Ordering agreement

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Ordering agreement

Post by Doclc on Tue Jan 11, 2011 12:34 pm

Good day!

May I seek clarification/guidance in the use of ordering agreement for the procurement of medicines (as a result of public bidding). First, is it allowed (for medicines)? given the qualification that the said agreement can only be utilized in the acquisition of parts of equipment of unknown quantity & maintaining an inventory would be disadvantageous to the government. I raised this question based on the operational nature of the agency wherein, it provides medicines to various individuals/institutions on a regular basis where quantification will be an issue. Second, in applying such agreement, the agency ties/obligates the supplier to maintain the price it offered for several months (this will somehow run into conflict with the application of the requirement for bid security where the supplier is mandated to assure price validity not to exceed 120 cal. days), is it possible? Finally, was there a previous exercise where such mode was applied.

Thank you.
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Re: Ordering agreement

Post by sunriser431 on Tue Jan 11, 2011 6:43 pm

Doclc wrote:Good day!

May I seek clarification/guidance in the use of ordering agreement for the procurement of medicines (as a result of public bidding). First, is it allowed (for medicines)? given the qualification that the said agreement can only be utilized in the acquisition of parts of equipment of unknown quantity & maintaining an inventory would be disadvantageous to the government. I raised this question based on the operational nature of the agency wherein, it provides medicines to various individuals/institutions on a regular basis where quantification will be an issue. Second, in applying such agreement, the agency ties/obligates the supplier to maintain the price it offered for several months (this will somehow run into conflict with the application of the requirement for bid security where the supplier is mandated to assure price validity not to exceed 120 cal. days), is it possible? Finally, was there a previous exercise where such mode was applied.

Thank you.
I believe you cannot use the guidelines (GPPB Res. 06-2005) as a basis, it is applicable only in the procurement of "Non-inventory items/parts ", the requirement becomes necessary upon the happening of a fortuitous event. bounce
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Re: Ordering agreement

Post by Doclc on Tue Jan 11, 2011 8:55 pm

Thank you very much for the help Sir. It will surely help us in presenting our position on the issue. Smile
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