Consolidated guidelines for the alternative methods of procurement

For LGU Procurement

1. CONSOLIDATED GUIDELINES FOR THE
ALTERNATIVE METHODS OF PROCUREMENT

ATTY. RAUL JOSEPH ESPARCIA, CPA
JCAV FOUNDATION

2. PRELIMINARY ASSESSMENT

3. ABC - P150,000.00
Description of Items to be Procured:
* Bond Paper
Y Quantity — 200 reams
* Brand - Paper One
* Dimensions - 8.5" x 13”
Y Thickness - Substance 24
Actual Market Price - P376.00 per ream (P75,200)

|» Method to be Used = SMALL VALUE PROCUREMENT |
JCAV FOUNDATION

4. * ABC - P120,000.00

+ Technical Description of Item to be Procured:

+ Samsung Galaxy S7 Tablet (3 units)
* Display — TFT LCD, 120Hz, HDR10+
* Chipset - Qualcomm SM8250 Snapdragon 865 5G+ (7nm+)
+ Memory - 512GB 8GB RAM
+ Actual Market Price - P26,990.00 (P80,970)
+ Method to be Used - SHOPPING

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5. The Municipality of Asgard was devastated by a great fire on September
20, 2023. During the said fire, five of the eight barangays near municipal
center were wiped out.

In response to this event, the City Mayor declared a state of calamity.

The rehabilitation of the devastated barangays proved difficult for its
residents. In response thereto, on November 21, 2023, the BAC of the
Municipality of Asgard started the procurement of building materials to be
distributed to the constituents of the municipality.

The procurement was conducted through Negotiated Procurement under
Emergency Cases in order to expedite the acquisition of the materials.

JCAV FOUNDATION

6. ASSESSMENT DONE!

7. General Rule: COMPETITIVE BIDDING
Except: when ALL of the following concur:

1. When justified by the conditions in R.A. 9184 and its revised
IRR;

2. When approved by the HOPE upon recommendation of the BAC;
and

3. At the most advantageous price for the Government.

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8. Section 48. Alternative Methods

48.1 Subject to the prior approval of the HoPE, and whenever

justified by the conditions provided in this Act, the Procuring
Entity may, in order to promote economy and efficiency, resort to
any of the alternative methods of procurement provided in this

Rule.

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9. A. Annual Procurement Plan (APP)

> The method of procurement to be utilized by the Procuring Entity shall be indicated

in the APP to be approved by the HOPE.

> If original mode of procurement in the APP cannot be ultimately pursued, the BAC
shall justify and recommend a new procurement modality through a BAC Resolution

to be approved by the HOPE.

> The changes must be reflected in the APP and submitted to the GPPB in accordance

with Section 7.4 of the IRR of R.A. 9184.

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10. B. Prohibition on Splitting of Government Contracts

> Definition:

> the division or breaking up of government contracts into smaller quantities and amounts,
or dividing contract implementation into artificial phases or sub-contracts for the
purpose of evading or circumventing the requirements of R.A. 9184 and its IRR;

> For infrastructure projects to be implemented by phases, the Procuring Entity shall ensure

that there is a clear delineation of work for each phase, which must be usable and structurally
sound.

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11. B. Prohibition on Splitting of Government Contracts

NPM No. 020-2019
2019-07-24
Requesting Entity: Bureau of Corrections

> Whether a procurement of a single project divided into several lots would constitute as
“splitting of contract” proscribed under Section 54.1 of the 2016 revised Implementing Rules
and Regulations (IRR) of Republic Act (RA) No. 9184.

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12. GENERAL GUIDELINES /

B. Prohibition on Splitting of Government Contracts

“With respect to the splitting of contracts, Section 54.1 of the revised IRR of RA
No. 9184 is instructive. It defines splitting of contracts as the division or breaking
up of government contracts into smaller quantities and amounts or dividing
contract implementation into artificial phases or sub-contracts for the purpose of

evading or circumventing the requirements of law and its IRR. particularly the

of procurement. Thus, the mere act of dividing a contract into smaller
quantities or phases does not automatically constitute splitting of contract.”

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13. B. Prohibition on Splitting of Government Contracts

A.M. No. 12-6-18-SC (August 7, 2018)

RE: CONTRACTS WITH ARTES INTERNATIONAL, INC.

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14. B. Prohibition on Splitting of Government Contracts

COA Circular No. 76-41, dated July 30, 1976

Forms of Splitting:

1) Splitting of Requisitions consists in the non-consolidation of requisitions for one or more items needed
at or about the same time by the requisitioner.

2) Splitting of Purchase Orders consists in the issuance of two or more purchase orders based on two or
more requisitions for the same or at about the same time by different requisitioners; and

3) Splitting of Payments consists in making two or more payments for one or more items involving one

h d
purchas

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15. B. Prohibition on Splitting of Government Contracts

COA Circular No. 76-41, dated July 30, 1976

The above-enumerated forms of splitting are usually resorted to in the following cases:

1) Splitting of requisitions and purchase orders to avoid inspection of deliveries;

2) Splitting of requisitions and purchase orders to avoid action, review or approval by higher
=

‚and

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16. B. Prohibition on Splitting of Government Contracts

COA Circular No. 76-41, dated July 30, 1976

The foregoing enumeration of the forms of splitting is merely illustrative and by
no means exhaustive. But in whatever form splitting has been resorted to, the
idea is to do away with and circumvent control measures promulgated

by the government.

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17. B. Prohibition on Splitting of Government Contracts

COA Circular No. 76-41, dated July 30, 1976

NOTE!

It is immaterial whether or not loss or damage has been sustained by, or

caused to, the government.

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18. B. Prohibition on Splitting of Government Contracts

The following elements constitute the act of splitting of contracts or
procurement project, to wit:

1. That there is a government contract or procurement project;

2. That the requisitions, purchase orders, vouchers, and the like of the
project are broken up into smaller quantities and amounts, or the
implementation thereof is broken into subcontracts or artificial phases;
and

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19. B. Prohibition on Splitting of Government Contracts

3. That the splitting of the contract falls under any of the following or similar

purposes, namely:
a. evading the conduct of a competitive bidding;

b. circumventing the control measures provided in the circulars and other
laws and regulations; or

c. making the contract or project fall below the threshold for shopping

|___or small value procurement.

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20. C. Unnecessary, Excessive, Extravagant and

Unconscionable Expenditures

> The Procuring Entity shall ensure that the objectives and purpose of
the contract do not constitute an unnecessary, excessive,
extravagant, or unconscionable expenditure.

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21. UNNECESSARY EXPENDITURES:

a.

Construction of buildings and/or procurement of equipment not
actually needed or without any intended purpose, not put to use or
used for purposes other than the intended purpose;

Purchase of high-end or expensive models/brands of electronic
gadgets, unless justified by the circumstances;

Replacement of serviceable structures/equipment;

Continuous repair of vehicles and equipment already considered
beyond economic repair;

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22. EXCESSIVE EXPENDITURES:

a. Overpricing of purchases, in excess of the prevailing market price by
ten percent (10%);

b. Payment of repair of government equipment at a cost exceeding
thirty percent (30%) of the current market price of the same item;

c. Expenditures for supplies and materials in quantities exceeding the
normal three-month requirements;

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23. EXTRAVAGANT EXPENDITURES:

a. Purchase of wines, liquors, cigars and cigarettes;

b. Payment for rent of expensive halls or rooms in luxury hotels or
restaurants used for meetings/seminars and other official functions;

c. Conduct of out-of-town meeting which can be made within the

office premises;

d. Use of expensive decorative lamp posts and other similar items.

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24. NCONSCIONABLE EXPENDITURES:

a. Overpricing, exceeding one hundred percent (100%) of the
prevailing market value of the item purchased;

b. Payment for repairs of government equipment exceeding one
hundred percent (100%) of the current market value of the same or
similar equipment:

c. Purchase of supplies and materials in significant quantities far
exceeding the requirements and not actually needed, thus, left idle
and unused

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25. D. Confidentiality of Bidding Documents

> The procurement documents are strictly confidential and shall not be divulged or
released to any person prior to the advertisement or posting of the procurement
opportunity, except to those officially authorized in the handling of these

documents.

> However, in procurements involving and affecting national security, the disclosure
of procurement documents shall be dependent upon the HoPE having due regard to
the nature, classification, sensitivity and confidentiality of the relevant documents

vis-a-vis the purpose and reason for the request.

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26. E. Advertisement and Posting of Procurement Opportunity

> The Procuring Entity may dispense with the advertisement in the newspaper and posting
requirement as prescribed in Section 21.2.1 of the IRR of R.A. 9184.

>» Under 21.2.1, the Invitation to Bid and/or Request for Expression of Interest shall be posted in a
conspicuous place and in the PhilGEPS website

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27. E. Advertisement and Posting of Procurement Opportunity

For the following alternative methods, the BAC shall post the Procurement Opportunity in the
PhilGEPS website, the PE's website and at any conspicuous place in the premises of the
Procuring Entity for a period of at least three (3) calendar days:

a. Shopping for Ordinary Office Supplies and Equipment not available in the DBM-PS, if
ABC is above Fifty Thousand Pesos (P50,000.00);

b. Negotiated Procurement after Two Failed Biddings; and
c. Small Value Procurement, ABC above Fifty Thousand Pesos (P50,000.00)

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28. F. Documentary Requirements

> The BAC shall indicate in the RFQ or RFP at what stage of the procurement
process these requirements must be submitted.

> Note:

Q Procuring Entities already maintaining an updated file of any of the
bidder's above-mentioned requirements, whether through the PhilGEPS
Certificate of Registration and Membership or its own records, may no
longer require its re-submission

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29. G. PhilGEPS Registration

Suppliers, Contractors, and/or Consultants are mandated to register with the PhilGEPS in the
following alternative methods of procurement as a condition for Award of the Contract:

Section 50 - Direct Contracting;

Section 52.1(b) - Shopping for ordinary office supplies and equipment not available in DBM-PS;
Section 53.3 — Take Over of Contracts (Only for New Bidders, if any.);

Section 53.6 — Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services;
Section 53.7 — Highly Technical Consultants;

Section 53.9 — Small Value Procurement; and

Section 53.10 — Lease of Real Property and Venue.

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30. G. PhilGEPS Registration

> For Negotiated Procurement after Two Failed Biddings (Section 53.1),
the BAC shall require the submission of a Certificate of PhilGEPS

Registration.

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31. H. Observers

> General Rule: Observers may be invited by the Procuring Entity as it
may deem necessary.

> Exception: For Negotiated Procurement after Two Failed Biddings
(Section 53.1), observers shall be invited in accordance with Section
13 of the IRR of R.A. 9184.

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32. Reference to Brand Names

Specifications for the procurement of Goods shall be based on relevant
characteristics, functionality and/or performance requirements.

Reference to brand names shall not be allowed except for items or parts that are
compatible with the existing fleet or equipment of the same make and brand and will
maintain the performance, functionality and useful life of the equipment.

This rule shall also apply to the goods component of infrastructure projects and
consulting services.

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33. J. Delegation of Authority

> The conduct of the following alternative methods may be delegated to the END-USER by the

BAC through a Resolution approved by the HoPE:

de

Ben

SHOPPING

NEGOTIATED PROCUREMENT UNDER EMERGENCY CASES
SMALL VALUE PROCUREMENT

LEASE OF REAL PROPERTY

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34. J. Delegation of Authority

> For SHOPPING under Section 52.1(a) (Unforeseen Contingency), the BAC through a
Resolution and the HoPE through an issuance for the purpose, may delegate to specific
individual(s) in the Procuring Entity the:

a. Conduct of Shopping; and
b. Award of Contract

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35. J. Delegation of Authority

For Negotiated Procurement under Emergency Cases, the HoPE, through an issuance for the
Purpose, may delegate to either the BAC OR the END-USER to directly negotiate with a
legally, technically, and financially capable supplier, contractor, or consultant.

The HoPE may also delegate the Awarding of Contract under Negotiated Procurement
(Emergency Cases) to any official of the procuring entity EXCEPT to the BAC Chairperson or
members OR to any other official where there exists conflict of interest, such as those to
whom the HoPE has delegated the authority to directly negotiate under the foregoing
modality.

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36. J. Delegation of Authority

For Negotiated Procurement under Section 53.14 (DIRECT RETAIL PURCHASE), the BAC and
the HOPE through a Resolution and issuance for the purpose, respectively, shall delegate to
specific officials, personnel, committee or office in the Procuring Entity the conduct of Direct

Retail Purchase.

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37. K. Mandatory Review

> The BAC shall conduct a mandatory review and evaluation of the terms, conditions,
specifications, cost estimates in the RFQ or RFP, if none or less than the required
number of quotations or proposals are received, despite the extension of deadline
for the third time.

> Based on its findings, the BAC may revise the terms and conditions and
specifications, and if necessary, adjust the ABC, subject to the required approvals,
and repeat the procurement process.

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38. L. Notice of Award; Contact Approval; Notice to Proceed _
* The BAC shall recommend to the HOPE the award of contract.

« Within a period not exceeding fifteen (15) calendar days from receipt, the HOPE shall
approve or disapprove the BAC’s recommendation.
y In case of approval, the HOPE shall immediately issue the Notice of Award (NOA) to the
Supplier, Contractor or Consultant.
y In the event the HOPE shall disapprove the recommendation, such disapproval shall be
based only on valid, reasonable, and justifiable grounds to be expressed in writing,
addressed to the BAC.

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39. L. Notice of Award; Contact Approval; Notice to Proceed

The Supplier, Contractor or Consultant shall immediately enter into contract with the
Procuring Entity upon receipt of the NOA.

Upon transmission of the signed contract/PO, the HOPE or his duly authorized
representative shall immediately sign the contract/PO provided that all the relevant
documentary requirements are submitted.

The HOPE or his duly authorized representative shall issue the NTP, if necessary, and a copy
of the approved contract to the Supplier, Contractor or Consultant within three (3) calendar
days from the date of approval of the contract by the appropriate government approving
authority.

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40. L.

Notice of Award; Contact Approval; Notice to Proceed _

Posting of Notice of Award, Contract and Notice to Proceed.

Unless the contract involves and affects national security as determined by the HOPE, the
BAC, through its Secretariat, shall post the NOA, Contract/PO, including the NTP if necessary,
for information purposes, in the PhilGEPS website, the website of the Procuring Entity
concerned, if available, and at any conspicuous place reserved for this purpose in the
premises of the Procuring Entity within ten (10) days from their issuance;

EXCEPT for contracts with ABC of Fifty Thousand Pesos (P50,000.00) and below.

JCAV FOUNDATION

41. L. Notice of Award; Contact Approval; Notice to Proceed _

> DOES NOT apply in:

a.
b.

a

Shopping;

Negotiated Procurement in Emergency Cases;
Agency-to-Agency;

Small Value Procurement; and

Direct Retail Purchase of POL, Airline Tickets and Online Subscriptions

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42. M. Bid, Performance and Warranty Securities

> BID SECURITY may be dispensed with. However, PERFORMANCE
and/or WARRANTY SECURITIES are required for the following
alternative methods of procurement, in accordance with Sections 39

and 62 of the IRR as summarized:

JCAV FOUNDATION

43. ternat it ve Warranty Security
Procurement CPs) [47253
[Direct Contracting x =
[Repeat Order x =

Ted Biddings=

In no case shall WS be
required In the
procurement of
Consulting Services.

Emergency Cases

procurement project.

However, For
Infrastructure Projects,
PS is required.

Procuring Entity may
require WS depending on
the nature of the
procurement project.

In no case shall WS be
required in the
procurement of

TTak=-over or Contracts

Consulting Services.

| Adjacent/Contiguous

| For Infrastructure
Projects, WS is required.

Small Value Procurement

Procuring Entity may
require PS depending on
the nature of the
procurement project.
However, for
Infrastructure Projects,
PS is required.

Procuring Entity may
require WS depending on
the nature of the
procurement project.

In no case shall WS be
required In the
procurement of

Direct Retail Purchase of
POL, Airline Tickets, and
Online Subscriptions «>

WS Is required if the
terms and conditions or
similar agreements do
not provide corrective
actions to be undertaken
by the supplier or service
provider on any noted
defects In the procured
Item, as determined by

the Brocuring entity.

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44. N. Blacklisting

> A suspended or blacklisted supplier, contractor or consultant shall
not be allowed to participate in all procurement opportunities of the
government for the duration of the suspension or blacklisting,

regardless of the modality of procurement employed by the Procuring
Entity.

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45. 1. Direct Contracting

2. Repeat Order

3. Shopping

4. Negotiated Procurement

46. + A method of procurement of GOODS.

+ The supplier is simply asked to submit a price quotation or a pro-
forma invoice together with the conditions of sale.

+ The offer may be accepted immediately or after some negotiations.

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47. Direct Contracting may be resorted to under any of the following conditions:

a) Procurement of goods of proprietary nature which can be obtained only from the
proprietary source, ¡.e., when patents, trade secrets, and copyrights prohibit others
from manufacturing the same item;

b) When the procurement of critical components from a specific supplier is a
condition precedent to hold a contractor to guarantee its project performance, in
accordance with the provisions of its contract; or

c) Those sold by an exclusive dealer or manufacturer which does not have sub-
dealers selling at lower prices and for which no suitable substitute can be obtained
at more advantageous terms to the government.

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48. - The COMELEC En Banc, in its Resolution No. 9922, approved Smartmatic-TIM's
PCOS Extended Warranty Proposal amounting to P300,000,000.00, through DIRECT

CONTRACTING.

BISHOP BRODERICK S. PABILLO vs COMELEC
(G.R. No. 216098, April 21, 2015)

JCAV FOUNDATION

49. - The Extended Warranty Contract meets the requirements of the procurement law
on direct contracting, particularly,

a) The goods procured are of proprietary nature, which can be obtained only from the
proprietary source of the PCOS licensed technologies and from the exclusive
manufacturer, which in the case of the PCOS is SMARTMATIC.

b) The procurement of critical component of the AES solution from SMARTMATIC-
TIM is a condition precedent to hold it to guarantee the project performance in
accordance with the provisions of the contract.

c) The PCOS is exclusively manufactured in the Philippines by SMARTMATIC, which
does not have sub-dealers and there is no direct substitute for the product.

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50. In all cases where Direct Contracting is contemplated, a survey of the
industry to determine the supply source must be conducted prior to the
commencement of the procurement process.

Moreover, the End-User must:

a. Justify the necessity for an item that may only be procured through
Direct Contracting; and

b. It must be able to prove that there is no suitable substitute in the
market that can be obtained at more advantageous terms.

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51. Documentary Requirements:

a) Mayor’s Permit or Business Permit;
b) PhilGEPS Registration Number; and
c) Income Tax Return or Business Tax Return
- for projects with ABC of more than P500,000.00

NOTE: Certificate of Platinum Membership may be submitted in lieu of
Mayor's Permit and PhilGEPS Registration Number.

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52. Direct Contracting

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53. Direct Contracting

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54. Direct Contracting

The BAC shall

recommend to the HoPE
the award of the Contract

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55. * Method of procurement of GOODS from the previous
winning bidder, whenever there is a need to replenish
goods subject to the conditions as provided in the IRR.

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56. Conditions required:

a) The goods were procured under a contract previously
awarded through Competitive Bidding;

b) Unit prices must be the same as or lower than those in the
original contract, and that such prices are still the most
advantageous to the government after price verification;

c) The repeat order will not result in splitting of contracts,
requisitions, or purchase orders;

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57. Conditions required:

d)

Repeat orders shall be availed of only within
six (6) months from the date of the NTP arising
from the original contract, provided that there
has been a partial delivery, inspection and
acceptance of the goods within the same

period;

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58. Conditions required:

e)

Repeat orders shall not exceed twenty-five percent (25%)
of the quantity of each item in the original contract. In

order not to exceed the 25% threshold, the goods under
the original contract must be:

i. Quantifiable;
i. Divisible; and

ii Consisting of at least four (4) units per item.

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59. Repeat Order

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60. JCAV FOUNDATION

61. * ABC - P120,000.00

+ Technical Description of Item to be Procured:

+ Samsung Galaxy 57 Tablet (3 units)
* Display — TFT LCD, 120Hz, HDR10+
* Chipset - Qualcomm SM8250 Snapdragon 865 5G+ (7nm+)
+ Memory - 512GB 8GB RAM
+ Actual Market Price - P26,990.00 (P80,970.00)
+ Method to be Used - SHOPPING

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62. * The Procuring Entity simply requests for the submission of price
quotations for readily available off-the-shelf goods or ordinary and/or
regular office equipment to be procured directly from suppliers of
known qualifications.

+ The phrase “ordinary or regular office supplies” shall be understood to
include those supplies, commodities, or materials which are necessary
in the transaction of its official businesses and consumed in the day-

\_to-day office operations.

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63. ABC - P120,000.00
+ Technical Description of Item to be Procured:
Samsung Galaxy $7 Tablet (3 units)
Display — TFT LCD, 120Hz, HDR10+
Chipset - Qualcomm SM8250 Snapdragon 865 5G+ (7nm+)
Memory - 512GB 8GB RAM
Actual Market Price - P26,990.00 (P80,970.00)
Method to be Used - SHOPPING
|___(OMB v. Blor, ef.al_G.R. No. 227405. September 05, 2018)

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64. This method of procurement shall be employed in any of the following cases:

a) When there is an unforeseen contingency requiring immediate purchase,
the amount shall not exceed the following:

Y ForNGAs, GOCCs, GFis, SUCs, and Autonomous Regional Government,
Two Hundred Thousand Pesos (P200,000)

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65. v For LGUs, in accordance with the following schedule:

Maximum Amount (in Philippine Peso)
DOF
Classification of

LGUs Province City Municipality
157 Class 200,000 200,000 100,000
2" Class 200,000 200,000 100,000
3" Class 200,000 160,000 100,000
4 Class 160,000 120,000 100,000
5 Class 120,000 100,000 100,000
6 Class 100,000 100,000 100,000

In the case of barangays, Fifty Thousand Pesos (P50,000).

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66. b) Procurement of ordinary or regular office supplies and equipment not available in the DBM-PS, in the

amount not to exceed the following:

Y For NGAs, GOCCs, GFls, SUCs, and Autonomous Regional Government, One Million Pesos

(P1,000,000)

vy For LGUs, in accordance with the following schedule:

DOF Maximum Amount (in Philippine Peso)
Classification pe sy ee
of LGUs Province City Municipality
1: Class 1,000,000 4,000,000 200,000
2" Class 1,000,000 1,000,000 200,000
3" Class 1,000,000 800,000 200,000
4 Class 800,000 600,000 100,000
5 Class 600,000 400,000 100,000
6t* Class 400,000 200,000 100,000

In the case of barangays, Fifty Thousand Pesos (P50,000).

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67. + Office supplies, however, 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.

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68. “ Documentary Requirements for Shopping under Sec. 52.1(b):
1. Mayor's Permit or Business Permit; and
2. PhilGEPS Registration Number

NOTE: Certificate of Platinum Membership may be submitted in lieu
of Mayor's Permit and PhilGEPS Registration Number.

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69. Shopping; Unforeseen Contingency

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70. Shopping; Unforeseen Contingency

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71. Shopping; Unforeseen Contingency

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72. Shopping; Ordinary Office

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73. JCAV FOUNDATION

74. Shopping; Ordinary Office

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75. JCAV FOUNDATION

76. + Negotiated Procurement is a method of procurement of Goods,

Infrastructure Projects and Consulting Services, whereby the
Procuring Entity directly negotiates a contract with a technically,
legally and financially capable supplier, contractor or consultant in
any of the following cases:

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77. (1) TWO FAILED BIDDINGS
+ Where there has been failure of competitive bidding or Limited Source Bidding for
the second time as provided for in Section 35 of RA 9184 and its IRR, when:
Y No bids are received;
Y All prospective bidders are declared ineligible;

Y All bids fail to comply with all the bid requirements or fail post-qualification, or, in the
case of consulting services, there is no successful negotiation; or

Y The bidder with the Lowest/Single Calculated Responsive Bid or Highest/Single Rated
Responsive Bid refuses, without justifiable cause, to accept the award of contract, and
no award is made in accordance with Section 40 of RA 9184 and its IRR.

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78. (1) TWO FAILED BIDDINGS
+ Documentary Requirement:
+ PhilGEPS Registration Number

* NOTE: PhilGEPS Platinum shall be submitted

- IF the legal el
Mandatory Review.

lity requirements are not revised even after the

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79. Two Failed Biddings; Procedure

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80. Two Failed Biddings; Procedure
ule 7

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81. Two Failed Biddings; Procedure

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82. Two Failed Biddings; Procedure

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83. The Municipality of Asgard was devastated by a great fire on September
20, 2023. During the said fire, five of the eight barangays near municipal
center were wiped out.

In response to this event, the City Mayor declared a state of calamity.

The rehabilitation of the devastated barangays proved difficult for its
residents. In response thereto, on November 21, 2023, the BAC of the
Municipality of Asgard started the procurement of building materials to be
distributed to the constituents of the municipality.

The procurement was conducted through Negotiated Procurement under
Emergency Cases in order to expedite the acquisition of the materials.

JCAV FOUNDATION

84. (2) EMERGENCY CASES

+ Negotiated Procurement under Emergency Cases may be resorted to:
1. In case of imminent danger to life or property during a state of calamity, or
2. When time is of the essence arising from natural or man-made calamities or
3. Other causes where immediate action is necessary:
Q to prevent damage to or loss of life or property, or

Q to restore vital public services, infrastructure facilities and other public
utilities.

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85. (2) EMERGENCY CASES

...Negotiated Procurement under Republic Act No. 9184, Section 53(b) involves
situations beyond the procuring entity's control. Thus, it speaks of "imminent
danger . . . during a state of calamity . . . natural or man-made calamities [and] other
causes where immediate action is necessary.“ (Office of the Ombudsman v. De
Guzman, G.R. No. 197886, [October 4, 2017])

JCAV FOUNDATION

86. (2) EMERGENCY CASES

...the phrase "other causes" is construed to mean a situation similar to a calamity,
whether natural or man-made, where inaction could result in the loss of life
destruction of properties or infrastructures, or loss of vital public services and utilities.
(Office of the Ombudsman v. De Guzman, G.R. No. 197886, [October 4, 2017])

JCAV FOUNDATION

87. (2) EMERGENCY CASES

+ The BAC should consider appropriate timing or the proximity of time between the
actual procurement activity to be conducted and the emergency sought to be
addressed.

+ When the ground is based on imminent danger to life during a state of calamity,
there must be a declaration by a competent authority of a state of calamity
pursuant to existing laws, rules and regulations before any procurement activity
may be undertaken. (refer to Sec.16, R.A. no. 10121)

JCAV FOUNDATION

88. The Municipality of Asgard was devastated by a great fire on September
20, 2023. During the said fire, five of the eight barangays near municipal
center were wiped out.

In response to this event, the City Mayor declared a state of calamity.

The rehabilitation of the devastated barangays proved difficult for its
residents. In response thereto, on November 21, 2023, the BAC of the
Municipality of Asgard started the procurement of building materials to be
distributed to the constituents of the municipality.

The procurement was conducted through Negotiated Procurement under
Emergency Cases in order to expedite the acquisition of the materials.

JCAV FOUNDATION

89. (2) EMERGENCY CASES

+ Documentary Requirements:
1. Mayor’s Permit or Business Permit;
PCAB License (if Infrastructure Project);

Income Tax Return (ABC is more then P500,000); and
Omnibus Sworn Statement (ABC is more than P500,000).

ak wN

NFCC (if Infrastructure Project and ABC is more than P500,000);

JCAV FOUNDATION

90. (2) EMERGENCY CASES

+ Documentary Requirements:
NOTE:
> Procuring Entities are allowed to accept:

"Expired Business or Mayor's permit with Official Receipt of renewal application;
and

= Non-notarized Omnibus Sworn Statement

>» However, such documents MUST still be submitted after award of contract.

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91. Emergency Cases; Procedure

JCAV FOUNDATION

92. Emergency Cases; Procedure

JCAV FOUNDATION

93. Emergency Cases; Procedure

JCAV FOUNDATION

94. (3) TAKE-OVER OF CONTRACTS

+ Instances when Take-over of contracts may be resorted to:

1. The contract, previously awarded through Competitive Bidding, has been
rescinded or terminated for causes provided for in the contract and existing
laws; and

2. Where immediate action is necessary:
y to prevent damage to or loss of life or property, or

* to restore vital public services, infrastructure facilities and other public
utilities.

JCAV FOUNDATION

95. (3) TAKE-OVER OF CONTRACTS

+ Documentary Requirements:

1

aR oN

Mayor's Permit or Business Permit;

Professional License or Curriculum Vitae (only for Consulting Services);
PhilGEPS Registration Number;

PCAB License (only if Infrastructure); and

NFCC (only if Infrastructure).

JCAV FOUNDATION

96. (3) TAKE-OVER OF CONTRACTS

+ Documentary Requirements:
NOTE:

Certificate of Platinum Membership may be submitted in lieu of Mayor's Permit
and PhilGEPS Registration Number.

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97. Take-Over of Contract; Procedure

2

The BAC shall post-qualify and negotiate with
the second lowest bidder, at the bidder’s own
original bid, for the remaining works to be done.

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98. Take-Over of Contract; Procedure

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99. Take-Over of Contract; Procedure

In case of successful post-
qualification and negotiation, the

BAC shall recommend to the
HOPE the award of contract

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100. (4) ADJACENT OR CONTI

+ Where the subject contract is adjacent or contiguous to an ongoing Infrastructure
Project or Consulting Service where the consultants have unique experience and
expertise to deliver the required service, subject to the following conditions:

y Original contract is the result of a Competitive Bidding;

¥ Subject contract to be negotiated has similar or related scopes of work;

y It is within the contracting capacity of the contractor/consultant considering
the legal, technical (e.g., PCAB license, SLCC) and financial (e.g., NFCC for
the contiguous project) requirements for eligibility;

JCAV FOUNDATION

101. (4) ADJACENT OR CONTIGUOUS

* In determining the SLCC, NFCC and PCAB license, the sum of the
value of the remaining works for the existing contract and the ABC
of the contiguous or adjacent work shall be considered;

* The contractor/consultant uses the same prices or lower unit
prices as in the original contract less mobilization cost;

* The ABC of the contiguous or adjacent work involved does not
exceed the contract amount of the ongoing project;

JCAV FOUNDATION

102. (4) ADJACENT OR CONTIGUOUS

* The contractor/consultant has no negative slippage/delay in the original
contract during the time of negotiation; and

v Negotiations for the procurement are commenced before the expiry of the
original contract.

* In infrastructure projects, the phrase “adjacent or contiguous” refers to projects
that are in actual physical contact with each other OR in the immediate vicinity
such that the required equipment and other resources can easily be mobilized;

+ In consulting services, it pertains to the linkage or relationship of the subject
matters, outputs or deliverables required.

JCAV FOUNDATION

103. (4) ADJACENT OR CONTIGUOUS

Y If there is a necessity to introduce new items which are related to the
scope of work of the original contract, the Procuring Entity shall
ensure that the unit prices of the new items are equal to or lower than
the prevailing market prices.

JCAV FOUNDATION

104. (4) ADJACENT OR CONTIGUOUS

* Documentary Requirements:

1. PCAB License (if Infra Project); and
2. NFCC (if Infra Project).

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105. Adjacent or Contiguous; Procedure

— e >
Se ve

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106. (5) AGENCY TO AGENCY

* Procurement from another agency of the government (i.e., Servicing Agency) that
has the mandate to deliver goods or services or to undertake infrastructure projects
or consultancy services as required by the Procuring Entity.

= All procurement to be undertaken by the Servicing Agency, including those required
for the project, shall continue to be governed by the provisions of R.A. 9184.

JCAV FOUNDATION

107. (5) AGENCY TO AGENCY

Conditions.

Y The Procuring Entity shall justify that entering into an Agency-to-Agency Agreement
with the Servicing Agency is more efficient and economical to the government;

y Servicing Agency has the mandate to deliver the goods and services required to be
procured or to undertake the infrastructure project or consultancy required by the
Procuring Agency;

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108. m GENCY TO AGENCY
Y Servicing Agency has the absorptive capacity to undertake the project;

Servicing Agency owns or has access to the necessary tools and equipment
required for the project;

Sub-contracting is not allowed. However, the servicing agency may implement the

infrastructure project in-house, by job-order, or through the pakyaw contracting
system; and

JCAV FOUNDATION

109. (5) AGENCY TO AGENCY

y For procurement of infrastructure projects, the Servicing Agency must have a track
record of having completed, or supervised a project, by administration or by
contract, similar to and with a cost of at least fifty percent (50%) of the project at
hand.

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110. Agency to Agency; Procedure
à 2 5 y
a 1 Fan

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111. Agency to Agency; Procedure

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112. Negotiated Procurement

(6) SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK, EXCLUSIVE
TECHNOLOGY AND MEDIA SERVICES

“+ Where Goods, Infrastructure Projects and Consulting Services can be contracted to

a particular supplier, contractor, or consultant as determined by the HOPE, for any
of the following reasons:

Y Work of art; commissioned work or services of an artist for specific artistic
skills (e.g., singer, performer, poet, writer, painter, sculptor, etc.)

Y Scienti

academic, scholarly work or research, or legal services;
y Highly-specialized life-saving medical equipment, as certified by the DOH;

JCAV FOUNDATION

113. Negotiated Procurement

(6) SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK, EXCLUSIVE
TECHNOLOGY AND MEDIA SERVICES

y” Scientific, technical, economic, business, trade or legal journal, magazine,
paper, subscription, or other exclusive statistical publications and references;
or

Y” Media documentation, advertisement, or announcement through television,
radio, newspaper, internet, and other communication media.
* The construction or installation of an infrastructure facility where the material,
equipment, or technology under a proprietary right can only be obtained from the
same contractor.

JCAV FOUNDATION

114. (6) SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK, EXCLUSIVE

TECHNOLOGY AND MEDIA SERVICES
+ Documentary Requirements:

1. Mayor's Permit or Business Permit;

2. Professional License or Curriculum Vitae;
3. PhilGEPS Registration Number; and
4,

Income Tax Return or Business Tax Return.

- if ABC is more than P500,000.

JCAV FOUNDATION

115. (6) SCIENTIFI\ HOLARLY OR ARTISTIC WORK, EXCLUSIVE
TECHNOLOGY AND MEDIA SERVICE:
+ Documentary Requirements:
NOTE:
1. For Individuals - BIR Certificate of Registration shall be submitted in lieu of DTI
Registration and Mayor's Permit.

2. Certificate of Platinum Membership may be submitted in lieu of Mayor's Permit
and PhilGEPS Registration Number.

3. These Documentary Requirements do not apply to artists such as singers,

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116. Negotiated Procurement; Procedure

JCAV FOUNDATION

117. Negotiated Procurement; Procedure

the BAC shall
recommend the award of
contract to the HOPE
JCAV FOUNDATION

118. (7) HIGHLY TECHNICAL CONSULTANTS

* Procurement of consultancy contract involving an individual consultant, subject to the
following conditions:

Y The individual consultant will be hired to do work that is either:
«Highly technical or proprietary; or

«Primarily confidential or policy determining, where trust and confidence are the
primary consideration.

Y The term of the individual consultant shall, at the most, be on a six (6) month basis,
renewable at the option of the appointing HOPE, but in no case shall exceed the
term of the latter.

JCAV FOUNDATION

119. (7) HIGHLY TECHNICAL CONSULTANTS

+ RE: CONSULTANCY SERVICES OF HELEN P. MACASAET
(A.M. no. 17-12-02-SC. July 16, 2019.)

JCAV FOUNDATION

120. (7) HIGHLY TECHNICAL CONSULTANTS

+ Documentary Requirements:
1. Mayor's Permit or Business Permit;
2. Professional License or Curriculum Vitae; and
3. PhIIGEPS Registration Number.

JCAV FOUNDATION

121. (7) HIGHLY TECHNICAL CONSULTANTS

+ Documentary Requirements:
NOTE:

1. for Individuals — BIR Certificate of Registration shall be submitted in lieu of DTI

Registration and Mayor's Permit;

2. Certificate of Platinum Membership may be submitted in lieu of Mayor's Permit
and PhilGEPS Registration Number. PhilGEPS Registration Number.

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122. Negotiated Procurement; Procedure |

JCAV FOUNDATION

123. Negotiated Procurement; Procedure

The BAC shall recommend to

the HOPE the award of contract
to the individual consultant.

JCAV FOUNDATION

124. ABC - P150,000.00
Description of Items to be Procured:
* Bond Paper
Y Quantity — 200 reams
* Brand - Paper One
* Dimensions - 8.5” x 13”
Y Thickness - Substance 24
Actual Market Price - P376.00 per ream (P75,200)

L__+ Method to be Used - SMALL VALUE PROCUREMENT |]
JCAV FOUNDATION

125. (8) SMALL VALUE PROCUREMENT (SVP)

+ Procurement of:
* (a) Goods not covered by Shopping;
+ (b) Infrastructure Projects; and
+ (c) Consulting Services.

JCAV FOUNDATION

126. ABC - P150,000.00
Description of Items to be Procured:
* Bond Paper
Y Quantity — 200 reams
* Brand - Paper One
* Dimensions - 8.5” x 13”
Y Thickness - Substance 24
Actual Market Price - P376.00 per ream (P75,200)

L__+ Method to be Used - SMALL VALUE PROCUREMENT |]
JCAV FOUNDATION

127. THRESHOLD AMOUNTS:

Y For NGAs, GOCCs, GFIs, SUCs, and Autonomous Regional Government, One Million Pesos

(P1,000,000)

Y For LGUs, in accordance with the following schedule:

DOF Maximum Amount (in Philippine Peso)
Classification pe sy ee
of LGUs Province City Municipality
1: Class 1,000,000 4,000,000 200,000
2" Class 1,000,000 1,000,000 200,000
3" Class 1,000,000 800,000 200,000
4 Class 800,000 600,000 100,000
5 Class 600,000 400,000 100,000
6t* Class 400,000 200,000 100,000

In the case of barangays, Fifty Thousand Pesos (P50,000).

JCAV FOUNDATION

128. (8) SMALL VALUE PROCUREMENT (SVP)

+ Documentary Requirements:

1.
2.
3.

Mayor's Permit or Business Permit;

Professional License or Curriculum Vitae (if Consultancy Service);

PhilGEPS Registration Number;

PCAB License (if Infra Project);

Income/Business Tax Return (ABC above P500,000); and
Omnibus Sworn Statement (ABC above P50,000).

JCAV FOUNDATION

129. (8) SMALL VALUE PROCUREMENT (SVP)

* Documentary Requirements:
NOTE:

1. For Individuals - BIR Certificate of Registration shall be submitted in lieu of DTI
Registration and Mayor's Permit;

2. Certificate of Platinum Membership may be submitted in lieu of Mayor's Permit
and PhilGEPS Registration Number.

JCAV FOUNDATION

130. Negotiated Procurement; Procedure |

QUOTATION

JCAV FOUNDATION

131. Negotiated Procurement; Procedure

AVA AE >

o

JCAV FOUNDATION

132. Negotiated Procurement; Procedure

{Ths BAC shall recommend tothe
1d of contract to the
ae h the Single or Lowest
Calculated and Responsive Quotation

JCAV FOUNDATION

133. (9) LEASE OF REAL PROPERTY AND VENUE

Y Real Property refers to land and buildings (office spaces or units) and
constructions of all kinds adhered to the soil.

y Venue refers to training centers, convention halls, hotels, and similar
establishments catering to trainings, seminars, conferences, conventions,
symposia and similar gatherings requiring the official participation of government
Officials and employees.

" NOTE: This may include meals and accommodation depending on the
requirements of the Procuring Entity.

JCAV FOUNDATION

134. (9) LEASE OF REAL PROPERTY AND VENUE

+ Policy Considerations:
> Publicly-owned vis-a-vis privately-owned real property and venue

Y His preferred that government agencies lease publicly-owned real property

or venue from other government agencies.

If there is an available publicly-owned real property or venue, the PE may
enter into a contract of lease with the government-agency owner.

In the event that the PE wants a privately-owned real property or venue,
the End-User unit shall justify that the same is more efficient and

economical tothe government

JCAV FOUNDATION

135. (9) LEASE OF REAL PROPERTY AND VENUE

* Policy Considerations:
> Location

Y The location of the real property or venue to be leased should have been
meticulously selected by the Procuring Entity after taking into
consideration, among others, the following:

the need for prudence and economy in government service;

the suitability of the area in relation to the mandate of the office; and

its accessibility to its clients

JCAV FOUNDATION

136. (9) LEASE OF REAL PROPERTY AND VENUE

* Policy Considerations:
> ABC and Rental Rates

* The ABC shall be set using the midpoint of the range obtained from the
results of the market analysis on the prevailing lease rates for real property

or venue within the vicinity of the selected location;

Y The rental rates, including additional expenses, such as association dues in
the case of lease of real property, SHOULD NOT exceed the ABC.

JCAV FOUNDATION

137. (9) LEASE OF REAL PROPERTY AND VENUE

* Policy Considerations:
> ABC and Rental Rates

Y Rental rates should be within the prevailing market rates for lease of real
property or venue with the same or similar condition or classification and
located within the vicinity.

JCAV FOUNDATION

138. (9) LEASE OF REAL PROPERTY AND VENUE

+ Policy Considerations:
> ABC and Rental Rates
Y Determination of Reasonableness of Rental Rates:
Computation based on Observed Depreciation
Computation based on Straight Line Depreciation

Comparative Market Price Analysis

JCAV FOUNDATION

139. (9) LEASE OF REAL PROPERTY AND VENUE

+ Policy Considerations:

> Technical Specifications

¥ Technical Specification shall be prepared taking into consideration the

rating factors under Appendix B of this Guidelines.

ee ‚Site Condition. a Free Services and Facilities
2. Topography and Drainage (20) . Janitorial and security (20)
3. Sidewalk and waiting shed (15) Air conditioning (20)
more ot Repair and maintenance _ (20)
6. Land dassification, — utilization, (10) Water and light consumption (0)
Eon -
7-Oner added ame a ENTE (20)
100

100 h N

140. (9) LEASE OF REAL PROPERTY AND VENUE

“+ Documentary Requirements:
1. Mayor's Permit or Business Permit;
2. PhilGEPS Registration Number; and

3. Income/Business Tax Return.

EXCEPT: if the LESSOR is a Government Agency.

JCAV FOUNDATION

141. (9) LEASE OF REAL PROPERTY AND VENUE

“+ Documentary Requirements:
NOTE:

> Certificate of Platinum Membership may be submitted in lieu of Mayor's Permit
and PhilGEPS Registration Number. PhilGEPS Registration Number;

JCAV FOUNDATION

142. Lease of Real Property; Procedure

JCAV FOUNDATION

143. Lease of Real Property; Procedure

QUOTATION

JCAV FOUNDATION

144. Lease of Venue; Procedure

JCAV FOUNDATION

145. Lease of Venue; Procedure

€ BAU shall
recommend to the

HOPE the award of

JCAV FOUNDATION

146. (9) LEASE OF REAL PROPERTY AND VENUE

++ Renewal of Contract of Lease of Real Property:
> Prior to the expiration of the lease contract, the end-user of the procuring entity
must conduct a cost-benefit analysis to assess the quality of service under the
lease contract.
> It must also analyze whether entering into a new contract will be more
expensive taking into consideration the cost of transfer and accessibility to the
public.

JCAV FOUNDATION

147. (9) LEASE OF REAL PROPERTY AND VENUE

“+ Renewal of Contract of Lease of Real Property:

> If the results of the Cost Benefit Analysis, conducted by the end-user, continue
to favor the existing lessor, then the HoPE may renew its lease contract subject
to the Guidelines on Renewal of Regular and Recurring Services. [GPPB Resolution
No. 06-2022]

> If it does not, then the PE should procure a new lease contract in accordance
with Section 53.10 of the IRR of RA 9184.

JCAV FOUNDATION

148. (10) DIRECT RETAIL PURCHASE OF PETROLEUM FUEL, OIL AND LUBRICANT
(POL) PRODUCTS AND AIRLINE TICKETS, AND ONLINE SUBSCRIPTIONS*

GENERAL RULE: All procurement of POL products and airline tickets, and online
subscription shall be done through competitive bidding.

EXCEPTION: When the Procuring Entity determines that:

1. Direct Retail Purchase is the best modality for the procurement of non-bulk POL
products; OR

2. Fees for additional services or functionalities are charged on top of the payment for
the required POL products, airline tickets or online subscriptions.

*GPPB Resolution No. 05-2022

JCAV FOUNDATION

149. DIRECT RETAIL PURCHASE OF PETROLEUM

CONDITIONS:
i. For petroleum fuel (gasoline, diesel, and kerosene), oil and lubricants:

i. Direct retail purchase of POL products estimated to be necessary for the
operations within the fiscal year, including provisions for foreseeable
emergencies based on historical records, shall be reflected in the annual
procurement plan (APP) in its entirety;

ii, Direct purchase must be made from any available retailers, dealers or gas
stations at retail pump price;

iii. Must be intended to be used for any official government vehicles and
equipment for immediate consumption; and

JCAV FOUNDATION

150. DIRECT RETAIL PURCHASE OF PETROLEUM

El ( A IT | )D

CONDITIONS:
i. For petroleum fuel (gasoline, diesel, and kerosene), oil and lubricants:

iv. Payment may be made through cash advance, reimbursement or other
allowable payment modalities subject to pertinent auditing and accounting rules.

JCAV FOUNDATION

151. CONDITIONS:
ii. For airline tickets:

a. Direct purchase of airline tickets required for official travels within the fiscal
year, including provisions for foreseeable emergencies based on historical
records, shall be reflected in the APP in its entirety;

b. Direct purchase must be made from any commercial airline at fairly
reasonable rates;

c. Payment may be made through cash advance, reimbursement or other
allowable payment modalities

JCAV FOUNDATION

152. CONDITIONS:
ii. For airline tickets:

d. Procurement of airline tickets must be in accordance with existing rules and
regulations governing official local and foreign travels of government
personnel and Executive Order No. 77, s. 2019.

JCAV FOUNDATION

153. DIRECT RETAIL PURCHASE OF ONLINE

CONDITIONS:

iii. Online Subscription* shall include:

(i) electronic publications, reference materials, and journals;

(i) computer software and applications such as video conferencing applications, computer-
aided design and drafting applications, office productivity tools, and system protection
software;

(iii) web-based services such as news and social media monitoring tools; and

(iv) off-the-shelf information systems, except internet and cloud computing services;

*GPPB Resolution No. 05-2022, June 23, 2022

JCAV FOUNDATION

154. DIRECT RETAIL PURCHASE OF ONLINE

CONDITIONS:

iii. Online Subscription* (con't)

+ The maximum ABC amounting to One Million Pesos (1,000,000); provided that if the
online subscription would require an ABC beyond the aforementioned amount, the ABC may
be increased but not exceeding Five Million Pesos (5,000,000) and subject to prior
approval of the HoPE;

+ Performance and Warranty Security are required if the terms and conditions or similar

agreements do not provide corrective actions to be undertaken by the supplier or provider
on any noted defects in the procured item, as determined by the procuring entity.

*GPPB Resolution No. 05-2022, June 23, 2022

JCAV FOUNDATION

155. DIRECT RETAIL PURCHASE OF ONLINE

CONDITIONS:

Online Subscription* (con't)

(i) the local provider should be a supplier or distributor doing business in the Philippines that offers the
subscription to be procured;

(li) the electronic copy of the payment confirmation receipt and the agreed terms and conditions or similar
agreements shall be posted as the equivalent documents for NOA and contract or PO, respectively;
and

(iii) may make use of direct electronic payment through a credit card subject to the issuance of a
certification by the HoPE that it is the more expeditious and inexpensive mode of payment.

“4GPPB Resolution No- 05-2022; June 23;2022-
JCAV FOUNDATION

156. DIRECT RETAIL PURCHASE OF ONLINE

CONDITIONS

1. The APP shall reflect the direct purchase of the online subscription necessary for the
operations of the PE within the fiscal year;

2. Direct purchase shall be made for online subscription where no local provider is
available

3. The maximum amount for the ABC shall be P1,000,000.00; provided, that if the online
subscription would require an ABC beyond the aforementioned amount, the ABC may be
increased but not exceeding P5,000,000 and subject to prior approval of the HoPE;

JCAV FOUNDATION

157. DIRECT RETAIL PURCHASE OF ONLINE

CONDITIONS

4. Justification shall be provided by the end-user on its need to directly purchase a
specific online subscription to the HoPE.

5. Payment for online subscription can only be made through direct electronic payment
using credit card subject to the issuance of a certification by the HoPE or his/her duly
authorized representative stating that it is the more expeditious and inexpensive
mode of payment in accordance with COA Circular 2021-014

6. A payment confirmation receipt shall cover the direct purchase of online subscription

JCAV FOUNDATION

158. DIRECT RETAIL PURCHASE OF ONLINE

CONDITIONS
Thus, the end-user shall:
(1) submit a report indicating that no local provider is available; and
(2) prepare a comparative matrix and evaluation showing that the preferred specific
online subscription is better than any other similar online subscriptions available

locally or that there is no suitable substitute in the local market that can be obtained at
a more advantageous terms;

JCAV FOUNDATION

159. DIRECT RETAIL PURCHASE OF ONLINE

PROCEDURES:

i. The end-user delegated to directly purchase POL products, and airline tickets, and online
subscriptions in accordance with Part IV (J) of this Guidelines shall determine the supplier or service
provider capable of delivering the required POL products, and airline tickets, AND ONLINE
SUBSCRIPTIONS at retail pump price or at the most reasonable retail price, as the case may be.

ii. Taking into account the usual trade and business practices being observed in the industry and the
requirements and other reasonable considerations identified by the end-user, direct retail purchase
of the required POL products, or airline tickets, or online subscriptions shall be carried out in
accordance with pertinent accounting principles and practices as well as of sound management and
fiscal administration provided that they do not contravene existing laws and regulations applicable to
financial transactions.

JCAV FOUNDATION

160. DIRECT RETAIL PURCHASE OF ONLINE

PROCEDURES:

ili. the end-user shall carefully review the terms and conditions or similar agreements which shall contain
a provision on compensation for losses incurred caused by delays of the supplier or service provider.

iv. the pe shall require the submission of a warranty security based on the end-user's determination that
the terms and conditions or similar agreements do not provide corrective actions to be undertaken by the
supplier or service provider on any noted defects in the procured online subscription.

v. The end-user shall post the electronic copy of the payment confirmation receipt and agreed terms and
conditions or similar agreements for the direct purchase of online subscription as equivalent documents
of the NOA and Contract or Purchase Order, respectively.

JCAV FOUNDATION

161. DIRECT RETAIL PURCHASE OF POL, AIRLINE |

TICKETS, AND ONLINE SUBSCRIPTION

a
A
4 J TERMS / er
AND <>
NDITION ==
co ONS SE

JCAV FOUNDATION

a
Rj RIKI IA

162. DIRECT RETAIL PURCHASE OF ONLINE

SUBSCRIPTIONS

The End-User shall post the electronic copy of the

payment confirmation receipt and agreed terms and

conditions as equivalent documents of the NOA and
Contract or Purchase Order, respectively.

JCAV FOUNDATION

163. THANK YOU