RE: Consignment agreeement

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RE: Consignment agreeement

Post by sunriser431 on Wed Aug 17, 2011 11:22 am

Excerpts taken from the Discussion Board of the GPPB website.
Posted at: 8/16/2011 10:16:52 AM
By: Marichu Escober concern.
Is there any law violated or any restrictions ,if we opt to enter into a consignment agreement for majority of our supplies requirement rather than bidding? Kindly enlighten us....
Posters, share your views and knowledge bounce
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sunriser431
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Re: RE: Consignment agreeement

Post by accounting on Thu Aug 18, 2011 12:30 pm


as far as i do know consignment is a contract to sell not to consume and i never heard of any government institution to be a consignee of the supplier.

now should you need those supplies, u still need to go into bidding anyway. you cannot directly consume those items under consignment without taking all the step of procurement like the PR and PO.

consignment is never in the mode of procurement. although this may somewhat connected to shopping and negotiated procurement however you are circumventing some provisions of the procurement law.

please RA 9184. good luck to your auditors. study
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Re: RE: Consignment agreeement

Post by sunriser431 on Thu Aug 18, 2011 5:41 pm

accounting wrote:
as far as i do know consignment is a contract to sell not to consume and i never heard of any government institution to be a consignee of the supplier.

now should you need those supplies, u still need to go into bidding anyway. you cannot directly consume those items under consignment without taking all the step of procurement like the PR and PO.

consignment is never in the mode of procurement. although this may somewhat connected to shopping and negotiated procurement however you are circumventing some provisions of the procurement law.
please RA 9184. good luck to your auditors. study
For information purpose only.
Section 7. Procurement Planning and Budgeting Linkage
excerpts from section 7.3.2 of the GPRA.
xxxx.
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.
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