Meta PixelAnnual Audit Report 2024 — City of Guihulngan — Page 79

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8.6 Section 37.2.3(c) of the revised IRR of RA No. 9184 provides that the winning
    bidder’s bid and technical specification proposal form part of the contract. The
    inclusion of these documents in the contract created an obligation on the part of
    the contractor to deliver the specific goods that it offered, specifically that the
    contract listed the drugs and medicines to be supplied.

8.7 The contract executed between the procuring entity (PE) and the winning bidder
    constitutes the law between the parties. Upon its perfection, both parties are legally
    bound to fulfill the terms expressly stipulated therein and to observe them in good
    faith. As the winning bidder’s offer forms an integral part of the contract, it is
    incumbent upon the bidder to deliver the specific items identified in its offer. This
    obligation must be carried out with faithful adherence to the terms and conditions
    of the contract entered into with the PE.

8.8 It bears emphasizing that the selection of the specific items to be offered rests
    entirely on the bidder’s independent determination. While the PE prescribes the
    technical specifications for the required items, the bidder retains full discretion to
    propose any specific brand, so long as it meets the stated specifications. It is the
    sole responsibility of the bidder to assess and satisfy itself—by whatever means it
    deems necessary or appropriate—regarding all matters relevant to the contract to
    be bid. This includes, but is not limited to, factors that may influence the cost,
    duration, execution, or overall implementation of the project.

8.9 Accordingly, it is the bidder’s obligation to ensure that the specific items it offers
    to the PE are readily available in the market and will remain available for at least
    the duration of the delivery period indicated in the contract. The risk of offering an
    item that may subsequently be discontinued or pulled from the market during the
    implementation of the contract is fully assumed by the bidder. Should such an
    event occur, the bidder shall bear full responsibility for any resulting consequences.

8.10 Further, it was noted that Azithromycin, 500 mg tablets were included in the
     delivered medicines amounting to ₱319,840.00 for 80 boxes by 3’s or a unit cost
     of ₱1,332.67. The brand name stated in the RFQ is Aziv 500/Cozith-S and actual
     delivery was Azithrom because according to the supplier the brand in the RFQ ran
     out of stocks. Price verification using the internet showed that prices of
     Azithromycin in December 2023 ranged from approximately ₱96.00 to ₱159.00.
     Moreover, the price of Azithrom as displayed by MedsGo Pharmacy is ₱60.00.

8.11 Based on the preceding paragraph, there was an overprice in the purchase of
     Azithromycin 500 mg tablets.

8.12 It was further observed that Azithromycin 500 mg tablets were among the
     medicines delivered, with a total cost of ₱319,840.00 for 80 boxes (each box
     containing 3 tablets), or a unit cost of ₱1,332.67. The brand name specified in the
     RFQ was Aziv 500/Cozith-S; however, the supplier delivered Azithrom, citing that
     the specified brand ran out of stock.

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