splitting or not

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splitting or not

Post by kobe24 on Fri Aug 08, 2014 8:29 pm

this july we purchased equipments used for disaster like boots, raincoat, flashlight, etc. amounting to php 40,000. early this august we again purchased additional items on the same supplier amounting to php 20,000.. is this considered splitting? please reply..

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is this spiltting or not please reply

Post by kobe24 on Sun Aug 10, 2014 2:01 pm

kobe24 wrote:this july we purchased equipments used for disaster like boots, raincoat, flashlight, etc. amounting to php 40,000. early this august we again purchased additional items on the same supplier amounting to php 20,000.. is this considered splitting? please reply..

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Splitting or not

Post by pluma on Mon Aug 11, 2014 2:49 pm

kobe24 wrote:this july we purchased equipments used for disaster like boots, raincoat, flashlight, etc. amounting to php 40,000. early this august we again purchased additional items on the same supplier amounting to php 20,000.. is this considered splitting? please reply..

Please refer to RA 9184 sec. 51,52

also refer to this thread
http://gppb.topicsolutions.net/t160-splitting-or-not


Last edited by pluma on Mon Aug 11, 2014 2:55 pm; edited 1 time in total (Reason for editing : add some info)
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Re: splitting or not

Post by kobe24 on Mon Aug 11, 2014 8:41 pm

we purchase it sir in accordance to 53.2 of ra 9184... do we have problem in this situation sir?

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Re: splitting or not

Post by kyin29 on Tue Aug 12, 2014 10:21 am

sa tingin ko sir kung month naman ang pagitan ng purchase nyo ay hindi masasabing splitting yan, but if mga week lang ay "baka" splitting sir, kasi halatang halata na chinop-chop nyo yung purchase nyo para lang hindi pumasok sa bidding..

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Re: splitting or not

Post by lilyputian67 on Mon Oct 13, 2014 10:44 am

Hi. We had a seminar recently on RA 9184 and one of the topics discussed was about splitting. If i remember right, purchases not more than 500,000.00 purchased separately, say, 1st procurement cost 200,000.00 , then another month the same items were procured with a total cost of 250,000.00, the way i understood the explanation of our resource speaker, this can NOT be considered splitting since for a procurement to be considered "splitted", the total amount should be more than 500,000.00. In the case of Mr Kobe, the total amount of the items purchased is only 60,000.00, which would not require a public bidding if procured all at the same time. That is how i understood the issue. If I am wrong, I am open to correction. Good day.

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Re: splitting or not

Post by regina avelino on Thu Oct 23, 2014 10:09 am

My opinion on the matter:

1. If after consideration of the APP, there was no other procurement similar in nature with regard to your 2 procurement activities of which that total is less than 500,000.00 then I believe there is no splitting issue

2. you abide by the rules on shopping and small value procurement.
3. public will always be the default mode. If I were you, i would have done this through public bidding for the 450,000 projects for efficiency and economy. I would have included in the bidding documents that the delivery would be in 2 batches in accordance to the timing of your needs.

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Re: splitting or not

Post by engrjhez® on Mon Nov 03, 2014 5:03 pm

kobe24 wrote:this july we purchased equipments used for disaster like boots, raincoat, flashlight, etc. amounting to php 40,000. early this august we again purchased additional items on the same supplier amounting to php 20,000.. is this considered splitting? please reply..

I believe I already answered this question in PGP.

Premised on a valid procurement under 53.2 (emergency cases), the subsequent procurement amounting to 20,000 may not be "splitting of contracts" even if the threshold for your LGU is only P50,000.00. The answer to your question will depend on the APP for that matter.
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Re: splitting or not

Post by engrjhez® on Mon Nov 03, 2014 5:09 pm

lilyputian67 wrote:Hi. We had a seminar recently on RA 9184 and one of the topics discussed was about splitting.  If i remember right, purchases not more than 500,000.00 purchased separately, say, 1st procurement cost 200,000.00 , then another month the same items were procured with a total cost of 250,000.00, the way i understood the explanation of our resource speaker, this can NOT be considered splitting since for a procurement to be considered "splitted", the total amount should be more than 500,000.00.  In the case of Mr Kobe, the total amount of the items purchased is only 60,000.00, which would not require a public bidding if procured all at the same time. That is how i understood the issue. If I am wrong, I am open to correction. Good day.

That is correct, except that the thresholds for shopping/small value procurement varies depending on class. You may refer to Annex "H" of the IRR.

A more precise meaning of "splitting" can be found on Section 54.1 of the IRR.

[S]plitting of Government Contracts means the division or breaking up of GOP contracts into smaller quantities and amounts, or dividing contract implementation into artificial phases or sub-contracts for the purpose of evading or circumventing the requirements of law and this IRR especially the necessity of public bidding and the requirements for the alternative methods of procurement.

Good day!
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