supply and property management
TRANSCRIPT
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RULES
AND
REGULATIONS
ON SUPPLYAND PROPERTY
MANAGEMENT
IN THE
LOCAL
GOVERNMENTS
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Republie I
:ie
Fhiiippines
COMMISSION
$N
AUDTT
Quezon
City
October
0, l9
COMMISSION
ON AUDTT
CIRCULAR
NO
92-386
To
SIjBJECT
Local Chief
Executives,General
Servic
Off icers,
Local
Treasurers,
Budg
Officers,
Acsouniattis,
Sarrggr.rnian
embe
Frovinciai,City
anci
Munici
pai
Aucii
ors,
B arang
OffEcials-nd 411 thers
Concerned.
PRESCRIBINGRULES AND REGUL,
TIONS
ON
SUPPLY
AND
PROPERT
MANAGEMENT
IN
TFM LOCAL
GOVER]
MENTS.
Pursuant
o the
provisions f
Section383,
Title
\
Book
II,
of
Republic
Act
No.
7160, otherwise
nown
the
Local Government
ode
of
1991,
he herein
set
rules and
regulations
on
supply
and
property
manag
ment in local government nits are herebypromulgate
These
ules
and
egulations
hall ake
effect mmed
ately.
idf,. Dorrirnco
Chairman
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TABLE
OP
CONTENTS
I t
Page
N o n -Ex p e n d a b l e
S . rp -
p l i e s ,
N o n - P e r s o n a l
Serv ices ,
and IUater ia l s
fo r
I n f r a s t ru c t u re
Project
12
Rule
4.
Requistt ion
of Suppl iesor
Property
l 3
1 3
r 3
l 4
l l
t a
1 4
l 5
1 5
1 5
1 7
26. Proh ib i t i on
Against
Sp l i t -
t i n g o f R e q u i s i t i o n s. - . . .
Policies
on
Procurement
2 7 . P u b l i c B i d d i n g a s t h e
Pr imary Mode
of Pro-
curement
28 .
Other
Modes o f
Procure-
m e n t
. .
29.
Procurement
Organization.
30.
The
Committee
on
Awards.
3 1 .
C o m p o s i t i o n o f t h e
/ r^ - * :++^^ ^^ A , . , - - ,1-
v v r r t t t t t L L E G v r r
f r w a t u J . . .
32.
Proh ib i t i on
o f
Nat ional
Offrcial
From
Sitting
as
Member of the Commit-
tee
on
Awards
33.
Attendance
in Proceedings.
1 6
1 6
1 6
r 7
1 7
TABLE OF CONTENTS
Pagr
34.
Quorum
in
the
Committee
on Awards
Section
35.
Decisionon Award
Section
36.
An Excerpt
of the
Proceed-
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
r i
l t
Sec t ion
Sec t ion
Sec t ion
Sect' ion
Sec i ion
Section
Section
- , r : - -
D e c L l ( J l t
Section
Section
Rule 5. General
Section
Section
Section
Section
Secl ion
SecLion
17.
Requi rement
f
Requis i t ion
1 8 .
O f f i c e r s Au t h o r i z e d
t o
D ra w
R e q u i s i t i o n s
f
9 .
Ap p ro v a l
o f
R e q u i s i t i o n s . . .
20.
Certi f ication
by the
Local
R r r r l o p t O F f i n p r A c c n r rn f -
a n t , a n d T re a s u re r . . . . .
2\.
Forms
to be [ ised
2 2 . N u m b e r
o f C o p i e s
an d
Th e i r D i s t r i b u t i o n . - . - . . . . .
2 3 .
S t a t e m e n t
o f
D e l i v e r v
Period
O , - - ' c , r :
opec lucaL ron
Property
a o , t .
or
Duppr ies
C) r
F i l i n g
o f
Advance
R e q u i s i t i o n s
n
Rule 6.
Procurement
Thru
Public
Bidding
ings
in
the Committee
on Awards Shall Form
Par t
o f bhe
Suppor t ing
Papers
f t
37.
Proceedings
Open
to
Public
l f
38. Cal l
fo r B ids . .
l f
39 .
B idder ' s
Bond .
tS
4 0 .
Sa n c t i o n s
f b r R e f u s a l t o
Accept
Awards
Publication
of Cal l
for Bids.
Roster of Bidders
Duties of
Bidders
D e c l a ra t i o n
o f
B u s i n e
s
In Lerests
45.
Quotations
46.
Quotations
not
in
Off icial
Form .
4 7 .
Q u o t a t i o n s
i n Ph i l i p p i n e
Currency
48.
Quotations
are
By Itern .. .
4 9 .
B ra n d
N e w
I t e m s Pre -
sumed
50.
Ample Time to
Eva lua te
the
Tender
51 . Sta tement o f
the
Per iod
Within Which
the Offer
: - r r ^ ^ l
15
\ruuu
5 2 .
Su b m i s s i o n
o f
Sa m p l e s ,
R e p o r t s o f
An a l y s e s ,
C a t a l o g s ,
L i t e ra t u re ,
a n d
S k e t c h e s
. . . . . . . . . . . . . .
53.
Identi f ication
of Samples...
5 4 .
B i d s
on
Bra n d -N a m e s
Other Than Those Speci-
f i e d . . . . . . . .
41 .
42 .
43.
44.
1 f
t s
2 (
2 (
2 :
2 ,
,+
25
, <
2t
4 z
2t
, .
g .
2:
17
18
ection
2:
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Se c t io
n
Se c t ro n
S e c t i o n
S e c t i o n
S e c
i o
n
l iec
-ro
r
J U C L l 0 l
I
Se c t i
on
S e c t i
o n
Se c t io n
S e c
i o n
Se c t io n
St'rc
i orr
Se c t io n
Se c
, i c n
Se c t io n
S r c t i o n
Se c t io n
Se c
io n
Se c t io n
"Sec t i
n
Sectic 'n
Sec t ion
Se c t io n
Se c t io r r
Se c b io n
Se c t io n
TABT,E
OF
CONTUNTS
5 5
R e s p o n s i b i i i t Y
o r
Pa t e n t
. ^ . 1 / n r C n r r v r i r t l t i . I l l
" t s J ' - D
f r i n g e m e n t
56
Submission
and
AccePtance
of
Bids
5 7 .
F i r s t
f ' a i l u r e
o f
P u b l i c
B idd ing
5 8 .
Se c o n d
Fa i l u re
o f
[ ' u b l i c
B idd ing
59.
\ ' / i thdrawal
of
Bids
/ r n n - - ^ . - : - - - ^ { ' P ; , 1 .
u u
l r i r t i l l l t l S
v ,
r / r ( r J
n l L ) , . ^ + ^ ^ n a m o - f n f f ) n e n i n r t
u
r .
r
v J L P v r r u r r
v
H - - _ _ - _ o
of
Bids
Proh ib i ted
62.
Abstract
oi
ir ic is
63
Uids
Submi t ted
,a t r :
64 . Uns ignedBids
65.
Non-ComPlYing
ids
66.
Considerat ion
f
Defect ive
Biris
6 7 .
r \ c c e P t a n c e
o f
I l i d s
a n c i
Awards
6 8 .
R e i c a s e
f
B rd d e r
l l o n d
'
69
Div is ion
of
Awzr rd
7O
Not i f i ca t ion
of
AccePLance
of
Biris
7 .
Aw a rd
o f C o n t ra c t
. .
. .
"
72. Pro tes tAga ins l an Award"
73.
Forfeiture
of
Protesl
FJond
1 4 .
I s s u a n c e
o f
P u r c h a s e
Orders
or
Cont rac t
. .
" -
75 .
Who
maY
Receive
urchase
O rd e r
or
C o n t ra c t . .
"
'
76.
Perforrnance
Bond
7 7 .
E x t e n s i o n
o f
T i m e
t o
h ^ l i . ' o r
u c l t r 9 r
78.
Reduct ion
o f
Quant i tY
""
7g .
Subs t i tu t ion
o f
SuPPl ies
'
8i l . Frice Attustment
81.
Cornpet i t i on
e tween
ocal
and
Foreign
Froducts
.
'
Page
2 3
23
23
24
() A
2 4
, ) A
L A
a "
, A
25
o <
La)
t 1
26
26
2 i
2 7
2 7
2 7
2 7
2B
28
2 8
2? )
29
29
2 9
TABLE
OF
CONTENTS
Rule
7.
Procurement hru
PersonalCanuass
Section
82
Sec t ion
83
Canvass
and
A'*ard
Limi tat ionsof
Procurement
t h ru
Pe rs o n a l a n v a s s . . .
D u t y o f
P ro c u
e
m
e
n
O f f i c e r s
o n
Pu rc h a s e s
th ru
Persona lCanvass. . .
Section
Rule
8.
Emergency
Sec t ion
C ^ - . : ^ ^
D C L U l U l l
Section
Section
Purchases
85.
When to
Make
an
Emer-
D , , - ^ L - ^ ^
6 C r r v y
r u r r r r 4 J c
r : - . i + ^ + . : ^ - . ^ t o - ^ . ; . ; " . ;
6 " "
" J
Purchases,
M a n d a t o ry R e q u i s i t e s
o i
Emergency
Purchases
. .
C a n v a s sof P r i c e i n t h e
L o c a l i t y
o f a t
L e a s t
T h r e e S u p p l i e r s
i n
Emergency
Purchase
Au t h o r i t y
t c D e c i d e
a n d
Aw a rd
on
Em e rg e n c y
Pu
ch
ases.
R e p o r t
o f t l t i l i z a t i o n . . .
. . . .
C o n f i
m a t o ry
R e p o r t
o n
Emergency
Purchase
Depositoryof
Confi
matory
Repor ts
Sa n c t i o n
or
N o n -C o m p l i -
ance
Rule
9.. Negotioted
Purchase
Sec t ion
94. When
to
Make a
Negot i -
a ted
Purchase. . . .
Wh e n Pu b l i c
b i d d i n g
i s
Deemed
a
Failure
C a n v a s s
o f
P r i c e s f o r
Negotiated
Purchase
Person o Conduct Canvass
of
Prices
in
Negotiated
Purchase
84
Page
3 0
3 0
3 l
? t
32
32
Q A
9 V .
8' l
88 .
Sect ion
89.
Section
90 .
Se c t i o n
9 1 .
Section 92.
Sec t ion 93 .
33
33
33
3+
35
35
Section
95 .
Section 96.
Section 97
35
A A
36
36
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TABLE OF CONTENTS
page
Rule
13. Other
Mdes
of
Prxurement
Section
109.
Procurement
Authorized
by
Specia l
Law. . .
40
Se c t i o n I 1 0 . Su p p l e t o r y C h a ra c t e r o f
these
Rules
and Regula-
t i ons
.
40
TITLE
III.
DELIVERY
AND INSPECTION
OF
SUPPLIES
OR
PROPERTY
v t l
TABLE
OF
CONTENTS
Page
.Sec l ion
98.
Abs t rac t
of Canvass
for
Negotiated
Purchase
36
Sec t ion
99.
Author i t y
to
Decide
and
Award
on
Negot iated
Purchase
..
37
Sect ion
100.
Conf i rmatory
Repor t
on
Negotiated
Purchase"""
37
Sect ion
101.
RePeat
Orders '
38
ile
10-
Direct
Purchsse
from
Duly
l-icensed
Monufacturer
Section
102-
W-hen
Direct
Purchase
ro m
Duly
Licensed
Manufac-
turer
be
Made
38
Sec t ion 103. Canvass of
Pr i ces
in
Procurement
from
DulY
Licensed
Manufacturer"'
38
Section
L04'
Authori t .v
lo
Decide
and
Award
in
Procurement
f rom
DulY
Licen
sed
Manufac tu rer
' .
39
ule
11.
Procurement
from
Exclusiue
Philippine
Agents
or
Distributors
Sec t ion
105.
When
Procurement
f ronr
Ex c l u s i v e Ph i l i PP i n e
Agents
or
Dist r ibutors
May
be
Made
39
Sec t ion
106.
Author i t y
to
Decide
and
Award
in
Procurement
f rom
Exclus ive
Ph i l iP-
pine Agents
or
Distribu-
t o r s . . . . .
3 9
.ule
12.
Procurement
from
Gouernment
Entities
Sec t ion
10?
Purch
ase
f ro
m Other
Fh i l i PP i n e G o v e rn m e n t
Enti t ies.
39
Section
108.
Purchase
through
Foreign
Government
Ent i t i es
40
vl
l(ule
14.
DeILUery
Se c t i o n
1 1 1 .
C ^ - r : ^ - 1 1 9
u c l u l v l l
L L L .
Sect ion
113.
Rule
15.
nspection
an d
Reports
Sec t ion
114.
Sect ion
115.
Sect ion
116.
Rule 16. Articles Subject
Section
II7.
Packing
40
E l ^ . ^ ^ - " ; h i l ; + " i n f r q c a n f
^ L o P v r r
J r v t
r . v J
D a m a g e ,
Sp o i l a g e -
or
Loss 40
Time and
Place f
Del ivery.
4I
Accompl ishntent
of
Inspect ion
Inspec t ion
f
Purchases
. .
4 l
Submiss ion
and
Approva l
of
Inspection
Reports
...
42
Su rp r i s e
a n d
Se l e c t i v e
Irrspeetions
by the
I.ocal
Auditors
12
to Test
D r u g s ,
C h e m i c a l s
a n d
Medicines
42
Section
118.
Paper
and
Paper
Products'.
43
Sec t ron
l r9 .
G. i . Sheets ,
P ipes ,
Re in -
fo rced
Stee l
Bars
and
Other
Alloys
43
Section
120. Cerealsand
Animal
Feeds.. 46
Sec t ion
121.
Tex t i l e ,
F lags
and
Flag
M a t e r i a l s ,
C a n v a s s ,
Gauge,
Bandages , t c . . . .
46
Sec t ion
I22 .
Leather
and Leather
Goods
47
Sec t ron
123.
Soap
and
Soap
Produc ts . . .
47
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TABLE
OF
CONTENTS
L24.
Paint and
Paint
Materials..
L25.
Wires,
Telephones,
Electric
Steel
Cables,
etc.
126. Canned
Goods
I27 . Inks and Adhes ives
128.
Lubr i ca t ing
Oi l ,
Fue l
Oi l ,
Grease,
e tc .
. .
1 2 9 .
As p h a l t
a n d
As p h a l t u m
Products
v i i i
Page
47
4 8
4 8
4 8
4 8
4 9
TABLE
OF
CONTENTS
Page
Section
143.
Transfer
of
Accountability..
55
Sec t ion
144.
Designat ion
o f Supp ly
Officer
56
Sec t ion
145.
Responsib i l i ty
and
Duty
of a Person ImmediatelY
Accountable
. . . . .
. 56
Section
146.
Duty
of a
Person
Primari ly
Accountable
. . . .
56
Section
147.
Accountabi l i ty
and Respon-
s i b i l i t y
o n
Bu i l d i n g s
a n d
O t h e r
P h Y s i c a l
Structures
R e s p o n s i b i l i t y
Estate
57
M e a s u re
o f
L i a b i l
t y
o f
Persons Accountable
Tor
Supplies
or
Property
... 57
Liabi l i ty
of
Secur i t y
Asency
57
Notice of
Loss and
Applica-
t ion
for Rel ief.
58
Addit ional
Information
in
Certain
Cases
60
Credit
for
Loss
62
R e s p o n s i b i l i t v
o f
t h e
Directors
of
COA
Regional
Offices
and
th e
P r o v i n c i a l ,
C r t y o r
M u n i c i p a l
Au d i t o r s
o n
Request
fo r
Rel ief
Submitted
to
the
Com-
- - : - - : - - A , - . 1 ; f ^ -
l l l l s s l o l l u t l
n u u r u
r v r
Resolution
Central
Record
62
63
63
64
64
65
t x
R u l e
1 ? .
Te s t i n g o n d
Eu a l u a t i o n
o f
An a l y s i s
R e p o r t s
Certii icates
Authorized
Laboratones
. .
A n n a n l o n n o o - d R p i p n f i n n n f
r \ l , U a r r w e
u r r s
^ . J - ' - r v ' _
. - '
De l
v e r ie s
W a iv e r o f Te s t
Rule
18.Sampling
of
Se c t i o n
1 3 3
Articles
Subject
to Test
Sec t ion
Sec t ion
Section
Sec t ion
Sec t ion
Sec t ion
Section
130.
Q ^ ^ ] : ^ - 1 Q 1
u c L l v t l
1 u
a ,
Sec t ion I32.
Sec t ion
134.
Section
135.
Section
136.
Sec t ion
137.
Sec t ion 138.
Section
139.
Q o a l i n n 1 A n
Section
l.i
1.
Rule 20.Accountability
Section
142.
56
4 9
50
5 1
Section
148.
Section
149.
Section
150.
Section
151.
Section
152.
Section
153.
Section
154.
Section
Section
Section
Section
Section
for Real
Procedures
n the
Sampl ing
o f
A r t i c l e s
Su b j e c t
t o
Test
Sa m p l e s ,
Sk e t c h e s ,
B l u e -
pr in ts ,
e tc .
. .
Penalt ies
Wi t h d ra w a l
o f
R e j e c t e d
f)el iveries.
Storage Charges
Un claimed RejectedGoods..
Responsibility
for
Wasteful
U s e
o f S u p p l i e s
o r
Property
Direct
Responsib i l i ty
fo r
Supplies
or
Property
Transfer of
Excess
Property
for Supplies or Property
Pr i m a ry
a n d Se c o n d a ry
Accountab i l i t y
fo r
Supl ies
or
Proper ty
. . . .
5 1
53
53
F A
d 5
54
54
TITLE
IV,
UTILIZATION
AND
ACCOUNTING
Rule
19.Utilization
of Supplics
or
Property
54
155.
156.
157 .
158.
159.
54
55
An n u a l
I n v e n t o rY
o f
SupPlies
or
ProPertY
Role
of
the
Aud i to r
in
Physical
InventorY
Receiptsof Issuances .... . .
Running
and
Test
lnven-
torY
5 5
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Sec t ron
f
60.
Sec t ion
161.
T I
T-E
V.
DISPOSAL
Hrrfe
2|
' jeneral
Pol icY
Sec t ion
162-
Sec t . i on
163
Rule
22.
RePorting
Section
Section
Section
Section
TABLE
OF CON'TEN' |S
I
n
ven ory
C h a n g e
Offrcers
i n C a s e s
o f
of
Accountable
Property
Clearances
OF SUPPLIES
OR
PROPERTY
on Disposal
When Supplies
or
ProPertY
s h a l l
be
D i s p o s e d
f . . . . . .
R e s p o n s i b i l i t y
f o r
t h e
Disposal
o f Supp l ies
or
Property
D ^ - ^ ^ - - i } . ; l ; f , , f ^ - r h ^
r c J P v r r D r u l r r u J
D i s p o s a l
o f R e a l
Property, Bui ldings an d
O t h e r
P h y s i c a l
S t r u c -
tures .
D . ' h l i n A , ' n f i n n a c . f h p
Pr i m a ry
M o d e
o f
Disposal
Section
175.
Section
176.
Section
I77.
Section 178.
Section
179.
Section
181.
Section
182.
Section 183.
Section
184.
Rule 26.
Condemnotion
Section
187.
Section
188.
TABLE
OF
CONTENTS
Withdrawal
of
Bids
Opening of
Bids
Evaluation
of Bids.
Basis of Award
When
Bids
or Of fe rs
are
Lower
than the
Appraised Value
Page
x i
Page
69
69
69
69
69
65
65
65
66
Rule
24.
Sale thru
Negotiatinn
Seetion
180. When Neeotiated Sale Mav
be
Done
Negotiated
Sale Subject to
COA
Approval
Who
Undertakes he
Sale..
Who Approves the Negoti-
ated
Sale
Transfer
of
Proper{y
With
f ^ - r r ^ r \ + L ^ - / 1 ^ , , ^ - -
v u D v v u r r s r v v v g r
r t -
ment
Offices
Rule
25. Transfer Without
Cost
to
other
Gouernment
Section
185. Transfer
and
Appraisal
of
Unserv iceable or
Prop-
eity
i io Longer ieeded...
Sec t ion
186. Who
sha l l Approve the
Transfer
70
c - . ^ : ^ - 1 C A
r ) g U L l U r l
r u 1 .
e ^ ^ + i ^ - r A K
o g
L r v r
r
Sec t ion
166.
Oth
er
Disposal
t v
70
M e t h o d s
o f
70
7 l
7 l
66
66
6 6
67
67
57
70
70
Offices
of
Disposable
Supplies
or
Property
16?.
Disposal
Procedures
168. Forms to be Used
169. Responsib i l i ty
o f
the
Pro v i n c i a l ,
C i t y
or
M u n i c i p a l
Au d i t o r o n
Disposable
ProPertY
1 7 0 .
Ap p ra i s a l
o f
P ro Pe r t y
b y t h e
C o m m i t t e e
o n
Awards
Wh a t P ro p e r t y s h a l l
b e
Condemned
W h o
S h a l l
D e c i d e
o n
C o d e m n a t i o n . . . .
Ruie
23.
Soie
ihru
Pubiic Auttion
Section
177.
Invitation
to
Bi d
Section
172.
Publication
of the
Invita-
t i on to Bid . . . . . .
Section
173.
Bortd Requirement..--
Section
17
. Refusal
to
AccePt
th e
A w a r d ' P r i c e . . . .
68
Rule 27.
Other
Modes
of
Disposol
Sect ion
189. Donat ions to Char i table,
Scienti f ic,
Educational
or
Cu l tu ra l Assoc ia t ion .. . .
Section
190.
Other Modes of Disposal
Author i zed
bv
Law
. . . . .
7 1
8
69
69
72
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TAI]
I,I.I
0
F'
(IONTF]N'|S
Rule
28
P4vrnent
and
[)e luterY
S e c t r o n
f g l .
P a Y m e n t
/ ) - - . . . .
Se c t io n f9 2 . Sa le s ln v o ic e
Se c t io n
1 9 3 .
l ) e l i v e rY .
Rule
29
l)ropping
of
Accounts
Se c t io n
Se c t io n
1 9 4 R e l u r n
o f
R e P o r l s
.
. .
195
Dro p p in g
o f
Bo o k
Va lu e
TiTi,F,
Vi MiSCELi,Ai. iEOLIS
PROVISIO}{.S
|.ID
^ N I ' f r ' I O M T ' A
r r I I / I ] \
I \ I Q ' F D I I / - ' T I I / 1 I \ I Q
i \ l _ r t v l l l \
l J
r
l \ f a l
I
v D l r \ L )
r
r l u \ '
I r \ / r r u
D - , t ^ ? n A . f i " . . i l n n o '. r r c P r r r r t r q i i r n c
l l u l g
u v .
SecL ion
196.
Lease bf
Spac"s
or
Pub l rc
U s e . . . .
Sect ion
19?.
Disposal
of Real
Proper ty
and
Improvements
S e c t i o n
1 9 8 .
L e a s e
o f
C i o v e r n m e n t
Sp a c e s
t o
O t h
e r
E n t i t i e s . . : . . . . , . .
Se c l i o n
f
9 9 .
L e a s e
o f
Eq u i p m e n t
. .
" .
S e c t i o n
2 0 0
D i s c o u n t i n g
o f
R e n t a l
Rates
Sec t ion
2Ol .
l ) i sposa l
o f
f ' t rearms
. ' . .
Section
202.
Propert ies
mported
Free of
Duties and Taxes
.
Secl ion
203.
Transitory
Provisions
Rule
3
L Administratiue
Instructions
, Se c i - i o n
0 4
Es t a b l i s h m e n t o f
a n
Archival System
Sec t ion
2A5.
Issuance
f Gu ide l ines
. .
.
Sec t ion
2A6. Separab i l i t y
and
Repea l ing
Clause
Section
207.
Effectivi tY
x l l
Page
7 2
7 2
7 2
7 2
t , 1
APPENDIX
I
APPENDICES
x l l l
LGLI/GEN.
FORM
NO,
/ , - )
"A" Annual Procurement Plan
"8"
Procurement
Program
"C"
Amendatory Procurement
Plan...
"D"
Amendatory Procurement Program.... . .
"8"
Requisition and
Issue
Voucher
"F"
Purchase
Request
"G"
Purchase
Order
"H"
Report
of Util ization
"I"
Property Issue
Slip
", t "
MemoranclumReceipt . . .-.-
"K "
Se m i -An n u a l
R e j o r t
o f Su p p l i e l
::il :ililihi:' :::::.........
"N"
Propert-vReturn Slip
"O"
Inventory, Inspect ion and
Appraisal of
IJnserviceable
Property... . . .
l7-A
"P"
Report
of Waste
Materials
61-A
Sales
Invoiee for
SupplieVProperty... . . .
13
0 1
o 2
0 3
04
45(A)
0 5
06
o7
0 8
0 9
1 0
30-A
1 1
L 2
4
74
I J
7 7
i -
t l
7 8
7 8
7 9
7 9
7 9
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RULES AND
REGUIII,TIONS
ON
SUPPLY
AND
PRGE}ER.TY
MANAGEMENT
TITLE
I
_
GENERAL
PROVISIONS
Rule l. Titte
and Definitione
Secrtox l. Authonty.-Pursuant
to
Section 388
of
Republic Act
No. 7160,
other:wise known
as the Local
Government
Code of
199i,
these rules
and
regulations
providing
for
an improved
system
of
procurement,
care,
u t i l i za t ion,
custody,
and d isposa l
o f supp l ies
and
property
in
the
local
governments
are hereby
prescribed.
Snc. 2. Title.-The-se
n-rles
and regrrlations
shr
be
known
as: Rules
and Regula t ions
on
Supply and
Property
Managemeni,
n
the Locai
Governments.
Spc. 3. Applicabilrty.-These ruies and regulations
shall
apply to
ail
provinces,
sub-provinces,
ci t ies,
municipalities
and barangays. These
shall
also apply
to the Arrtonornc't-rs
egion in Muslim
Mindanao,
the
Cordillera Administrative
Region
and the Metropolitan
Manila Authority
until
such time
that a separate
set
of
rules
and regulations
on the
subject
is
prescribed
for
these
regional
governments
and the
Metropolitan
Manila
Authority.
Spc.
a. Definitiow
of
Abbreuiations
and Terms
--
For
purposes
of these rules
and
regulations,
the
following
abbreviations and terms are hereby defined:
'Annual
Frocurement
PIan' refers
to
the itemized
list,
prepared
by the head
of the department
or offrce
showing
the kind,
estimated
quantity,
esti'raated
cost,
description
of
supplies
or
property
together
with
the
balance
on
hand, if
any, required
by
the
department
or
office for
the ensuing fiscal
year.
'Annual
Procurement
Pragram"
refers
to
the
item-
ized
list prepared
by the
local
chief
exircutive
showing
&he kind, estimated quantity, estimated cost, descrip-
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2
Suprlr
rxo
Pn
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13/59
.SuePLY
No
PnoPnRfY
MnnecnvnNr
GsxeRAL
PnovtsioNs
" Inuentory '
is
an
i temized
l is t o f
supp l ies
or
property on
hand containing
designation
or
description
of
each
specific
article
with
its
valuation.
"Issue
Slip"
is the
document
used
as
evidence
n
th e
tranefer
of
non-consumable
supplies
or
property
from
the
general
services
officer,
municipal
or
Harangay
treasurer,
as
the
case
may
be,
to a
department
head
for
issuance
to
the end-user.
"ITB"
refers to
the
Invitation
to
Bid.
"Locality",
whenever'used
n
these
rules
and
regula-
t ions,
refers
to the
territorial
jurisdiction
of the
province
of
which the city
or
municipality
is a
compo-
-^ - l - .6 ,+ F^ - +L^ I \ . i fo+ -^^^ l i f o^ Mqni lq Arpa i t sha l l
l l c l l u
P a l
v.
I v r 9 r l 9
^ t ^ u v r v P v r . w
inc lude
a l l
c i t ies
and
munic ipa l i t ies
wfth in
the
Metropolitan Marrrla Area.
"Loutest
Complying
and
Reasonable
Bid"
refers to
the
proposal
of one
who offers
the
lowest
price,
meets
all
the
technical
specifications
and
requirements
of the
supplies
or
property
desired
and,
as a
dealer
in
the
l i ne o f
supp l i es
invo lved ,
ma in ta ins
a
regu la r
establishment,
and
has complied
consistently
with
previous
commitments.
"Minor
or Ordinary
Repoir"
means
repair
merely
to
keep a
building
or equipment
in fit condition
or
use
without increasing its capacity or otherwise adding to
its normal
value as
an asset.
"Major
or
Extraordinary
Repair'refers
to
alteration,
addition, partition, extension,
and
other
constrirction
or
installation
which materially
increases
he
value
or
extend
the
useful
life of
the structure
or equipment.
nNesotiatetl
Purchase' refers
to
the
procurement
of
- o - - - - - - -
supplies
without
public
bidding
undertaken
for the
purpose.
"Negotiated Sale' refers to a sale without public
bidding undertaken
for the
purpose.
"EmergenCy '
re fe rs
to
any
event
or
occurrence
*h;;;;
ii"
"u"a
for
supplies
r_property
as.become
^^-=+:.--ql lv rrgertt or
absolutely
indispensable
an d
;lfit;";;;;";ln'minent
danger
o'
or
loss
of'
'fe or
property-
"Enornttty
of
Order"
refers
to
that
circunstance
*f , " . " in
the
suppl ies
or
proper ty
to
be
del ivered
"*.""d
the
normal
requirement
or
is
out
of
proportion
to
the
usual
volume
of
orders'
"Equipmenl'
refers
to
all
articles
needed
?
"-:tl:::
individual
or
orga-nizatron..*lttn-9o
:u.t-
tT:^: ' l " j :
identity
when
used
or
apphed'
lne
Lerrrr
rerurD
r, u
*--.*,. i turs.
adding
machines,
compuiers,
printers,
tJJ
ye
'
u"hi.l"r,
weapons
and
other
similar
items'
"Excess Property" is a property no longer needed by
a
department
or
an offrce'
sn,--^6)^hlo
s,,.n/ ip-so refer
to
art icies
which
ar e
D A P V t L v u u e v
v w I J I ' v e "
- -
eonsumed
n
use,
such
as
ammunition'
fuel'
forage'
;;;;",
medicines,
and
such
spare
or
repair
parts as
are
;";e
;
repair
or
complete
other
articles
and
which
ii"t"tv
lose
their
identity
in the
process'
nQon.eral
Bond"
is
a
cornbination
of bidder's
bond
urrJu
performance
which
may
be
in cash'
certrtred
or
cashier's
check'
"Habl tua |Del inquenf , ' re ferstoacontractor /supp l ie r
*ho-iails
to
abide
by
or
comply
with
the
terms
and
;""dirit;t
of
his
contract
for
two
(2)
or
more
times
wi'r,hin
a
Pericd
of
one
(1)
Year'
"Improuement"
refets
to
a
valuable
addition
made
to
property
of
an
amelioration
in
its
condition
amounting
t^ rn^rc tnan
mere
repairs
intended
o
enhance.i ts
;;hI;-,
t""uty
or
utility
or
to
adopt-it'for
new
ol
turtber
pnrposes.
'Immediate Accountability" refers to the accounta-
bility
of a
perso"-in
fottussion
of
or
having
cu'stodv
f
supplies
or
ProPertY'
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8/16/2019 Supply and Property Management
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SL:pi'Ly
axn
PRopenty
M.uiacciliE:;"1
'Non-contplying
Bid.'
is
a bid which
does not comply
with the
advert ised
deseript ions
and
specif ications.
"Non-Erpendable
Supplies
or Proptrty '
or
"Non-
consumab le Supp l ies
or
Proper l y "
re fe r
to ar t ic les
which are not consumed n use and which ord inar i l y
retain
tl ieir original
identi ty
during the
period
of use,
such
as wea pons, vehic les,
machines,
oo ls ,
and ins t ru -
ments.
"Non-Personal
Seruices'
includes,
but not l inri-ted
to, repai r ing,
c lean ing , rec l -eco la_ t .i ng ,
r . ren ta l
of
personal
propert-v
and furni.shing
of
nece-ssar.v
epair
p a r t s
o r
o t h e r s u p p l i e s
a s
p a r t
o f t h e
s e rv i c e s
- ^ _ t ^ _ _ ^ l
p e r
r u r r u e u .
"Obsolete
Property"
is
a
property
which
has iost
iL s
ef f ic ienc_ye i ther
due
to
technologicai
advancement.
change o f
p rocedure ,
eorgan iza t ion
of a
c lepar t rnen [
r
off ice. or
completion
of a
project
"Offer"
is a
proposal
invoiving
one or
more
items
in
a
tender.
"Ouerrun"
is
an excess
over the
quanti ty
ordered
"Performance
Bond"
is
a bond
in
cash, certified
or
cash ie r ' s check
or s r l re ty ,
requr rec i
o f
' * - rnnrng
rdders
to
guarantee perfoimance
of an ord;r
or contract.
"Personal
Canuass"
r'efers
o a
mode
of
procurement
al lowed
as
an except ion
to
pub l i c
b idd ing
whereby
designated
canvassers request
price quotations
from
at least Lhree
(3)
responsible
suppl iers
in the local i ty.
"PR'
refers to
pulchase
request
use
in
the requisi-
t ion
of
suppl ies
or
property
not
to
be carried
in
stock.
^Procurementn
refer.q
n
the acqrusition
of
supplies
o r
p ro p e r t y , i n c l u d i n g
n o n -p e rs o n a l
s e rv i c e s ,
b y
written
order or contract
through
bidding
or negotia-
tion or by transfer under existing laws or regulations.
"Prirrtar'1
Accountability'
refers
to the
accountability
of
the head
oi
a
department or
offrce fc,r
supplies or
GeNeneL
PRovtslorqs
property
transferred
to his
department
or
office for
ieeuance
to
the
end-user.
'Property
Responsibility"
refers
to
the obligation
of
an
ind iv idua l
fo r
the
proper
cus tody ,
care
and
safekeeping
of
property
entrusted
to his
possession
or
under
his
supervision.
'Protest"
refers
to
the
objection
to a
contemplated
or
actual
award.
'Pro tes t
Bond"
i s
a
bond in
cash , cer t i f i ed
or
cashier 's
check,
or
sure ty
requ i red
o f
pro tes tan ts
against
awar
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8/16/2019 Supply and Property Management
15/59
Suppt.v
ern PRoperrv
Mnlinceul;xr
at
any
time
to
ascertain
the correctness
of the
property
records
of
the
unit.
'specification'
refers
to technical description
of
supplies
or
property
being
requisitioned or ordered,
which
should
be clear
and complete,
including
if
necessary,
he
specific
uses
therefor and
how accepta-
bility
thereof
can be deterrnined.
'splitting"
means division
or breaking
up of
requisi-
tion
or
order
into
separate
requisitions
or
orders,
of
^ - ^ l l ^ - ^ . . - - + : + i ^ - - - , 1 - - ^ " - + - * , ' o ' , n i r l . o t r i o u
q n d /
s l f l d . l l c t
quo l ruru lgD
ql lu q l r t uu l l uor
Gv
^ - : - 1 , . ^ ^ - ^ - - ^ , , - l + l - ^ * ^ ^ f h " h i - L o - o " f h n r i t i o c
Lr l
r l l u L{us
qPl , r
v
v
cr
u t rcr Gur
uJ
rrrSrrvr
'standard"
refers
to
a
gauge
'., trhich
has been
established
by authority,
custom
or
colnmon
accep-
tance as proper and adequate for a given purpose.
-suitable
Substitute-
refers
to that
kind of article
which
rvou-ld
serve substantially
the
same
purpose
or
produce substantiaiiy
the
same
resuits as
the branri,
type,
or
make
of
article originally
desired
or
requisi-
tioned.
'supplemental
Procurement
Plan or
Procurement
Program"
is the
itemized
list showing
the
required
^ - - * - . l : ^ ^ : -
^ C - ^ ^ l . , ^ 6 ' 6 ^ + ^ ^ . ' - - - l i n l h o o * - r r q l ^ r
D U l , P T T L T
r r r
( r
r r r ' L d t
J U u i
r . v
amendatory
procurement
plan
or
program.
''supplier- is a person, firm or manufacturer who
furnishes
or sells
the supplies
or
property needed or
required
by a
local
government
unit.
It is synonymous
to
dealer,
bidder,
offerer, seller
or
contractor.
"Supplies' or'Properfy"
includes everything,
except
real
property, which
may be
needed in the transaction
of
public
business
or
in the
pursuit
of any
underta-
king,
projec-t-,
or aetivit-v,
whether in the
nature of
equipment,
furniture,
stationery, materials
fo r
cons t ruc t io r .
qF i persona l ,
p roper ty
of
any
sor t ,
including
non-personal or
codtractual
services such
as
the
repair and maintenance
of
equipment
and
furni-
ture,
as
well
aa trucking,
hauling,
janitorial,
security,
and
related
service*.
GexeR L
PnovrsroNs
'Surplus
Property'is
a
property
no longer needed
by
a
local
government
unit.
'Tender'
is
synonymous with proposal,
bid or the
quotation
for
supplies or
property
offered.
'Terms
and
Conditions" refer
to other requirements
not
affecting
the technical specifications
and
require-
ments
of the
supplies
or
property
desired such as
bonding,
terms of
delivery and
payment,
and
related
preferences.
'Tolerance"
is
the specified
allowance
for
error in
weighing,
measuring,
etc., or var iat ion
from
the
standard
or
given
dimer,sion,
weight
or
the
like.
oUnderrun"
refers
to the deficiency in fhe
quantity
ordered.
'Unseruiceable
Property"
is
a
property
that is
not
operat iona i .
t may
be economica i ly epa irab le
or
beyond
economical epair.
"Utilization"
refers
o the act of
employing,enjoying,
applying,
convert ing
supplies or
property
for
th e
llrrpose
for which
the same are
acquired.
'Winning
Bidders'
are bidders
who have received
awards
of contract
or orders,
Rule 2.
Standardization
of
Supplies or
Property
Snc.
5.
Prxurement
of Supplies or
Property
Certified
by
the Bureou
of Product
Standards.-To ensure
maximum
and
ef f ic ient
u t i l i za t ion
of
government
nesources,
LGUs
shall
limit
their
purchases
of
supplies
or
property
from Bureau
of
Product *Standards
(BPS)
certified products
in accordance
with the
Joint Memoran-
drrrn f,i1sular, dated October 1, 1987, issued by the
Department
of Budget
and
Management,
Depar[ment
of
Trade
and Industry
and the Commis.sion
on Audit.
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8/16/2019 Supply and Property Management
16/59
S
uppr,y
e,r'n
PRoperrv
MeNrcnuFiMT
For
this
purpose,
t shall be the duty of the
general
services
officer,
municipal
or barangay reas urer, as
the
case
may
be, Lo
maintain
and
make
reference o an
up -
dated
l ist
of
PS
Qual i ty
Mark Licensees
and
list of
importers with Import CommodityClearancewhenever
procurement
of supplies
or
property
is to
be
made.
f lowever , the app l ica t ion
of
th is
Rule may
not be
mandatcr-v o
procurement
of supplies
or
property
under
extreme
necessi ty
eferred
o
in
the Second
Paragraphof
Sect ion88,
Rule
8,
hereof .
TITLE II
-
ACQUISITION
OF
SUPPLIES
OR
PROPERTY
Rule
3.
Procurement Plans and
Programs
-Snc. . Coueroge-.-Thi-s
i t le
shall
cover
acquisitions
of supplies or
property
intended for the
following:
a. operation
of the local
governments;
b.
prosecution
of
infrastructure
projects
by admi-
nistration solely funded from
local funds;
c.
prosecutron
by
admrnrstratron
f natronai undeci
infrastructure
p
o3'ects;
d.
prosecution
by administration
of foreign
assisted
infrastructure
projects;
and
e.
prosecution
by administration
of
infrastructure
projects
funded
from
local
donation.
Where the release
of funds
for
Sub-Paragraphs
d)
and
(e)
is
accompanied
by specific nstructions, said instrue-
tions
ma;,
be followed insofar as the-v do not direetl.v
contravene existing
iaws. These
rules
and
regulations
shall have
suppieiory
effect
n
these cases.
Snc. 7. Annual ProcurementPlan.-At such time as
may
be
prescribed
by the local
chief
executive, heads
of
departrnente
or offices shall eubmit to the
general
Acqulsttlox
or
Suppl-les
oR
pnopnnrr-
1 i
services
offrcer
or local
treasurer,
as
the
case
may
be ,
procurement
plan
of
their
supply
requirements
foi
th e
ensuing
fiscal
year.
Snc.
8. Annual
procurement
program._On
or before
the
fi f teenth
day
of
July
of
each year,
the
general
services
offrcer
or
the
local
treasurer,
as
the
case
Lay
be,
shall
prepare
or
the
approvar
of
the rocal
chief
"*".rltiuu
n
annual
procurement
program
for
the
ensuing
fiscal
year
which
shall
contain
an itemized
quantity
of
sirpplies
or
propert5l
needed
or
the
entire
fisrcrl
.-,.o,
.^*-t^.-
aescriftion
thereof
-s
o kind,
0"";;;;^#;#;;f
,:i:
estimated
cost,
and
the
balance
on hand.
-
The-total
estimated
cost
of
the
annuai
procurement
program
shall
not
exceed
he
total
appropriations
authorized
for
the
acquisition of supplies or property.
Snc.
9. Purchases
Couered,
y
Approued
procurement
D - ^ - - - * n -
I tuEturrl ._DxcepL
ln
case
ol
emergency
purchases
or
where
urgent
and
indispensable
needs
could
not
have
been
reasonably
anticipated,
no
purchase
of
suppl ies
or
property
shall
be made
unless
included
i.,
o.
.or,"red
by ,
an
approved
procurement
program.
e - ^ 1 n n - - f
' r ' . '
v&i..
rv.
r
rut.LurLterL
agatnst
Lonuersrcn
ol
Cosh
Into
supplies'-The
conversion
of
excess
ash
nto
supplies
s
prohibited except tc the extent of the kind and irrantity
specified
n
the
approved
procurement
plan.
..
S""._
7I.
Supptementary
procurement
plan._At
any
time
durir_rg
he
fiscal
year,
heads
of
department_s
or
offices
may
prepare
and
submit
to
the
general
services
officer
or
local
treasurer,
as
the
case
may
be,
for
the
approval
of
the
local
chief
executive
a
supplementary
procuremeni
pian
to cover
suppiy
or
property
require-
T"1t
of
his
department
or
office
not
otherwise
inciuded
in
the
annual
procurement
plan.
-_
S-t"
12.
Supplementary
procurement
program._
Within
a reasonable
ime
upon
receipt
of
the
,rrpll"-"n_
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Suppr,v
Nn Pnopenrv
MrxecauErs
tary
procurement
plan,
the
general
services oflicer or
local
treasurer,
as the
case
may
be, ahall
prepare
for
the
approval
of the local chief executive a supplementary
procurement
program
based
on the
supplementary
procurement plan.
SBc.
13.
Amendatory
Prrcurement Plan-At
any
time
during
the
fiscal
year,
the
head
of department or office
may
prepare
and submig o
the
general
services
officer
or
local
treasurer, as the case
may
be,
for
the approval
of
the
local
chief
executive an amendatory
procurement
plan
for
supply
or
property
requirement of
his
depart-
ment
or office in lieu
of
those
deleted, cancelled
or
substituted
in
the
approved
procurement plan.
Amenda-
tory
procurement plan
shall be supported by
a
written
justification.
Sc.
14.
Amendatory
Prrurement Prograrn.-Within a
-^^^^ -^L l ^ + i * ^ , . * ^ - -^^^ :^+ ^ f +L^ ^ -^ - , l ^+^*
I l iat t t . r l raure
er| E
uPurr r( 'LgrPU ur urc aulsl ruawlJ
Prv qs-
ment
plan
from
a head of the department
or offrce,
the
general services
offrcer or
local
treasurer, as
the case
may
be,
shall
prepare
for the approval
of the local chief
executive
an
amendatory
procurement
program
for
the
department
or oflice concerned.
Snc.
15. Prouision
for
Contingency.-ln
the
prepara-
tion of annual'procuremerit plan, a maximum of fift,een
per
cent
o5%)
of
the
estimated
requirements may be
provided
for
contingency and
miscellaneous tems.
This
shall
take
care
of the
requirements
which
could
not be
onl iainolorl ar r loG-anl i t t r ino fho nranorof inn nf fha nlqn
s . .4e - l r e9w
Ser.
16.
Separate Prrcurement
Plans
and
Progroms
for
Supplies
or Property, Non-Erpendoble
Supplies,
Non-
Persond Services,
and
Mdterials
far
Infrcstructure
Project.-Separate
procur€f,ent
plans
and
programg
ghall
be
prepared
for
supplies
or
property
for
the opera-
tion of a department or office, non-expendable suppliee,
non-personal services,
and cuppliea
or
property
intended
for infrastructure project.
AceulsrtroN
or
Suppr,rsg
n
Pnopsnry
i
l , l
[ ;
* : ,
.
Rule
,1.
Requieitiorr
of
Suppliee
or Pnoperty
Spc.
17.
Requir"ement
f
Requisitiont-No
order
fo r
suppliee
or
qroperty ehall be placed by the local general
eervices
officer,
municipal
treasurer
or baiangay
treasurer,
as
the
case
may
be,
for
any
depart-rrrt
o,
office
of
the
local
government
except
upot
written
requisition
as herein
provided.
Except
in
the
case
of
emergency purchase,
no
requisition
shall
be
given
due
course
unless
the
suppl ies
or
property
deiired
ar e
inciu
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Mnru,rceueur
Sp:c.
20. Certificotion
by the Local Budget
Officer,
Accountant,
and Treasurer.-Every
requisition
must
be
accompanied
y a
Request
or
Obligation
and Allotment
(ROA)
showing
the cer t i f i ca f ion
of the loca l
budget
officer, he
local accountant,
and
the local
treasurer
that
an appropr ia t ion thereof
ex is ts ,
that the
est imated
amount of
such
expenditure
has
been
obligated,
and
thnt
funds
are available for
the purpose,
espectiveiy.
In
the case of
barangays,
every
requisition
must
be
accompanied
by
a
request
for
obligation
and
allotment
sho.+ing
the certificaf,ion
of the following:
a. the chairman
of
appropriations
ommittee
of the
sangguniang baranga,v
[a1
4n appropr ia t ion
therefor exists:
b. the city or municipal accountanthat the amount
has been obligated;
and
c. the baraneay treasr_rrer
hat. unds
are
avai able.
Snc.
21. Forms
to be
Used.-Requis i t ions
sha l l
be
accomplished
n the
forms
as
follbws:
a.
for
supplies
carried
in
stock
-
Requisition
and
Issue
Voucher
[General
Form
45(A)
as amended
1 , . I 4 o l^
--
-l
t J J hJ , A tL r I
b.
for supplies not
carried
in
stock
-
Purchase
Request (LGU Form No. 05).
Sec. 22.
Number
of Copies
and Their
Distribution.--
RIVs
and PRs shall be
prepared
in
not
less
than
three
(3)
copies
t.o
bre
distribr-rtcd
a,. fo ows:
the original copy
to be
attached
as supporting
paper
to the voucher
prepared
o effect
the
pay-
vnpnf n f t ha orrnn l i oc ov nrnnorf r r nrna"-^ ,1 .
v J
P r v 9 q r g u ,
a copy
to the
local
general
services
officer,
mu-
nicipal
treasurer
or
barangay
treasurer,
as the
case may be; and
AcgulsnloN
or
Suppr-les
R
pnorsmy
t 5
a .
b .
Sec. 23.
Statement
of
Deliuery
period._The
requiaitioner
ehall
state
with
definiteness
and certainty
the
period
of
delivery
desired
so
as
not
to leave
doubt
when
the
supplies
are
needed.
Statements
of
delivery
per iod such as
' immedia te
de l ivery" ,
.as
soon as
possib le" ,
o ther
words
and phrpses-
aving
simi lar
imports
or
without
stating
a
particular
pe.ioJ
shalr
be
understood
to
mean
seven
(?)
ca lendar
days
af ter
receipt
by
the
supplier
or
contractor
of
the
furchase
order
or
contract.
-
Sec.
24.
Speciiicatton
of
Supplies
or
property._The
description
an
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Suprly
exo Pnornnw
Menrcnnmn
a.
non-consolidation
of
requisition
for one
(l)
or
more items
needed at or about the same
time
by
the
requisitioner;
and
b.
issuance
of two
(2)
or
more
purchase
orders based
on two (2) or more requisitions for items needed
at about the
same time by different
requisition-
ers.
Rule 5. General Policies
on Procurement
e - ^ o n D ' , L l ; ^ D ; ) ) : - - - ^ t L ^ D - . ' - - - - - ) t ^ ) ^ ^ . c
us u . 3 , .
I UULLL
D L l LaL t f rE
V n L rac f
r a r rS u l y
p t uue
vl
Procuremezt.-Excep+"
as c+.,her.*ise
rovided
herein,
acquisition
of
supplies
or
property
by
local
government
units.shaii be through
competitive
public
bidding.
Snc. 28. Other Modes of Procurement.-Local
government
units rnay
make
procurement
of
their
supply
or
proper ty
requ i rements
wi thout
pub l ic
b idd ing
t-hrough
any
of
+-he
o o.*ing modes
applicable
in
the
circurnstances, as
provided
hereunder:
a.
personal
canvass
of
responsible
merchants;
b.
emergency
purchase;
c.
negotiated
purchase;
d.
direct
purchase
from manufacturers
or exclusive
distributors;
and
e.
purchase
from
other
government
entities.
It
shall
be the responsibility of
the
general
services
offrcer,
municipal
or barangay treasurer, as the case may
be, i.o
reconm€nd
io the
Qs"t'niit€e on
Awardsii,ocai
Chief
Executive
upon
whom
approving authority has
been vest€d by
RA
No. 7160 the
nodes
of
procurement
provided
for in
this
section
to
be
adopted
in
each
particular
case.
SEc.
29.
Procurernent
Organization.-ln
every
province
and city, the oflice of the general services offics shall
exercise the function
of acquiring
lbr
the
province
or city
all
its supply
or
property
requirornents. The nnnierpal
AoetnsmoN
or
Suprt.res
on
pn
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Pnopenrv
MrlecexEru
Snc.
33-
Attendonce in Prwedi4gs.-Every
member
of
the Committee
on Awards
shall
be
present
in
r ll
proceedings
of
the
Committee
unless
prevented
from
doing so by
sickness or
other
unavoidable
circumstsnce,
in which
case
he
may
author ize
in wr i t ing
a
representative
to attend
in his
behalf. Representatives
of
the
members
of
the
Committee
may deliberate
on the
bids
for and
in
behalf
of
the
Committee
members.
However, the Committee
members
shall
personally
decide
on
the
bids
and/or
questions
of
awards
and shall
sign
the Committee decisions.
Q n n Q A 1 ) t r n . r t m i n l h o f \ ^ - ^ : t t ^ ^ ^ - A . . . - - ) ^
t T \ - - ^
v s v . u r . y s v'
s . r . . . .
L . . s
v v t t , L r f t av Lc c
u ta
r \u tu ,
[ r J . - t
wu -
Thirds
(%31of
the members
of
the
Committee
on
Awards
shall
constitute
a
quonrm
to
do
business;Prourded,That
the head
of the department
or o{fice
for whose
use the
supplies are to be procured is among those present;
Prouided
further,
That
in
case
he
requisitioning
office
is
a national
government
agency
located
in
the
local
government
unit and
which
supply
requirement is
authorized
by
law
to be
augmented
by
the local
govern-
ment
concerned,
the
sanggunian
merhber
authorized in
this
Rule
to
sit
as
a
member
of
the
Committee
on
Awards
is
present.
Snc.
35.
Decision
on Autard.-T'he
decision
ol' the
Committee
on a
particular
bid
or
question
of
awards
shall be concurred in by at least majority of the members
present
and
constituting a
quorum.
The
members
who
voted
in favor
shall
sign the
decision
of the Committee.
The
members
who voted
against
may
explain their
objection in
writing
and the
same
shall
form
an integrel
part
of the
supporting
papers
to the clain.
Sec.
36- An
Ercerpt
oi the Proceedings
in the
Committee
on
Auards
Sholl
Form
Part
of
the
Supporting
Papers.-The
Secretary
of the Committee
shall
prepare,
certify and atJach to the decision of the Qs'rrrnitteg qn
Awardg
an ercerpt
of
the
proceedings
during which
gaid
decision
was
rendered-
Acqursrtlor.r
or
Suprups
on
Pnoppnrr
SEc.
3?. Proceedings
Open to Public.-T\e proceedinga
of
the
Committee
on Awards
shall
at
all times
be open
to
the
public
and any
decision
shail
be duly recorded
and
postcd
at a
prominent
place
in
the
provincial
capitol
or
the crty or municipal or barangay hall. The Secretary to
ihe
Committee
on Awards
shall
certify
to the
effect
that
the
requirements
of this
section
have
been
complied
with.
Rule
6. Procurement
Ttrru
Public
Bidding
Snc.
38. Call
for
Bids--When
procurement
is
to be
made
by
provinces
or
cities,
the
oflice
of
the
provincial
or
city
general
services
o{hcer
shail
call
bids
for
open
public
competition.
When
procurement
is
to be- made
by
municipalities and barangays, the office of the municipal
treasurer
or
barangay
treasurer,
respectively,
shall
call
bids for
public
competition.
The
call
for
bids
shall
show
the
complete
descriptions
and
technical
specifications
of the
required
supplies
or
property
and
shall
ernbody
all terms
and
conditions
of
participation
and
award,
terms
of delivery
and
payment,
and
all
other
terms
affecting
the transaction.
in
aii caiis
ior
bi
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aNtl PRoPERTY
MmrrcEuex'r
the
same
in at
least
three
(3)
publicly
accessible
and
conspicuous
places
in the
provincial capitol
or
ci ty,
municipal,
or
barangay
hall,
as
the
case
may
be'
The
general
services
offtcer,
municipal
or
barangay
treasurer,
us the case may be, shall certify to the effect that the
requirements
of this
section
have
been
complied
with'
In
addition,
thb
notice
of
the
bidding
mav
likewise
be
published
in a
newspape.
^f
general
circula' ' ic--
n
the
ier r i to r ia l
ju r isd ic t ion
of
the
toca i
government
u ' r i i
concerned
when the
provincial
or city
general services
of -
ficer
or the
municipal
or
barangay
treasurer,
as ihe
case
may
be,
deems
t necessary
aking
into
considerat'ion
'he
-.ignificance
of the amount
involved
in order
to
obtain
the
lowest
responsible
and
complying
bid-
Unless otherwise d i rected by the Commit tee on
Awards,
publication shall
be
made
at
least
ten
(10)
calendar
days
prior
to
the
opening
of
bids'
Suc.
42.
Roster f
Bidders.-It
shall
be
the
dutv
of the
general
services
o{ficer
or
local treasurer,
as
the
case
tay
be,
to
maintain
a
list
of bona-fide
bidders
in
the
locality,
indexed
and
cross-indexed
by
supplies
catego-
r ies.
A
bona-fide
bidder
shall
have
the
following
minimum
qualifications:
a.
duly
licensed
for
the
business
engaged
n;
b.
has establ ished
place
of
business
or
at
least
three
(3)
months
prior to
the
public
bidding
he
intends
to
ParticiPate;
and
c.
not otherwise
disqualifred
under
RA
No'
3019'
as
amended, or
barred
by
proper
government
agen-
cies
from dealing
with
the
government'
Snc.
43.
Duties of
Bidders--Bidders
must
carefully
stutlv ' '1"' ^- - -. :-^,--.--.r ' u-rrlt> artt l -t ' ""' t iLivtrs ativert ised
rn the
call
lor
bids.
In case
of doubt,
they
may
ask
for
clarifrcation
so
as to
preclude
erroneous
benders'
Every
Acetnsttlolr
or
Stlppues
on PnornHry
bidder
is
chargeablewith
the
knowledge
of ali
terms
and
conditions
of the call for
bid and assumesall
risks
atten-
dant
thereto.
Bidders
shall accomplishbid
forms
in
as
many
copies
as may be required in the call for bids, preferably type-
written,
and identical in
all
respects.
All
blank
spaces
shall be
fr l led
properly
and
ful ly.
Phrases l ike "See
Attached
Documents"
and others of simi lar
purpose
shall
not be considered,
unless the same are intended
only to
identify
the sourceof
nformation for veriFrcation
purposes.
Erasures
or
a l tera t ion there in sha l l
be
initialed
by the
person
signing the bid.
Bids
shall
be signed by a
responsible
officer
of the
companyor
frrm
authorized
or
the
purpose
whose
name
and designation must be clearly indicated in the bid.
Spc.
44. Declaration
of
Business nterests.-All
bids
must
be accompanieriby
statement
deciaring under
oath
all
the business
establishments
r
interest
in the localiry
o f
the
b idders. The
sta tement sha l l
inc lude,
among
others, the
business
name,
business address and
th e
nature
of the
business.
Sac-
45-
Quoiuiiorcs.-Price
quolaliuiis urusl
be
ceri,ain
and definite in
amount.
Bids with
condit ions
which
would tend to make the quoted price uncertain, like
"subject
io
increase
or decrease
of the
present
rate
of
exchange'
or
others
of similar
imports,
incorporated
in
the
tender
or ofl'er shall
not be considered.
For
a
better
appreciation
of
a
bid offer,
the
brand narne
and
country
of
origin or
manufacturer
of the supplies
or
property
should
be staied.
Snc.
46.
Quotations
not in Official
F'orrn.-Quotations,
although
not
in official
form,
may
be
accepted
and the
bidder
thereof,
br
submitting
his
tender,
hereupon
binds
himself
to
abidr.
by
the
terms
and
conditions
of
the call
for
bids as
adve-',ised.
21
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Suppt
Y ,wu
PRonenrY
MrrN*cnuer*r
Snc.
4?
Quotations
in
Philippine
Currc+uy--Unless
otherwise
called
for in
the call
for
bids,
all
quotations
must
be
in
Philippine
Currency,
inclusive
of
all
govern-
ment
taxes,
fees,
imposts,
or duties,
if
any,
and
all
incidental
expenses.
The contractors
shall certify
that
if
they
secure a waiver for, or refund of, all or any portion
of
such
taxes,.fees.
etc.,
the
refund shall
be
paid
back
to
the
local
government concerned.
Sec.
48.
Quotat ions
are
By
l tem.-Unless
the
ca l l
specifrcally
provides
for
quotation
by
lot or set,
when
- ^ -o * l r on nno i lom r . e nq l l ed f o r o r r n t . n t . i on . s a re t n he
| g v r E
9 r r q r
_ - _ ,
a - - - - -
trea+*ed
ndividually,
and a
bidder
shall be
eompelled
o
accept
the
award
of
such
items as
may be awarded
to
him.
Snc. 49. Brond
New ltems
Presumed.-Unless
other-
wise
specified
in the
call
for bids,
all
quotations
shall
be
for
brand
new
fresh
commercia l
s tock
suppl ies
or
r r a n a r l u
P
v P E r
uJ
.
Sr.c.
5O.
Ample
Tine
to
Eualuate
the
Tender--Tenders
with
conC.t^urr
which tends
to delimit
the time
of
the
governmei.-
:o consider
and
accept
or
reject he
proposal,
like
'subject
to
prior
sale';
'subject
to
confirmation
by
our
sunplier"
and
others
of
similar
import shall
be disre-
garded.
Suc. 5'1 Statemeryt of the Period Within Which the
Offer
is Good.--The
Bidders
shall state
the
period
during
which
their
offer
is
god,
which in
no case shall
be'less
than
sixty
(60)
calendar
days.
Tenders
which state
a
shorter
period or
fail
to .stateany
period
at all
shall
be
understood
as
having
a
period
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25
4
Supplv
eNn
PnopaRTv
M.rNrceunNt
Acgurslrlow
or
Supeues oR
Pnopnnry
scheciuled
date
of opening
of bids,
the
Committee
on
Awards
may
schedule
another
bidding
fol lowing the same
proceciurcs
herein
prescribed.
Snc.
58.
Second
Failure of
Public Bidding.-If
there
is
a failure of bidding for the second time, the Committee
on
Awards
may recommend the
procurement through
negotiated
purchase
in
accordance
with these
nrles arrd
regu la t ions .
Ssc
59.
Wi thdrau ,a l
of
B id .s . -A
b idder
may be
a l le . r ,ec l
t .o
w i thdraw h i .s tender o r o f fe r
be fo re
the
opening;of
the bids.
FIis bid shal l
be
returned
to
him un-
opened.
SsG.
60.
Opening
of Bids.-Al l
bids
subrnitted
shal l be
opened
at
the t ime, date and
piace
set
in the
cal l
for bids
by
the
Committee
on
Arvards.
Opening
of
bids shal l only
be
made
in the
presence
of the
provincial, ci ty
or
munici-
pal ar-r
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Suppr,v
No
PnopenrY
Mrxlcsunln
lhe
following
factors,
among
others,
shall
be considered
n
nnaking
he
award:
a.
conformity
with
the
specifications
n the
ITB;
b .
c .
price
quoted,
considering he
Flag Material
Law
(CA
138),as
amended,
wheneverapplicable,
and
other
laws and
policiespertinent to
procurement;
when time
is
of the essence,
he bidder
who offers
to deliver
within the
period
stipulated
in
the
in -
vitation
to
bid shall be
arvarded
the
contract,
- - ^ - - : l ^ l r L ^ + r L ^ - - : - ^ : - - ^ + . ^ - ^ } l l . '
p l u v r u c u
L l l d L L l l c
P I r L g
l D
l f v u u r r r c q e v r r q v r J
L : -L ^ - + L ^ - + L ^ l ^ . , , ^ -+ ^ - i ^ o ^ f f o -o ' I .
l l t S I t G r
L r r q l r
L l r g
r v w t D v
P r
l 9 v ^ r e r v u r
all
things
being equal, the bidder
who
offers
to
supply
the
whole
quantity
shall
be
preferred
in
order to obtain uniformity
in
qual i ty,
tensible
strength,
color shade,
etc.;
and
reliability
of bidder as
a supplier
or contractor.
Snc.
68.
Release
of
Bidder's Bond.-Immediately
upon
he declaration
of award
to the
lowest
bid or
the rejection
f
all
bids
offered,
bidder's
bonds
of
.the
unsuccessful
,idders
shall
be
released.
The return
shall be
indicated
onspicuously
on
the
tender to
be
signed
by the bidders
ck-nowledgrng
he
rqttrrn of the hond On the other
hand-
he b idder 's
bond
of the
successfu l
b idder
sha l l
be
,roperly
receipted
and
the same
may
be
released only
rponhis entering into contrac{ and filing of a necessary
erformance
bond.
Sec. 69.
Diuision
of
Award.-Division
of award
may
be
eade
only
in either
of the following
instances:
a.
in
case
of
tie
offers
and.the
supplies are
divisible,
the
award
may
be divided
equally
as
far
as
prac-
deatrle
unless
the
interest
of the
service
demands
that
it should
be
given
to only
one
dealer;
or
b.
in
case
the
lowest
bidder
offers to
supply
a
limit€d or partial quantity only, in which event
the
balance
nay be awarded
to other acceptable
bidders
in the
order
of advantage
of
their offer.
Acqurslrrolr
or
Suppues
on
pHopEnry
Snc.
70.
Notification
of
Acceptance
of
Bids.-The
bidder
or
bidders
who
offer
the most
advantageous
tenders
to
the
government
shall
be
noti f ied
o1 the
acceptance
f
their
bids.
The
lo.sing
idders
shall likewise
be notified
accordingly.
Soc" 71. Award
of
Contracr.-Awards
of
contracts
fo r
the
supply
requirements
of
the
government
shal l
be
made
by
the
Committee
on Awards.
Snc" 72.
Protest
Against
an Award
-A
losing
bidder
may frle
a
protest
with.the
Committee
on Awards
again.3f.
its
award
or
decision
within
ten
(10)
da_ysrom
the
date
the winner
was
announced.
The
protest
shall
be in
w r i f i n o h q c a . l n n i ' c t i f i - k l ^ - * ^ , , - I ^ ^ - l ^ - : - r
v r r
J
u o w . r r o v r e
5 , r
v u r r u o
d t t u
d L c u l l - l p a l l r g u
with
a
protest
bond,
either
in
cash,
certified
o;
.."hi".'"
check, or surety bond, in an amount equivalent to ten
OO%)
per
cent
of
the
total
value
of his
tender.
Within
seven
7)
daf's from
receipt
of
the
protest,
he
Committee
^ - 4 , , , ^ - l ^ ^ L ^ l r - - - - l ^ - ^ r -
.
.
v r r
n w d r
( r 5
s t l i 1 ' t l
I
e j t u e l
a
u f - r c r s l o n .
Sec.
73. Forfeiture
of Protest
Bond.-"lhe
protest
bond
posbed
by
a
protesting
bidder
shall be forfeited
in favor
of
the
government
should
the
protest
be
found
to
be filed
only
to
prejudice
the
awardee.
Snc.
74. Issuance
of
Purchase
Orders
or
Contract.-
Immediately
after
the
cornmittee
shall have
decided
the
winning bids, a purchase/letterorder or contract shall
be
issued
to winning
bidders.
The following
shall
clearly
appear
in
every
purchase/letter
order
or
contract
a.side
from
the
other requirements
prescribed
by
existing
laws
o - J - ^ - , . 1 ^ + : ^ - ^ .
orru
r
95 Utd r/r(rlfo.
a.
office
to which
the
account shall
be
charged
and
the
requisition
nunber;
b.
name
and
address
of the
supplier
or
contractor:
c.
offrce
o
which
the
delivery shall
be
made;
d. complete
descriptions
and
specifications
of
th e
supplies
or
property
and
all
other
inforrnation
e.
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25/59
i8
Suppr-v
exn Pnopenty
Mex,rcemuur
and
data
needed
to
enable the
supplier,
COA;
inspector
(if
applicable),
and others
concerned
to
determine
the
nature
and
quality
of the jt"-s
purchased;
e. provisions for penalty in case of late or non-
delivery;
f.
qrrantity
and
unit
price;
g . per iod
of
de l ivery;
:
h.
shipping
terms and conditions
and
other cotldi-
tions
of delivery;
i. date
of effectivity
and termination
of
the con-
tract:
and
j
conditions regarding
mportat ion, f
any.
The
date
when
the
purchase/letter
order was received
y
the
supplier or contractor
shall be indicated
clearly.
Snc .75 .
Who
may
Rece iue
Purchase
Order
o r
lontroct.-The
purchase
order
or contract
shall
be
eleased
only to,
and signed for
by,
the
duly authorized
epresentative of the awardee
after
posting
the
perform-
nce
bond.
Sec.
?6. Performance Bond.-Performance
bond shall
e
frxed at ten
per
cent
OO%)
of
the value
of the
contract
r purchase order. However, in caseof importation and
he
same
is to be financed
by.the
government,
perform-
nce bond
may b