Latest topics
» No Objection Letter
Sat Dec 16, 2017 5:21 pm by zeph03

» CATERING SERVICES FOR CONGRESSIONAL MEET AT SAGBAYAN, BOHOL
Thu Dec 14, 2017 7:14 pm by btorres4

» PURCHASE OF FERTILIZERS FOR LIVESTOCK, CORN, HVCDP, INLAND FISHERY, AND ORGANIC PROGRAM
Thu Dec 14, 2017 4:35 pm by btorres4

» Newspaper Publication
Thu Dec 14, 2017 4:10 pm by btorres4

» RENTAL OF LIGHTS AND SOUND SYSTEM
Thu Dec 14, 2017 3:46 pm by btorres4

» Newspaper Publication
Wed Dec 13, 2017 9:50 pm by btorres4

» PURCHASE OF OTHER SUPPLIES FOR SB OFFICE
Wed Dec 13, 2017 4:51 pm by btorres4

» PURCHASE OF RICE FOR FOOD SUPPLIES OF PEACE & ORDER CAMPAIGN
Wed Dec 13, 2017 3:19 pm by btorres4

» Expired Tax Clearance during payment
Wed Dec 13, 2017 3:11 pm by vallemaco6224

» PURCHASE OF MEDICINE FOR MHO
Wed Dec 13, 2017 2:53 pm by btorres4


Authority to draw cash advance

Page 1 of 2 1, 2  Next

View previous topic View next topic Go down

Authority to draw cash advance

Post by mbdr on Mon Mar 16, 2009 10:32 pm

Hi and hello to all!

Please spare time to share with US your views on this.

Our BAC considers procurement thru shopping mode on requests for items (including meals) which are badly needed by end-users . Said requests are usually done thru a letter to BAC asking for its approval and the BAC ,if convinced with the jusitifcation /s presented by the requesting end-user, will pass a Resolution recommending approval to procure thru shopping mode the said requisition.

But there are end-users who further request for an "authority to draw cash advance" to fast track the procurement of the items they intend to procure.

My question is........ is it necessary to include in the BAC Resolution the recommendation for approval of the request to draw cash advance- C/A? Since the said matter is, I think (in my own opinion only, please correct me if i'm wrong) no longer the job of the BAc to approve said request, it is the HOPE/LCE.

In our side (as BAC Secretariat), we feel that recommending approval for the said request (C/A) is pre-empting the action of the approving HOPE. Is it sirs? What if the HOPE will not approve such request for C/A?

I hope to be clarified on this matter. thank you and godbless! Question

mbdr
Active Poster
Active Poster

Female Number of posts : 84
Age : 49
Company/Agency : LGU
Occupation/Designation : Govt. Employee/BAC Secretariat
Registration date : 2009-02-23

Back to top Go down

on "authority to draw cash advance"

Post by venom.0420 on Mon Mar 16, 2009 11:43 pm

Hi mbdr,

'm a bit surprise of the case you just mentioned in ur post 'coz I haven't encountered anything like it in our office. In fact, if one of our end-user will make such a request, I don't think we will allow it because it defeats the purpose of the procurement law. RA 9184 promotes free competition and transparency in government procurement. Allowing such practice, upholds neither of the two.

The nature of the case u just mentioned is a little troublesome to me, 'coz aside from it abandons any of the modes of procurement available in RA 9184, it uses government money to accomplish it. How ironic.. Crying or Very sad

My answer to ur query - the BAC is required to attach a resolution whenever a particular item or project is going to be procured other than public bidding. So, if the mode of procurement is "shopping" then my answer is "yes" regardless of the purpose of your end-user.

To all-is this happening in ur organization? Question
avatar
venom.0420
Active Poster
Active Poster

Male Number of posts : 98
Company/Agency : Government
Occupation/Designation : Government Employee
Registration date : 2009-01-05

Back to top Go down

Re: Authority to draw cash advance

Post by mbdr on Tue Mar 17, 2009 8:33 am

Good Day Venom and to all!

Thanks for your reply. I really appreciate your interest in replying and giving views n the different issues raised . Lat night I viewed other posts and decided to refer that matter to you for comments. M so happy that you answered it right away (at 11:00 pm past). wow... thanks a lot!

Yes this is true n some requests like meals for unscheduled visitors coming to our city, spare parts of vehicles which needs immediate /urgent attention , food stuff of CSWD Office since we dont have accredited suppliers interested to participate in the bidding of such things.

THE BAC here conducts bidding every week (regularly) but there are requisitions that cannot be catered thru public bidding anymore because of the 7 days posting period requirement and due to the urgency and the neccessity of the requisitioned items , the BAC will recommend approval to procure the same thru shopping mode, of course thru a resolution.

But since there are suppliers who will not honor POs or requires cash for these items and the end-user has no choice except to ask for an authority to draw cash advance. Can the BAc recommends for such approval? Do they need to include in the BAC resolution their recommendation for such?

I think this happens also in some other LGUs or they also have similar cases like this. How will you treat or address this matter sirs????

Any comments and posts for this are very much welcome. Thanks , thanks. God bless us all!

mbdr
Active Poster
Active Poster

Female Number of posts : 84
Age : 49
Company/Agency : LGU
Occupation/Designation : Govt. Employee/BAC Secretariat
Registration date : 2009-02-23

Back to top Go down

Re: Authority to draw cash advance

Post by riddler on Tue Mar 17, 2009 10:48 am

mbdr wrote:

Yes this is true n some requests like meals for unscheduled visitors coming to our city, spare parts of vehicles which needs immediate /urgent attention , food stuff of CSWD Office since we dont have accredited suppliers interested to participate in the bidding of such things.

I think this happens also in some other LGUs or they also have similar cases like this. How will you treat or address this matter sirs????

Any comments and posts for this are very much welcome. Thanks , thanks. God bless us all!


yes, It happens to every LGU every day, you are not alone mbdr, marami tayo!
We are confronted also with visitors every day from national agencies, foreign nationals, "lakbay-aral" groups, etc. etc., Sometimes our Mayor would treat these people to some cozy place here in our city syempre, to promote our place at his own expense only to be reimbursed later. Thats why our BAC find it difficult how to deal with this "not so emergency situation." Our BAC do not issue resolution to this kind of situation, kasi tapos na ang activity eh, kaya reimbursement na lang.

These causes a lot of nightmares to our Accounting Department, ha ha ha! The truth is, we cannot do away with reimbursements, it is difficult to set limits to it lalo na sa Chief Executive. Even people from COA are allowed to reimbursed here too!
avatar
riddler
Board General
Board General

Male Number of posts : 598
Company/Agency : lgu
Occupation/Designation : endyeenel
Registration date : 2009-03-03

Back to top Go down

Re: Authority to draw cash advance

Post by mbdr on Tue Mar 17, 2009 11:53 am

Hi engr.....

Funny kasi marami pala tayo! Pero sir, kailangan ba mag pass ng resolution ang BAC confirming the action made by the end-user for the said requistions? Of course parang shopping mode na yun. What is the proper action of the BAC? The Accounting Office needs a resolution from the BAC para ma process ang reimbursement ( if that is the case). "Confirmation of approval to procure thru shopping mode" .... ok ba 'to? Question

mbdr Laughing

mbdr
Active Poster
Active Poster

Female Number of posts : 84
Age : 49
Company/Agency : LGU
Occupation/Designation : Govt. Employee/BAC Secretariat
Registration date : 2009-02-23

Back to top Go down

on "authority to draw cash advance"

Post by venom.0420 on Tue Mar 17, 2009 1:18 pm

To sirs mbdr and ruel tianchon:

I believe ur cases are different in a way that in mbdr's lgu they first request for cash advance and once approved, uses such money to procure in advance such item. In ruel's lgu, your mayor uses his/her own money in advance to procure such item. The latter's case is an ordinary case of reimbursement which is tolerable in some degree, the former is what I am not familiar with.

Any further comments guyz? Very Happy
avatar
venom.0420
Active Poster
Active Poster

Male Number of posts : 98
Company/Agency : Government
Occupation/Designation : Government Employee
Registration date : 2009-01-05

Back to top Go down

Re: Authority to draw cash advance

Post by mbdr on Tue Mar 17, 2009 1:35 pm

HELLO VENOM,

Gdpm to you sir. I am happy that sir ruel shared his views on reimbursement since this is also practiced here. And i am also interested to hear from anybody there.......of the "cash advances" made for purposes of procuring items , urgently or badly needed by some govt offices.

Thank you

mbdr
Active Poster
Active Poster

Female Number of posts : 84
Age : 49
Company/Agency : LGU
Occupation/Designation : Govt. Employee/BAC Secretariat
Registration date : 2009-02-23

Back to top Go down

Re: Authority to draw cash advance

Post by riddler on Tue Mar 17, 2009 2:02 pm

mbdr wrote:Hi engr.....

Funny kasi marami pala tayo! Pero sir, kailangan ba mag pass ng resolution ang BAC confirming the action made by the end-user for the said requistions? Of course parang shopping mode na yun. What is the proper action of the BAC? The Accounting Office needs a resolution from the BAC para ma process ang reimbursement ( if that is the case). "Confirmation of approval to procure thru shopping mode" .... ok ba 'to? Question

mbdr Laughing

Actually sa Infrastructure kasi ako, and for projects under contract the only "Cash Advance" that is allowed is 15% of the Contract price. As for the goods, there is that provision in the IRR or LGU Manual to cash advance for 50% of the contract price provided that you have to seek an approval from the Office of the President. Ha haha! Really funny! that goes to show that we cannot cash advance the payment for goods nor the BAC justify the cash advance. (parang di talaga pwede sa goods).

Our BAC resolution states that, ..." the BAC cannot make action to justify the reimbursement".... the reason is that, how can the BAC make an action eh hindi naman dumaan sa procurement process ang reimbursement, buti sana kung yung activity falls as provided under the "emergency situation" The BAC may act on that matter to justify the action made by the end-user. Yes mbdr, its true, some accountants needs the resolution to justify reimbursement, kasi to be safe on their part naman... Pero wag naman ibigay sa BAC ang burden to justify the action, kawawa naman sila. THe accountant could either approved or disapproved the voucher, di ba? kaya nga nightmare talaga ito sa accountant natin.

ps. dont call me sir, i am still young.
avatar
riddler
Board General
Board General

Male Number of posts : 598
Company/Agency : lgu
Occupation/Designation : endyeenel
Registration date : 2009-03-03

Back to top Go down

Re: Authority to draw cash advance

Post by mbdr on Tue Mar 17, 2009 2:35 pm

ok boss ruel, but be friendly to me ha. Like others, m only seeking for anwers to our "countless questions" about the law (RA 9184). If we follow the rules, nako ang hirap boss no? Every lgu has its own needs and concerns.

Anyway, thanks to all, special mention to boss ruel and sir venom. m still waiting for other's view on this matter.

mbdr
Active Poster
Active Poster

Female Number of posts : 84
Age : 49
Company/Agency : LGU
Occupation/Designation : Govt. Employee/BAC Secretariat
Registration date : 2009-02-23

Back to top Go down

Re: Authority to draw cash advance

Post by riddler on Tue Mar 17, 2009 5:34 pm

i am a friendly naman no? ha ha ha! kaya nga , minsan natatawa tlga ako sa sitwasyun natin dito sa LGU, dami tayo problema when it comes to procurement process. Unique tayo unlike sa National Governement. When our lawmakers drafted the GPRA the LGU's where left behind sa consultation, kaya nagkakagulo tayo coz' before, we were following the procurement under RA 7160 while the NG follows the PD 1594. So when the GPRA was made, i felt na parang yung mga provisions of the law naka focus sa National Government, besides not much trainings were conducted to the LGU's when in fact tayo ang pinakamaraming problema when it comes to procurement process.

If you noticed the structure of the LGU as compared to the National
office, meron tayong parallel function like Office of the Mayor to Office of the President, Sanggunian Panlunsod to Congress, Municipal Engineering Office to DPWH, MUnicipal Health Office to DOH, Muncipal Agriculture to DOA,and so on. My point here is, our Local BAC shall cater to different needs of this every Local Department, kaya hirap na hirap kami sa consolidation ng APP, eh samantalang as compared to DPWH or DOH of the Nat'l Government, iisa lang ang sentro ng procurement nila either Infrastructures or Medicines, kaya napakadali sa kanila ang procurement process... masama tlaga loob ko, pero on the other hand natatawa ako mbdr. ha ha ha. Please dont call me boss or sir ha, we are all ordinary people. Ruel is fine with me.
Thank you din sa 'yo mbdr.
avatar
riddler
Board General
Board General

Male Number of posts : 598
Company/Agency : lgu
Occupation/Designation : endyeenel
Registration date : 2009-03-03

Back to top Go down

Re: Authority to draw cash advance

Post by engrjhez® on Tue Mar 17, 2009 6:00 pm

I agree to everyone (i guess venom is an exception). Food stuffs are essential in the operation of LGUs (as if i am!). We were also using the same procedure of SHOPPING under the alternative methods of procurement. However, there are slightly misleading concepts and malpractice which may be corrected by a valid and legal procedure.

    1. The use of "SHOPPING". Looking back to the definition of shopping in Section 52 of the IRR, shopping refers to purchase of goods. Food packs can never fall under such method because they are neither readily available off-the-shelf nor ordinary/regular office supplies. To correct this, we may use the (only) applicable method - NEGOTIATED PROCUREMENT. Section 53.h particularly covers the insufficiencies of Section 52, provided the amount is P50,000 and below and it does not result in the splitting of contract;

    2. Referring to the last underlined phrase in No.1 above, this is not the case for most of food stuff procurements. More often than not, it is "abused" (let us accept the term) for the purposes of disbursing funds in the shortest possible time. Splitting may also result from artificial "phasing" of contracts to avoid biddings. The law may be strict, but the law is always right;

    3. Which leaves to No.3 now. The SOLUTION, as I may introduce is this - PUBLIC BIDDING. Since it is unanimously agreed upon that food stuff is basic for every LGU, then there is really no justification to declare it as "unforeseen" as for the SHOPPING mode. Based on the historical records (which may take us back a century ago), we can project the cost of food being used for daily, monthly, or quarterly basis. Let us BID that out. We can do it every quarter or as often as we want - for as long as it is under PUBLIC BIDDING.


I may say also, that based on the similarities of our experiences, that there may be something wrong with the Annual Procurement Plan (APP) and its amendments (or worst fear, it may not be existing to some LGUs) if such conflict arises. The need for CASH ADVANCE need not be necessary should there exists proper PROCUREMENT PLANNING.

As of now, we officially STOPPED perpetuating the same mistakes we realized we committed in the past. I believe a proper (or even regular) procurement training is necessary to absorb all the "misinterpretations" of the same law we are all using.

Whew! Just can't leave the office without saying something on this. Very Happy
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2481
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Authority to draw cash advance

Post by engrjhez® on Tue Mar 17, 2009 10:16 pm

mbdr wrote:Hi engr.....

Funny kasi marami pala tayo! Pero sir, kailangan ba mag pass ng resolution ang BAC confirming the action made by the end-user for the said requistions? Of course parang shopping mode na yun. What is the proper action of the BAC? The Accounting Office needs a resolution from the BAC para ma process ang reimbursement ( if that is the case). "Confirmation of approval to procure thru shopping mode" .... ok ba 'to? Question

mbdr Laughing
I don't think REIMBURSEMENTS should be backed up by a BAC RESOLUTION. Since the procurement existed (and was completed) some time in the past, the BAC is never appropriate to make further statements or resolutions regarding this. The only proper action is to post it on the GEPS (and to the other media available) for information purposes. Please see the adjacent topic on the link below.

http://gppb.topicsolutions.net/alternative-methods-of-procurement-f9/reimbursement-an-alternative-method-t15.htm

This action seems to be precedent on every LGU. We do not deny the fact that this even happened on us. But after intensive research and guidance from the DBM, GPPB, and COA, we painstakingly extracted the essentials of government procurement - the not so easy way. We do not intend to return to the same mistakes again. Of course we cannot always abide by the book. But at least we tried our very best!
Cool
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2481
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Authority to draw cash advance

Post by engrjhez® on Tue Mar 17, 2009 10:38 pm

mbdr wrote:...I am happy that sir ruel shared his views on reimbursement since this is also practiced here. And i am also interested to hear from anybody there.......of the "cash advances" made for purposes of procuring items , urgently or badly needed by some govt offices.

Thank you
We are afraid your statement is leading...

Cash advances are limited to procurements. As pointed out by Engr.Ruel, the only exception we got so far is the 15% advanced payment for infrastructures (but still subject for some conditions). Aside from it, 100% cash advance is allowed for attending trainings, seminars, and conventions but are subject to liquidation within thirty (30) days.

Cash advances elsewhere may suggest a failure in competitiveness. Why do we need to have a cash advance? Is the bidder incapable? Is the procurement an intentional "unforeseen" event? If the supplier is requesting for such, we knew no ruling that may be enforced to accommodate this requisite. As to suppliers who intend to join the bidding/canvass, they must also realize that transaction with the government, particularly disbursement of funds, is bounded by law.

I hope we could help you more in "permanently" correcting the scenario rather than re-routing to unauthorized "short-cuts" (which may lead to further complications). Sad
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2481
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Authority to draw cash advance

Post by shobe on Wed Mar 18, 2009 2:31 pm

mbdr's orig query---

My question is........ is it necessary to include in the BAC Resolution the recommendation for approval of the request to draw cash advance- C/A? Since the said matter is, I think (in my own opinion only, please correct me if i'm wrong) no longer the job of the BAc to approve said request, it is the HOPE/LCE.

In our side (as BAC Secretariat), we feel that recommending approval for the said request (C/A) is pre-empting the action of the approving HOPE. Is it sirs? What if the HOPE will not approve such request for C/A?



My view on the matter is...

The resolution need not contain a statement to the effect that the BAC recommends the approval of the cash advance. The role of the BAC is explicitly provided in Section 12 of R.A. 9184 and I do believe that recommending the approval by which how said acquisition is to be paid is not one of them. The most that the BAC can do in such a situation is recommend the mode by which a particular procurement should be or should have been undertaken and see to it that the justifications provided for by the end-user is within the ambit of the law. No more, no less. But then again, that is just my point of view.
Smile

P.S.

Just an added info on cash advance, Presidential Decree 1445, issued on June 11, 1978 provides the limitations on cash advance:

a) No cash advance shall be given unless for a legally authorized purpose;
b) Shall be reported and liquidated as the purpose for which it was given has been served;
c) xxx
avatar
shobe
Active Poster
Active Poster

Female Number of posts : 79
Company/Agency : Makati Firm
Occupation/Designation : Lawyer
Registration date : 2008-09-08

Back to top Go down

Re: Authority to draw cash advance

Post by mbdr on Wed Mar 18, 2009 3:41 pm

Thanks a lot shobe. Nice to hear from you. gdpm Laughing

mbdr
Active Poster
Active Poster

Female Number of posts : 84
Age : 49
Company/Agency : LGU
Occupation/Designation : Govt. Employee/BAC Secretariat
Registration date : 2009-02-23

Back to top Go down

Re: Authority to draw cash advance

Post by RDV @ GP3i on Fri Mar 27, 2009 6:01 pm

shobe wrote:mbdr's orig query---

My question is........ is it necessary to include in the BAC Resolution the recommendation for approval of the request to draw cash advance- C/A? Since the said matter is, I think (in my own opinion only, please correct me if i'm wrong) no longer the job of the BAc to approve said request, it is the HOPE/LCE.

In our side (as BAC Secretariat), we feel that recommending approval for the said request (C/A) is pre-empting the action of the approving HOPE. Is it sirs? What if the HOPE will not approve such request for C/A?



My view on the matter is...

The resolution need not contain a statement to the effect that the BAC recommends the approval of the cash advance. The role of the BAC is explicitly provided in Section 12 of R.A. 9184 and I do believe that recommending the approval by which how said acquisition is to be paid is not one of them. The most that the BAC can do in such a situation is recommend the mode by which a particular procurement should be or should have been undertaken and see to it that the justifications provided for by the end-user is within the ambit of the law. No more, no less. But then again, that is just my point of view.
Smile

I agree 100% with atty. shobe, that the BAC has no business including in its Resolution a recommendation for the approval of Cash Advance.

It is not one of the functions of the BAC, therefore, it should limit its recommendation to the mode of procurement and the justifications for it.

The BAC would be unnecessarily exposing itself to additional risks of being administratively and/or criminally charged under the Anti-Graft Law (RA 3019), especially if there are abuses committed in the cash advance(s) made.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Authority to draw cash advance

Post by mealigan on Fri Mar 27, 2009 6:39 pm

Let me share this actual case referred to us just this week
One of the reg'l agencies here asked me the same question since some of their personnel are tasked to render IEC activities in pursuit of agency mandate. They are given a cash advance of a considerable amount for catering services and other expenses and they themselves conduct and sign the canvass papers, not even thru negotiated procurement which should have been the case (for catering) ; but please note that these are not members of the BAC who are out in the field and undertake IEC activities. The danger here is that BAC is forced to justify the catering and other expenses which is unfair on their part and which they (BAC) did not conduct.
We recommended that BAC recommend the mode of procurement , observing the guidelines on advance payment for catering and similar services prior to the conduct of the IEC activities and not leave it to the end-user to do the procurement and just liquidate the cash advances.
Award to whoever are the winning bidders can then be recommended to the HOPE. The essence here is that procurement planning should be initiated and observed since the activities are planned in advance. While it may be cumbersome on the part of the BAC to do this, it may be the right thing to do.
The same would be true for other similar activities.

mealigan
New Member
New Member

Male Number of posts : 19
Company/Agency : Bicol University College of Engineering
Occupation/Designation : Asst. Dean / Procurement Trainor
Registration date : 2008-09-21

Back to top Go down

Re: Authority to draw cash advance

Post by engrjhez® on Fri Mar 27, 2009 8:30 pm

mealigan wrote: The essence here is that procurement planning should be initiated and observed since the activities are planned in advance. While it may be cumbersome on the part of the BAC to do this, it may be the right thing to do.
I also agree with Shobe and RDV, that anything about cash advance is out of BAC's jurisdiction. Looking back to Section 12 (Functions of the BAC):

  • "12.1. The BAC shall have the following functions: advertise and/or post the invitation to bid, conduct pre-procurement and pre-bid conferences, determine the
    eligibility of prospective bidders, receive bids, conduct the evaluation of bids,
    undertake post-qualification proceedings, resolve motions for reconsideration,
    recommend award of contracts to the head of the procuring entity or his duly
    authorized representative: Provided, however, That in the event the head of the
    procuring entity shall disapprove such recommendation, such disapproval shall
    be based only on valid, reasonable and justifiable grounds to be expressed in
    writing, copy furnished the BAC; recommend the imposition of sanctions in
    accordance with Rule XXIII, and perform such other related functions as may be
    necessary, including the creation of a Technical Working Group (TWG) from a
    pool of technical, financial and/or legal experts to assist in the procurement
    process, particularly in the eligibility screening, evaluation of bids and postqualification.

    In proper cases, the BAC shall also recommend to the head of the
    procuring entity the use of Alternative Methods of Procurement as provided for
    in Rule XVI hereof.

  • 12.2. The BAC shall be responsible for ensuring that the procuring entity abides by the
    standards set forth by the Act and this IRR-A, and it shall prepare a
    procurement monitoring report that shall be approved and submitted by the
    head of the procuring entity to the GPPB on a semestral basis. x x x"


None was mentioned about cash advances. Now, the case mealigan presented is a very common problem in the absence/deficiencies of a procurement planning (and political will!) Same old stories (of the past) for many of us. Twisted Evil
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2481
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Authority to draw cash advance

Post by venom.0420 on Fri Mar 27, 2009 11:44 pm

Hi MBDR,

I guess by now your query has been answered. Yet, let me add something more with regards to engrjhez post.

engrjhez wrote:I agree to everyone (i guess venom is an exception). Food stuffs are essential in the operation of LGUs (as if i am!). We were also using the same procedure of SHOPPING under the alternative methods of procurement. However, there are slightly misleading concepts and malpractice which may be corrected by a valid and legal procedure.

    1. The use of "SHOPPING". Looking back to the definition of shopping in Section 52 of the IRR, shopping refers to purchase of goods. Food packs can never fall under such method because they are neither readily available off-the-shelf nor ordinary/regular office supplies. To correct this, we may use the (only) applicable method - NEGOTIATED PROCUREMENT. Section 53.h particularly covers the insufficiencies of Section 52, provided the amount is P50,000 and below and it does not result in the splitting of contract;

    2. Referring to the last underlined phrase in No.1 above, this is not the case for most of food stuff procurements. More often than not, it is "abused" (let us accept the term) for the purposes of disbursing funds in the shortest possible time. Splitting may also result from artificial "phasing" of contracts to avoid biddings. The law may be strict, but the law is always right;

    3. Which leaves to No.3 now. The SOLUTION, as I may introduce is this - PUBLIC BIDDING. Since it is unanimously agreed upon that food stuff is basic for every LGU, then there is really no justification to declare it as "unforeseen" as for the SHOPPING mode. Based on the historical records (which may take us back a century ago), we can project the cost of food being used for daily, monthly, or quarterly basis. Let us BID that out. We can do it every quarter or as often as we want - for as long as it is under PUBLIC BIDDING.


Engrjhez have some valid points in his post, and I believe them too until I stumbled upon NPM 124-2004
(click this link - http://www.gppb.gov.ph/opinions/view_opinion.asp?o_id=108)
In this NPM, shopping is allowed in the procurement of catering, photocopying, mimeographing, repair, and other similar services for the reason that the foremost intention is to procure a tangible good and the service component, which may cost more than the tangible good procured, is merely ancillary thereto. In these cases, there is a readily available off-the-shelf good that will be procured and an accompanying service component that is provided for the proper use or consumption of such good. However, it is also mentioned that the other condition set forth in Section 2 of RA 9184 must also be present to procure such services under shopping.

Hope this helps. Very Happy
avatar
venom.0420
Active Poster
Active Poster

Male Number of posts : 98
Company/Agency : Government
Occupation/Designation : Government Employee
Registration date : 2009-01-05

Back to top Go down

Re: Authority to draw cash advance

Post by engrjhez® on Sat Mar 28, 2009 9:13 pm

venom.0420 wrote:Hi MBDR,
Engrjhez have some valid points in his post, and I believe them too until I stumbled upon NPM 124-2004
(click this link - http://www.gppb.gov.ph/opinions/view_opinion.asp?o_id=108)
In this NPM, shopping is allowed in the procurement of catering, photocopying, mimeographing, repair, and other similar services for the reason that the foremost intention is to procure a tangible good and the service component, which may cost more than the tangible good procured, is merely ancillary thereto. In these cases, there is a readily available off-the-shelf good that will be procured and an accompanying service component that is provided for the proper use or consumption of such good. However, it is also mentioned that the other condition set forth in Section 2 of RA 9184 must also be present to procure such services under shopping.

Hope this helps. Very Happy
We are all glad to see everyone seems to be doing their homework, and everybody's learning. Does anyone know what happened next or what's GPPB's stand on the DOLE opinion? Because if it has been resolved, the GPPB must have the appropriate issuance for it.

...And many will be so excited with it... Very Happy
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2481
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Authority to draw cash advance

Post by RDV @ GP3i on Sat Mar 28, 2009 9:50 pm

engrjhez wrote:
venom.0420 wrote:Hi MBDR,
Engrjhez have some valid points in his post, and I believe them too until I stumbled upon NPM 124-2004
(click this link - http://www.gppb.gov.ph/opinions/view_opinion.asp?o_id=108)
In this NPM, shopping is allowed in the procurement of catering, photocopying, mimeographing, repair, and other similar services for the reason that the foremost intention is to procure a tangible good and the service component, which may cost more than the tangible good procured, is merely ancillary thereto. In these cases, there is a readily available off-the-shelf good that will be procured and an accompanying service component that is provided for the proper use or consumption of such good. However, it is also mentioned that the other condition set forth in Section 2 of RA 9184 must also be present to procure such services under shopping.

Hope this helps. Very Happy
We are all glad to see everyone seems to be doing their homework, and everybody's learning. Does anyone know what happened next or what's GPPB's stand on the DOLE opinion? Because if it has been resolved, the GPPB must have the appropriate issuance for it.

...And many will be so excited with it... Very Happy

I think that particular opinion, which was a non-policy matter, was issued in 2004 still. This may have already been superseded by the issuance of GPPB Resolution No. 12-2006 dated 14 June 2006 defining ordinary or regular office supplies. In the same resolution, GPPB specifically excluded from the meaning of ordinary or regular office supplies, services such as repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services. Related or analogous services would include printing services, mimeographing services, catering services, and the like.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Authority to draw cash advance

Post by engrjhez® on Sat Mar 28, 2009 11:07 pm

Which leads us back to only two options: bidding or negotiated purchase.

I almost forgot that resolution. Thanks RDV, for bringing it back. Very Happy
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2481
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Authority to draw cash advance

Post by RDV @ GP3i on Sun Mar 29, 2009 11:52 am

engrjhez wrote:Which leads us back to only two options: bidding or negotiated purchase.

I almost forgot that resolution. Thanks RDV, for bringing it back. Very Happy

Of course, the default mode is PUBLIC BIDDING. If the conditions for NEGOTIATED PROCUREMENT are there, then the BAC, can recommend that mode.

I think, the primary reason why Sec. 53(h), Nego Proc not exceeding P50k, for procurement not falling under Shopping, has been included as an amendment to Sec 53 is to cover services which could not fall under Shopping.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Authority to draw cash advance

Post by venom.0420 on Sun Mar 29, 2009 10:07 pm

RDV wrote:
engrjhez wrote:Which leads us back to only two options: bidding or negotiated purchase.

I almost forgot that resolution. Thanks RDV, for bringing it back. Very Happy

Of course, the default mode is PUBLIC BIDDING. If the conditions for NEGOTIATED PROCUREMENT are there, then the BAC, can recommend that mode.

I think, the primary reason why Sec. 53(h), Nego Proc not exceeding P50k, for procurement not falling under Shopping, has been included as an amendment to Sec 53 is to cover services which could not fall under Shopping.

Thanks sir RDV for updating us of such resolution made by GPPB. I just would like to clarify one thing though. Can catering services still be procured through shopping if the amount is Php 50,000 and below? Provided of course that an unforeseen contingency is present. Question
avatar
venom.0420
Active Poster
Active Poster

Male Number of posts : 98
Company/Agency : Government
Occupation/Designation : Government Employee
Registration date : 2009-01-05

Back to top Go down

Re: Authority to draw cash advance

Post by RDV @ GP3i on Mon Mar 30, 2009 10:53 am

venom.0420 wrote:
RDV wrote:
engrjhez wrote:Which leads us back to only two options: bidding or negotiated purchase.

I almost forgot that resolution. Thanks RDV, for bringing it back. Very Happy

Of course, the default mode is PUBLIC BIDDING. If the conditions for NEGOTIATED PROCUREMENT are there, then the BAC, can recommend that mode.

I think, the primary reason why Sec. 53(h), Nego Proc not exceeding P50k, for procurement not falling under Shopping, has been included as an amendment to Sec 53 is to cover services which could not fall under Shopping.

Thanks sir RDV for updating us of such resolution made by GPPB. I just would like to clarify one thing though. Can catering services still be procured through shopping if the amount is Php 50,000 and below? Provided of course that an unforeseen contingency is present. Question

If "catering services" could be considered as "readily available off-the-shelf goods", and with all the other conditions present, then Shopping under Sec. 52(a) may be possible.
However, since catering services is not a tangible good, as the intent of the provision is procurement of a tangible good, the more appropriate term to be used maybe is procurement of "foodstuffs".
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Authority to draw cash advance

Post by Sponsored content


Sponsored content


Back to top Go down

Page 1 of 2 1, 2  Next

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum