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Splitting in Small Value Procurement

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Splitting in Small Value Procurement

Post by olrac_tm on Wed Mar 26, 2014 11:43 am

Hello to all,

may i ask the forum if there is splitting in small value procurement? one example is procurement of T-Shirt, the award for the procurement of T-Shirt has been concluded this march with an amount of P270,000.00, and thereafter, a request to conduct procurement of T-Shirt with same specification but with a budget of P180,000.00? is there a splitting in this procurement transaction? thanks
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Male Number of posts : 27
Company/Agency : DENR-EMB
Occupation/Designation : Procurement Officer
Registration date : 2009-10-22

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Re: Splitting in Small Value Procurement

Post by Jovinal on Sat Apr 12, 2014 3:47 pm


Section 54. Terms and Conditions for the use of Alternative Methods

54.1. Splitting of Government Contracts is not allowed. Splitting of Government Contracts
means the division or breaking up of GOP contracts into smaller quantities and
amounts, or dividing contract implementation into artificial phases or sub-contracts
for the purpose of evading or circumventing the requirements of law and this IRR,
especially the necessity of public bidding and the requirements for the alternative
methods of procurement.
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Re: Splitting in Small Value Procurement

Post by regina avelino on Mon Apr 14, 2014 11:47 am

After PPMPs have been consolidated into APP, the procuring entity would be able to determine if public bidding would be applicable for a particular consolidated project. The default mode is public bidding, however procuring entity may opt to adopt alternative mode of procurement if the requirement/conditions are present as allowed by pertinent law.

Based on the example above, the total was P450,000.00 already, in which case, SVP may be allowed as indicated in the ppmp/app and allowed under existing rule and regulation. However, what if there is a third project which are identical in nature with the two previous project and the total would go up to more than P500,000.00, the threshold? Then there would be splitting for breaking up the projects into phases and circumvent public bidding.

Prospectively, the consolidation of ppmp to app would somehow guide us whether we can adopt public bidding or alternative mode of procurement in consideration with pertinent rules and regulations such as threshold, conditions allowing alternative mode, etc.

regina avelino
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Re: Splitting in Small Value Procurement

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