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Shopping and Small Value Procurement

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Shopping and Small Value Procurement

Post by salao on Thu Oct 04, 2012 5:32 pm

This has reference to GPPB resolution No. 2009-09, which is the guidelines for shopping and small value procurement under section 2 (c) thjat states "where the decision to resort to shopping and small value procurement has been made, the conduct thereof may be delegated to the appropriate bureau, committee, or support unit duly authorized by the bids and award committee".
On the matter, may I be clarified of the following:
1. Do we need a quorum among the members of the bureau/support unit/committee? If needed how many members must be present when procurement activities are conducted like RFQ opening?
2. Can the HOPE designate staff other than those assigned in the BAC-SEC and property supply management to be part of the support unit/committee?


Hoping to solicit clarification on the above matter. Please help.
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Re: Shopping and Small Value Procurement

Post by jcolas on Fri Oct 05, 2012 10:47 am

I would like to start by stating that after the decision has been made by the HOPE that the PE can resort to Shopping or SVP, the appropriate bureau, committee, or support unit duly authorized by the BAC which to me is the BAC Secretariat should conduct immediately the procurement under the above cited method..

On your first question, which concerns quorum during the opening of RFQ, I believe that quorum should be present. Remember that an Abstract should be prepared after the opening of the RFQ and that all BAC members present during the opening should affix their signature. As a matter of fact, we do not open RFQ, when their is no quorum.

On your second question, you are implying that their should be a separate committee that should be formed by the HOPE to undertake this mode of procurement which I do not adhere to.
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Re: Shopping and Small Value Procurement

Post by salao on Fri Oct 05, 2012 4:56 pm

I would like to thank you for this shared inputs. Sir, I would like to further be cleared on the provision under GPPB resolution No. 2009-09 about the word "COMMITTEE" stated therein, particularly under Procedural Guidelines 3 (c) . Does this refer only to the BAC-SEC or the Supply and property unit of an agency?
May I also inquire the signatory on the RQFs when the authority to procure under shopping and SVP is delegated. Thanks
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Re: Shopping and Small Value Procurement

Post by jcolas on Sat Oct 06, 2012 9:28 am

On your first question, I firmly believe that the "Committee/bureau or support unit as used in the GPPB Res. 09-2009 refers to the BAC Secretariat. If I may walk you through page 11 of Volume I (Guidelines on the Establishment of Procurement Systems and Organizations) of the Generic Procurement Manual under the topic on The Organizational Structure, it states, and I quote: "The Head of the Procuring Entity should create a permanent BAC Secretariat and, for this purpose, it has the discretion to create a new office or to merely designate an existing organic office to be the BAC Secretariat. With respect to the latter case the Head of the Procuring Entity may consider designating the existing Procurement Unit/Office as the BAC Secretariat, because this office is best equipped for the task...The term “Procurement Unit” shall refer to the organic office of the Procuring Entity that carries out the procurement function". Now Sir, my question is, which organic office in your region does the procurement function? I am certain, you will answer me, it is the Supply Office. Am I right ,Sir? Now if only the HOPE followed the Organizational Structure as envisioned under Volume One of the Generic Procurement Manual, then this apparent overlapping of functions might have been avoided. I hope that in a way I have clarified some of your doubts. On your second question, It should be the BAC Chair who shall sign the RFQ. When the resolution authorized that committee or whoever it is that is authorized, to conduct the procurement using Shopping of readily available off-the-shelf goods, or ordinary/regular equipment under Section 52.1and Small Value Procurement of goods, infrastructure projects, and
consulting services under Section 53.9 of the IRR, it did not, I am sure, include the signing of documents to be used in the said procurement, as this function legally rest on the Bids and Awards Committee. I hope I made it clearer, sir.
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Re: Shopping and Small Value Procurement

Post by salao on Mon Oct 08, 2012 12:06 pm

thank you sir for the clarifications. On your query as to what office do the procurement, please be informed that it is the BAC-SEC. However the delivery of procured goods is done by the Supply and Property section which later will be coordinated to the inspection committee.
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Re: Shopping and Small Value Procurement

Post by gilbien.acosta on Wed Oct 17, 2012 4:36 pm

I would like to ask if an agency like ours whose procurement is of small value and could only be done through shopping, was required by our resident auditor that BAC resolution recommending justification for the use of shopping as alternative mode of procurement be attached to our every procurement transaction. Is it a basic documentary requirement, considering that for the whole life of our procuring entity we have been using shopping only as our mode of procurement due to the small amount involved? Is there a need for a BAC resolution justifying the mode of procurement still? If so, could anybody out there who could send me a sample format of such document? Greatly appreciate any reply you may have of my queries and positive response on my request. Thank you so much for the time and space. Smile

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Re: Shopping and Small Value Procurement

Post by regina avelino on Wed Oct 17, 2012 5:48 pm

you don't need to support/attach BAC resolution recommending justification to use shopping as alternative mode of procurement EVERYTIME you make you procurement through shopping. Please note that at the start of every period you prepare you ppmp/app in which you already identify the mode of procurement for your needs. If you indicate already the mode of procurement such as shopping for a particular project/item to be procured during the period, say for the year, and it is approved by your HOPE, then it is enough. You only require BAC resolution to resort to alternative mode of procurement if the original mode is different from that approved in the PPMP/APP.

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Re: Shopping and Small Value Procurement

Post by gilbien.acosta on Wed Oct 17, 2012 6:08 pm

regina avelino wrote:you don't need to support/attach BAC resolution recommending justification to use shopping as alternative mode of procurement EVERYTIME you make you procurement through shopping. Please note that at the start of every period you prepare you ppmp/app in which you already identify the mode of procurement for your needs. If you indicate already the mode of procurement such as shopping for a particular project/item to be procured during the period, say for the year, and it is approved by your HOPE, then it is enough. You only require BAC resolution to resort to alternative mode of procurement if the original mode is different from that approved in the PPMP/APP.

Thank you so much for that info, I'm pretty much clarified on the issue. I just hope our resident auditor will be clarified/convinced as well.

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Re: Shopping and Small Value Procurement

Post by regina avelino on Thu Oct 18, 2012 9:31 am

please let him/her read section 48.3 of the irr of ra9184.

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Re: Shopping and Small Value Procurement

Post by vtpelias on Thu Nov 15, 2012 12:18 pm

I would like to make a query on the method of small value procurement.
What should we do next if no one responded/submitted its bid after 2 postings?
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Re: Shopping and Small Value Procurement

Post by jcolas on Sat Nov 17, 2012 10:56 am

"vtpelias wrote"
I would like to make a query on the method of small value procurement.
What should we do next if no one responded/submitted its bid after 2 postings?


Res. 09-2009 is silent on what should the PE do after two failed postings but I believe, the PE, is justified at this point, to canvass the items manually as the need for the items is fast approaching. The trick is to prepare the RFQ earlier or a month before the time the end-user needs the items.
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Re: Shopping and Small Value Procurement

Post by ajac on Fri Jan 03, 2014 9:17 pm

regina avelino wrote:you don't need to support/attach BAC resolution recommending justification to use shopping as alternative mode of procurement EVERYTIME you make you procurement through shopping.  Please note that at the start of every period you prepare you ppmp/app in which you already identify the mode of procurement for your needs.  If you indicate already the mode of procurement such as shopping for a particular project/item to be procured during the period, say for the year, and it is approved by your HOPE, then it is enough.  You only require BAC resolution to resort to alternative mode of procurement if the original mode is different from that approved in the PPMP/APP.

Our internal audit service (IAS) also require us to submit resolution justifying why we are resorting to shopping as our mode of procurement of goods. They said that we cannot immediately proceed to shopping or svp because as per Section 48.2 ... as a general rule, the PE shall adopt public bidding as the general mode of procurement. They told us one example of resorting to shopping is if there will be 2 failed biddings. Please enlighten us if indeed a violation on resorting to shopping immediately! Pls help us in citing sample justifications in resorting to shopping immediately without going through public bidding as this will take so much time in procuring goods.

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Re: Shopping and Small Value Procurement

Post by attywaws on Mon Jan 06, 2014 1:21 pm

There was no violation in outright resorting to Shopping Mode of Procurement as long as it does not violate the general guidelines under GPPB Resolution No. 09-2009, that is, that such mode of procurement is reflected in the APP, the threshold amount does not exceed that which is prescribed and that there should be no splitting of contracts. However, it will not hurt if you are going to make a GENERAL RESOLUTION justifying resort to Shopping Mode of Procurement as reflected in your APP. In fact, this is what we did as we attached all Resolutions which are general in nature in our APP.
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Re: Shopping and Small Value Procurement

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