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Use of Contract Agreement & PO for Catering Services

Use of Contract Agreement & PO for Catering Services

by Antonette Digal -
Number of replies: 2

Sir/Ma'am,

For catering services, is there a specific amount if when we will use a Contract Agreement or Purchase Order ?Like if the amount of catering services being procured is 10k below, are we going to use a Contract Agreement or Purchase Order will suffice?Thank you.

In reply to Antonette Digal

Re: Use of Contract Agreement & PO for Catering Services

by Edita Nota -
There are no hard and fast rules, specially monetary threshold, in the use of PO or contract agreement for catering services. PO is a form of contract. Generally, contract agreement is used if the modality is public bidding. PO may be used for SVP provided all the terms and conditions are incorporated therein such as but not limited to: menu, number of pax, delivery dates, mode of payment.
In reply to Antonette Digal

Re: Use of Contract Agreement & PO for Catering Services

by Jessie Salvador -

The reference is the method of procurement, not the amount. Sec.10 of law and its IRR mandates that all procurement shall be done through competitive bidding. There is no qualification as to amount. Even 10k worth of catering service should be undertaken through public bidding as a rule. In such case, Contract Agreement is mandatory. 

However if, subject to prior approval of the HoPE and whenever justified under Rule XVI, alternative method is used such as Small Value Procurement, Contract Agreement form is no longer mandatory. 

In both instances Purchase Order, which is a form prescribed by COA, is being required.

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