More than Php. 1M (aggregate) cost for Repair Works via SVP
Number of replies: 3
Good day, Procurement Practitioners!
As we finalize our Indicative Annual Procurement Plan (APP) for 2025, we have observed that the consolidation of various repair and maintenance projects for vehicles, ACUs, and machinery has resulted in an aggregate amount that exceeds the threshold for alternative procurement methods, as initially proposed by the End-User Unit. Hence, the Bids and Awards Committee (BAC) will need to procure these projects through Competitive Bidding.
However, some repair and maintenance works are unforeseen or strategically scheduled throughout the calendar year. We seek clarification on whether it is possible (and permitted) to select Small Value Procurement for these consolidated projects, even if their aggregate Approved Budget for the Contract (ABC) exceeds the threshold that typically necessitates Competitive Bidding.
Thank you!
In reply to James Alexis Gonzalgo
Re: More than Php. 1M (aggregate) cost for Repair Works via SVP
by Jessie Salvador -
No. The use of alternative methods of procurement requires satisfaction of all the conditions for its use. This includes a price threshold. If the ABC is more than PhP1M, SVP is NOT applicable and cannot be used.
In reply to Jessie Salvador
Re: More than Php. 1M (aggregate) cost for Repair Works via SVP
Thank you for your response Sir.
Will PEs be allowed to have repairs/maintenance be disaggregated(not consolidated) and included in the APP as individual projects on their own (line item requirement) having their own PAP Code?
Thank you!
Will PEs be allowed to have repairs/maintenance be disaggregated(not consolidated) and included in the APP as individual projects on their own (line item requirement) having their own PAP Code?
Thank you!
In reply to James Alexis Gonzalgo
Re: More than Php. 1M (aggregate) cost for Repair Works via SVP
by Jessie Salvador -
Yes. However, be mindful of the prohibition on splitting of government contracts.