Consignment as mode of procurement

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Consignment as mode of procurement

Post by Doclc on Mon Jan 10, 2011 11:56 am

Good day!

Just wanted to know if consignment is allowed as mode of procurement in the government. I used to be member of the BAC and was consulted by our secretariat of such approach. As far as I know, consignment is not allowed under RA 9184. The management is in the opinion that such action is consistent with the public-private partnership and according to them, will hasten the delivery, warehousing & inventory monitoring. Am having a hard time arguing my position as to its legal basis (being a non-lawyer & facing a goup composed mostly of lawyers from the private sector). Hope you could enligthen me on this one.

Thank you.
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Re: Consignment as mode of procurement

Post by engrjhez® on Mon Jan 10, 2011 12:46 pm

Excerpts from the IRR of R.A.9184:

7.3.2. The end-user units of the procuring entity shall prepare their respective Project
Procurement Management Plan (PPMP) for their different programs, activities, and
projects (PAPs). The PPMP shall include:
a) information on whether PAPs will be contracted out, implemented by
administration in accordance with the guidelines issued by the GPPB, or
consigned;
x x x
For purposes of this Section, consignment refers to an arrangement where the
following requisites are present: (a) delivery of goods by their owner (consignor),
without sale, to a government agency (consignee); (b) consignee must try to sell
the goods and remit the price of the sold goods to the consignor; (c) consignee
accepts without any liability except for failure to reasonably protect them from
damage; (d) no disbursement of government funds is involved; and (e) at terms
not disadvantageous to the GOP.
From the above, it is clear that consignment can be considered as a mode of implementation - not a mode of procurement. There are basically only two modes of procurement: public bidding and alternative methods.

A similar mode of implementation that will address the problem of storage is by Ordering Agreement Smile
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Re: Consignment as mode of procurement

Post by Doclc on Mon Jan 10, 2011 1:39 pm

Thank you very much for your help. Smile
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Re: Consignment as mode of procurement

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