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PROCUREMENT OF FUEL AND LUBRICANTS

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PROCUREMENT OF FUEL AND LUBRICANTS

Post by njimenez on Tue Jan 22, 2013 10:14 am

GOOD DAY!

How do we procure fuel and lubricants in bulk since our LGU has no fuel depot to store large volume of diesel and gasoline?
thanks..

njimenez
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Re: PROCUREMENT OF FUEL AND LUBRICANTS

Post by regina avelino on Thu Jan 24, 2013 9:54 am

good morning sir. depending on the reason for the purchase of bulk POL which will require you to comply public bidding or GPPB resolultion NO. 11-2007. if the POL requirements is considered for major use and the same are
necessary in the primary operation of the procuring entity and in the
prosecution of its principal mandate then you should comply with gppb resolution 11-2007, if not then, in my opinion, public bidding is required.

again, imo, you don't need to have a depot to get this done. regardless of whether you are required to follow the said gppb resolution or through public bidding you can still proceed. The contracted POL supplier/winnning bidder will just monitor all of your withdrawals until it reaches the contracted/bid quantity everytime you fuel up. Your personnel will just have to proceed at the gas station or the contractor's depot to fuel up. there will be additional documentation on your part to monitor the withdrawal which your agency and the contractor must reconcile until such time that the total quantity is withdrawn.

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Re: PROCUREMENT OF FUEL AND LUBRICANTS

Post by kim_wd on Thu Jul 11, 2013 3:10 pm

Good day everyone!
This is with regards to the procurement of fuel. If my understanding is correct, the guidelines issued thru GPPB Res. No. 11-2007 refers to bulk procurement of fuel. We do not have a depot so we can't buy in bulk thus we procure thru public bidding. The problem is, how do we implement the contract when the price per liter of fuel in the market is very volatile? If we fix the price, it would be disadvantageous to the office if the contract price is higher than the current pump price. The same is true when the contract price is lower than the current pump price, the supplier would feel shortchanged.

Any inputs from you, guys, on how to resolve this? Please help...
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Re: PROCUREMENT OF FUEL AND LUBRICANTS

Post by regina avelino on Mon Jul 15, 2013 3:01 pm

the applicability of the 11-2007 does not depend whether the procuring agency has a depot or not. 11-2007 is applicable if you are not buying from the retailers and dealers or from those engaged in the business of selling the same to the general public for ultimate consumption and which are sold at pump prices but from a major supplier. LIkewise, it is applicable if it is use for major operational requirement for the accomplishment of their principal mandates. If you comply with the the 2 requirement above, you can apply index pricing or weighted average (whichever is applicable) which will solve your issue on changing oild prices.

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Re: PROCUREMENT OF FUEL AND LUBRICANTS

Post by kim_wd on Tue Jul 16, 2013 12:36 pm

Thank you for your reply, ma'am.

Okay, so in our case, we can't buy from the major suppliers because buying from them (considering our location) would incur additional expenses thus rendering it disadvantageous for us. If we procure through public bidding, the bidders would be the retailers/dealers. Thus, the resulting winning bid price/offer would have to be stated as fixed in the contract. Wouldn't it be disadvantageous to the agency if the pump price during withdrawal is lower than the fixed contract price?

Kelangan bang kung ano yung bid price per liter ng winning bidder e fixed na all throughout the implementation of the contract? Can we not state in the contract na the price would be at pump price during withdrawal? scratch
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Re: PROCUREMENT OF FUEL AND LUBRICANTS

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