Can shopping be used as a an alternative method if there is no more time for a negotiated procurement?

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Can shopping be used as a an alternative method if there is no more time for a negotiated procurement?

Post by venom.0420 on Wed Mar 25, 2009 12:56 am

This usually happens in our organization. A project that was bidded twice and twice resulted to failures, according to RA 9184, could be procured under the alternative method of negotiated procurement. However, if there is no more time to procure the item using this method, can shopping be use instead? Further, if shopping is used, can the same bidders previously disqualified still participate?
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Re: Can shopping be used as a an alternative method if there is no more time for a negotiated procurement?

Post by engrjhez® on Wed Mar 25, 2009 12:12 pm

First of all, the use of "shopping" is guided with several conditions and restrictions. It must be used for procurement of regular office supplies only. There is also a price cap of P50,000.00 for unforeseen contingencies (in regular office supplies) which may be extended to P250,000 whenever the same is not available on Procurement Service (PS).

Provided all conditions of "shopping" are satisfied, your question if the same disqualified bidders may be used posed another question: Why are they disqualified on the first place? If disqualification is by virtue of ineligibility, then the condition "...to be procured directly from suppliers with known qualifications..." may not be satisfied or is subject to debate.

Very Happy
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Re: Can shopping be used as a an alternative method if there is no more time for a negotiated procurement?

Post by venom.0420 on Wed Mar 25, 2009 1:46 pm

engrjhez wrote:First of all, the use of "shopping" is guided with several conditions and restrictions. It must be used for procurement of regular office supplies only. There is also a price cap of P50,000.00 for unforeseen contingencies (in regular office supplies) which may be extended to P250,000 whenever the same is not available on Procurement Service (PS).

Provided all conditions of "shopping" are satisfied, your question if the same disqualified bidders may be used posed another question: Why are they disqualified on the first place? If disqualification is by virtue of ineligibility, then the condition "...to be procured directly from suppliers with known qualifications..." may not be satisfied or is subject to debate.

Very Happy

Hence, it is still possible for those previously disqualified bidders to participate in the alternative mode of procurement. I guess, the definition requested by sir RDV in his other post be addressed by GPPB asap.

What about sir the use of shopping instead of negotiated procurement after two failed biddings? Is the absence of adequate time to complete negotiated procurement be considered as an "unforeseen contingency'?

Thanks again!
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Re: Can shopping be used as a an alternative method if there is no more time for a negotiated procurement?

Post by engrjhez® on Wed Mar 25, 2009 2:37 pm

venom.0420 wrote:
What about sir the use of shopping instead of negotiated procurement after two failed biddings? Is the absence of adequate time to complete negotiated procurement be considered as an "unforeseen contingency'?

Thanks again!
I think the real question here is the adequacy of seven (7) days posting period prior to the completion of procurement. And the only way to waive the posting period is thru "shopping", right? But unfortunately, there are no "unforeseen contingency" provision under negotiated procurement. The only nearest thing is "when there is imminent danger to life and property..." - but still has to be posted for seven (7) days.

What I see possible, is to procure under negotiated procurement (provided the goods/services does not fall under the definitions of ordinary and regular office supplies) and proceed with the awarding right away. I have yet to see a prohibition on declaring the award prior to the end of posting period in case of Section 53. Very Happy

PS. We do not suggest that this be abused if ever possible. As a general rule, we always set the awarding date after the posting period to accommodate quotations even if the procurement process is almost done in between days. Very Happy
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Re: Can shopping be used as a an alternative method if there is no more time for a negotiated procurement?

Post by RDV @ GP3i on Wed Mar 25, 2009 3:26 pm

venom.0420 wrote:
What about sir the use of shopping instead of negotiated procurement after two failed biddings? Is the absence of adequate time to complete negotiated procurement be considered as an "unforeseen contingency'?

Maybe the BAC could consider two successive failed biddings as "unforeseen contingency" which could justify its recommendation to procure by means of Shopping, but remember there are two main limitations in Shopping which are not there in Negotiation Procurement (Sec. 53.a), such as:

1. Applicability. Shopping (under Sec. 52.a) is applicable for the procurement of Goods (ordinary or regular office supplies and equipment) only, while Negotiated Procurement (under Sec. 53.a) can be utilized for Goods, Infra and Consulting Services;

2. Limitation as to Amount. Up to P50,000 only for Shopping but no limit as to amount for Negotiated Procurement due to 2 failed biddings.

Likewise, the BAC should justify that "immediate purchase" is necessary.
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Re: Can shopping be used as a an alternative method if there is no more time for a negotiated procurement?

Post by venom.0420 on Wed Mar 25, 2009 6:07 pm

Thank you sirs for the very helpful inputs! Very Happy
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Re: Can shopping be used as a an alternative method if there is no more time for a negotiated procurement?

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