GPPB issues guidelines on procurement during election period

The election fever is heating up and has not only occupied politicians and the electorate but procurement activities as well. Of late, we have received various queries on how to go about the conduct of bidding or other alternative mode of procurement for the duration of the election period.

To help procurement officials, this is what I have gathered from the GPPB website. Resolution No. 01-2007 dated 23 February 2007, but published in the web site only last March 28th, prescribes the guidelines on the conduct of procurement activities from March 30 to May 14, 2007 (the election ban). The Resolution, in effect, reconciles and clarifies COMELEC Resolution No. 7707 (prohibited activities during the election period) with the provisions of RA 9184. In summary:

Reminder: Election ban is not designed to paralyze the operations of the government but to insulate government procurement from political partisan activities, usually in the form of new projects, which are designed to influence the public during the elections.

In general: Procuring entities can go on with the procurement whether public bidding or alternative mode (posting/advertising, pre-bid conference, bid opening, post qualification) but cannot issue the Notice of Award for the duration of the election ban (March 30, 2007 until May 14, 2007. This holds true for procurement of public works, social projects and housing-related projects.

What are allowed: The GPPB Resolution also clarifies that complete procurement activities is allowed for:

- Maintenance work involving maintenance of existing and/or completed public works projects;
- Contract entered into or awarded either through public bidding or negotiated procurement, provided it is reported to the COMELEC;
- Preparatory works like payment of preparation cost for drawings, bill of materials, etc. including purchase of materials and other incidental expenses;
- Calamity involving restoration of damaged facilities;
- Ongoing projects both locally funded and foreign-assisted that has commenced before March 30, 2007, provided this was reported to the COMELEC;
- Routine and normal expenses; and
- Expenses covered by COMELEC exemption

For better understanding, the subject Resolution can be downloaded here.

Regional Procurement Depot soon to open in Iloilo City

Upon instruction of DBM Secretary Rolando G. Andaya, Jr., preparations are underway to finally establish a regional procurement depot here in Iloilo City.

Assistant Secretary Eduardo Opida, Chairman of the Inter-Agency Bids and Awards Committee (IABAC) together with Procurement Service Executive Director Estanislao Granados came over last week to inspect the would-be office and warehouse of the depot, and also to orient the Regional Inter-Agency Bids and Awards Committee (R-IABAC). The R-IABAC which composed of the regional offices of the DBM (Chair), DTI, BLGF and DILG; and two private sector observers - is tasked to conduct the bidding of locally produced supplies and common used items that will be sold by the depot.

Timetable for the opening of the depot is between April and May. If this materializes, Region VI will be the only region with two (2) procurement depots: the pilot provincial depot in Bacolod City co-managed by the provincial government of Negros Occidental and the PS; and the soon-to-be opened depot here in Iloilo City under the DBM Regional Office VI. Abangan!

Resolving Identical Bid price

Here's a peculiar issue raised by a participant in one of our trainings: "What should the BAC do if two (2) bidders offered the same bid price?"

The commonly suggested solution is to split the contract equally among the bidders who offered identical bid proposal. Not likely. I did some research on this and luckily stumbled upon an opinion of the GPPB, PM 002-2005 way back in August 2005.

The GPPB suggested the use of drawing of lots similar to the provision of Section 240 of Batas Pambansa Bilang 881 (Omnibus Election Code). It justifies that the situation addressed is "analogous to a case of tie in the bidding process. Applying the foregoing principle in the case of breaking a tie, the use of any non-discretionary/non-discriminatory tie-breaking procedure seems to be an acceptable approach towards resolving such issue, considering that the real intent of R.A. 9184 is to eliminate all forms of discretion in bid evaluation on the part of the BAC, and that every bidder who passed the post-qualification stage is as much a LCRB as the others; hence, equally eligible and qualified".

So procurement officials, be guided.

GPM Roll-out and GPRA Updates sked for March

With the training of procurement officials of barangays in the province of Iloilo almost done, the Regional Composite Team will next reach out to the barangays in the other provinces of Panay and Guimaras. Schedule of the trainings is as follows:

March 8-9 - Provinces of Capiz and Guimaras (1st batch)
March 15-16 - Province of Capiz (2nd batch)
March 22-23 - Province of Aklan
March 27-28 - Province of Antique (1st batch)
March 29-30 - Province of Antique (2nd batch)

The trainings will be held in Punta Villa except for Antique where the MBO Association has requested to have the CAP Auditorium in San Jose as the venue.

Voluntary suspension of Trainings during Election period.

The decision of whether to suspend or continue with the conduct of GPRA trainings during the election period is left at the discretion of the Composite Team and SUCs trainors.

In a Memorandum dated 21 February 2007, the Executive Director conveyed to the trainors the policy of the GPPB to "allow the voluntary suspension of trainings during election period, if said trainings will be used as venues for holding of political caucuses, meetings, rallies in support of or against any electoral candidate". The suspension, if the trainors so decide shall cover the period from March 30, 2007 to may 15, 2007. On the other hand, trainors in the region who opt to continue with their scheduled trainings should take additional safeguards in order that they may not be accused of engaging in any form of partisan political activity.

In the region, there are three groups of trainors accredited by the GPPB: the Regional Composite Team composed of DILG, DBM, COA and PHILLBO which caters to LGUs, and WVSU and UP Visayas which are assigned to train NGA and GOCCs procurement officials. As early as October last year, the trainors commenced the series of trainings on the roll-out of the Generic Procurement Manuals and Updates on GPRA Issuances. In as far as the Composite Team is concerned the trainings are scheduled every Thursday and Friday in Punta Villa Resort, Iloilo City.

Procurement of Second-hand vehicles allowed by GPRA.

The Government Procurement Policy Board (GPPB) has recently issued an opinion declaring that the procurement of second hand or reconditioned motor vehicle is not prohibited by R.A. No. 9184, the Government Procurement Reform Act(GPRA).

In a letter dated 15 December 2006, GPPB Executive Director Ruby U. Alvarez opined that "procurement of second-hand vehicles is not prohibited by R.A. 9184. It is the procurement of second-hand vehicle through an auction that is prohibited by R.A. 9184." The same opinion is reiterated under GPPB's Non-Policy Matter Opinion No. 33-2006 dated 27 December 2006.

Said opinion further states that procurement of second-hand vehicle must follow the procedures prescribed in the GPRA and its IRR-A.

Procurement Updates for Barangays resumes.

The Regional Composite Trainors Team will resume the conduct of seminar updates on procurement rules for barangays on the following dates:

January 25-26, 2007
February 8-9, 2007
February 15-16, 2007
February 22-23, 2007

Invited participants are Punong Barangays, Chairmen and Secretariats of the Bids and Awards Committee (BAC) of barangays in the Province of Iloilo. This seminar-updates started in December 2006, and so far only about 250 barangays were covered for a total of 893 trainess. Venue of the seminar is at Punta Villa Resort, Iloilo City.