Procurement of Goods under Shopping and Small Value Procurement

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Procurement of Goods under Shopping and Small Value Procurement Empty Procurement of Goods under Shopping and Small Value Procurement

Post by kim_wd on Wed Apr 24, 2013 11:11 am

Good day to everyone!
Previously, our office is used to resorting to Shopping whenever the total ABC is P500,00 and below especially when it is on the Procurement of Goods. But with the advent of Small Value Procurement (SVP), this made us confused as to what type of goods fall under shopping and what type falls under SVP. Can you please tell us the difference?

We are aware though that repairs and maintenance, janitorial, security and other services fall under SVP. Please enlighten us.
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Procurement of Goods under Shopping and Small Value Procurement Empty Re: Procurement of Goods under Shopping and Small Value Procurement

Post by engrjhez® on Wed Apr 24, 2013 12:06 pm

kim_wd wrote:Good day to everyone!
Previously, our office is used to resorting to Shopping whenever the total ABC is P500,00 and below especially when it is on the Procurement of Goods. But with the advent of Small Value Procurement (SVP), this made us confused as to what type of goods fall under shopping and what type falls under SVP. Can you please tell us the difference?

We are aware though that repairs and maintenance, janitorial, security and other services fall under SVP. Please enlighten us.

I remember you asked the same question last February 15, 2010 in this link>>> http://gppb.forumotion.com/t671-shopping-and-small-value-procurement?highlight=shopping+small+value . You may find my answer there.

I would also like to quote RDV's answer in http://gppb.forumotion.com/t397-small-value-procurement?highlight=shopping+small+value where I myself had a misconception of the two (Shopping and SVP) after the effectivity of the revised IRR:

RDV @ GP3i wrote:First, you look at the following conditions for Shopping (under Sec. 52.1.b), whether these conditions for the materials you are going to procure, aside from the amount not exceeding P500,000, are going to be met:

1. The materials you are going to procure can be considered as "ordinary or regular office supplies"
2. It is not available in the Procurement Service;

If those conditions could not be met, then you can consider procuring these materials under the Small Value Procurement.

Hope it clarified matters.
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Procurement of Goods under Shopping and Small Value Procurement Empty Re: Procurement of Goods under Shopping and Small Value Procurement

Post by kim_wd on Wed Apr 24, 2013 2:24 pm

Yes, I did post a similar question but it was about the difference between shopping and svp.

My question now is the classification of goods when procured through shopping and goods purchased through svp.

Okay, I'll put it this way: let's say we want to purchase a certain laboratory equipment worth P300k. Will it be purchased thru SVP? Also, if we have a requirement of P190k worth of chemical reagents for the whole year, can we purchase it thru shopping? The laboratory apparatus is not a commonly used/regular office supply, not found in the DBM but used in our day-to-day operation. As for the chemical reagents, these are commonly used materials in our laboratory for testing the quality of water. These are not found in the DBM and used in our day-to-day operations?

Comments please...
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Procurement of Goods under Shopping and Small Value Procurement Empty Re: Procurement of Goods under Shopping and Small Value Procurement

Post by engrjhez® on Wed Apr 24, 2013 4:18 pm

kim_wd wrote:Yes, I did post a similar question but it was about the difference between shopping and svp.

My question now is the classification of goods when procured through shopping and goods purchased through svp.

Okay, I'll put it this way: let's say we want to purchase a certain laboratory equipment worth P300k. Will it be purchased thru SVP? Also, if we have a requirement of P190k worth of chemical reagents for the whole year, can we purchase it thru shopping? The laboratory apparatus is not a commonly used/regular office supply, not found in the DBM but used in our day-to-day operation. As for the chemical reagents, these are commonly used materials in our laboratory for testing the quality of water. These are not found in the DBM and used in our day-to-day operations?

Comments please...

You may refer to GPPB Opinion No. NPM 023-2012 copy pasted below:

Number : NPM 023-2010
Subject : Definition of Ordinary or Regular Office Supplies
Date : 2010-07-07
Requesting Entity : Southern Leyte State University - Tomas Oppus
Issues Concern : Definition of Ordinary or Regular Office Supplies
Details : Whether all kinds of office supplies and equipments, such as chairs, tables, computer/information technology accessories may be considered ordinary or regular office supplies which can be purchase through shopping.

“Ordinary or regular office supplies” is defined under Section 52.1 of the IRR as supplies, commodities, or materials, which, depending on the procuring entity’s mandate and nature of operations, are necessary in the transaction of its official business and consumed in the day-to-day operations of the procuring entity.

Section 2 of RA 9261 prescribes the general mandate of Southern Leyte State University: It is to primarily provide advance education, higher technological professional instruction and training in trade, fisheries, agriculture, forestry, science, education, commerce, engineering and related courses. It shall also undertake research and extension services, and provide progressive leadership in these areas of specialization.

From the foregoing, it is our considered opinion that chairs, tables, and computers may be considered ordinary or regular office equipment of Southern Leyte State University. Being an educational institution, we believe that these equipment are necessary in the transaction of its official businesses and used in its day-to-day operations.
Based on your statement, it appears that laboratory equipment and chemical reagent may be considered fit under the definition of "ordinary office supplies and equipment".

Copy of GPPB Resolution No. 12-2006 may also be downloaded from HERE.
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