrastructure projects, or consulting services, shall be determined based on the primary purpose of the contract. Procurement shall also include the lease of goods and real estate. With respect to real property, its procurement shall be governed by the provisions of R.A. 8974 and other applicable laws, rules and regulations."

So, for you to determine whether you are going to procure a project which is considered a mixed procurement, you will have to determine the primary purpose of the contract. If its primary purpose is system design, then you can procure the whole project as consulting services and you will adopt the rules and procedures for the procurement of consulting services, including that of the goods component of the project.

One other advice I could give you, is that, if you decide to procure the project as consulting services, you may allow for the sub-contracting of the goods component (particularly if the systems designer is not a supplier of goods but only of services), if the value of the goods is no more than 50% of the total contract cost.

I hope that this is the advice you were looking for.

Btw, welcome back to the forum nestrevencion.

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Re: consulting service or procurement of goods?

Post by sunriser431 on Mon Apr 16, 2012 9:29 pm

nestrevencion wrote:which is which?

if procurement is combination of goods and services?
goods are IT equipment, services involved is the creation of a system and technology in the management of property/equipment from the start of inception or procurement till disposal or donation or end life of property/equipment.
thank you.
excerpts taken from NPM 017-2010
xxxx. In case of mixed procurement, Section 5 (aa) of the IRR clearly states that the procuring entity may determine its nature, i.e., whether it is goods, infrastructure projects, or consulting services, based on the primary purpose of the contract. x x x

Furthermore, this office has recognized the role of the procuring entity to determine the nature of the procurement activity considering that it is in the best position to identify the primary purpose of the contract.


For information.
N.B. I believe the NGAS manual issued by COA and the minimum requirements for the IT equipment was already properly address( including your concern for the PPE management ), try to verify your COA resident auditor for guidance. The NGAS manual is likewise mandatory for use all govt. agencies including LGUs.
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Re: consulting service or procurement of goods?

Post by Jovinal on Mon Apr 16, 2012 11:43 pm

Creation of Application Software is not a consulting service, this is under goods, because we procure the computer system solution as a product to be used in the lgu operation.
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Re: consulting service or procurement of goods?

Post by RDV @ GP3i on Tue Apr 17, 2012 12:00 am

Jovinal wrote:Creation of Application Software is not a consulting service, this is under goods, because we procure the computer system solution as a product to be used in the lgu operation.

If you procure the application software as a finished product that is really procurement of goods, but when you are procuring services for the purpose of designing a system, then it could fall under consulting services.
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Re: consulting service or procurement of goods?

Post by nestrevencion on Tue Apr 17, 2012 5:01 pm

Thank you, RDV for your welcome!
Thank you too, jovinal!
Actually, the software application is not yet finished it needs to be conceptualized pa to suit our needs.
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Re: consulting service or procurement of goods?

Post by regina avelino on Tue Apr 17, 2012 5:33 pm

meron po palang Annex B, General Principles on Consulting Services, sa Revised Implementing Rules and Regulations of RA 9184. Section 6 provides the types of consulting services.

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Re: consulting service or procurement of goods?

Post by nestrevencion on Tue Apr 17, 2012 5:38 pm

thank you, ma'am regina!

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