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P'noy Signs MO 15 allowing advanced payment for goods supplied locally and abroad

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P'noy Signs MO 15 allowing advanced payment for goods supplied locally and abroad

Post by RDV @ GP3i on Thu May 12, 2011 3:16 pm

From the PCOO: President Benigno Aquino III has expanded the government procurement process by increasing the limit of advance payments on purchase contracts in a bid to give equal opportunities to local suppliers while making sure tax coffers stay protected in case of a bad deal. LINK
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Re: P'noy Signs MO 15 allowing advanced payment for goods supplied locally and abroad

Post by engrjhez® on Sat May 14, 2011 3:38 pm

RDV @ GP3i wrote:From the PCOO: President Benigno Aquino III has expanded the government procurement process by increasing the limit of advance payments on purchase contracts in a bid to give equal opportunities to local suppliers while making sure tax coffers stay protected in case of a bad deal. LINK

I believe the link provided is not the link intended.

Please proceed to this link >>> Memorandum Order No. 15 [2011]
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Re: P'noy Signs MO 15 allowing advanced payment for goods supplied locally and abroad

Post by sunriser431 on Tue May 17, 2011 10:09 pm

Thank you guys, for posting the updates and the links. Peace bounce
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Re: P'noy Signs MO 15 allowing advanced payment for goods supplied locally and abroad

Post by Alpha on Fri Mar 23, 2012 12:14 pm

Is M.O. 15-2011 applicable only for supplies or materials? or for all kinds of goods, such as outsourcing of manpower services, regardless of their source?

The 6th Whereas clause of the said M.O. provides that "Section 88 of Presidential Decree No. 1445, otherwise known as the "Government Auditing Code," generally prohibits advance payment for services not yet rendered or for supplies and materials not yet delivered under any government contract unless prior approval of the president is obtained."

Is the aforementioned Section of PD 1445 repealed by M.O. 15-2011, including services not yet rendered?

Thank you!!!

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Re: P'noy Signs MO 15 allowing advanced payment for goods supplied locally and abroad

Post by RDV @ GP3i on Sat Mar 24, 2012 8:57 am

Alpha wrote:Is M.O. 15-2011 applicable only for supplies or materials? or for all kinds of goods, such as outsourcing of manpower services, regardless of their source?

The 6th Whereas clause of the said M.O. provides that "Section 88 of Presidential Decree No. 1445, otherwise known as the "Government Auditing Code," generally prohibits advance payment for services not yet rendered or for supplies and materials not yet delivered under any government contract unless prior approval of the president is obtained."

Is the aforementioned Section of PD 1445 repealed by M.O. 15-2011, including services not yet rendered?

Thank you!!!

MO 15 applies only to the supply of goods. It does not apply to the supply of services.

Section 88 of PD 1445 provides that, unless approved by the President of the Philippines there shall be no advanced payment for the supply of goods. MO 15 becomes then be the exception to that particular section because MO 15 is an issuance by the President approving advanced payment for the supply of goods whether supplied locally or from abroad.
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Re: P'noy Signs MO 15 allowing advanced payment for goods supplied locally and abroad

Post by Alpha on Mon Mar 26, 2012 10:38 am

Thank you Sir RDV,

Another query po...

From Section 5 of RA 9184 revised IRR:

Goods. Refer to all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind, including non-personal or contractual services, such as, the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplies provided by the procuring entity for such services. The term “related” or “analogous services” shall include, but not be limited to, lease or purchase of office space, media advertisements, health maintenance services, and other services essential to the operation of the procuring entity.

...............................................................
The winning bidder for our outsourcing of temporary manpower services submitted a letter requesting for advance payment.

Our BAC members have divided opinions with regard to the term "supply of goods." Does the definition mentioned above will justify the claim of the winning Contractor for advance payment considering that manpower services is categorized as general support services?

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Re: P'noy Signs MO 15 allowing advanced payment for goods supplied locally and abroad

Post by RDV @ GP3i on Tue Mar 27, 2012 7:12 am

Alpha, kindly read Annex "D" (Contract Implementation Guidelines for the Procurement of goods supplies and materials) of the IRR particularly Item 4 thereof.
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