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NOA & PO

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NOA & PO

Post by misty on Thu Jun 25, 2009 10:16 am

i have a question, please help.

is it acceptable if in one NOA, there are more than one PO? is this not a form of splitting of contract? as in the case of award for the delivery of supplies for one year and separate purchase orders are issued.

thank you.
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Re: NOA & PO

Post by sunriser431 on Thu Jun 25, 2009 2:07 pm

misty wrote:i have a question, please help.

is it acceptable if in one NOA, there are more than one PO? is this not a form of splitting of contract? as in the case of award for the delivery of supplies for one year and separate purchase orders are issued.

thank you.


Section III. Bid Data Sheet
ITB Clause 34.2 Grouping and Evaluation of Lots –

Lots should be formed of similar items that are likely to attract the maximum competition. A lot is the quantity and number of items that will be included in a single contract. For example:
Option 1 – Each item to be evaluated and compared with other Bids separately and recommended for contract award separately.
Option 2 - All items to be grouped together to form one complete Lot that will be awarded to one Bidder to form one complete contract.
Option 3 - Similar items, to be grouped together to form several lots that shall be evaluated and awarded as separate contracts.

Select one of the following paragraphs and delete the other:
The GOODS are grouped in a single lot and the lot shall not be divided into sub-lots for the purpose of bidding, evaluation, and contract award.Example
1. Lot A xxxx
Or
All GOODS are grouped in lots listed below. Bidders shall have the option of submitting a proposal on any or all lots and evaluation and contract award will be undertaken on a per lot basis. Lots shall not be divided further into sub-lots for the purpose of bidding, evaluation, and contract award.
[Insert grouping of lots] Example
1. Lot A xxxxx
2. Lot B xxxxx
3. Lot C xxxx
4. etc. xxxxx

I believe you are referring to Option 2, Yes it can be done, for the procurement of goods, all items are group into single lot. (example One(1) lot comprises of several Purchase Requisitions). Hope this helps
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Re: NOA & PO

Post by msm326 on Fri Jun 26, 2009 8:58 am

Good Day ... with the current practice that we are doing which I believe gives good and advantageous savings for us we award the contract by Items (which means whoever is the lowest per item) .We get the lowest and reasonable cost in every items and it is deemed effective for us...you can try on it too
msm326 Very Happy
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Re: NOA & PO

Post by sunriser431 on Fri Jun 26, 2009 11:26 am

msm326 wrote:Good Day ... with the current practice that we are doing which I believe gives good and advantageous savings for us we award the contract by Items (which means whoever is the lowest per item) .We get the lowest and reasonable cost in every items and it is deemed effective for us...you can try on it too
msm326 Very Happy

Actually you can, provided there is ABC for each contract items/ or line items, otherwise you 'll be violating the PBD
Section III. Bid Data Sheet ITB Clause 34.2

(a) The bid must be complete. Except in case of partial Bids, bids not addressing or providing all of the required items in the bidding documents including, where applicable, bill of quantities, shall be considered non-responsive and, thus, automatically disqualified. In this regard, where a required item is provided, but no price is indicated, the same shall be considered as non-responsive, but specifying a “0” (zero) for the said item would mean that it is being offered for free to the PROCURING ENTITY; and
(b) xxxx
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Re: NOA & PO

Post by engrjhez® on Fri Jun 26, 2009 10:36 pm

misty wrote:i have a question, please help.

is it acceptable if in one NOA, there are more than one PO? is this not a form of splitting of contract? as in the case of award for the delivery of supplies for one year and separate purchase orders are issued.

thank you.
I believe what misty is trying to ask is that a single contract awarded to one bidder comprising of several items shall be disbursed separately into staggered payments. Just like one contract, several deliveries, and several consequent payments. Very Happy
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Re: NOA & PO

Post by riddler on Sat Jun 27, 2009 9:46 am

misty wrote:i have a question, please help.

is it acceptable if in one NOA, there are more than one PO? is this not a form of splitting of contract? as in the case of award for the delivery of supplies for one year and separate purchase orders are issued. thank you.

THere is no splitting of contract because the mode of procurement is already included in the APP, and the method of delivery are already stipulated in the Contract.

I believed all government institutions naman are dividing their 1 year appropriation in a quarterly basis, which in our case, the procurement of office supplies and other common used supplies
.
sunriser wrote:Section III. Bid Data Sheet
ITB Clause 34.2 Grouping and Evaluation of Lots –

Lots should be formed of similar items that are likely to attract the maximum competition. A lot is the quantity and number of items that will be included in a single contract. For example:
Option 1 – Each item to be evaluated and compared with other Bids separately and recommended for contract award separately.
Option 2 - All items to be grouped together to form one complete Lot that will be awarded to one Bidder to form one complete contract.
Option 3 - Similar items, to be grouped together to form several lots that shall be evaluated and awarded as separate contracts.
x x x x . . .x"

I believe you are referring to Option 2, Yes it can be done, for the procurement of goods, all items are group into single lot. (example One(1) lot comprises of several Purchase Requisitions). Hope this helps


I think misty is referring to Option 1. THe line items are treated with a separate ABC, e.g. you have a 30 line items as listed in the Bid Form, each item are bidded separately.
msm326 wrote: ... with the current practice that we are doing which I believe gives good and advantageous savings for us we award the contract by Items (which means whoever is the lowest per item) .We get the lowest and reasonable cost in every items and it is deemed effective for us...you can try on it too

In this case, msm326 is also referring to Option 1. We have tried it msm, it would be fine if we only have 3 eligible bidders, what about if you have 10 eligible suppliers/bidders, each are bidding the 30 line items I mentioned? Wouldn't it be a "nightmare" for the Secretariat to segregate the NOA's and PO's, notwithstanding the mountain of paperworks to be plowed with?

I think each Procuring Entity can devise it own options as shown by sunriser Very Happy depending on the number of prospective bidders who signified their intention to bid.
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Re: NOA & PO

Post by misty on Mon Jun 29, 2009 11:33 am

good morning!

yes, i am referring to bidding per line item and that these are items of the same nature. i am also referring to a bidding for the supply of these items for the whole year - staggered deliveries throughout the year. what i am really concerned about is if it is possible to issue POs only for the items which will be needed for the next 3 months. meaning, four POs, with different dates, will be issued under one NOA. does this not fall under splitting of contract as there is only as NOA?

my other option is to issue one PO and just state the different dates of delivery.

thank you. all your posts are enlightening.
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Re: NOA & PO

Post by riddler on Mon Jun 29, 2009 12:39 pm

misty wrote:good morning!

yes, i am referring to bidding per line item and that these are items of the same nature. i am also referring to a bidding for the supply of these items for the whole year - staggered deliveries throughout the year. what i am really concerned about is if it is possible to issue POs only for the items which will be needed for the next 3 months. meaning, four POs, with different dates, will be issued under one NOA. does this not fall under splitting of contract as there is only as NOA?

my other option is to issue one PO and just state the different dates of delivery.

thank you. all your posts are enlightening.

yes. you are perfectly right misty, buti ka pa nagawa mo ng ganyan sa inyo.. you really followed your plan (APP). Wla din akong nakitang splitting dito, kasi nag na Bid kayo using option 1, maski you need to segragate
different PO's to different winning Bidders. What is important is, yung mode ng delivery na staggered basi dapat naka lagay sa PBD's o maski sa Purchase Request na Lang.
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Re: NOA & PO

Post by sunriser431 on Mon Jun 29, 2009 9:47 pm

misty wrote:good morning!

yes, i am referring to bidding per line item and that these are items of the same nature. i am also referring to a bidding for the supply of these items for the whole year - staggered deliveries throughout the year. what i am really concerned about is if it is possible to issue POs only for the items which will be needed for the next 3 months. meaning, four POs, with different dates, will be issued under one NOA. does this not fall under splitting of contract as there is only as NOA?

my other option is to issue one PO and just state the different dates of delivery.

thank you. all your posts are enlightening.

Republic Act No. 9524 General Appropriations Act Fiscal Year 2009

Sec. 20. Purchase of Supplies, Materials and Equipment Spare Parts for Stock.

The inventory of supplies, materials and equipment spare parts to be procured out of available funds shall at no time exceed the normal three-month requirement, subject to pertinent rules and regulations issued by competent authority: PROVIDED, That heads of departments, bureaus, offices or agencies and other instrumentalities of the government may increase their inventory of critical supplies and materials in anticipation of cost increases, or if necessitated by a national emergency or an impending shortage in the items concerned, specifying maximum quantities of individual items. Unless otherwise approved by the President of the Philippines, upon the joint recommendation of the Secretary concerned and the Chairman of the COA, these stocks shall not exceed one year's requirement.

In my opinion splitting of contract is dividing artificially the contract into smaller group, in order to avoid competitive(Public) bidding. I believe what your agency have done is on the right track, issuing one NOA for one year to one supplier, but the delivery on per quarter basis,(four(4) POs in a year). In effect your agency will not violate the RA 9524 (GAA) of 2009 specially sec. 20.(Which is self explanatory). Hope this help Cool
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Re: NOA & PO

Post by riddler on Tue Jun 30, 2009 9:28 am

sunriser wrote:Republic Act No. 9524 General Appropriations Act Fiscal Year 2009

Sec. 20. Purchase of Supplies, Materials and Equipment Spare Parts for Stock.

The inventory of supplies, materials and equipment spare parts to be procured out of available funds shall at no time exceed the normal three-month requirement, subject to pertinent rules and regulations issued by competent authority:x x x x.

MIsty and I belong to an LGU agency. May I ask if the LGU's procurement are covered by the 2009 General Appropriations Act?
sunriser wrote:In my opinion splitting of contract is dividing artificially the contract into smaller group, in order to avoid competitive(Public) bidding. I believe what your agency have done is on the right track, issuing one NOA for one year to one supplier, but the delivery on per quarter basis,(four(4) POs in a year). In effect your agency will not violate the RA 9524 (GAA) of 2009 specially sec. 20.(Which is self explanatory).

I think misty is referring to issuing different PO's to different winning bidders of line items for 1 year and may also claim partial deliveries for which it is ok as long as it is stated in the ITB/PBD.
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