LDRRM purchases through Small Value Procurement
7. Purchases totaling at least ₱548,234.00 were charged to the LDRRMF through
Negotiated Procurement–Small Value Procurement, bypassing competitive bidding,
without justifying the need for this alternative procurement method and without
meeting the required posting, contrary to the relevant provisions of the Revised IRR
of RA No. 9184, thus, failing to ensure economy, efficiency, and the most
advantageous prices.
7.1 Section 10, Rule IV of the Revised Implementing Rules and Regulations (IRR) of
Republic Act (RA) No. 9184 states that, “All procurement shall be done through
competitive bidding, except as provided in Rule XVI of this IRR.” (Underscoring
ours.)
7.2 Further, Section 48.1 of the same IRR provides, “Subject to the prior approval of the
HoPE, and whenever justified by the conditions provided in this Act, the Procuring
Entity may, in order to promote economy and efficiency, resort to any of the
alternative methods of procurement provided in this Rule. In all instances, the
Procuring Entity shall ensure that the most advantageous price for the Government is
obtained.”
7.3 Furthermore, Section 48.2 of the IRR provides that “In accordance with Section 10 of
this IRR, as a general rule, the Procuring Entities shall adopt competitive bidding as
the general method of procurement and shall see to it that the procurement program
allows sufficient lead time for such competitive bidding. Alternative methods of
procurement shall be resorted to only in highly exceptional cases provided for
in this Rule.” (Emphasis supplied.)
7.4 Among the alternative modes of procurement is negotiated procurement. Under
Section 53 of the IRR, “Negotiated Procurement is a method of procurement of
Goods, Infrastructure Projects and Consulting services, whereby the Procuring
Entity directly negotiates a contract with a technically, legally and financially
capable supplier, contractor or consultant in any of the following cases:
53.9 Small Value Procurement. Procurement of Goods, Infrastructure
Projects and Consulting Services, where the amount involved does not
exceed the threshold prescribed in Annex “H” of this IRR: Provided,
That in case of Goods, the procurement does not fall under shopping in
Section 52 of this IRR.”
7.5 The threshold for small value procurement in the case of a fourth-class Municipality
is ₱100,000.00, as prescribed in Annex “H” of the IRR.
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