Thursday, April 19, 2007

GPPB Guidelines on procurement of water and other utilities.

To address the predicament of many procuring entities on the proper mode of procurement for public utility services, the GPPB has issued Resolution No. 019-2006.

The said Resolution recognizes that the provision of certain public utility services like water, electricity, telecommunications, and internet are vital to the success and continuity of government operations, and that procurement of these services if done through public bidding would not be advantageous. Instead, the GPPB prescribes the following:

Water and Electricity - service providers are granted exclusive franchises to operate within the specific territory therefore, procurement shall be done through direct contracting.

Landline, Cellular Phones and Internet - For existing lines/connections: Contracts entered into with telcos shall be respected. But at the end of each year, an assessment as to the range and quality of services and charges shall be made and if the result of such assessment continues to favor the existing service provider, a renewal of contract can be allowed. If it does not, said services shall be bid out if there is more than one provider, or by direct contracting if there is only one provider. For additional lines, repeat order may be resorted subject to Section 51(c) of the IRR-A.

For new lines or connections - competitive public bidding if there is more than one service provider; if there is only one, direct contracting can be resorted to.

The Resolution while issued on December 6, 2006, shall take effect on April 24, 2007.

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