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Government-to-government acquisitions

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Government-to-government acquisitions

Post by adroth on Sun Aug 08, 2010 9:53 am

Under what circumstances can government-to-government transactions, which do not involve bids or negotiated contracts, be used as a substitute to competitive bidding?

Are there regulations that cover this?
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Re: Government-to-government acquisitions

Post by RDV @ GP3i on Sun Aug 08, 2010 11:16 am

adroth wrote:Under what circumstances can government-to-government transactions, which do not involve bids or negotiated contracts, be used as a substitute to competitive bidding?

Are there regulations that cover this?

The following provisions of the IRR are the basis for government-to-government transactions in which public bidding may not apply:

"4.2. Any Treaty or International or Executive Agreement to which the GOP is a signatory affecting the subject matter of the Act and this IRR shall be observed. In case of conflict between the terms of the Treaty or International or Executive Agreement and this IRR, the former shall prevail.(a)

4.3. Unless the Treaty or International or Executive Agreement expressly provides use of foreign government/foreign or international financing institution procurement procedures and guidelines, this IRR shall apply to Foreign-funded Procurement for goods, infrastructure projects, and consulting services by the GOP.

53.8. Defense Cooperation Agreement. Upon prior approval by the President of the Philippines, and when the procurement for use by the AFP involves major defense equipment or materiel and/or defense-related consultancy services, when the expertise or capability required is not available locally, and the Secretary of National Defense has determined that the interests of the country shall be protected by negotiating directly with an agency or instrumentality of another country with which the Philippines has entered into a defense cooperation agreement or otherwise maintains diplomatic relations: Provided, however, That the performance by the supplier of its obligations under the procurement contract shall be covered by a performance security in accordance with Section 39 of this IRR.
"

G2G transactions could be by virtue of a treaty, international agreement, or executive agreement. Under the international law doctrine of "pacta sunt servanda", we observed what is in such agreement. If it involved procurement, and the agreement says that procurement shall be done other than public bidding, then we are bound under international law to follow the provision of the agreement.

Sec. 53.8 of the IRR is one of the situations when Negotiated Procurement is allowed. There are conditions indicated in that section that should be complied with in order for Negotiated Procurement to be undertaken. If the conditions are already present, the BAC will then recommend the adoption of NP as mode of procurement, subject to the approval by the HOPE.
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Re: Government-to-government acquisitions

Post by adroth on Sun Aug 08, 2010 1:32 pm

Thanks again Mr. R. Very Happy
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