The provincial government of Catanduanes violated the procurement law in the purchase of P1.8 million worth of Information Technology equipment in 2021 by indicating the brand name in the bidding documents, the Commission on Audit (COA) said in its Annual Audit Report for the year.
The COA noted that the procurement documents for the purchase of seven units of IT Equipment with a total contract amount of ₱1,816,500.00 contained specific reference to brand name and model.
This, it said, is contrary to Section 18 of Republic Act 9184 and denied the practice of competitive bidding, giving undue advantage to some bidders and depriving the other bidders of a fair chance in the bidding process.
The said provision of the Government Procurement Reform Act states that reference to brand names shall not be allowed in the specifications for the procurement of goods of except for items or parts that are compatible with the existing fleet or equipment of the same make and brand, and to maintain the performance, functionality and useful life of the equipment.
A review of the contract, covered by Purchase Order No. 200-21-06-002 dated June 30, 2021, disclosed that the purchase request and the posting of the Invitation to Bid in the PhilGEPS website made reference to the specific brand name and model of the equipment to be procured.
“As a consequence, prospective bidders which may offer a different brand with more advantageous price in favor of the Government have been precluded from participating in the bidding process,” the audit team pointed out.
Likewise, it added, the said mandate cannot be circumvented by setting specifications that particularly refer to a specific brand or model.
The team found out that among the attachments to the disbursement voucher was a document attached to the Purchase Request that contained the printed website of the brand “Duplo” and at the same time the model “DP G225” and the technical specifications.
The same details appeared on the PhilGEPS Invitation to Bid posting, the COA stated, with circumstances evidently indicated non-compliance to Section 18 of RA No. 9184.
Complete delivery of the seven units of IT equipment was made on August 18, 2021 and full payment was made through Disbursement Voucher No. 011 dated October 12, 2021 amounting to ₱1,701,022.50 net of taxes and retention totaling ₱115,477.50.
The COA said the practice of competitive bidding should be highly encouraged in every procurement and prohibited acts should be avoided to ensure that procurement activities are conducted reasonably and fairly.
“The practice of giving particular reference to brand names not only violated the provisions of RA 9184 but also denied the practice of competitive bidding, gave undue advantage to some bidders and deprived the other bidders of a fair chance in the bidding process,” it emphasized.
It recommended that the Local Chief Executive require the Bids and Awards Committee (BAC) to check all Purchase Requests and ensure that there are no instances of reference to specific brand names before proceeding to the next procurement stage.
It likewise urged the Accountant to meticulously review and scrutinize supporting documents before approving payments and the requisitioning departments to avoid the use of specific reference to brand names in the preparation of purchase requests.
In its comment, the provincial government insisted that the BAC is very keen in observing the prohibition of making references to brand names in the purchase requests (PR) and the procurement of seven (7) units IT equipment that made reference to the end-user’s preferred model was an isolated case.
To avoid recurrence of the same deficiency, the management issued an office order reiterating compliance to Section 18 of RA No. 9184.