UPGRADE OF ITEM WITH NO COST

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UPGRADE OF ITEM WITH NO COST

Post by neestrevencion on Mon Nov 16, 2009 12:58 pm

good day!

in what particular article is mentioned, if there is any, that we can receive upgraded item or an equipment with no additional cost to the agency.

we have this approved purchase order for a certain model of printer but when the purchase order was approved, the supplier wrote us that they cannot deliver the units due to limited stocks and that they are willing to replace it with model which is higher in specification and with no additional cost to the agency.

thanks!
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Re: UPGRADE OF ITEM WITH NO COST

Post by Guest on Tue Nov 17, 2009 9:00 am

I believe the IRR is silent about the matter (correct me if i am wrong)

However, presuming that your procurement is through competitive bidding. You cannot accept such item exept if it is w/in the specification provided in your ITB.

in alternative modes, some modes are depended upon the previous competitive bidding in which the item must also conform with the specification provided.

What mode of procurement are you using?

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Re: UPGRADE OF ITEM WITH NO COST

Post by RDV @ GP3i on Tue Nov 17, 2009 10:44 am

neestrevencion wrote:good day!

in what particular article is mentioned, if there is any, that we can receive upgraded item or an equipment with no additional cost to the agency.

we have this approved purchase order for a certain model of printer but when the purchase order was approved, the supplier wrote us that they cannot deliver the units due to limited stocks and that they are willing to replace it with model which is higher in specification and with no additional cost to the agency.

thanks!

Since you mentioned that you already have an "approved purchase order", that already serves as the contract between the procuring entity and the supplier. However, because it is only a P.O., the terms of that contract are very limited. Any changes, therefore, in the contract has to be agreed by and between the contracting parties. I think the basic rules that would apply to you is that so long as the changes are not contrary to law, morals, good customs, public order or public policy.

Even the GCC of the PBDs has a provision (Sec. 29) on contract amendment, as follows: Subject to applicable laws, no variation in or modification of the terms of this Contract shall be made except by written amendment signed by the parties. " Any changes therefore in the terms of the P.O. will have to be covered by a written amendment between the contracting parties. In your case, if you believe the suppliers reasoning, and considering that there will be no additional cost, a higher specification printer is to be delivered, and that higher specification will satisfy the requirement of the end-user unit and acceptable to them, then a written amendment will just be in order. Otherwise, you may extend contract delivery until stocks are available, or impose liquidated damages for delay in delivery, or terminate the contract for his failure to deliver.

You may also look at Annex "D" of the Revised IRR which pertains to the contract implementation guidelines for the procurement of goods.
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Re: UPGRADE OF ITEM WITH NO COST

Post by neestrevencion on Tue Nov 17, 2009 12:58 pm

Many thanks, RDV! Very Happy
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Re: UPGRADE OF ITEM WITH NO COST

Post by sunriser431 on Tue Nov 17, 2009 1:14 pm

neestrevencion wrote:good day!

in what particular article is mentioned, if there is any, that we can receive upgraded item or an equipment with no additional cost to the agency.

we have this approved purchase order for a certain model of printer but when the purchase order was approved, the supplier wrote us that they cannot deliver the units due to limited stocks and that they are willing to replace it with model which is higher in specification and with no additional cost to the agency.

thanks!
For simplicity, let us used the sample form provided by the GPPB (old) SF-Good-58 (PO). Perusal of the Terms and Conditions are as follows: (copied verbatim)
1.ALL PRICES QUOTED HEREIN ARE VALID, BINDING AND EFFECTIVE AT LEAST WITHIN THIRTY (30) CALENDAR DAYS FROM DATE OF QUOTATION.
2. AWAREDEE shall be responsible for the source(s) of his supplies/materials/equipment shall make deliveries in accordance with schedule, quality and specifications of the award and purchase order. Failure by the AWARDEE to comply with the same shall be ground for cancellation of the award and purchase order issued to that AWARDEE and for re-awarding the item(s) to the ALTERNATE AWARDEE.
3.AWARDEE shall pick up purchase order(s) issued in his favor within three (3) days after receipt of notice to that effect. A telephone call or fax transmission shall constitute an official notice to the AWARDEE. Thereafter, if the purchase order(s) remain unclaimed, the said purchase order(s) shall be sent by messengerial service to the AWARDEE at the latter’s expense. To avoid delay in the delivery of the requesting agency’s requirement, all DEFAULING AWARDEES shall be precluded from proposing or submitting a substitute sample.
4.Subject to the provisions of the preceding paragraph, where AWARDEE has accepted a purchase order but fails to deliver the required product(s) within the time called for in the same order, he shall be extended a maximum of fifteen (15) calendar days under liquidated damages to make good his delivery. Thereafter if AWARDEE has not completed delivery within the extended period, the subject purchase order shall be cancelled and the award for the undelivered balance withdrawn from that AWARDEE. The Procurement Service shall then purchase the required item(s) from such other source(s) as it may determine, with the difference in price to be charged against the DEFAULTING AWARDEE. Refusal by the DEFAULTING AWARDEE to shoulder the price difference shall be ground for his disqualification from future bids of the same or all items, without prejudice to the imposition of other sanctions as prescribed under RA 9184 and its IRR-A.
5.All deliveries by suppliers shall be subject to inspection and acceptance by the _<Name of Procuring Entity>_. All necessary laboratory tests undertaken by the _<Name of Procuring Entity>_ on the item(s) shall be for the account of the supplier.
6.Rejected deliveries shall be construed as non-delivery of product(s)/item(s) so ordered and shall be subject to liquidated damages, subject to the terms and conditions prescribed under paragraph 4 hereof.
7.Supplier shall guarantee his deliveries to be free from defects. Any defective item(s) / product(s), therefore that may be discovered by the _<Name of Procuring Entity>_ within three (3) months after acceptance of the same, shall be replaced by the supplier with seven (7) calendar days upon receipt of a written notice to that affect.
8.A penalty of one-tenth of one percent (0.001) of the total value of the product(s)/goods purchased shall be deducted for each day of delay in the delivery of the product(s)/goods ordered.
9. All duties, excise and other taxes and revenue charges, if any, shall be for the supplier’s account.
10.As a pre-condition to payment, IMPORTATION DOCUMENTS specifically showing the condition and serial numbers of the imported equipment purchased should be submitted by the supplier to the _<Name of Procuring Entity>_.
11.All transactions are subject to withholding of creditable Value Added Tax (VAT) per Revenue Regulation No. 10-93.
Maybe this would help. bounce
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Re: UPGRADE OF ITEM WITH NO COST

Post by nenette on Wed Nov 25, 2009 5:41 pm

Hi Sir!!

Gud PM.

meron kami extension ng project which fall under Negotiated procurement at na satisfy naman mga conditions sa Sec 53.4 . ask ko po kung negotiated procurment dapat pa ba mag issue ng notice of award sa dating contractor o diretso na signing of contract kung ok na between sa amin at sa contractor? Please reply asap .

Thx

Nenette (UPOU)
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Re: UPGRADE OF ITEM WITH NO COST

Post by Guest on Thu Nov 26, 2009 9:41 am

Required po ung NOA at posting

54.3. In all instances of alternative methods of procurement, the BAC, through the Secretariat, shall post, for information purposes, the notice of award in the PhilGEPS website, the website of the procuring entity concerned, if available, and at any conspicuous place reserved for this purpose in the premises of the procuring entity.

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Re: UPGRADE OF ITEM WITH NO COST

Post by RDV @ GP3i on Thu Nov 26, 2009 10:15 am

WormaixJr wrote:Required po ung NOA at posting

54.3. In all instances of alternative methods of procurement, the BAC, through the Secretariat, shall post, for information purposes, the notice of award in the PhilGEPS website, the website of the procuring entity concerned, if available, and at any conspicuous place reserved for this purpose in the premises of the procuring entity.

I think it is still necessary to issue a Notice of Award. First, posting of award is required for all of the alternative methods of procurement. Second, issuance of NOA will give the signal and the condition for the current contractor to sign the contract and post additional performance security within 10 c.d. from its issuance.

RDV
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