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Splitting or Packaging of Contract

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Splitting or Packaging of Contract

Post by jaycielb on Wed Nov 16, 2011 3:54 pm

We have a foreign assisted project (Irrigation) which will be implemented by the National Irrigation Administration. We have an approved POW, Say 40 million for the provision of Diversion structure (dam) and canal and canal structure. However ,during the procurement, NIA have package the project into two wherein 1 project is the dam and the other one id the canal and canal structure? is this a violation under the IRR of 9184?

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Re: Splitting or Packaging of Contract

Post by jcolas on Thu Nov 17, 2011 7:49 am

"jaycielb wrote"

We have a foreign assisted project (Irrigation) which will be implemented by the National Irrigation Administration. We have an approved POW, Say 40 million for the provision of Diversion structure (dam) and canal and canal structure. However ,during the procurement, NIA have package the project into two wherein 1 project is the dam and the other one id the canal and canal structure? is this a violation under the IRR of 9184?.

Welcome to the Forum Sir jaycielb. I do not see any violation on the packaging of the project, but I am calling for Sir Engjhez and Sir RDV for a more clearer discussion on this...
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Re: Splitting or Packaging of Contract

Post by RDV @ GP3i on Thu Nov 17, 2011 9:00 am

jcolas wrote:"jaycielb wrote"

We have a foreign assisted project (Irrigation) which will be implemented by the National Irrigation Administration. We have an approved POW, Say 40 million for the provision of Diversion structure (dam) and canal and canal structure. However ,during the procurement, NIA have package the project into two wherein 1 project is the dam and the other one id the canal and canal structure? is this a violation under the IRR of 9184?.

Welcome to the Forum Sir jaycielb. I do not see any violation on the packaging of the project, but I am calling for Sir Engjhez and Sir RDV for a more clearer discussion on this...

If after packaging the project into two (2), the projects will still be procured through public bidding, that would not be considered as splitting of contract.
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Re: Splitting or Packaging of Contract

Post by engrjhez® on Thu Nov 17, 2011 5:57 pm

jcolas wrote:"jaycielb wrote"

We have a foreign assisted project (Irrigation) which will be implemented by the National Irrigation Administration. We have an approved POW, Say 40 million for the provision of Diversion structure (dam) and canal and canal structure. However ,during the procurement, NIA have package the project into two wherein 1 project is the dam and the other one id the canal and canal structure? is this a violation under the IRR of 9184?.

Welcome to the Forum Sir jaycielb. I do not see any violation on the packaging of the project, but I am calling for Sir Engjhez and Sir RDV for a more clearer discussion on this...

Talaga bang may mention pa? Smile

Coincidence?

1. I agree with RDV that the possible fear of violation by 'splitting of contracts' may not apply if no procedure was circumvented in the procurement process (and both are done thru Public Bidding).

2. RDV and I are both at Cagayan de Oro City today to attend different events, but we met today as the venues of our individual activities are just a few meters apart.

Smile
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Re: Splitting or Packaging of Contract

Post by ismael.tabije on Fri Sep 28, 2012 11:41 am

Another aspect of the splitting issue in relation to contracts packaging that needs to be looked into is the possibility that the project is divided into smaller packages to avoid having them bidded at the higher authority levels. For example, in the NIA, the following approving authorities are currently in place in regard to the conduct of biddings:

Board of Directors: above PHP200-M
Administrator: up to PHP200-M
Regional Managers/Project Managers: up to PHP40-M
Provincial Heads (IMOs): up to PHP20-M

Let’s take for example an irrigation project costing, say, P90-M. Strictly speaking, the project should be bidded out at the level of the Administrator (central office).

However, upon engineering analysis, it is concluded that the most efficient way of implementing the project is to package them into 3 contracts: dam (40M), canal structures (30M) and canalization (20M). All of these individual contracts are within the approving authority of the Regional Manager.

In order that the RM will not risk a possible splitting charge to circumvent bidding authority levels, he has to have the contract packaging scheme approved by the Administrator, including a special request that the biddings of the packages be done at the regional office.

On the other hand, if the project is more than 200M, then the approval of the packaging scheme and the venue for the bidding (central office, regional office, etc) shall be at the level of the NIA board of directors, since the total project cost is more than the Administrator’s approving authority.


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Re: Splitting or Packaging of Contract

Post by chrissy on Thu Oct 04, 2012 9:08 pm

In connection with the "splitting of contracts" is this applicable to procurement of goods?
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Re: Splitting or Packaging of Contract

Post by jcolas on Thu Oct 04, 2012 9:50 pm

"chrissy wrote"
In connection with the "splitting of contracts" is this applicable to procurement of goods?

Yes mam chrissy. COA Circular 76-41, dated July 30, 1976 actually discussed the three kinds of splitting in the procurement of goods. Please try to find time to read the circular.
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