PROVINCIAL OFFICE-CAMARINES SUR A 2 nd Floor Doa Dolores Bldg., Roxas Avenue, Naga it! "a! #, 2$%& BEATRIZ A. CREAG 'tate Auditor ( 'upervising Auditor )ea* %#, Audit +roup +,-, luster .,N+' Depart*ent of Agrarian Refor* Daet, a*arines Norte )hru/ ELENA B. TABAYAG 'tate Auditor 000, o**ission on Audit )ea* %#, Audit +roup +,-, luster .,N+' Depart*ent of Agrarian Refor* Daet, a*arines Norte "ada*/ )his has reference to the Audit 1bservation "e*orandu* 2A1"3 No.2$%-,$$&2%-3F,%#. dated "arch -, 2$%& regarding !our observation that *ost of the procure*ent activities of DAR Provincial 1ffice, a*arines 'ur % 4ere *ade *ostl! through alternative procure*ents such as shopping and direct contracting, instead of co*petitive bidding. )he latest being the alleged purchased *ade so*eti*e on Februar! 2$%- of canop! and other parts of 'trada vehicle through direct contracting 4ith certain supplier na*ed D5 'u**erti*e "ar6eting, 0nc., in the total a*ount of Php ..,%$$.$$. 7hile it is the sincere conviction of the undersigned that the adoption of said alternative *ode of procure*ents on the stated procure*ents activities of the province last 2$%- including the purchased of the spare parts of said 8Strada Vehicle9 are all 4ithin the *andates of RA :%.&. Nonetheless, it is ad*itted that due to *ultiple tas6s and responsibilities of the concerned personnel occasional and inadvertent errors *a!be co**itted during the preparation of the needed docu*entar! re;uire*ents prefator! to the procure*ent of said office supplies and vehicle spare parts 4hich are all vital to the da! to da! operation of this office as aptl! observed b! the <onorable Auditor. 'o*e of those 4ere the alleged absence of BA Resolutions and "inutes of their *eetings reco**ending and =ustif!ing the avail*ent of those alternative *odes of procure*ent and other evidences to prove the use of alternative *odes instead of co*petitive bidding. Regarding the purchase of canop! and other parts of 'trada (ehicle, direct contracting 4as e*plo!ed as *ode of procure*ent based on the follo4ing =ustif!ing circu*stances, that, there is no other dealer or supplier *anufacturing and distributing said canop! and other spare parts of said vehicle other than the afore,na*ed supplier D5 'u**erti*e "ar6eting, 0nc.> that, the urgenc! of the i**ediate procure*ent of said vehicle spare parts is vital to the dail! functioning of the office 4hich is dependent upon the services of three 2-3 vehicles for the entire transportation needs of DAR Provincial 1ffice, a*arines 'ur % and that the offer 4as i**ediatel! accepted believing in ut*ost honest! that said procure*ent is 4ithin the a*bit of alternative *ode of procure*ents under direct contracting *ethod. 'aid honest opinion to purchase said canop! and other spare parts thereof 4as *ade based on the provisions of RA :%.& and its 0*ple*enting Rules and Regulations 4hich states that/ 'ection #$, 0RR of RA:%.& provides that/ Direct Contracting or single source procurement is a method of procurement of goods that does not require elaborate bidding documents. The supplier is simply asked to submit price quotation or a pro-forma invoice together with the conditions of sale. The offer may be accepted immediately or after some negotiations. Direct contracting maybe resorted to by concerned Procuring ntities under any of the following conditions! a." Procurement of goods of proprietary nature which can be obtained only from the proprietary source# i.e.# when patents# trade secrets# and copyrights prohibits others from manufacturing the same item$ b."% % %$ c." Those sold by an e%clusive 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 &'P.(
7ith this, rest assured that this office 4ill ta6e this audit observation as our guidance and for us to be *ore conscientious and vigilant in our future procure*ent activities ta6ing into consideration the provisions of RA :%.& and its related la4s. 7e are anticipating !our consideration on the *atter being fello4 govern*ent 4or6ers 4hose para*ount consideration is the 4elfare of the people and the govern*ent service. )han6 !ou ver! *uch. LEONITO M. GAVERIA PARP1 00