splitting of contract

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splitting of contract

Post by LJ on Thu Oct 07, 2010 12:31 pm

in addition to what i ask regarding lot basis in the awarding of office supplies, our practice in our office is this - after we request for quotations from suppliers, we award the supplier per lowest bidder per item. meaning, we will award not only to one supplier, but to different suppliers for those items na lowest yung prices nla. i would like to clarify if this is the correct procedure? and if this falls under splitting of contract o hindi naman? thanks
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Re: splitting of contract

Post by engrjhez® on Thu Oct 07, 2010 12:52 pm

LJ wrote:in addition to what i ask regarding lot basis in the awarding of office supplies, our practice in our office is this - after we request for quotations from suppliers, we award the supplier per lowest bidder per item. meaning, we will award not only to one supplier, but to different suppliers for those items na lowest yung prices nla. i would like to clarify if this is the correct procedure? and if this falls under splitting of contract o hindi naman? thanks

As a general rule, bids must be complete. This means that the bidder must submit bid on all items and we base the award in the overall total. Your practice may be allowed provided you indicated in the bidding documents that you will be using "line bidding" (particularly in the BDS) and provided further that you use "line items" on your bid notice in the PhilGEPS (step 2).

Same is true on Alternative Methods where quotations are submitted. However, it would be difficult to justify the need for line item quotations kasi we are considering efficiency and economy. And in most cases, lumpsum bidding/quoting is still more advantageous. As a rule of thumb, you just consolidate similar items so that you will be able to find suppliers that can provide all the items in that category.

Hindi naman siya splitting of contracts. Smile
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Re: splitting of contract

Post by LJ on Thu Oct 07, 2010 2:11 pm

thanks for the reply sir. it really helps. i-klaro ko lang sir ha. kc in most cases, kina categorize namin yung same supplies, kaso lang po, di lahat talaga ng suppliers na mg quote for all the items, kaya po ina-award namin cya per item na, di po base sa total amount for all the items. ok lang po yun sir? di pa rin yan splitting, di po ba? thanks po talaga. Very Happy
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Re: splitting of contract

Post by engrjhez® on Thu Oct 07, 2010 3:08 pm

LJ wrote:thanks for the reply sir. it really helps. i-klaro ko lang sir ha. kc in most cases, kina categorize namin yung same supplies, kaso lang po, di lahat talaga ng suppliers na mg quote for all the items, kaya po ina-award namin cya per item na, di po base sa total amount for all the items. ok lang po yun sir? di pa rin yan splitting, di po ba? thanks po talaga. Very Happy

But mind you, it should be clear from the start that line item bidding siya - otherwise, dapat kumpleto. Incomplete bids are not responsive. Smile
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Re: splitting of contract

Post by firstlady_5167 on Thu Feb 24, 2011 10:57 am

Good morning faithful readers of this forum. I would like to solicit opinions on Drugs and Medicines under Trust Fund ( grants from DOH & PCSO). Can we consolidate said items under TF to items funded from the GF? Said request came from different offices (City Mayor's Office, City Health Office & City Hospital). If not, then we will have 2 different postings for public bidding for same category which is Drugs & Medicines. Just being careful coz it might again be considered artificial facing of procurement by the COA. Please give us advice. I am now preparing the draft Invitation to Bid subject for posting to PhilGEPS. Thank you so much
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Re: splitting of contract

Post by engrjhez® on Thu Feb 24, 2011 12:07 pm

firstlady_5167 wrote:Good morning faithful readers of this forum. I would like to solicit opinions on Drugs and Medicines under Trust Fund ( grants from DOH & PCSO). Can we consolidate said items under TF to items funded from the GF? Said request came from different offices (City Mayor's Office, City Health Office & City Hospital). If not, then we will have 2 different postings for public bidding for same category which is Drugs & Medicines. Just being careful coz it might again be considered artificial facing of procurement by the COA. Please give us advice. I am now preparing the draft Invitation to Bid subject for posting to PhilGEPS. Thank you so much

Naturally, we need to consolidate items into a single bidding regardless the source of funds. But there may be an argument as to the disbursement later on because of the nature of funds (TF and GF) that might need separate vouchers. To resolve this, you have to indicate in your bidding documents that certain items are grouped into lots. You may indicate Lot 1 as the items under TF and Lot 2 under GF. By doing so, you presented a single bidding for drugs and medicines without splitting and in the same way allowing to bid and award per lot. Smile
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Re: splitting of contract

Post by firstlady_5167 on Thu Feb 24, 2011 3:44 pm

thank you so much sir for your reply Very Happy God Bless
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Re: splitting of contract

Post by engrjhez® on Thu Feb 24, 2011 4:38 pm

firstlady_5167 wrote:thank you so much sir for your reply Very Happy God Bless

You are welcome! Smile
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Re: splitting of contract

Post by mehl07 on Thu Dec 13, 2012 6:12 pm

Hi! Just need clarification on opinion of some of our colleagues which says "its not splitting of contract if the total amount of procurement in one period lets say month or quarter or project actually exceeds more than 50k" when the funds is taken from different departments in the LGU. We don't have Procurement office so the procurement was delegated to each department which makes us hard to monitor also.

May we know which should we base in considering the period covered as basis in recommending bidding or alternative mode: one year, 1 quarter, 1 month or per project since at the LGU level we also need to consider the availability of funds per period to give way with much needed project to implement. COA considers it splitting of contract when we have done it by scheduling whether quarterly or monthly or on a per project basis, because they have to add up the total amount of procurement for supplies and for the whole year. The budget doesn't allow us to proceed with one time procurement because of budget constraint as the LGU is still observing the per quarter budget allocation per office basis. please adv.

What should we do wait for the end of the year or last quarter until we be authorize to use the budget and do the bidding all together on the last on the last minute? what will happen to our in-line "one time/seasonal project or activities. We are at lost which this lots of directives to follow when we need to act on a particular time. In most intances activities changes and varies and even revised in time to give way project which are not expected like this counterparting activities, etc!

Merry Christmas
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