Overpricing

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Overpricing

Post by Dong S on Thu Jul 05, 2012 11:37 am

Have a pleasant day to all?

Tanong ko lang po........."If the preparation of Purchase REquest lodge in the REquisitioning Office why should the BAC be implicated and be held liable for OVERPRICING?"


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Re: Overpricing

Post by Jovinal on Fri Jul 06, 2012 12:38 pm

The BAC is responsible to recommend the Winning Bidder with lowest calculated bid price, Prices in the PR are just an estimate.
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Re: Overpricing

Post by alpha1 on Fri Jul 06, 2012 2:01 pm

I think everyone involved in the process must be liable. As you can remember, the prices of every items to be procured was consolidated into an APP and ABC is being approved by the local sanggunian in the case of the LGU. By approving an overpriced items would it be that the responsibility lies with them also?

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Re: Overpricing

Post by Jovinal on Fri Jul 06, 2012 2:22 pm

ABC is just a ceiling prices, it is subject to bidding to obtain a competitive prices.
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Re: Overpricing

Post by regina avelino on Fri Jul 06, 2012 3:01 pm

Dong S wrote:Have a pleasant day to all?

Tanong ko lang po........."If the preparation of Purchase REquest lodge in the REquisitioning Office why should the BAC be implicated and be held liable for OVERPRICING?"



I don't think BAC should be implicated and be held liable for overpricing. The BAC is responsible for ensuring that the procuring entity abide by the standards set for by RA 9184 and its IRR. Whoever conducted the canvassing of the prices or whoever came up with the costing should be the one liable. Canvassing or coming up with the ABC is not within the functions of BAC thus, my opinion on the matter.

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Re: Overpricing

Post by Jovinal on Fri Jul 06, 2012 9:15 pm

The BAC is one who determined the fairness of the bids price quotation submitted by bidders, and will recommend to the HOPE for awarding.
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Re: Overpricing

Post by engrjhez® on Sat Jul 07, 2012 10:48 pm

Dong S wrote:Have a pleasant day to all?

Tanong ko lang po........."If the preparation of Purchase REquest lodge in the REquisitioning Office why should the BAC be implicated and be held liable for OVERPRICING?"



Under Sec.36 of the IRR:
x x x
In all instances, the procuring entity shall ensure that the ABC reflects the most
advantageous prevailing price for the Government.
It is not the BAC nor any department/office/unit n particular but the entire agency involved in the procurement (as correctly pointed out by Jovinal). It is a responsibility lodged to everyone who has to influence the market study and estimates.

Overpricing can only occur if there is a room for such. A considerably high ceiling (ABC) is prone to abusive bid proposals that could lead to overpricing. But the ABC alone cannot be solely responsible by itself as the culprit as bidders may still submit the best (lowest) price independent of the posted budget. Hence, the culpability of public officials and employees still depend on the circumstances.

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Re: Overpricing

Post by orlan747 on Mon Jul 09, 2012 7:35 pm

Dong S wrote:Have a pleasant day to all?

Tanong ko lang po........."If the preparation of Purchase REquest lodge in the REquisitioning Office why should the BAC be implicated and be held liable for OVERPRICING?"



Forgive me for saying so sir, but BAC members are usually implicated because most of the time they are a party to OVERPRICING. Oh yes, overpricing is everywhere. On rare occasions that somebody sues government entity for overpricing, the accusation is always sprayed like a machinegun. The blanket accusation names the HOPE, BAC Members, the treasurer, the accountant, the budget officer and some others. Overpricing happens because the bidders are in cahoots with corrupt officials. So you see, either the BAC is so inept, it does not recognize an overpricing if it sees one, or they know it all along. In both case, they let it happen.
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Re: Overpricing

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