"Bona fide" Suppliers, Suppliers in "good standing, or "known qualifications"

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"Bona fide" Suppliers, Suppliers in "good standing, or "known qualifications" Empty "Bona fide" Suppliers, Suppliers in "good standing, or "known qualifications"

Post by RDV @ GP3i on Tue Feb 24, 2009 6:49 pm

I suggest that the quoted terms used in the IRR should be adequately defined, not just "loosely" defined.

There are still questions on whether they are also required to pass eligibility check, including registration in the PhilGEPS?
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Post by engrjhez® on Thu Feb 26, 2009 7:27 pm

I would like to suggest the following definitions:

Bona fide suppliers - have been awarded and completed a contract, under competitive bidding, with the procuring entity at least one (1) year from the acceptance of first procurement;

Suppliers in good standing - have been awarded and completed at least three (3) contracts, with at least one (1) through competitive bidding, and with no pending liabilities within the same procuring entity;

Known qualifications - have passed through eligibility check (as to completeness of the legal, technical, and financial documents) and post-qualification check (in ascertaining and validating the presented documents) with the procuring entity concerned;

Subject for everyone's refute Shocked Very Happy
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Post by RDV @ GP3i on Fri Feb 27, 2009 4:55 pm

Section 52. Shopping
Shopping is a method of procurement of goods whereby the procuring entity simply requests for the submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be procured directly from suppliers of known qualifications. This method of procurement shall be employed only in any of the following cases:

b) Procurement of ordinary or regular office supplies and equipment not available in the Procurement Service involving an amount not exceeding Two Hundred Fifty Thousand Pesos (P250,000) [GOP study: increase to P1M]: Provided, however, That the procurement does not result in splitting of contracts, as provided in Section 54.1 of this IRR: Provided, further, That at least three (3) price quotations from bona fide suppliers shall be obtained
.

Negotiated Procurement
Sec. 54.2
b) For item (a) of Section 53, the procuring entity shall draw up a list of at least three (3) suppliers, contractors, or consultants in good standing which will be invited to submit bids and negotiate with the bidder who submitted the lowest calculated bid or highest rated bid, whichever is applicable

h) With respect to item (h) of Section 53 of this IRR, the procuring entity shall draw up a list of at least three (3) suppliers, contractors or consultants of known qualifications which will be invited to submit proposals, in case of goods and infrastructure projects, or curriculum vitae, in case of consulting services.


Given the usage of the terms in the IRR, and the proposed definitions of engrjhez (which would, by inference, include registration in the PhilGEPS), how will it affect your procurement?
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Post by shobe on Mon Mar 23, 2009 3:13 pm

RDV wrote:I suggest that the quoted terms used in the IRR should be adequately defined, not just "loosely" defined.

There are still questions on whether they are also required to pass eligibility check, including registration in the PhilGEPS?


Hi Sir RDV. I have to agree that these terms cause a lot of confusion and may even be used according to the need of the agency, but not necessarily according to the intent of the legislators. Here are some of my suggested definitions:


Good Standing

• Circular 03-2006, issued by the GPPB relative to the interpretation of 54.2(b) provides:

“A supplier, contractor or consultant is considered in good standing if it, she, he has not committed any breach of contract (e.g. short deliveries, unreasonable delays in the delivery of goods or prosecution of works, delivery or completion of defective goods or works, must not have incurred a negative slippage, or similar acts) in any previous transactions with the procuring entity and any other government entity.”

• I think the GPPB has already accurately defined (according to my standards Very Happy ) the foregoing term, hence there is no more need to come up with another definition.


Bona Fide Suppliers

[Latin, In good faith.] Honest; genuine; actual; authentic; acting without the intention of defrauding.

A bona fide purchaser is one who purchases property for a valuable consideration that is inducement for entering into a contract and without suspicion of being defrauded or deceived by the seller. He or she has no notice of any defects of the title. A bona fide purchaser pays in good faith full value for the property and, without any fraud, goes into possession.


• A bona fide supplier (in my opinion) is one who should have been able to comply with the legal eligibility requirements, to wit (as proposed in the draft IRR):

Arrow Department of Trade and Industry (DTI) business name registration or SEC registration certificate or Cooperative Development Authority (CDA) certificate of registration, whichever may be appropriate under existing laws of the Philippines;

Arrow Valid and current Mayor’s permit issued by the city or municipality where the principal place of business of the prospective bidder is located;


As regards the definition of term “suppliers of known qualification”, it is my view that the term can interchangeably be used with “bona fide suppliers”, considering that the same has been used in the alternative methods of Shopping (Section 52) and Small Value Procurement (Section 54.h), where of primordial consideration is the amount of the acquisition. It is then my view that the satisfaction of the foregoing requirements will be sufficient to justify procurement from the said supplier or contractor.

For consultants, however, a copy of an issued license/clearance from their respective discipline would have to be a requirement.


PS
I reserve my comments on the Phil-GEPS requirement muna sir. Rolling Eyes
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Post by RDV @ GP3i on Tue Mar 24, 2009 1:05 pm

shobe wrote:Hi Sir RDV. I have to agree that these terms cause a lot of confusion and may even be used according to the need of the agency, but not necessarily according to the intent of the legislators.

That is what I am afraid of, atty shobe. These terms have been used interchangeably, but there are still basic questions as to the eligibility requirements, such as PhilGEPS registration. If a procuring entity buys from SM store or NBS, for example, using the mode of Shopping or Negotiated Procurement, will they require/inquire from SM or NBS if they are registered with the PhilGEPS? Those are some of the questions often asked.
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Post by engrjhez® on Tue Mar 24, 2009 1:34 pm

Another thing: suppose we have included SM or NBS (in the case mentioned by RDV) in the list of suppliers to be invited for shopping or negotiated procurement, will they respond? (surely not)We could however make a purchase from them anyway. But does it follow, that they be awarded a contract when we knew the fact that some dealers, especially at Divisoria, the most legal store can provide a much lower price than those establishments.

(No offense meant for SM or NBS, for discussion purposes only) Very Happy cherry
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Post by RDV @ GP3i on Tue Mar 24, 2009 1:58 pm

engrjhez wrote:Another thing: suppose we have included SM or NBS (in the case mentioned by RDV) in the list of suppliers to be invited for shopping or negotiated procurement, will they respond? (surely not)We could however make a purchase from them anyway. But does it follow, that they be awarded a contract when we knew the fact that some dealers, especially at Divisoria, the most legal store can provide a much lower price than those establishments.

(No offense meant for SM or NBS, for discussion purposes only) Very Happy cherry

In the case of Shopping where there is 'unforeseen contingency' requiring immediate purchase, you are allowed not to make a canvass of the lowest price provided it does not exceed P50,000 and you procure the goods from "suppliers of known qualifications." Therefore, some of us buy from SM or NBS, because we see them as such "suppiers of known qualifications."
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Post by engrjhez® on Tue Mar 24, 2009 10:23 pm

RDV wrote:
shobe wrote:Hi Sir RDV. I have to agree that these terms cause a lot of confusion and may even be used according to the need of the agency, but not necessarily according to the intent of the legislators.

That is what I am afraid of, atty shobe. These terms have been used interchangeably, but there are still basic questions as to the eligibility requirements, such as PhilGEPS registration. If a procuring entity buys from SM store or NBS, for example, using the mode of Shopping or Negotiated Procurement, will they require/inquire from SM or NBS if they are registered with the PhilGEPS? Those are some of the questions often asked.
Had this inquiry been resolved by the GPPB? I believe this is currently a "discretionary" fact to most (or every) procurement agency.
scratch
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Post by RDV @ GP3i on Wed Mar 25, 2009 1:14 pm

engrjhez wrote:Had this inquiry been resolved by the GPPB? I believe this is currently a "discretionary" fact to most (or every) procurement agency.
scratch[/color]

I don't think the issue has been clearly resolved, that is why, currently, it has been "discretionary" for most procuring entities. I am hoping that it would be clarified for the benefit of procuring entities and the COA.

For example, for unforeseen contingency requiring immediate purchase (Sec. 52.a), there is no need for at least 3 price quotations, but in some procuring entities, their COA auditors would still require at least 3 canvass. Because of the different interpretations, the procuring entities are forced to come up with the canvass even after the goods have already been procured. Wink
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