Procurement of Goods: Shopping Mode

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Alternative Methods of Procurement

Legal Reference

IRR-A Sections 48 to 54 provide the legal reference for the alternative methods of procurement.

1. Conditions for Use of Alternative Methods of Procurement In highly exceptional cases provided for in Article XVI of R.A. 9184 and Rule XVI of its IRR-A, the Procuring Entity is allowed to resort to the alternative methods of procurement in order to promote economy and efficiency, subject to the following conditions:

In cases where the original method of procurement specified in the APP is public bidding and conditions arise justifying the use of an alternative method of procurement after the APP is finalized, the APP may be amended. This can be done after a BAC Resolution recommending the use of the alternative method is approved by the Head of the Procuring Entity. The procedures are discussed in Volumes 2, 3, and 4. Procuring Entities may charge small value purchases or over-the-counter purchases against petty cash funds provided that the procurement is within the allowable contingency. This is further discussed in Volume 2 of this Manual, in Section 2 (Part 2). -------------------------------------------------

a. The BAC should recommend to the Head of the Procuring Entity the use of alternative methods of procurement in cases where public bidding is not feasible, to be indicated in the APP;

b. The Head of the Procuring Entity or his duly authorized representative has given prior approval of the use of any of the alternative methods of procurement;

c. The conditions surrounding the procurement at hand justify the use of any of the alternative methods of procurement, as provided for in Sections 48-54, Article XVI of R.A. 9184 and Sections 48-54, Rule XVI of its IRR-A.

What is shopping?

SHOPPING is a method of procurement of goods whereby the Procuring Entity simply requests for the submission of price quotations for readily available off-the-shelf Goods or ordinary/regular equipment to be procured directly from suppliers of known qualifications. (IRR-A Section 52)

Inherent in this definition are the following requisites:

1. The goods to be procured are readily available off-the-shelf items or ordinary/regular equipment; and

2. The suppliers from whom the goods are procured are of “known qualifications.” With respect to the procurement of ordinary/regular supplies/equipment not available in the PS-DBM, the suppliers from whom goods are procured should be in good standing, and have not committed any breach of contract (e.g., short deliveries, unreasonable delays in delivery of goods, delivery of defective goods, or similar acts) in previous transactions with the Procuring Entity or other government entity. It is the responsibility of the Procuring Entity, through the procurement office, to monitor contract implementation as well as constantly coordinate with the GPPB-TSO for updates on blacklisted suppliers.

The term “ordinary or regular office supplies” should be understood to include those supplies, commodities or materials which, depending on the procuring entity’s mandate and nature of operations, are necessary in the transaction of its official businesses; and consumed in the day-to-day operations of said procuring entity. However, office supplies shall not include services such as repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services.

When is Shopping allowed?

Shopping shall be employed only in any of the following cases: 1. When there is an unforeseen contingency requiring the immediate purchase of goods. However, the amount must not exceed Fifty Thousand Pesos (Php50, 000.00) per transaction, and the aggregate amount of such purchases must not exceed the maximum allowed by the GAA.

2. When ordinary or regular office supplies and equipment not available in the PS-DBM needs to be procured, the price...
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