Direct Contracting

by shobe on Wed Mar 17, 2010 10:36 am

Hi guys. Hope some of you still remember me Smile

In light of the new IRR, can the after-sale services of a vehicle (previously procured through pubilc bidding by a GOCC) be procured through Direct Contracting (sub-item c)? It would have been a lot easier if the cost of the contract was Php 500,000.00 below as it can be appropriately procured through Nego Proc (small value), but the cost unfortunately is Php 560,000.00

I would have said No outright, however, im not sure if there's a new issuance, opinion or ruling relaxing somehow the interpretation of the Direct Contracting provision.

SOS! affraid

My GOP procurement knowledge is getting rusty hahaha.

PS
Glad to see so many new posters in this forum. Months ago, there were just around 6-7 top posters Cool

by Ligaw na Binatog on Wed Mar 17, 2010 3:34 pm

Justify the condition na sold by an exclusive dealer ang item to be procured. otherwise be prepared with several complaints against your BAC po.

by Niwram on Wed Mar 17, 2010 3:43 pm

shobe wrote:
Hi guys. Hope some of you still remember me

In light of the new IRR, can the after-sale services of a vehicle (previously procured through pubilc bidding by a GOCC) be procured through Direct Contracting (sub-item c)? It would have been a lot easier if the cost of the contract was Php 500,000.00 below as it can be appropriately procured through Nego Proc (small value), but the cost unfortunately is Php 560,000.00

I would have said No outright, however, im not sure if there's a new issuance, opinion or ruling relaxing somehow the interpretation of the Direct Contracting provision.

SOS!
My GOP procurement knowledge is getting rusty hahaha.

PS
Glad to see so many new posters in this forum. Months ago, there were just around 6-7 top posters

If you can justify that the dealer has no sub dealer or he is the exclusive dealer then you can use direct contracting..

by charlie brown on Wed Mar 17, 2010 6:01 pm

shobe wrote:
Hi guys. Hope some of you still remember me

In light of the new IRR, can the after-sale services of a vehicle (previously procured through pubilc bidding by a GOCC) be procured through Direct Contracting (sub-item c)? It would have been a lot easier if the cost of the contract was Php 500,000.00 below as it can be appropriately procured through Nego Proc (small value), but the cost unfortunately is Php 560,000.00

I would have said No outright, however, im not sure if there's a new issuance, opinion or ruling relaxing somehow the interpretation of the Direct Contracting provision.

SOS!
My GOP procurement knowledge is getting rusty hahaha.

PS
Glad to see so many new posters in this forum. Months ago, there were just around 6-7 top posters

Hi shobe,

i think you need to spcify what kind of after sales you are referring to. if these are spareparts of the particular car you would still need to see that there are no ohter dealer or sub-dealers offering the same. this is not probable since most spareparts have numerious dealers espcially in big cities. But even if there are no other dealer for that particular item we still need to satisfy section 23.5.1.2 d) of the IRR. this would mean that we need to open up the procurement to foreign bidders and only after it is determined that there are none or no foreign bidder is interested can be go to direct contracting under section 50. c)

by sunriser431 on Wed Mar 17, 2010 10:14 pm

shobe wrote:
Hi guys. Hope some of you still remember me

In light of the new IRR, can the after-sale services of a vehicle (previously procured through pubilc bidding by a GOCC) be procured through Direct Contracting (sub-item c)? It would have been a lot easier if the cost of the contract was Php 500,000.00 below as it can be appropriately procured through Nego Proc (small value), but the cost unfortunately is Php 560,000.00

I would have said No outright, however, im not sure if there's a new issuance, opinion or ruling relaxing somehow the interpretation of the Direct Contracting provision.

SOS!
My GOP procurement knowledge is getting rusty hahaha.

PS
Glad to see so many new posters in this forum. Months ago, there were just around 6-7 top posters

Hi shobe welcome back, try this link http://www.gppb.gov.ph/opinions/view_opinion.asp?o_id=483

by shobe on Thu Mar 18, 2010 2:51 pm

Thanks for the responses.

Hi Sunriser431. Thanks for the link.

I note that the TSO opined that "Notwithstanding the foregoing, Section 50 (c) of RA 9184 and its IRR-A expressly qualifies an "exclusive dealer" as one which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the government."

If the GOCC cannot prove that said supplier is the sole dealer but it can prove the latter requirement, i.e, there is no other dealer with a more advantageous offer...will this sufficiently now justify GOCC's resort to Direct Contracting? Question

Thanks, thanks.

by Niwram on Thu Mar 18, 2010 2:59 pm

If you can prove it with proper documentation then you can resort to direct contracting.

by RDV @ GPPPI on Sun Mar 21, 2010 9:14 am

shobe wrote:
Hi guys. Hope some of you still remember me

In light of the new IRR, can the after-sale services of a vehicle (previously procured through pubilc bidding by a GOCC) be procured through Direct Contracting (sub-item c)? It would have been a lot easier if the cost of the contract was Php 500,000.00 below as it can be appropriately procured through Nego Proc (small value), but the cost unfortunately is Php 560,000.00

I would have said No outright, however, im not sure if there's a new issuance, opinion or ruling relaxing somehow the interpretation of the Direct Contracting provision.

SOS!
My GOP procurement knowledge is getting rusty hahaha.

PS
Glad to see so many new posters in this forum. Months ago, there were just around 6-7 top posters

Hi, atty. shobe. Long time no hear. I miss the posts of a good lawyer like you in this forum. Welcome back Very Happy

Let me just add to the other replies to your posts. I was out of the office for the whole week which prohibited me from being updated of the posts. One week lang naman ako nawala, unlike you, kaya I don't think anybody misses me, my posts I mean. cheers

Under Sec. 50(b) of the revised IRR, another situation in which DC may be resorted to is "When the procurement of critical components from a specific supplier is a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of its contract." That quoted provision is already an amendment under GPPB Res. 11-2009 of the revised IRR.

Why is there a more recent amendment to the revised IRR provision? The original phrase in the revised IRR which is also carried over from IRR-A is: "procurement of critical plant components". I think the amendment was necessary considering that adjectival description "plant" has limited the application of the provision and there are other components which are also critical but are not "plant components".

Therefore, due to the deletion of the word "plant", even components of cars (like spare parts) could fall under this category, so long as those car parts are considered: (1) critical components; and (2) procurement of those components from a specific supplier is a condition precedent to guarantee its performance, under the contract.

If those conditions are present, and if justified and recommended by the BAC and approved by the HOPE, I think DC can be possible as an option.

RDV @ GPPPI

by shobe on Tue Mar 23, 2010 11:02 am

Thanks Sir RDV Very Happy

I'm glad to be back, hope we can have more post exchanges here in the forum like the old times.

by Ligaw na Binatog on Tue Mar 23, 2010 1:08 pm

Don`t worry sir na miss kita. Embarassed

by fe a. araya on Wed Mar 24, 2010 4:29 pm

Is the invitation for a resource speaker/lecturer to a training/workshop for a fee for each day of said training falls under direct contracting or limited source bidding?

As I understand, Direct contracting is for Goods while Limited Source Bidding is for goods and consulting. What if the end-user thru the HOPE has already identified/invited an individual consultant and has sign the contract already, what particular alternative mode will apply. When the end-user submitted the vouchers for obligation of the professional fee, the Budget Officer required a BAC REsolution for reasons that it involves procurement of the services of a service provider or consultant, hence should pass the BAC for issuance of a BAC Resolution.

Am at a loss. Pls help

by RDV @ GPPPI on Wed Mar 24, 2010 5:08 pm

fe a. araya wrote:Is the invitation for a resource speaker/lecturer to a training/workshop for a fee for each day of said training falls under direct contracting or limited source bidding?

As I understand, Direct contracting is for Goods while Limited Source Bidding is for goods and consulting. What if the end-user thru the HOPE has already identified/invited an individual consultant and has sign the contract already, what particular alternative mode will apply. When the end-user submitted the vouchers for obligation of the professional fee, the Budget Officer required a BAC REsolution for reasons that it involves procurement of the services of a service provider or consultant, hence should pass the BAC for issuance of a BAC Resolution.

Am at a loss. Pls help

Maybe it could fall under Negotiated Procurement - Highly Technical Consultants (Sec. 53.7, IRR).

by sunriser431 on Wed Mar 24, 2010 10:37 pm

will this circular be of help?
For complete text click this link http://www.dbm.gov.ph/issuance/issuance/bc_2007-1/bc_page1.pdf

by engrjhez® on Fri Mar 26, 2010 12:59 pm

shobe wrote:Thanks Sir RDV

I'm glad to be back, hope we can have more post exchanges here in the forum like the old times.

Pritong Kandule wrote:Don`t worry sir na miss kita.

Naku WormaixJr., girl po c Atty.Shobe. Very Happy

by Ligaw na Binatog on Fri Mar 26, 2010 1:37 pm

Para kay Sir RDV un e kasi sabi nya "I don't think anybody misses me, my posts I mean. " cheers

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