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Obligation Request

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Obligation Request

Post by rema1574 on Mon Aug 23, 2010 6:11 pm

As per COA, Obligation Requests (ObRs) are supposed to be based on actual obligations incurred. Isn't this directive contradictory to R.A. 9184, in which the BAC is supposed to only deliberate programs/requests with Approved Budget Contract (as evidenced on signed ObRs)? Presently, the amount on our ObRs is based on the amount on our corresponding Purchase Requests (estimated only). The amount on the Purchase Orders (POs) usually end up lesser than that on the ObR and PR.
Please enlighten me. The BAC recently attended the seminar (just last week) in Punta Villa. Too bad, the COA Observation Memorandum came late or we could have questioned it to the trainors in Iloilo. Shocked
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Re: Obligation Request

Post by jcolas on Mon Aug 23, 2010 11:41 pm

I agree with your opening statement that the Obligation Requests should be based on actual obligations incurred; but I do not see how that can be contradictory to RA 9184. In any procurement activity, the Approved Budget for contract should first be determined by all the stakeholders. The ABC will be the amount that has to be reflected in your Purchase Request.That will also be the ceiling that the bidders has to consider in coming up with their quotations. After the Lowest Calculated and Responsive Bid has been determined by the BAC, which normally should be equal or lower than the ABC, the LCRB shall be the amount that should appear on the contract or on the Purchase Order. The extent of compliance by the supplier will be reflected in the Obligation Request. For example, your office conducted a bidding with an ABC of 1M, After the opening. the LCB has been determined to be 900,000. After the post qualification, the LCB which is 900,000 has been determined to be the LCRB. That amount will be reflected in the contract or in the Purchase Order depending on the nature of procurement. After the completion date, the compliance by the supplier will be the amount that will be reflected in the Obligation Request. That is how we do it in our Office.
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Re: Obligation Request

Post by engrjhez® on Tue Aug 24, 2010 9:35 am

rema1574 wrote:As per COA, Obligation Requests (ObRs) are supposed to be based on actual obligations incurred. Isn't this directive contradictory to R.A. 9184, in which the BAC is supposed to only deliberate programs/requests with Approved Budget Contract (as evidenced on signed ObRs)? Presently, the amount on our ObRs is based on the amount on our corresponding Purchase Requests (estimated only). The amount on the Purchase Orders (POs) usually end up lesser than that on the ObR and PR.
Please enlighten me. The BAC recently attended the seminar (just last week) in Punta Villa. Too bad, the COA Observation Memorandum came late or we could have questioned it to the trainors in Iloilo. Shocked

It seems the COA is slowly realizing that for LGUs, the systems of procurement was already repealed by R.A.9184. This was a very hot topic more than a year ago when we thought ObR should be issed after the award has been made.

To see the thread of that topic, click this link >>> ObR prior to Bidding
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