Protest Against Bids and Awards Committee for Goods and Services for Disqualifying Keng Hua Paper Products Co., Inc. from Participating in the Procurement of Basic Office Supplies

July 2, 2013

EN BANC

A.M. No. 12-9-4-SC

RE: PROTEST AGAINST BIDS AND AWARDS COMMITTEE FOR GOODS AND SERVICES FOR DISQUALIFYING KENG HUA PAPER PRODUCTS CO., INC. FROM PARTICIPATING IN THE PROCUREMENT OF BASIC OFFICE SUPPLIES

A.M. No. 12-12-14-SC

RE: PROCUREMENT OF BASIC OFFICE SUPPLIES FOR THE LOWER COURTS FOR CY 2012

NOTICE

Sirs/Mesdames :

Please take notice that the Court en banc issued a Resolution dated JULY 2, 2013, which reads as follows:

"A.M. No. 12-9-4-SC (RE: PROTEST AGAINST BIDS AND AWARDS COMMITTEE FOR GOODS AND SERVICES FOR DISQUALIFYING KENG HUA PAPER PRODUCTS CO., INC. FROM PARTICIPATING IN THE PROCUREMENT OF BASIC OFFICE SUPPLIES) and A.M. No. 12-12-14-SC (RE: PROCUREMENT OF BASIC OFFICE SUPPLIES FOR THE LOWER COURTS FOR CY 2012). — For the Court's consideration is the Memorandum dated April 12, 2013 submitted by the Procurement Planning Committee (PPC), in compliance with the Court's Resolution dated December 4, 2012, directing, among others, the PPC to "study the practicality and cost-efficiency of a long-term procurement of the Court's basic office supplies from the Department of Budget and Management-Procurement Service and to submit its findings and recommendation to the Court . . . ."

The PPC recommended that: IDSaEA

a) The procurement shall be made through the Procurement Service (PS) for common-use supplies of the Court which are available and those which are not available shall be procured through public bidding or other alternative modes. The Property Division, OAS SC shall be directed to submit to the Procurement Planning Committee (PPC) a list of items that are readily available with the PS;

b) The procurement for the Lower Courts shall be through the PS, public bidding or other alternative modes, and the Property Division, OAS-OCA shall be directed to submit to the PPC a list of common-use supplies which are readily available for procurement at the PS. The courier services for the Lower Courts shall likewise be procured to provide the delivery of supplies in view of the limited logistical support of the PS. As for other supplies not available with the PS, the same shall be procured through public bidding or other alternative modes of procurement; and, HCTDIS

c) The Court, through the PPC, will still continue to find ways to ensure that procurement will be through the PS in the future whenever the same is deemed practical or cost efficient and beneficial for the Court. 1

The PPC's recommendations were based on its study and cost-benefit analysis of procurement made through the Procurement Service (PS) and through regular public bidding under Republic Act No. 9184, 2 as amended. The PPC and other Court officials also conducted dialogues with PS officials, where they also raised the probable issues that may be encountered in the course of the procurement, e.g., delay in delivery, replacement of defective supplies and methods of payment. As a result of their study, the PPC made the following pertinent findings, among others:

(1) The PS 3 is the agency mandated as the central purchasing agency of the government. There are two (2) types of supplies available with the PS: a) common-use office supplies, 4 the specifications of which are posted on the PS website; and b) non-common use office supplies, the specifications of which are provided by the end-user. In the case of non-common use supplies, the PS acts only as a procurement agent. Moreover, in the case of common-use supplies, not all of the Court's required supplies are available with it. As an example, short-sized copy papers are not available with the PS as Joint Memorandum Circular No. 1, s. 1986 mandates the use of only one size of writing paper in all government agencies and offices, and the size currently used is A4. 5 Other items that are peculiar to the Court's needs, such as expediente covers, stitching needles and cotton thread, are also not available with the PS; cSTHaE

(2) The PS imposes a four percent (4%) service charge on its prices. There are also items in the PS list that are more expensive than that ordinarily procured by the Court through regular public bidding; however, there are also items in the PS list that are cheaper than that procured by the Court; and

(3) The PS undertakes free delivery in the National Capital Region area. In the provinces, supplies are delivered, at an added cost, to its depot. It will be the task of the Court to pick up these supplies in the depot and deliver them to the lower courts. As a result, the Court has to allot funds for the additional cost of delivery/courier services from the depot to the lower courts. The PS, through its PS Operations Manager Flerida G. Arias, however, informed the PPC that it is in the process of upgrading its logistical support system that can respond to the needs of the agencies, including the Court.

The PPC then concluded that "procurement through the PS may be availed if the same proves favorable in providing a speedy delivery of supplies, otherwise, the Court use the other modes of procurement to ensure uninterrupted and unimpeded delivery of public service for both the Court and the Lower Courts." 6

Finding the foregoing points to be well-taken, the Court hereby notes the recommendation and adopts the same. Accordingly —

(1) The Property Division, both of the Office of the Administrative Services-Supreme Court (for the Court) and the Office of the Administrative Services-Office of the Court Administrator (for the Lower Courts), are hereby DIRECTED to submit to the Procurement Planning Committee the list of common-use office supplies readily available with the Procurement Service, within fifteen (15) days from receipt of this Resolution;

(2) The Procurement Planning Committee is hereby DIRECTED to procure said readily available common-use office supplies for the Court through the Procurement Service. For the Lower Courts, procurement shall be made, as far as practicable, through the Procurement Service, through public bidding or other alternative modes of procurement, depending on the need and urgency, in accordance with the applicable laws and subject to the regular audit, accounting and other procedures of the Court; CEaDAc

(3) In conjunction with the procurement of common-use office supplies for the Lower Courts from the Procurement Service, the Procurement Planning Committee is hereby DIRECTED to procure courier services for its delivery to the different Lower Courts; and

(4) In case of common-use office supplies that are not available with the Procurement Service, the Procurement Planning Committee is hereby DIRECTED to procure said office supplies, by way of public bidding or other alternative modes of procurement, and through the proper Bids and Awards Committees of the Court, in accordance with Republic Act No. 9184, as amended and its Revised Implementing Rules and Regulations.

Let copies of this Resolution be furnished to the Court's Offices and Committees concerned for their information and guidance." (adv20)

Very truly yours,

(SGD.) ENRIQUETA E. VIDALClerk of Court

Footnotes

1. Memorandum dated April 12, 2013, pp. 11-12.

2. The Government Procurement Reform Act.

3. Created under Letter of Instruction No. 755 dated October 18, 1978, signed by then President Ferdinand E. Marcos. The mandate of the PS was reiterated in Executive Order No. 359 dated June 2, 1989 issued by then President Corazon C. Aquino. (http://www.procurementservice.org/psdbm/index.php?option=com_content&task=view&id=12&Itemid=27, viewed on June 27, 2013)

4. Under Administrative Order No. 17 issued by President Benigno C. Aquino on July 28, 2011, common-use supplies refer to supplies, materials and equipment included in the price list of the PS which are necessary in the transaction of the official business of the procuring entity and consumed in its day-to-day operations.

5. Memorandum dated April 12, 2013, p. 5.

6. Id. at 10.