Definition and Scope of "Ordinary or Regular Office Supplies" for the Procurement Through Shopping

June 14, 2006

GPPB RESOLUTION NO. 12-06

PROVIDING FOR THE DEFINITION AND SCOPE OF "ORDINARY OR REGULAR OFFICE SUPPLIES" FOR THE PROCUREMENT THROUGH SHOPPING UNDER SECTION 52 (B) OF THE IRR-A OF R.A. 9184

WHEREAS, Republic Act No. 9184 (R.A. 9184), otherwise known as "Government Procurement Reform Act", and its Implementing Rules and Regulations Part A (IRR-A) took effect on January 26, 2003 and October 8, 2003, respectively;

WHEREAS, under the aforementioned law and its implementing rules and regulations, all procurement shall be undertaken through competitive bidding except only under highly exceptional cases where the procuring entity may resort to alternative methods of procurement; and same shall be subject to the prior approval of the head of the procuring entity or his duly authorized representative, and whenever justified by the conditions provided in Sections 48 to 54 of R.A. 9184 and its IRR-A;

WHEREAS, Section 52 of the IRR-A of R.A. 9184 provides that under the alternative method of shopping, the procuring entity may simply request for the submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment directly from suppliers of known qualifications;

WHEREAS, pursuant to the above-mentioned provision, shopping may be employed only under the following cases: (i) when there is an unforeseen contingency requiring immediate purchase; provided, however, that the amount shall not exceed Fifty Thousand Pesos (P50,000); or (ii) procurement of ordinary or regular office supplies and equipment not available in the Procurement Service involving an amount not exceeding Two Hundred Fifty Thousand Pesos (P250,000);

WHEREAS, relative to the second case of the foregoing provision, concerns and requests for clarification from government agencies and other stakeholders are raised as to the scope and application of the term "ordinary or regular office supplies";

WHEREAS, adherence to the literal interpretation and meaning of the foregoing provision may render procurement hardly practicable or would prove prejudicial to the effective implementation of the present procurement law;

WHEREAS, the GPPB, in its 3rd meeting held on June 14, 2006, discussed the above-mentioned subject matter as it recognized the need to clarify the meaning of "ordinary or regular office supplies" as referred to under Section 52 (b) of the IRR-A of R.A. 9184;

WHEREAS, in order to respond to the clamor of government agencies and to provide practical interpretation of Section 52 (b) of the IRR-A of R.A. 9184, the GPPB resolved to include within the contemplation of "ordinary or regular office supplies" all materials and supplies 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;

WHEREAS, in view of the relatively broad scope of the term "ordinary or regular office supplies" the GPPB recognizes the need to provide measures in undertaking the procurement through shopping under Section 52 (b) of the IRR-A of R.A. 9184 to tighten possible loopholes where abuse may happen in the resort to shopping as an alternative method of procurement;

NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested in US by law, do hereby RESOLVE to approve and adopt the following:

For purposes of Section 52 (b) of the IRR-A of R.A. 9184, "ordinary or regular office supplies" shall 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.

Resort to this alternative method of procurement shall be subject to the following rules:

1. The amount of goods to be procured should not exceed Two Hundred Fifty Thousand Pesos (P250,000); aESIDH

2. The supplies or equipment must not be available in the Procurement Service;

3. The procuring entity must obtain at least three (3) price quotations from bonafide suppliers;

4. Recourse to this type of procurement shall be approved by the Head of the procuring entity, provided the same is included in the APP as an alternative mode of procurement and said procurement does not result into splitting of contracts; and

5. The award of contract must be posted at the G-EPS website, website of the procuring entity, if any, and in conspicuous place within the premises of the procuring entity.

This resolution shall take effect immediately.

Adopted: 14 June 2006

(SGD.) ROLANDO G. ANDAYA, JR.	(SGD.) ROMULO L. NERI
Secretary	Secretary
Department of Budget and Management	National Economic and Development Authority

Also signed by other representatives of:

DEPARTMENT OF EDUCATIONDEPARTMENT OF NATIONAL DEFENSEDEPARTMENT OF HEALTH DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENTDEPARTMENT OF ENERGYDEPARTMENT OF TRADE AND INDUSTRYDEPARTMENT OF TRANSPORTATION AND COMMUNICATIONSPRIVATE SECTOR REPRESENTATIVE

Attested by:

(SGD.) LAURA B. PASCUAOIC Board Secretary, GPPBOfficer-in-Charge, GPPB-TSO