Latest topics
» PhilGEPS Issuance of Certificate of Registration for New Suppliers
Today at 3:55 pm by vicong_grandcorp

» BIDBULLETIN
Yesterday at 9:15 am by zeph03

» QUERY ABOUT PHILGEPS PENDING TASK
Yesterday at 9:14 am by zeph03

» Additional Member of TWG
Thu May 24, 2018 5:26 pm by Gracy0527

» Postponement of a Schedule Bidding
Thu May 24, 2018 10:35 am by alvsvb6

» Post in PhilGEPS
Thu May 24, 2018 10:21 am by richel2015

» WITNESS for the Procuring Entity in the Contraxt Agreement
Tue May 22, 2018 8:26 pm by amilan2018

» forgotten password of email address
Tue May 22, 2018 4:56 pm by leafranee

» PUBLIC AUCTION
Tue May 22, 2018 8:14 am by ford15

» PARTIAL PAYMENT OF WORKS UNDER SMALL VALUE PROCUREMENT
Thu May 17, 2018 4:50 pm by amilan2018


IS THERE A VIOLATION OF "SPLITTING"?

Go down

IS THERE A VIOLATION OF "SPLITTING"?

Post by von_lexus on Tue Sep 22, 2009 9:55 am

We will procure construction materials intended for the repair of our building, are we allowed to split the materials by lot, for example:
a. Hardware materials
b. Electrical materials
c. Plumbing materials

Is there a violation of Splitting?
avatar
von_lexus
New Member
New Member

Male Number of posts : 6
Company/Agency : PNP
Occupation/Designation : clerk
Registration date : 2009-07-21

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by amang'65 on Tue Sep 22, 2009 10:31 am

I guess so, because everything falls under construction supply.
avatar
amang'65
Valued Contributor
Valued Contributor

Female Number of posts : 282
Company/Agency : City of Baguio
Occupation/Designation : sekretarya
Registration date : 2009-09-19

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by RDV @ GP3i on Tue Sep 22, 2009 11:07 am

von_lexus wrote:We will procure construction materials intended for the repair of our building, are we allowed to split the materials by lot, for example:
a. Hardware materials
b. Electrical materials
c. Plumbing materials

Is there a violation of Splitting?

Is your question: Can you bid by lot? (Let us not use the word "split" as in "splitting of contracts" which is not allowed.)

It seems that the materials you are procuring are all construction materials, and I don't see any reason why you would bid these items by lot rather than one complete bid. You normally bid items by lot because items are unrelated that a prospective bidder may not carry all the items to be able to submit a complete bid; hence, you do it by lot. That way, you avoid failure of bidding because the general rule in bid submission is that "a bid must be complete."

If you are dividing the items by lot, not for purposes of conducting public bidding, but because you want to procure using any of the alternative methods of procurement and procuring by lot would allow the procuring entity not to exceed the threshold (particularly for Shopping and Small Value Procurement), then, definitely, it is considered as "splitting of contracts" which is not allowed under RA 9184 and its IRR (Sec. 54.1).
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by sunriser431 on Tue Sep 22, 2009 1:38 pm

von_lexus wrote:We will procure construction materials intended for the repair of our building, are we allowed to split the materials by lot, for example:
a. Hardware materials
b. Electrical materials
c. Plumbing materials

Is there a violation of Splitting?
To make it easier for us to understand the definition of Splitting.
Prohibition against spliting of Reqisitions, Purchase, Letters, and Payment.
Spliting in its literal sense is deviding or breaking up into separate parts or portions or an act, which results in fissure, rupture, and breach. It is often resorted in order to avoid, or circumvent conrtrol measures promulgated by the government, more especially, the review by higher officials of transactions of operating units.

Forms of Splitting consist of:
1. Requisitions- non consolidation of requisitions for one or more items needed at or about the same time by the requisitioner
2. Purchase orders (PO)- issuance of 2 or more POs based on 2 or more requisitions for the same or about the same time by different requisitioners
3. Payment- making 2 or more payments for one or more items involving one PO.
Hope this might help.
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by von_lexus on Tue Sep 22, 2009 1:48 pm

thank you sirs,
Amang1965,
RDV,
Sunriser431
avatar
von_lexus
New Member
New Member

Male Number of posts : 6
Company/Agency : PNP
Occupation/Designation : clerk
Registration date : 2009-07-21

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by sunriser431 on Tue Sep 22, 2009 1:58 pm

von_lexus wrote:thank you sirs,
Amang1965,
RDV,
Sunriser431
Likewise, Hope we'll hear more from you in this forum. Smile
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by RDV @ GP3i on Tue Sep 22, 2009 3:51 pm

sunriser431 wrote:
von_lexus wrote:We will procure construction materials intended for the repair of our building, are we allowed to split the materials by lot, for example:
a. Hardware materials
b. Electrical materials
c. Plumbing materials

Is there a violation of Splitting?
To make it easier for us to understand the definition of Splitting.
Prohibition against spliting of Reqisitions, Purchase, Letters, and Payment.
Spliting in its literal sense is deviding or breaking up into separate parts or portions or an act, which results in fissure, rupture, and breach. It is often resorted in order to avoid, or circumvent conrtrol measures promulgated by the government, more especially, the review by higher officials of transactions of operating units.

Forms of Splitting consist of:
1. Requisitions- non consolidation of requisitions for one or more items needed at or about the same time by the requisitioner
2. Purchase orders (PO)- issuance of 2 or more POs based on 2 or more requisitions for the same or about the same time by different requisitioners
3. Payment- making 2 or more payments for one or more items involving one PO.
Hope this might help.

As used in the IRR, Splitting of Contracts is defined under Sec. 54.1, to wit:\

"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."
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by neestrevencion on Wed Sep 23, 2009 12:53 pm

good day!

and may i add, a. Hardware materials; b. Electrical materials; c. Plumbing materials are under the category of constructions / hardware supplies.
as i understand splitting, it is per category or classification of the item/project being requested regardless of where/how the item/s will be used or what office or who the requisitioner is Very Happy
avatar
neestrevencion
New Member
New Member

Female Number of posts : 46
Company/Agency : Senate of the Philippines
Occupation/Designation : Legislative Staff Assistant II
Registration date : 2009-09-10

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by engrjhez® on Thu Sep 24, 2009 1:04 pm

The most easiest way to look at it is : we try to imagine different items to be available from one supplier/contactor.

In the above case, hardware, electrical, and plumbing materials can be readily (off the shelf) be available from hardware and construction supplies store. Hence, they may and must be grouped together.

On the other hand, medicines and medical supplies, although both are related, cannot be ordinarily grouped together because not all suppliers of medicine provides medical equipment and vice-versa. Very Happy
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2482
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by amang'65 on Fri Sep 25, 2009 2:43 pm

von_lexus wrote:We will procure construction materials intended for the repair of our building, are we allowed to split the materials by lot, for example:
a. Hardware materials
b. Electrical materials
c. Plumbing materials

Is there a violation of Splitting?


von_lexus:

i am greatly sorry for my earlier reply, i not could ascertain whether there is splitting or not because you did not mention the whole picture of the repair project. how about the labor component? there could be a lot of scenario in this project of yours, however, assuming that you purely intend to procure construction materials, i believe there would be no splitting if you merely identified the materials as hardware, electrical, plumbing in one single pruchase request and then went on with your procurement procedure (depende kung anong method) as a whole construction materials. but if you prepared separate PRs in accordance to how you categorized them purposely for one single project, which is repair of building and then procured them on separate manner, then definitely there is spitting. ibang storya na naman kung straight contract ang gusto ninyo sa repair project (provision of labor and materials).
avatar
amang'65
Valued Contributor
Valued Contributor

Female Number of posts : 282
Company/Agency : City of Baguio
Occupation/Designation : sekretarya
Registration date : 2009-09-19

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by jinki_224 on Tue Jun 14, 2011 3:41 pm

gud pm..tanong ko lang po if it can be called splitting. kase po we are about to purchase biometrics na originally 3 units lang, then there was an available fund pa pala so they requested for another 2 units which is charged to a different fund.. first request amounts to 60K+ and the other PR amounts to 40K+, since this are same items and same purchasing office, pwede po bang pgsamahin na lang sa isang resolution to recommend SVP for the purchase of these items and total the amount for both PRs
avatar
jinki_224
Active Poster
Active Poster

Female Number of posts : 87
Company/Agency : Marinduque State College
Occupation/Designation : BAC Secretariat
Registration date : 2011-03-04

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by marriola on Wed Jun 15, 2011 11:00 am

hola! buenas dias everyone,
may we be clarified on the above example.
will there be a violation of "splitting" when we decide to have it procured through public bidding?
muchisimas gracias!
avatar
marriola
New Member
New Member

Male Number of posts : 23
Company/Agency : lgu zamboanga city
Occupation/Designation : bac member
Registration date : 2008-10-21

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by RDV @ GP3i on Wed Jun 15, 2011 1:05 pm

jinki_224 wrote:gud pm..tanong ko lang po if it can be called splitting. kase po we are about to purchase biometrics na originally 3 units lang, then there was an available fund pa pala so they requested for another 2 units which is charged to a different fund.. first request amounts to 60K+ and the other PR amounts to 40K+, since this are same items and same purchasing office, pwede po bang pgsamahin na lang sa isang resolution to recommend SVP for the purchase of these items and total the amount for both PRs

So long as the different funding sources are identified, I don't see any problem combining the procurement of the same items for the same end-user unit in one PR.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by RDV @ GP3i on Wed Jun 15, 2011 1:10 pm

marriola wrote:hola! buenas dias everyone,
may we be clarified on the above example.
will there be a violation of "splitting" when we decide to have it procured through public bidding?
muchisimas gracias!

If the procurement is still thru public biding, there could be no "splitting of contract" in the situation because, even if there is "splitting" it is not to avoid the requirement of public bidding. What is prohibited in splitting of contract is when the project is divided into smaller quantities or artificial phases in order to avoid the requirement of public bidding. But considering that the end result is still public bidding, then the element of avoidance of public bidding is not present to make it fall under "splitting of contract".
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by marriola on Thu Jun 16, 2011 3:36 pm

hola! buenas dias everyone,
thanks for the clarification RDV.
avatar
marriola
New Member
New Member

Male Number of posts : 23
Company/Agency : lgu zamboanga city
Occupation/Designation : bac member
Registration date : 2008-10-21

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by Dong S on Fri Jun 17, 2011 11:03 am

The Procuring Entity shall be guilty of violating "splitting" if and only if it tries to circumvent the process of procurement purposely to evade the necessity of competitive public bidding.

If i can have the liberty to elaborate further as we have similar case with VLexus? ....... ! We find it necessary to segrerate items from one single POW/PR to encourage more bidders to participate to the call for bids.

REasons:
1. There are only few suppliers who'd have broader scope of line of business that may make other trade of limited scope refrain from participating.
2. More specific project would rather appear to all potential supplier easy to understand......like; Fabrication of Grills, Hollowblocks..etc..etc.....it requires different permits!

Regards!


avatar
Dong S
New Member
New Member

Male Number of posts : 48
Company/Agency : LGU Nabunturan, Compostela Valley
Occupation/Designation : Administrative Officer II/Des -Head, BAC Secretariat
Registration date : 2010-10-27

http://www.ecomval.gov.ph\nabunturan

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by accounting on Tue Aug 16, 2011 5:03 pm

Please enlighten!. Is there an spliting if the whole ABC is charged to three different funds meaning we consumed first the budget in fund 1 then go to fund 2 and still defficient fund 3 covers. but the item is indivisible, there is only one item to be procured?
avatar
accounting
Active Poster
Active Poster

Male Number of posts : 84
Company/Agency : State Universities and Colleges
Occupation/Designation : Accountant III
Registration date : 2010-08-10

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by engrjhez® on Wed Aug 17, 2011 9:21 am

accounting wrote:Please enlighten!. Is there an spliting if the whole ABC is charged to three different funds meaning we consumed first the budget in fund 1 then go to fund 2 and still defficient fund 3 covers. but the item is indivisible, there is only one item to be procured?

If you are referring to the "splitting of contract", the example you gave is actually "splitting of budget" Very Happy .

Now seriously, you can actually procure it in one bidding even if the funds are sourced differently. You will only have to indicate in your bidding documents that:

1. the funding sources were are follows... fund1, fund2, fund3;
2. it is a "lumpsum" bidding (no grouping of lots) for contract award purposes;
3. in case advance payment is allowed, identify from which funding source will the payment be chargeable;

I think it is possible to issue one (1) ObR for 3 fundings (where applicable).
Smile

avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2482
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by accounting on Wed Aug 17, 2011 10:21 am

ok thank you very much. cheers
avatar
accounting
Active Poster
Active Poster

Male Number of posts : 84
Company/Agency : State Universities and Colleges
Occupation/Designation : Accountant III
Registration date : 2010-08-10

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by jaycielb on Tue Nov 29, 2011 3:34 pm

Please enlighten me with this scenario, a government agency is implementing a foreign funded irrgation project to be implemented by the National Irrigation Administration. The irrigation project was approved as one with tyhe following items of works, diversion structure(dam), canal and canal structures. However, when NIA prepared the procurement documents, the project was bidded out into two (2) projects
1. Diversion structure
2. Canal and canal structure

was there a violation of R.A. 9184 by the NIA? since the subject irrigation project was approved as one (1) project, however, it was bidded out into 2 packages. please reply

jaycielb
New Member
New Member

Male Number of posts : 4
Company/Agency : DA
Occupation/Designation : Engineer II
Registration date : 2011-11-16

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by engrjhez® on Tue Nov 29, 2011 3:41 pm

jaycielb wrote:Please enlighten me with this scenario, a government agency is implementing a foreign funded irrgation project to be implemented by the National Irrigation Administration. The irrigation project was approved as one with tyhe following items of works, diversion structure(dam), canal and canal structures. However, when NIA prepared the procurement documents, the project was bidded out into two (2) projects
1. Diversion structure
2. Canal and canal structure

was there a violation of R.A. 9184 by the NIA? since the subject irrigation project was approved as one (1) project, however, it was bidded out into 2 packages. please reply

Splitting, per se, is not a violation but splitting for the purposes of circumventing the process and by evading the requirements of public bidding is. Hence if the two are to be bidded out, no problem with that. Smile
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2482
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by jaycielb on Tue Nov 29, 2011 3:49 pm

there is an implication since they are circumventing the law to be able to have the project bidded out by the Provincial NIA since the project is beyong their authority meaning the project was approved say 10 million, that should be bidded out by the NIA-regional office. to be able to meet their authority they bidded the project into two. in addition, the computation of the indirect cost will affect if the project was packaged as they call it into to. since projects below 5M is 23-28% indirect cost however for 10M and above its only 19-23%

jaycielb
New Member
New Member

Male Number of posts : 4
Company/Agency : DA
Occupation/Designation : Engineer II
Registration date : 2011-11-16

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by engrjhez® on Tue Nov 29, 2011 4:00 pm

jaycielb wrote:there is an implication since they are circumventing the law to be able to have the project bidded out by the Provincial NIA since the project is beyong their authority meaning the project was approved say 10 million, that should be bidded out by the NIA-regional office. to be able to meet their authority they bidded the project into two. in addition, the computation of the indirect cost will affect if the project was packaged as they call it into to. since projects below 5M is 23-28% indirect cost however for 10M and above its only 19-23%

Are you sure that there is a circumvention of law as you elaborated? If yes, what law in particular is violated? To me, the brackets of amount for implementation as well as markup percentage both pertain to internal rules and does not pertain to any existing law or statute. Law is violated when you split the contract into smaller artificial segments so as not to conduct bidding, or not to publish in a newspaper of general nationwide circulation. But in as far as RA 9184 is concerned, I dont see any violation there. Smile
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2482
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by jaycielb on Tue Nov 29, 2011 4:10 pm

ah ok. we have projects that were package into 4. when variation oder is being requested we had difficulty in adopting which unit cost to follow. like in canalization wherein Sta. 0+000 to Sta. 5+000 which means its a 5kilometer canal. however, the NIA packaged the project such that 1 package is 0+000 to 1+250 another 1 is 0+125 to 2+500? is that a vilolation when it should have package the canalization as 1 package from 0+000 to 5+000

jaycielb
New Member
New Member

Male Number of posts : 4
Company/Agency : DA
Occupation/Designation : Engineer II
Registration date : 2011-11-16

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by jcolas on Tue Nov 29, 2011 6:34 pm

Under COA CIRCULAR NO. 76-41 July 30, 1976 the following is found:

Forms of Splitting:

1) Splitting of Requisitions consists in the non-consolidation of requisitions for one or more items needed at or about the same time by the requisitioner.

2) Splitting of Purchase Orders consists in the issuance of two or more purchase orders based on two or more requisitions for the same or at about the same time by different requisitioners; and

3) Splitting of Payments consists in making two or more payments for one or more items involving one purchase order.

This is for our reference...
avatar
jcolas
Board General
Board General

Male Number of posts : 517
Company/Agency : DepED RO 2
Occupation/Designation : Administrative Officer V
Registration date : 2009-07-02

Back to top Go down

Re: IS THERE A VIOLATION OF "SPLITTING"?

Post by Sponsored content


Sponsored content


Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum