brand names in procuring of goods

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brand names in procuring of goods

Post by madingcena on Thu May 26, 2011 6:55 pm

hello everyone!!!

Ask ko lang po, regarding sa pag-gamit ng brand names in procuring of goods... as per Rule VI Sec. 18 of IRR, reference to brand names shall not be allowed.
in some cases, the supplier specified the brand name of the item/s procured in the quotation/canvass.. is this allowed? or hindi dapat iligay ang brand name ng item/s on all documents?
e.g.: canvass paper:
ballpen (Pilot) (17.25) note: the Pilot word and the price filled up by the supplier? is this allowed?
(coz in my opinion, some suppliers specified brand names due to request of end-users, second, if the supplier will not specify the correct brand based on the price given, there might be doubt in procurement)

pls... help naman dyan... thanks in advance...
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Re: brand names in procuring of goods

Post by engrjhez® on Thu May 26, 2011 10:21 pm

madingcena wrote:hello everyone!!!

Ask ko lang po, regarding sa pag-gamit ng brand names in procuring of goods... as per Rule VI Sec. 18 of IRR, reference to brand names shall not be allowed.
in some cases, the supplier specified the brand name of the item/s procured in the quotation/canvass.. is this allowed? or hindi dapat iligay ang brand name ng item/s on all documents?
e.g.: canvass paper:
ballpen (Pilot) (17.25) note: the Pilot word and the price filled up by the supplier? is this allowed?
(coz in my opinion, some suppliers specified brand names due to request of end-users, second, if the supplier will not specify the correct brand based on the price given, there might be doubt in procurement)

pls... help naman dyan... thanks in advance...

The prohibition under Sec.18 is intended for the Procuring Entity who prepares the Specifications as part of the Bidding Documents. The supplier is not prohibited in referring their bid for any brand and it may be accepted for as long as the minimum specification is satisfied. Smile
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Re: brand names in procuring of goods

Post by marriola on Mon May 30, 2011 3:32 pm

hola everyone
re: brand name
can we use brand name when we refer them to specification in infra projects, e.g. 1. painting works (use certain brand of paint only)
2. electrical works (use certain brand of wire, fixtures only) 3. plumbing (use of certain brand of water closet only)
in this manner, we can be assured of items installed.
muchisimas gracias
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Re: brand names in procuring of goods

Post by engrjhez® on Mon May 30, 2011 6:19 pm

marriola wrote:hola everyone
re: brand name
can we use brand name when we refer them to specification in infra projects, e.g. 1. painting works (use certain brand of paint only)
2. electrical works (use certain brand of wire, fixtures only) 3. plumbing (use of certain brand of water closet only)
in this manner, we can be assured of items installed.
muchisimas gracias

Prohibition on use of brand names apply to Procurement of Goods only. However, I would not suggest limiting items by brand for infra. Instead, a more stringent use of specifications would be more advisable. Wink
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Re: brand names in procuring of goods

Post by marriola on Tue May 31, 2011 10:12 am

hola! engrjhez, thanks.
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Re: brand names in procuring of goods

Post by madingcena on Tue May 31, 2011 4:15 pm

thanks a lot engrjhez®,

other related questions regarding brand names...
1. can we specify brand names on the Purchase Order based on the
specified brand name quoted by the supplier on request for quotation?
2. how about on the acceptance and inspection report form? (for
inspector side)

Very Happy thanks a lot...
madz
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Re: brand names in procuring of goods

Post by engrjhez® on Tue May 31, 2011 5:59 pm

madingcena wrote:thanks a lot engrjhez®,

other related questions regarding brand names...
1. can we specify brand names on the Purchase Order based on the
specified brand name quoted by the supplier on request for quotation?
2. how about on the acceptance and inspection report form? (for
inspector side)

Very Happy thanks a lot...
madz

My answers:
1. Yes.
2. Yes.

Provided that the original submitted quotation of the supplier clearly have identified those brands are to be delivered. reference to brand names are prohibited from requisition to implementation of procurement procedures. But after the award, its all up to Contract/PO in reference to Bid/Quotation Smile
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Re: brand names in procuring of goods

Post by engrjhez® on Tue May 31, 2011 5:59 pm

marriola wrote:hola! engrjhez, thanks.

No problem. Good day! Smile
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Re: brand names in procuring of goods

Post by divadon on Fri Jun 10, 2011 10:28 am

hi..additional query:
if the PO specified already the brand name to be delivered as offered by the bider, but the bidder manifested it can not deliver the same brand but a different brand with same specs, can we accept it? also can we penalize the bidder for breach? thanks.

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Re: brand names in procuring of goods

Post by divadon on Fri Jun 10, 2011 1:29 pm

hi..additional query:
if the PO specified already the brand name to be delivered as offered by the bider, but the bidder manifested it can not deliver the same brand but a different brand with same specs, can we accept it? also can we penalize the bidder for breach? thanks.

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Re: brand names in procuring of goods

Post by engrjhez® on Fri Jun 10, 2011 2:03 pm

divadon wrote:hi..additional query:
if the PO specified already the brand name to be delivered as offered by the bider, but the bidder manifested it can not deliver the same brand but a different brand with same specs, can we accept it? also can we penalize the bidder for breach? thanks.
It is up to the Procuring Entity thru the Contract Review and Termination Committee (CRTC). The problem with specifying brand name is when you cannot deliver that in particular (as the case you mentioned). In my opinion, for as long as the price is the same, the specs are the same, and the terms and conditions are advantageous to the government, you can always accept alternatives. If you will accept the other brand, you must provide a document that both the PE and supplier agreed on it. This may be in the form of an amendatory contract or a CRTC resolution. Smile
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Re: brand names in procuring of goods

Post by divadon on Fri Jun 10, 2011 3:21 pm

thanks po!

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Re: brand names in procuring of goods

Post by jcolas on Sat Jun 11, 2011 7:53 pm


hi..additional query:
if the PO specified already the brand name to be delivered as offered by the bider, but the bidder manifested it can not deliver the same brand but a different brand with same specs, can we accept it? also can we penalize the bidder for breach? thanks

Before I will answer the question, I would like first to pin point the steps. The First step is that the end-user prepares the Purchase Request. Under Section 18 of the IRR, reference to brand names is prohibited.Whether the procurement method is bidding or through RFQ, Suppliers can and is allowed to offer items including the brand of the items they are offering. The BAC now selects from among the bid/quotations the bidder whose quotation minimally answers the request as specified in the RFQ or in the bidding document. After the Post qualification, the Purchase Order is now prepared and it should reflect the specification as offered by the winning bidder. With that as background, my answer to the question whether we should accept the offer of the bidder for a different brand with the same specs is, no, We should not accept the offer. It should be emphasized that the Purchase Order is based on the bid/quotation of the bidder and that is what the winning bidder offered. So why should he changed the brand again. The bidding process is a serious matter. It should not be trifled with by anybody.

This is what we do in our office. Others may attack the same issue differently and that is their business as long as at the end of the day they can support their action from the probing eyes of the auditor. thank you and it is good to be back.
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Re: brand names in procuring of goods

Post by divadon on Thu Aug 11, 2011 9:59 pm

thank you for the insights, jcolas!

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Re: brand names in procuring of goods

Post by Alpha on Tue Aug 16, 2011 10:42 am

Good day to everyone, i need clarification lang po if prohibition of branding items applies to components or parts of instruments / equipment.

For example: The PE has existing brand "X" equipment. Suddenly, the part distributing power to said equipment malfunctioned. As identified by the PE, replacement of such should be of the same brand and specifications / part number. Can the PE specify the brand and the identifying part number in the RFQ so the suppliers would already know what the PE really needs?

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Re: brand names in procuring of goods

Post by engrjhez® on Tue Aug 16, 2011 11:27 am

Alpha wrote:Good day to everyone, i need clarification lang po if prohibition of branding items applies to components or parts of instruments / equipment.

For example: The PE has existing brand "X" equipment. Suddenly, the part distributing power to said equipment malfunctioned. As identified by the PE, replacement of such should be of the same brand and specifications / part number. Can the PE specify the brand and the identifying part number in the RFQ so the suppliers would already know what the PE really needs?

You may check the pertinent provisions of Sec.50 (Direct Contracting) particularly Sec.50.g. to wit:

b) When the procurement of critical components from a specific supplier is a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of its contract;

.... Direct Contracting may be resorted. (emphasis supplied)Smile
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Re: brand names in procuring of goods

Post by Alpha on Tue Aug 16, 2011 12:56 pm

thanks engrjhez® for the immediate response...

another case po. what if there is no specific supplier, meaning there are various distributors of the required component? Is direct contracting or single source procurement still an option?


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Re: brand names in procuring of goods

Post by engrjhez® on Tue Aug 16, 2011 1:31 pm

Alpha wrote:thanks engrjhez® for the immediate response...

another case po. what if there is no specific supplier, meaning there are various distributors of the required component? Is direct contracting or single source procurement still an option?

If the item can not be exclusively provided by one supplier/manufacturer, then Direct Contracting does not apply. Smile
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Re: brand names in procuring of goods

Post by Alpha on Tue Aug 16, 2011 5:27 pm

Thank a lot engrjhez®.

Relating my first and second queries, it's clearer now that although it may be identified that parts or components of an equipment requires a specific brand and model, the PE cannot resort to Direct Contracting if there are various suppliers authorized to distribute said parts.

The PE may adopt SVP, I guess. And since the PE is not allowed to specify product brands, it may provide a detailed specifications pertaining the product instead. Rolling Eyes

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Re: brand names in procuring of goods

Post by engrjhez® on Wed Aug 17, 2011 9:11 am

Alpha wrote:Thank a lot engrjhez®.

Relating my first and second queries, it's clearer now that although it may be identified that parts or components of an equipment requires a specific brand and model, the PE cannot resort to Direct Contracting if there are various suppliers authorized to distribute said parts.

The PE may adopt SVP, I guess. And since the PE is not allowed to specify product brands, it may provide a detailed specifications pertaining the product instead. Rolling Eyes

That is more acceptable. Further, exclusivity shall not be taken absolutely especially if there are other substitutes or there are available equal or superior replacements.

Just check for the threshold under Annex "H" and don't forget to amend your APP if the original mode of procurement was different. Smile
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Re: brand names in procuring of goods

Post by boylaang on Thu Dec 22, 2011 2:50 pm

In barangay branding is also a problem most winning bidders will deliver cheap and low quality materials price same with those expensive ones and good quality

let as say:

"1 litter gloss latext paint" (price at 500 pesos based in dutchboy or boysen paint) in the end the winning bidder deliver " 1 liter gloss latext paint" with brandname of Rosco wich is very cheap ang low quality paint

and this instances happen many times

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Re: brand names in procuring of goods

Post by Jovinal on Thu Dec 22, 2011 6:19 pm

I think that problem can avoided, if during the submission of bids proposal from the bidders, you will require them to indicate the brands of their proposal, and then the brand from the winning bidder will be indicated in Purchase Order.
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Re: brand names in procuring of goods

Post by boylaang on Fri Dec 23, 2011 9:12 am

Hi sir Jovenal

I understand na we must urge the bidders to specify the brand in their qoutation and purchase order but not in our bid forms.

Danao City Cebu?? silingan ra d i ta if Yes 5th district pud ko next next town north

Thanks

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Re: brand names in procuring of goods

Post by Jovinal on Fri Dec 23, 2011 10:07 am

Well in bid forms only the technical specifications, your welcome.
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