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Procurement of Same Items with Different Fund Sources

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Procurement of Same Items with Different Fund Sources

Post by bsamg on Fri Aug 01, 2014 1:36 pm

Initially, the BAC consolidated in only one procurement (public bidding or small value) similar items regardless of the source of fund (i.e., GAA, Special project, Trust fund). However, because the Accounting office seems to have difficulty classifying accounts they demanded that procurement from different fund sources of even similar items be bided or canvassed separately, which the BAC did. Is the latter practice not considered splitting of contract?

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Re: Procurement of Same Items with Different Fund Sources

Post by bsamg on Wed Aug 06, 2014 9:39 am

No answer yet. I surmise no agency had a similar experience in the past? How about treating it hypothetically? I hope the experts in this forum can help.

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Re: Procurement of Same Items with Different Fund Sources

Post by regina avelino on Wed Aug 06, 2014 10:34 am

hi. the procurement law requires that procurement of different offices within an agency should be consolidated. this is the purpose of the law why PPMP is consolidated into APP. this will group procurement projects which are similar in nature into one for purposes of efficiency and economy and to determine what mode of procurement (public bidding or alternative mode). Since you mentioned that the projects were similar in nature and yet procurement were done separately, there is a possibility that you resort to alternative mode such as shopping or svp for each individual projects but if aggregated and the ABC exceeds the threshold, public bidding should be resorted to thus a violation of the rule specifically on splitting. I think your accounting department should consult with COA how to deal with this. the fund source should not dictate whether you make the procurement done separately or in aggregate.

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Re: Procurement of Same Items with Different Fund Sources

Post by bsamg on Wed Aug 06, 2014 1:11 pm

Thank you for the response. Your argument will serve us well.

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Re: Procurement of Same Items with Different Fund Sources

Post by jonred on Sat Mar 28, 2015 4:41 pm

I think it is the same as in the case where the BAC consolidated two appropriation ordinances for the procurement of a single item such purchase of 1 unit of heavy equipment? What law does it violate?

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Re: Procurement of Same Items with Different Fund Sources

Post by jonred on Sat Mar 28, 2015 4:46 pm

It is not possible I guess because two sources of fund need two different appropriation ordinance. A single purchase can not be made on the basis of two appropriation ordinances.

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Re: Procurement of Same Items with Different Fund Sources

Post by attywaws on Mon Apr 06, 2015 4:42 pm

Hi!

In my opinion, the single purchase can be made on the basis of two appropriation ordinances since there are still valid sources of funds. The mode used, that is, joining of two projects covered under separate appropriation ordinances is in accord with the procurement law as long as it is included in its APP and that the source of funding for the project is clearly indicated. What is prohibited is the disposition of funds without any law or ordinance to support such appropriation.
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Re: Procurement of Same Items with Different Fund Sources

Post by jonred on Mon Apr 13, 2015 7:31 pm

I think there is no problem if two appropriation ordinances for two projects putting into one project. Also no problem for two appropriation ordinances of single project esp. If the other appropriation ordinance is a supplemental appropriation ordinance. However, two appropriation ordinances other than supplemental appropriation ordinance for an indivisible item or project without proper realignment is illegal.

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Re: Procurement of Same Items with Different Fund Sources

Post by iamcris on Sun Apr 19, 2015 2:07 am

May I add a question?

How about in the preparation of the Purchase Order the two similar/the same class of items, say for example drugs and medicines, were split in two Purchase Orders because they are from two different funding sources (there was no problem in the procurement process).

The question is, can it be considered as splitting of contracts? Base on my readings COA says it is a splitting of purchase orders but RA 9184 says it's not. Can somebody enlighten me on this matter?

Thank you.

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