No qualified suppliers after conduct of negotiated procurement

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No qualified suppliers after conduct of negotiated procurement

Post by kimstar on Fri Dec 23, 2016 12:01 am

Hi,

After 2-failed bidding, the negotiated procurement is the next option allowed. In the negotiated mode it is provided that at least 3 suppliers will be consulted/notified/invited. The case is, what should the BAC do if, CASE 1: All three consulted suppliers does not have the services and technical qualification as required, and CASE 2: One of the supplier has a quoted amount in the bid form, while the two other suppliers quoted a zero amount and simply stated in their bid form as "... the service required is beyond our capacity", and "not available", respectively. Can the BAC act on the basis of one quotation only (instead of 3), assuming that the quoted amount is below the ABC and the service offered appears acceptable?

In the negotiated mode, should all participating bidders have a quoted amount for the procurement record to be valid? Please advice.

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Re: No qualified suppliers after conduct of negotiated procurement

Post by markshinoda on Fri Dec 23, 2016 10:55 am

kimstar wrote:Hi,

After 2-failed bidding, the negotiated procurement is the next option allowed. In the negotiated mode it is provided that at least 3 suppliers will be consulted/notified/invited. The case is, what should the BAC do if, CASE 1: All three consulted suppliers does not have the services and technical qualification as required, and CASE 2: One of the supplier has a quoted amount in the bid form, while the two other suppliers quoted a zero amount and simply stated in their bid form as "... the service required is beyond our capacity", and "not available", respectively. Can the BAC act on the basis of one quotation only (instead of 3), assuming that the quoted amount is below the ABC and the service offered appears acceptable?

In the negotiated mode, should all participating bidders have a quoted amount for the procurement record to be valid? Please advice.
 

The BAC shall invite at least three (3) suppliers, contractors or consultants, including those disqualified in previous biddings for the project, for negotiations to ensure effective competition. This, notwithstanding, those who responded through any of the required postings shall be allowed to participate. Even if only one (1) bidder should respond to such invitation or posting, the BAC shall proceed with the negotiation subject to the rules prescribed hereunder.

If your invited 3 suppliers/service providers then only 1 is compliant then you can proceed to negotiation.
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Re: No qualified suppliers after conduct of negotiated procurement

Post by kimstar on Fri Dec 23, 2016 5:59 pm

Thank you for your answer. The case here is that many COA Auditors rigidly interpreted that in negotiated procurement, there must at least be 3 suppliers submitting their quotation with the winner being the one with the lowest quotation and that upon audit verification, the two other non-winning suppliers must have submitted a quotation HIGHER than the amount quoted by the final winning supplier. Many times COA Auditors delayed the process because of their rigid interpretation of this mode. In the absence of a clear, written policy or guideline on the matter, COA Auditors will most likely continue to disallow the result of a single supplier submitting only a sole bid for a procurement. Thus, it will be helpful if clear legal basis or better still a jurisprudence if there was, is cited to clear this issue at hand.

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Re: No qualified suppliers after conduct of negotiated procurement

Post by markshinoda on Tue Dec 27, 2016 2:18 pm

kimstar wrote:Thank you for your answer. The case here is that many COA Auditors rigidly interpreted that in negotiated procurement, there must at least be 3 suppliers submitting their quotation with the winner being the one with the lowest quotation and that upon audit verification, the two other non-winning suppliers must have submitted a quotation HIGHER than the amount quoted by the final winning supplier. Many times COA Auditors delayed the process because of their rigid interpretation of this mode.  In the absence of a clear, written policy or guideline on the matter, COA Auditors will most likely continue to disallow the result of a single supplier submitting only a sole bid for a procurement. Thus, it will be helpful if clear legal basis or better still a jurisprudence if there was, is cited to clear this issue at hand.

What you can do is to let them read or print the portion of the IRR of RA 9184 which stated that we invited at least 3 suppliers for their reference. You attach the proof of invitation that you have invited 3 suppliers (as required by the IRR of RA 9184), if ever only 1 respond and which also compliant to the said request then proceed to negotiation.
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