11.2.3.5 Further, certain contracts were not issued with an NTP, nor was
there any supporting documentation to confirm their issuance. The
absence of an NTP raises concerns about the proper execution and
commencement of the awarded contracts, potentially affecting
project timelines and deliverables. Additionally, one contract
valued at ₱1,910,000.00 was initially awarded to an incorrect
supplier due to an error in the procurement process. However,
upon review of the NOA posting in PhilGEPS, we found that the
erroneous contract was subsequently canceled, and the NOA was
properly issued and received by the rightful supplier. This incident
highlights lapses in procurement controls, emphasizing the need
for stricter verification measures to prevent similar occurrences.
11.3 In view of the foregoing deficiencies, the integrity of the procurement process was
compromised. Incurring delays and committing various lapses in the procurement
procedures may have created potential inefficiencies and additional costs to the
government.
11.4 We recommended and the BAC agreed to strictly observe the prescribed bid
validity period or, if necessary, secure the bidder’s written concurrence for an
extension before the bid validity expires, in accordance with the New
Government Procurement Act.
11.5 We also recommended and BAC also agreed to henceforth ensure that the
conduct of bidding, specifically the Negotiated Procurement – Two Failed
Biddings, is within the prescribed period under Sec. 4.1.1 of the GPPB
Circular No. 2016-05, otherwise, request an extension of 30 days upon
approval of the HoPE.
11.6 Lastly, we recommended and BAC agreed to evaluate and address bottlenecks
that cause delays in the procurement process, including the posting of NOAs
and NTPs, to prevent the recurrence of expired bid validity issues and
enhance transparency in government procurement, in accordance with the
provisions of RA No. 9184, as amended by RA No. 12009.
11.7 The BAC Chairperson guaranteed the audit team that the identified gaps in the
procurement process have already been addressed by the BAC. While these
conditions existed, the City Mayor, along with the BAC Chairperson, assured that
the Committee was diligent in mitigating any financial risks associated with these
gaps. Furthermore, regarding the late posting of the NOA and the failure to post
the NTP within the reglementary period, the City Mayor and the BAC Chairperson
confirmed that these issues have been resolved.
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