G.R. No.

201112

October 23, 2012

ARCHBISHOP FERNANDO R. CAPALLA, OMAR SOLITARIO ALI a ! MAR" ANNE L. S#SANO, Petitioners, vs. THE HONORABLE COMMISSION ON ELECTIONS, Respondent. x-----------------------x G.R. No. 201121 SOLIDARIT" FOR SO$EREIGNIT" %S&S' re(re)e te! b* Ma. L+ !a O,a-.er/ RAMON PEDROSA, BEN0AMIN PA#LINO SR., E$EL"N CORONEL, MA. LINDA OLAG#ER MONTA"RE, a ! NELSON T. MONTA"RE, Petitioners, vs. COMMISSION ON ELECTIONS re(re)e te! b* +t) C1a+r2a , Co22+))+o er SI3TO S. BRILLANTES, 0R.,Respondent. x-----------------------x G.R. No. 201124 TEOFISTO T. G#INGONA, BISHOP BRODERIC5 S. PABILLO, SOLITA COLLAS MONSOD, MARIA CORA6ON MENDO6A ACOL, FR. 0OSE DI6ON, NELSON 0A$A CELIS, PABLO R. MANALASTAS, GEORGINA R. ENCANTO a ! ANNA LEAH E. COLINA, Petitioners, vs. COMMISSION ON ELECTIONS a ! SMARTMATIC TIM CORPORATION, Respondents. x-----------------------x G.R. No. 201&13 TANGG#LANG DEMO5RAS"A %TAN DEM', INC., E$EL"N L. 5ILA "5O, TERESITA D. BALTA6AR, PILAR L. CALDERON a ! ELITA T. MONTILLA, Petitioners, vs. COMMISSION ON ELECTIONS a ! SMARTMATIC7TIM CORPORATION, Respondents. RESOLUTION PERALTA, J.: Before the Court are the otions for Re!onsideration separate"# fi"ed $# %ovants Teofisto T. &uin'ona, Bishop Broderi!( S. Pa$i""o, So"ita Co""as onsod, aria Cora)on endo)a *!o", +r. ,ose -i)on, Ne"son ,ava Ce"is, Pa$"o R. ana"astas, &eor'ina R. En!anto and *nna Leah E. Co"ina .herein referred to as &uin'ona, et a"./ in &.R. No. 01220342 So"idarit# for Soverei'nt# .S5S/ represented $# a. Linda O"a'uer, Ra%on Pedrosa, Ben6a%in Pau"ino Sr., Eve"#n Corone", a. Linda O"a'uer onta#re, and Ne"son T. onta#re .referred to as S5S, et a"./ in &.R. No. 01220240 and Tan''u"an' -e%o(ras#a .Tan -e%/, In!., Eve"#n L. 7i"a#(o, Teresita -. Ba"ta)ar, Pi"ar L. Ca"deron and E"ita T. onti""a .Tan -e%, et a". for $revit#/ in &.R. No. 012528.8 ovants i%p"ore the Court to ta(e a se!ond "oo( at the ,une 28, 0120 -e!ision5 dis%issin' their petitions fi"ed a'ainst respondents Co%%ission on E"e!tions .Co%e"e!/, represented $# its Chair%an Co%%issioner Sixto S. Bri""antes, ,r. .Chair%an Bri""antes/, and S%art%ati!-TI Corporation .S%art%ati!-TI /. +or a proper perspe!tive, the fa!ts as found $# the Court in the assai"ed de!ision are $rief"# stated $e"o9: On ,u"# 21, 011;, the Co%e"e! and S%art%ati!-TI entered into a Contra!t for the Provision of an *uto%ated E"e!tion S#ste% for the a# 21, 0121 S#n!hroni)ed Nationa" and Lo!a" E"e!tions .*ES Contra!t/ 9hi!h is a Contra!t

of Lease 9ith Option to Pur!hase .OTP/ the 'oods "isted therein !onsistin' of the Pre!in!t Count Opti!a" S!an .PCOS/, $oth soft9are and hard9are.< The Co%e"e! 9as 'iven unti" -e!e%$er 82, 0121 9ithin 9hi!h to exer!ise the option $ut opted not to exer!ise the sa%e ex!ept for ;01 units of PCOS %a!hines 9ith the !orrespondin' !anvassin'=!onso"idation s#ste% .CCS/ for the spe!ia" e"e!tions in !ertain areas in Basi"an, Lanao de" Sur and Bu"a!an.> On ar!h >, 0120, the Co%e"e! issued Reso"ution No. ;838 reso"vin' to serious"# !onsider exer!isin' the OTP su$6e!t to !ertain !onditions.3 It issued another Reso"ution nu%$ered ;83> reso"vin' to exer!ise the OTP in a!!ordan!e 9ith the *ES Contra!t.? On ar!h 0;, 0120, it issued Reso"ution No. ;833 reso"vin' to a!!ept S%art%ati!-TI @s offer to extend the period to exer!ise the OTP unti" ar!h 82, 0120.; The *'ree%ent on the Extension of the OTP under the *ES Contra!t .Extension *'ree%ent/ 9as eventua""# si'ned on ar!h 81, 0120.21+ina""#, it issued Reso"ution No. ;83? reso"vin' to approve the -eed of Sa"e $et9een the Co%e"e! and S%art%ati!-TI to pur!hase the "atter@s PCOS %a!hines to $e used in the up!o%in' 0128 e"e!tions.22 The -eed of Sa"e 9as forth9ith exe!uted.20 C"ai%in' that the fore'oin' Co%e"e! issuan!es and transa!tions entered pursuant thereto are i""e'a" and un!onstitutiona", %ovants fi"ed separate petitions for !ertiorari, prohi$ition and %anda%us $efore the Court. ovants fai"ed to o$tain a favora$"e de!ision 9hen the Court rendered a -e!ision28 on ,une 28, 0120 dis%issin' their petitions. Aen!e, the %otions for re!onsideration $ased on the fo""o9in' 'rounds: &.R. No. 012203 I. TAE AONOR*BLE COURT, BITA *LL -UE RESPECT, ERRE- IN AOL-IN& TA*T TAE PERIO- O+ TAE OPTION TO PURCA*SE A*S NOT ECPIRE-4 II. TAE AONOR*BLE COURT, BITA *LL -UE RESPECT, ERRE- IN AOL-IN& TA*T TAERE B*S NO SUBST*NTI*L * EN- ENT TO TAE *ES CONTR*CT4 *NII. TAE AONOR*BLE COURT, BITA *LL -UE RESPECT, ERRE- IN AOL-IN& TA*T TAE SUB,ECT * EN- ENT IS *-D*NT*&EOUS TO TAE PUBLIC.25 ovants &uin'ona, et a". disa'ree 9ith the Court@s interpretation of *rti!"e 0.0 of the *ES Contra!t and insist that the use of the 9ords E9ithout pre6udi!eE and Esurvivin'E exp"i!it"# distin'uished the Eperiod of the option to pur!haseE fro% the ETer% of this Contra!t.E The# thus !on!"ude that the 9arrant# provision and the OTP are !overed $# a tota""# different period and not $# the ter% of the *ES Contra!t.2< The# a"so ar'ue that the $id $u""etins re"ative to the *ES Contra!t express"# stated the dead"ine for Co%e"e! to exer!ise the OTP2> and that the parties intended that the stated period $e definite and non-extendi$"e.23 ovants "i(e9ise aver that the Court erred in ho"din' that there 9as no su$stantia" a%end%ent to the *ES Contra!t.2? Citin' San -ie'o v. The uni!ipa"it# of Nau6an, Provin!e of indoro,2; as dis!ussed in ,usti!e *rturo -. Brion@s -issentin' Opinion,01 and as a""e'ed"# reiterated in San Buenaventura v. uni!ipa"it# of San ,ose, Ca%arines Sur, et a".,02 &uin'ona et a". points out that an extension, ho9ever short, of the period of a pu$"i!"# $idded out !ontra!t is a su$stantia" a%end%ent that reFuires pu$"i! $iddin' $e!ause the period in an OTP is a vita" and essentia" parti!u"ar to the !ontra!t.00 ovants add that the Court erred in ho"din' that the su$6e!t a%end%ent is advanta'eous to the pu$"i! as the extended option !ontra!t is void and thus !an never $e said to inure to the $enefit of the pu$"i!.08 Last"#, %ovants !"ai% that the Co%e"e! sti"" has the ti%e to !ondu!t pu$"i! $iddin' to pro!ure the ite%s ne!essar# for the 0128 e"e!tions and that the needed $ud'et !ou"d $e provided $# Con'ress.05 &.R. No. 012202 Petitioners hu%$"# su$%it that the Order of this Aonora$"e Court dis%issin' the petition $# upho"din' the va"idit# of the extended option to pur!hase and the !onstitutiona"it# of the *ES Contra!t i%p"e%entation is !ontrar# to "a9 and the Constitution.0< ovants S5S, et a". i%p"ore the Court to ta(e a se!ond "oo( at the re"evan!e of the re"ease of the perfor%an!e se!urit# to the su$6e!t expired option !ontra!t sin!e it did not a"ter the fa!t of su!h expiration.0> The# exp"ain that the Court@s !on!"usion is a dan'erous pre!edent, $e!ause it 9ou"d en!oura'e !ir!u%vention of the "a9s and ru"es on

'overn%ent !ontra!ts sin!e the parties !ou"d enter into !o""usion to defer the re"ease of the perfor%an!e se!urit# for the so"e purpose of pro"on'in' the effe!tivit# of the !ontra!t.03 The# reiterate their ar'u%ent that an# extension of the option period a%ounts to a ne9 pro!ure%ent 9hi!h %ust !o%p"# 9ith the reFuire%ents of $iddin' under Repu$"i! *!t .R*/ No. ;2?50? and stress that the ar!h 82, 0120 -eed of Sa"e is not a spe!ia" transa!tion 9hi!h 9arrants an# exe%ption fro% the %andator# reFuire%ents of a pu$"i! $iddin'.0; It is "i(e9ise their vie9 that ti%e !onstraints, $ud'etar# !onsideration and other advanta'es in extendin' the option period are not p"ausi$"e 6ustifi!ations for non!o%p"ian!e 9ith the reFuire%ents of pu$"i! $iddin'.81 +ina""#, %ovants assai" the !onstitutiona"it# of the entire *ES Contra!t and !onseFuent"# of the option !ontra!t $e!ause of its fai"ure to provide that the %andator# %ini%u% s#ste% !apa$i"ities $e !o%p"ied 9ith4 and $e!ause of the provision on shared responsi$i"it# $et9een the Co%e"e! and S%art%ati!.82 &.R. No. 012528 I. TAE NON-RELE*SE O+ TAE SECURITG -EPOSIT BG CO ELEC IN-IC*TES TAE ECISTENCE O+ UN+UL+ILLE- OBLI&*TIONS BG TAE CONTR*CTOR, *N- TAERE+ORE, IT IS *BSUR- TO CITE TAIS UNCURE- BRE*CA BG TAE CONTR*CTOR TO ,USTI+G TAE &R*NT O+ ORE RI&ATS TO TAE S*I- CONTR*CTOR BG ECTEN-IN& TAE ECPIRE- OPTION TO PURCA*SE BAICA E++ECTIDELG CIRCU DENTS TAE &ODERN ENT PROCURE ENT L*B. II. TAERE IS NO ,USTI+I*BLE B*SIS TO *CCEPT ERE *R&U ENTS TA*T TAE PCOS IS C*P*BLE O+ RUNNIN& BITA -I&IT*L SI&N*TURES, SECUREH-I +RO A*C7IN& *N- CO PLI*NT BITA TAE INI U *CCUR*CG R*TE O+ ;;.;;<J, BAEN IN *CTU*L PER+OR *NCE -URIN& *G 0121 HELECTIONS,I TAE PCOS OPER*TE- BITAOUT -I&IT*L SI&N*TURES, +OUN- DULNER*BLE TO A*C7IN& *N- +*ILE- BG TAE *CCUR*CG REKUIRE ENT, *S SAOBN BG TAE *PPLIC*BLE CO ELEC RESOLUTIONS, TB&-R * REPORT, *U-IT LO&S *N- PRINT LO&S. 80 ovants Tan -e%, et a". !onve# their vie9 on the a$surdit# of the Court@s de!ision in 6ustif#in' the resurre!tion of the dead OTP 9ith the !ontinuin' effe!tivit# of the stipu"ation on perfor%an!e se!urit# not9ithstandin' the presu%ed existen!e of un!ured !ontra!tua" $rea!h $# the !ontra!tor.88 The# a"so express dou$t that the PCOS %a!hines are !apa$"e of runnin' 9ith di'ita" si'natures !o%p"iant 9ith the %ini%u% a!!ura!# rate.85 +or their part, respondents offer the fo""o9in' !o%%ents: CO ELEC The Co%e"e!, on the other hand, ar'ues that it va"id"# exer!ised the OTP $e!ause the period for its exer!ise 9as a%ended and a!!ordin'"# extended to ar!h 82, 0120. It hi'h"i'hts the provision in the *ES Contra!t on the ri'ht to a%end the !ontra!t 9hi!h the parties did durin' its effe!tivit#.8< It does not a'ree 9ith %ovants@ !"ai% that the parties to the !ontra!t intended that the option period $e definite.8> Rather, it %aintains that the parties are free to extend the option period in the sa%e 9a# that the# !an a%end the other provisions of the !ontra!t.83 oreover, the Co%e"e! insists that the extension of the option period is neither a %ateria" nor su$stantia" a%end%ent !onsiderin' that after the extension, the *ES Contra!t ta(en as a 9ho"e sti"" !ontains su$stantia""# the sa%e ter%s and !onditions as the ori'ina" !ontra!t and does not trans"ate to !on!rete finan!ia" advanta'es to S%art%ati!-TI .8? It a"so ar'ues that the extension of the option period !ou"d not have affe!ted the $id pri!es or finan!ia" proposa"s of the $idders sin!e the# understood fro% the R+P that it had no separate pri!e a""o!ation.8; It e%phasi)es that a "on'er period 9as not a $enefit $ut a $urden to the $idders su!h that the# 9ou"d not have su$%itted a "o9er $ut in fa!t a hi'her $id $e!ause the# 9ou"d have to 'ive up the opportunit# to "ease or se"" the PCOS %a!hines to third parties and it 9ou"d a"so resu"t in hi'her !osts in 9arehousin' and se!urit#.51 The Co%e"e! a"so opines that San -ie'o and San Buenaventura, !ited $# %ovants, are not app"i!a$"e $e!ause the# invo"ve a"terations of the essentia" ter%s and !onditions of the %ain !ontra!t to the disadvanta'e of the 'overn%ent un"i(e this !ase 9here there is an a"teration on"# 9ith respe!t to the an!i""ar# provision of the *ES Contra!t and for the $enefit of the Co%e"e!.52 The Co%e"e! reiterates that the extension of the option period is advanta'eous to it and $urdenso%e for S%art%ati!-TI .50 Last"#, it posits that the exer!ise of the OTP 9as the %ore prudent !hoi!e for the Co%e"e! ta(in' into !onsideration the $ud'et and ti%e !onstraints.58 S *RT *TIC-TI S%art%ati!-TI !ontends that the OTP is on"# an an!i""ar# provision in the su$sistin' *ES Contra!t 9hi!h has a"read# satisfied the pu$"i! $iddin' reFuire%ents.55 It disa'rees 9ith petitioners that the extension of the option period

9as uni"atera" and !"ai%s instead that it 9as %utua" as the parties in fa!t exe!uted an a'ree%ent on the extension.5< *ssu%in' that the option period had a"read# expired, the extension is not a su$stantia" or %ateria" a%end%ent sin!e it on"# pertains to a residua" !o%ponent of the *ES Contra!t.5> It a"so e!hoes the Co%e"e!@s ar'u%ent that the San -ie'o and San Buenaventura !ases are not app"i!a$"e to the present !ase $e!ause of the differen!e in fa!tua" !ir!u%stan!es.53 oreover, it reiterates its !"ai% that the extension is favora$"e to the Co%e"e! and does not pre6udi!e the other $idders.5? S%art%ati!-TI exp"ains that the retention of the perfor%an!e se!urit# is due to its residua" !ontinuin' o$"i'ations to %aintain the PCOS %a!hines and update the soft9are in anti!ipation of their possi$"e use for e"e!tions after 0121, and not due to the existen!e of unfu"fi""ed o$"i'ations as provided in the *ES Contra!t.5; It "i(e9ise points out that the a""e'ed f"a9s and defi!ien!ies of the PCOS %a!hines do not affe!t its !o%p"ian!e 9ith the reFuire%ents of R* ;8>;.<1 It e%phasi)es that the use of di'ita" si'natures and their avai"a$i"it# for use in future e"e!tions have $een adeFuate"# esta$"ished.<2 It a"so defends PCOS %a!hines@ !o%p"ian!e 9ith the %ini%u% reFuire%ents under R* ;8>; as found $# the Court in RoFue v. Co%e"e!.<0 *s to the a""e'ed '"it!hes, S%art%ati!-TI !"ai%s that the# are not attri$uta$"e to an# inherent defe!t in the PCOS %a!hines and, in an# !ase, enhan!e%ents have a"read# $een %ade.<8 Last"#, S%art%ati!-TI stresses that the ar'u%ents !ha""en'in' the va"idit# and !onstitutiona"it# of the *ES Contra!t and the perfor%an!e $# the Co%e"e! of its %andate have a"read# $een re6e!ted 9ith fina"it# $# the Court in RoFue v. Co%e"e!.<5 Be find no reason to distur$ our ,une 28, 0120 -e!ision. C"ear"#, under the *ES Contra!t, the Co%e"e! 9as 'iven unti" -e!e%$er 82, 0121 9ithin 9hi!h to exer!ise the OTP the su$6e!t 'oods "isted therein in!"udin' the PCOS %a!hines. The option 9as, ho9ever, not exer!ised 9ithin said period. But the parties "ater entered into an extension a'ree%ent 'ivin' the Co%e"e! unti" ar!h 82, 0120 9ithin 9hi!h to exer!ise it. Bith the extension of the period, the Co%e"e! va"id"# exer!ised the option and eventua""# entered into a !ontra!t of sa"e of the su$6e!t 'oods. The extension of the option period, the su$seFuent exer!ise thereof, and the eventua" exe!ution of the -eed of Sa"e $e!a%e the su$6e!ts of the petitions !ha""en'in' their va"idit# in "i'ht of the !ontra!tua" stipu"ations of respondents and the provisions of R* ;2?5. In our ,une 28, 0120 -e!ision, 9e de!ided in favor of respondents and p"a!ed a sta%p of va"idit# on the assai"ed reso"utions and transa!tions entered into. Based on the *ES Contra!t, 9e sustained the parties@ ri'ht to a%end the sa%e $# extendin' the option period. Considerin' that the perfor%an!e se!urit# had not $een re"eased to S%art%ati!-TI , the !ontra!t 9as sti"" effe!tive 9hi!h !an sti"" $e a%ended $# the %utua" a'ree%ent of the parties, su!h a%end%ent $ein' redu!ed in 9ritin'. To $e sure, the option !ontra!t is e%$odied in the *ES Contra!t 9here$# the Co%e"e! 9as 'iven the ri'ht to de!ide 9hether or not to $u# the su$6e!t 'oods "isted therein under the ter%s and !onditions a"so a'reed upon $# the parties. *s 9e si%p"# he"d in the assai"ed de!ision: Bhi"e the !ontra!t indeed spe!ifi!a""# reFuired the Co%e"e! to notif# S%art%ati!-TI of its OTP the su$6e!t 'oods unti" -e!e%$er 82, 0121, a readin' of the other provisions of the *ES !ontra!t 9ou"d sho9 that the parties are 'iven the ri'ht to a%end the !ontra!t 9hi!h %a# in!"ude the period 9ithin 9hi!h to exer!ise the option. There is, "i(e9ise, no prohi$ition on the extension of the period, provided that the !ontra!t is sti"" effe!tive.<< In interpretin' *rti!"e 0.0 of the *ES Contra!t, %ovants !"ai% that the use of the 9ord Esurvivin'E and the phrase E9ithout pre6udi!eE su''ests that the 9arrant# provision and the OTP are !overed $# a different period and not $# the ter% of the *ES Contra!t.<> Be !annot su$s!ri$e to said postu"ation. *rti!"e 0.0 of the *ES Contra!t reads: *rti!"e 0 E++ECTIDITG xxxx 0.0. The Ter% of this Contra!t $e'ins fro% the date of effe!tivit# unti" the re"ease of the Perfor%an!e Se!urit#, 9ithout pre6udi!e to the survivin' provisions of this Contra!t in!"udin' the 9arrant# provision as pres!ri$ed in *rti!"e ?.8 and the period of the option to pur!hase .E%phasis supp"ied/. The provision %eans that the !ontra!t ta(es effe!t fro% the date of effe!tivit# unti" the re"ease of the perfor%an!e se!urit#. *rti!"e ? thereof, on the other hand, states 9hen the perfor%an!e se!urit# is re"eased, to 9it:

*rti!"e ? Perfor%an!e Se!urit# and Barrant# xxxx Bithin seven .3/ da#s fro% de"iver# $# the PRODI-ER to CO ELEC of the Over-a"" Pro6e!t ana'e%ent Report after su!!essfu" !ondu!t of the a# 21, 0121 e"e!tions, CO ELEC sha"" re"ease to the PRODI-ER the a$ove%entioned Perfor%an!e Se!urit# 9ithout need of de%and. The perfor%an!e se!urit# %a#, therefore, $e re"eased $efore -e!e%$er 82, 0121, the dead"ine set in the *ES Contra!t 9ithin 9hi!h the Co%e"e! !ou"d exer!ise the option. The %o%ent the perfor%an!e se!urit# is re"eased, the !ontra!t 9ou"d have !eased to exist. Ao9ever, sin!e it is 9ithout pre6udi!e to the survivin' provisions of the !ontra!t, the 9arrant# provision and the period of the option to pur!hase survive even after the re"ease of the perfor%an!e se!urit#. Bhi"e these survivin' provisions %a# have different ter%s, in no 9a# !an 9e then !onsider the provision on the OTP separate fro% the %ain !ontra!t of "ease su!h that it !annot $e a%ended under *rti!"e 2;. In this !ase, the !ontra!t is sti"" effe!tive $e!ause the perfor%an!e se!urit# has not $een re"eased. Thus, not on"# the option and 9arrant# provisions survive $ut the entire !ontra!t as 9e"". In "i'ht of the !ontra!tua" provisions, 9e, therefore, sustain the a%end%ent of the option period. The a%end%ent of a previous"# $idded !ontra!t is not per se inva"id. +or it to $e nu""ified, the a%end%ent %ust $e su$stantia" su!h that the other $idders 9ere deprived of the ter%s and opportunities 'ranted to the 9innin' $idder after it 9on the sa%e and that it is pre6udi!ia" to pu$"i! interest. In our assai"ed de!ision, 9e found the a%end%ent not su$stantia" $e!ause no additiona" ri'ht 9as %ade avai"a$"e to S%art%ati!-TI that 9as not previous"# avai"a$"e to the other $idders4 ex!ept for the extension of the option period, the exer!ise of the option 9as sti"" su$6e!t to sa%e ter%s and !onditions su!h as the pur!hase pri!e and the 9arrant# provisions4 and the a%end%ent is %ore advanta'eous to the Co%e"e! and the pu$"i!. ovants see( the app"i!ation of San -ie'o<3 9here 9e nu""ified the extension of the "ease a'ree%ent and !onsidered said a%end%ent su$stantia". Be, ho9ever, find the !ase inapp"i!a$"e. The extension %ade in San -ie'o pertained to the period of the %ain !ontra!t of "ease 9hi"e in this !ase, the extension referred not to the %ain !ontra!t of "ease of 'oods and servi!es $ut to the period 9ithin 9hi!h to exer!ise the OTP. In extendin' the ori'ina" period of "ease of five #ears to another five #ears 9ithout pu$"i! $iddin', the uni!ipa"it# of Nau6an, Provin!e of indoro a!ted in vio"ation of existin' "a9. The period of "ease undou$ted"# 9as a vita" and essentia" parti!u"ar to the !ontra!t of "ease. In San -ie'o, the uni!ipa"it# of Nau6an 9as the "essor of its %uni!ipa" 9aters and the petitioner, the "essee. *n extension of the "ease !ontra!t 9ou"d %ean that the "essee 9ou"d $e 'iven undue advanta'e $e!ause it 9ou"d en6o# the "ease of the propert# under the sa%e ter%s and !onditions for a "on'er period. oreover, prior to the extension of the "ease period, the renta"s 9ere redu!ed upon the reFuest of the "essee. The end resu"t 9as that the %uni!ipa"it# 9as deprived of in!o%e $# 9a# of renta"s $e!ause of the redu!ed rates and "on'er period of "ease. In this !ase, the extension of the option period %eans that the Co%e"e! had %ore ti%e to deter%ine the propriet# of exer!isin' the option. Bith the extension, the Co%e"e! !ou"d a!Fuire the su$6e!t PCOS %a!hines under the sa%e ter%s and !onditions as ear"ier a'reed upon. The end resu"t is that the Co%e"e! a!Fuired the su$6e!t PCOS %a!hines 9ith its %ea'er $ud'et and 9as a$"e to uti"i)e the renta"s paid for the 0121 e"e!tions as part of the pur!hase pri!e.
1wphi1

Be %aintain the vie9 that the extension of the option period is an a%end%ent to the *ES Contra!t authori)ed $# *rti!"e 2; thereof. *s he"d in *'an, ,r. v. Phi"ippine Internationa" *ir Ter%ina"s Co., In!.:<? Bhi"e 9e !on!ede that a 9innin' $idder is not pre!"uded fro% %odif#in' or a%endin' !ertain provisions of the !ontra!t $idded upon, su!h !han'es %ust not !onstitute su$stantia" or %ateria" a%end%ents that 9ou"d a"ter the $asi! para%eters of the !ontra!t and 9ou"d !onstitute a denia" to the other $idders of the opportunit# to $id on the sa%e ter%s. Aen!e, the deter%ination of 9hether or not a %odifi!ation or a%end%ent of a !ontra!t $idded out !onstitutes a su$stantia" a%end%ent rests on 9hether the !ontra!t, 9hen ta(en as a 9ho"e, 9ou"d !ontain su$stantia""# different ter%s and !onditions that 9ou"d have the effe!t of a"terin' the te!hni!a" and=or finan!ia" proposa"s previous"# su$%itted $# other $idders. The a"terations and %odifi!ations in the !ontra!t exe!uted $et9een the 'overn%ent and the 9innin' $idder %ust $e su!h as to render su!h exe!uted !ontra!t to $e an entire"# different !ontra!t fro% the one that 9as $idded upon.<;

It %ust $e pointed out that pu$"i! $iddin's are he"d for the $est prote!tion of the pu$"i! and to 'ive the pu$"i! the $est possi$"e advanta'es $# %eans of open !o%petition $et9een the $idders, and to !han'e the% 9ithout !o%p"#in' 9ith the $iddin' reFuire%ent 9ou"d $e a'ainst pu$"i! po"i!#.>1 Bhat are prohi$ited are %odifi!ations or a%end%ents 9hi!h 'ive the 9innin' $idder an ed'e or advanta'e over the other $idders 9ho too( part in the $iddin', or 9hi!h %a(e the si'ned !ontra!t unfavora$"e to the 'overn%ent.>2 In this !ase, as thorou'h"# dis!ussed in our ,une 28, 0120 -e!ision, the extension of the option period and the eventua" pur!hase of the su$6e!t 'oods resu"ted in %ore $enefits and advanta'es to the 'overn%ent and to the pu$"i! in 'enera". Bhi"e %ovants %a# have apprehensions on the effe!t to 'overn%ent !ontra!ts of a""o9in' Eadvanta'e to the 'overn%entE as 6ustifi!ation for the a$sen!e of !o%petitive pu$"i! $iddin', it %ust $e stressed that the sa%e reasonin' !ou"d on"# $e used under si%i"ar !ir!u%stan!es. The Eadvanta'e to the 'overn%ent,E ti%e and $ud'et !onstraints, the app"i!ation of the ru"es on va"id a%end%ent of 'overn%ent !ontra!ts, and the su!!essfu" !ondu!t of the a# 0121 e"e!tions are a%on' the fa!tors "oo(ed into in arrivin' at the !on!"usion that the assai"ed Reso"utions issued $# the Co%e"e! and the a'ree%ent and deed entered into $et9een the Co%e"e! and S%art%ati!-TI , are va"id. Last"#, 9e need not further dis!uss the issues raised $# %ovants on the a""e'ed '"it!hes of the su$6e!t PCOS %a!hines, their !o%p"ian!e 9ith the %ini%u% s#ste% !apa$i"ities reFuired $# "a9, and the supposed a$di!ation of the Co%e"e!@s ex!"usive po9er in the !ondu!t of e"e!tions as these issues have $een either thorou'h"# dis!ussed in the assai"ed de!ision or in the ear"ier !ase of RoFue, ,r. v. Co%%ission on E"e!tions.>0 BAERE+ORE, pre%ises !onsidered, the %otions for re!onsideration are -ENIE- for "a!( of %erit. SO OR-ERE-. DIOSDADO M. PERALTA *sso!iate ,usti!e BE CONCUR: MARIA LO#RDES P. A. SERENO Chief ,usti!e On offi!ia" "eave ANTONIO T. CARPIO L *sso!iate ,usti!e TERESITA 0. LEONARDO7DE CASTRO *sso!iate ,usti!e L#CAS P. BERSAMIN *sso!iate ,usti!e ROBERTO A. ABAD *sso!iate ,usti!e On offi!ia" "eave 0OSE PORT#GAL PERE6L *sso!iate ,usti!e BIEN$ENIDO L. RE"ES *sso!iate ,usti!e

PRESBITERO 0. $ELASCO, 0R. *sso!iate ,usti!e ART#RO D. BRION *sso!iate ,usti!e On "eave MARIANO C. DEL CASTILLOLL *sso!iate ,usti!e MARTIN S. $ILLARAMA, 0R. *sso!iate ,usti!e 0OSE CATRAL MENDO6A *sso!iate ,usti!e ESTELA M. PERLAS7BERNABE *sso!iate ,usti!e CERTI+IC*TION

Pursuant to Se!tion 28, *rti!"e DIII of the Constitution, I !ertif# that the !on!"usions in the a$ove Reso"ution had $een rea!hed in !onsu"tation $efore the !ase 9as assi'ned to the 9riter of the opinion of the Court. MARIA LO#RDES P. A. SERENO Chief ,usti!e

Foot ote)
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On offi!ia" "eave. On "eave. Ro""o .&.R. No. 012528/, pp. ?53-?30. Id. at ?;8-;1?. Id. at ;5>-;<8. Id. at <<3-<;2. Id. at <<;. Id. at <<;-<>1. Id. at <>1. Id. Id. Id. Id. at <>1-<>2. Id. at <>2. Id. at <<3-<;1. Id. at ?5?. Id. at ?<1. Id. at ?<2-?<8. Id. at ?<5-?<3. Id. at ?<?. 213 Phi". 22? .2;>1/.

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Id. at 210?. Id. at 2181. Id. at 2188. Id. at 2185. Id. at 218>. Id. at 2150. Id. at 215<-215;. Id. at 21<1. Id. at <31-<32. Id. at ?<1. Supra note 2;. &.R. Nos. 2<<112, 2<<<53 and 2<<>>2, a# <, 0118, 510 SCR* >204 5<1 Phi". 355 .0118/.

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>1

Po9er Se!tor *ssets and Lia$i"ities ana'e%ent Corporation v. Po))o"ani! Phi"ippines In!orporated, &.R. No. 2?83?;, *u'ust 05, 0122, ><> SCR* 025, 080.
>2 >0

&.R. No. 2??5<>, Septe%$er 21, 011;, <;; SCR* >;.

The Lawphil Project - Arellano Law Foundation

CONC#RRING OPINION $ELASCO, 0R., J.: I a'ree 9ith the ponen!ia that the otions for Re!onsideration dated O!to$er 8, 0120 shou"d $e dis%issed, $ut for a different reason, i.e., the disputed -eed of Sa"e for the a!Fuisition of the PCOS %a!hines and CCS hard9are and soft9are !an $e !onsidered as a pur!hase throu'h dire!t !ontra!tin', a %ode of a!Fuisition not su$6e!t to the usua" $iddin' reFuire%ents under Repu$"i! *!t No. .R*/ ;2?5 or the &overn%ent Pro!ure%ent Refor% *!t. I a%, ho9ever, of a different disposition 9ith respe!t to the %a6orit#@s ho"din' that the extension of the Option to Pur!hase .OTP/ is va"id, and !onseFuent"#, the assai"ed deed of sa"e is a"so va"id. The OTP Aas Expired The %a6orit#@s position is that the OTP 9as sti"" su$sistin' 9hen the -eed of Sa"e 9as exe!uted in vie9 of the nonre!eipt $# S%art%ati!-TI Corporation of the Perfor%an!e Se!urit#, 9hi!h re!eipt 9i"" ter%inate the *ES Contra!t pursuant to *rti!"e 0 thereof. I $e' to disa'ree. *s I have dis!ussed in %# ,une 28, 0120 separate !on!urrin' opinion,

I a% of the vie9 that a different period is 'iven $# the parties 9ith respe!t to the OTP, as arti!u"ated in *rti!"e 0.0 of the *ES Contra!t, 9hi!h reads: *rti!"e 0 E++ECTIDITG 0.0. The Ter% of this Contra!t $e'ins fro% the date of effe!tivit# unti" the re"ease of the Perfor%an!e Se!urit#, 9ithout pre6udi!e to the survivin' provisions of this Contra!t, in!"udin' the 9arrant# provision as pres!ri$ed in *rti!"e ?.8 and the period of the option to pur!hase. .E%phasis ours./ Shorn of the non-essentia"s, the provision 9ou"d read EThe Ter% of this Contra!t is x x x unti" the re"ease of the Perfor%an!e Se!urit#, 9ithout pre6udi!e to x x x the period of the option to pur!hase.E Bith, this, the on"# interpretation that !an $e 'iven to the provision is that the "ife of the *ES Contra!t &ENER*LLG ends upon the re"ease of the Perfor%an!e Se!urit#, ECCEPT 9ith respe!t to the period of the OTP, hen!e the use of the Fua"if#in' phrase E9ithout pre6udi!e to.E *s su!h, 9hether or not S%art%ati!-TI has a"read# re!eived the Perfor%an!e Se!urit# is i%%ateria" 9ith respe!t to the proper deter%ination of the date 9hen the OTP 9as ter%inated, the OTP havin' its o9n period of existen!e, independent fro% that of the *ES Contra!t. The period of the OTP is spe!ified in Par. 0?.2 of Part D of the R+P, 9hi!h states that Ean offer for an option to pur!hase $# !o%ponent sha"" $e de!ided $# the CO ELEC $efore -e!e%$er 82, 0121.E *d%itted"#, the CO ELEC fai"ed to exer!ise the OTP 9ithin the pres!ri$ed period and this fai"ure resu"ted in the expiration of the OTP. This is not to sa#, ho9ever, that the pur!hase of the PCOS %a!hines and a""ied !o%ponents via a ne9 !ontra!t, separate and distin!t fro% the *ES Contra!t, $# the CO ELEC is inva"id for "a!( of a pu$"i! $iddin'. The pur!hase !an $e 6ustified under the -ire!t Contra!tin' %ode, an *"ternative ;2?5 ode of Pro!ure%ent under R*

Con!eded"#, the su$seFuent !ontra!t in Fuestion is not an extension of the previous *ES Contra!t, $ut a ne9 one. *nd not $ein' an ordinar# !ontra!t $ut a pro!ure%ent $# the 'overn%ent, R* ;2?5 or the &overn%ent Pro!ure%ent Refor% *!t app"ies. Se!tion 21 of said "a9 reFuires for the va"idit# of ever# 'overn%ent pro!ure%ent that !o%petitive $iddin' $e !ondu!ted. *s the "a9 provides: *RTICLE ID CO PETITIDE BI--IN& Se!. 21. Co%petitive Biddin'. M *"" Pro!ure%ent sha"" $e done throu'h Co%petitive Biddin', ex!ept as provided for in *rti!"e CDI of this *!t. This ru"e, ho9ever, is not a$so"ute. There are re!o'ni)ed ex!eptions to the $iddin' reFuire%ent, as !an $e '"eaned in the a$ove-Fuoted provision. The ex!eptions are "aid out on the provisions of E*"ternative odes of Pro!ure%entE under Se!tion 5?, *rti!"e CDI of R* ;2?5, 9hi!h reads: Se!. 5?. *"ternative ethods. M Su$6e!t to the prior approva" of the Aead of the Pro!urin' Entit# or his du"# authori)ed representative, and 9henever 6ustified $# the !onditions provided in this *!t, the Pro!urin' Entit# %a#, in order to pro%ote e!ono%# and effi!ien!#, resort to an# of the fo""o9in' a"ternative %ethods of Pro!ure%ent: a. Li%ited Sour!e Biddin', other9ise (no9n as Se"e!tive Biddin' - a %ethod of Pro!ure%ent that invo"ves dire!t invitation to $id $# the Pro!urin' Entit# fro% a set of pre-se"e!ted supp"iers or !onsu"tants 9ith (no9n experien!e and proven !apa$i"it# re"ative to the reFuire%ents of a parti!u"ar !ontra!t4 $. -ire!t Contra!tin', other9ise (no9n as Sin'"e Sour!e Pro!ure%ent - a %ethod of Pro!ure%ent that does not reFuire e"a$orate Biddin' -o!u%ents $e!ause the supp"ier is si%p"# as(ed to su$%it a pri!e Fuotation or a pro-for%a voi!e to'ether 9ith the !onditions of sa"e, 9hi!h offer %a# $e a!!epted i%%ediate"# or after so%e ne'otiations4 !. Repeat Order. - a %ethod of Pro!ure%ent that invo"ves a dire!t Pro!ure%ent of &oods fro% the previous 9innin' $idder, 9henever there is a need to rep"enish &oods pro!ured under a !ontra!t previous"# a9arded throu'h Co%petitive Biddin'4

d. Shoppin' - a %ethod of Pro!ure%ent 9here$# the Pro!urin' Entit# si%p"# reFuests for the su$%ission of pri!e Fuotations for readi"# avai"a$"e off-the-she"f &oods or ordinar#=re'u"ar eFuip%ent to $e pro!ured dire!t"# fro% supp"iers of (no9n Fua"ifi!ation4 or e. Ne'otiated Pro!ure%ent - a %ethod of Pro!ure%ent that %a# $e resorted under the extraordinar# !ir!u%stan!es provided for in Se!tion <8 of this *!t and other instan!es that sha"" $e spe!ified in the IRR, 9here$# the Pro!urin' Entit# dire!t"# ne'otiates a !ontra!t 9ith a te!hni!a""#, "e'a""# and finan!ia""# !apa$"e supp"ier, !ontra!tor or !onsu"tant. In a"" instan!es, the Pro!urin' Entit# sha"" ensure that the %ost advanta'eous pri!e for the 'overn%ent is o$tained. *t first '"an!e, it is easi"# dedu!ed that, $ein' a ne9 !ontra!t, the pur!hase of PCOS %a!hines for the up!o%in' 0128 e"e!tions shou"d under'o pu$"i! $iddin'. Ao9ever, in vie9 of the uniFueness of the !ir!u%stan!es o$tainin', I a% of the vie9 that the va"idit# of the pur!hase a'ree%ent finds footin' in the app"i!ation of the a"ternative %ode -ire!t Contra!tin'. *s su!h, !o%petitive $iddin' is not reFuired. To 6ustif# resort to an# of the a"ternative %ethods of pro!ure%ent, the fo""o9in' !onditions %ust exist: 2. There is prior approva" of the Aead of the Pro!urin' Entit# on the use of a"ternative %ethods of pro!ure%ent, as re!o%%ended $# the B*C4 and 0. The !onditions reFuired $# "a9 for the use of a"ternative %ethods are present4 and 8. The %ethod !hosen pro%otes e!ono%# and effi!ien!#, and that the %ost advanta'eous pri!e for the 'overn%ent is o$tained.2 In this re'ard, I reiterate %# position that a"" the fore'oin' !onditions exist in the present !ase, thus a""o9in' CO ELEC to use an a"ternative %ethod of pro!ure%ent per%itted under said statute. *""o9 %e to dis!uss the existen!e of said !onditions in seriati%. Prior approva" of the pro!urin' entit# The prior approva" of the pro!urin' entit#, respondent CO ELEC in this !ase, 9as %ade throu'h CO ELEC Reso"ution Nos. ;83> and ;833. In said Reso"utions, CO ELEC %anifested its reso"ve to pur!hase the *ES hard9are and soft9are !overed $# the OTP in the *ES Contra!t $et9een it and S%art%ati!-TI . In its Reso"ution No. ;83>, the CO ELEC stated: NOB, TAERE+ORE, the Co%%ission on E"e!tions, $# virtue of the po9ers vested in it $# the Constitution, the O%ni$us E"e!tion Code, Repu$"i! *!t No. ;8>; and other e"e!tion "a9s, and after findin' the exer!ise of the Option to Pur!hase %ost advanta'eous to the 'overn%ent, RESOLDE-, as it here$# RESOLDES, to exer!ise its Option to Pur!hase the PCOS and CCS hard9are and soft9are in a!!ordan!e 9ith Se!tion 5.8, *rti!"e 5 of the *ES !ontra!t $et9een the Co%%ission and S *RT *TIC-TI in !onne!tion 9ith the a# 21, 0121 Nationa" and Lo!a" E"e!tions x x x.

Conditions 6ustif#in' a -ire!t Contra!tin' *s for the se!ond !ondition, I su$%it that the -eed of Sa"e exe!uted $# respondents is ana"o'ous to the E-ire!t Contra!tin'E %ode defined in the a$ove-Fuoted Se!. 5?.$/, *rt. CDI of R* ;2?5 that is exe%pt fro% the %ore protra!ted pro!ess of !o%petitive $iddin'. Se!. <1, R* ;2?5, provides the a"ternative !onditions $efore a resort to dire!t !ontra!tin' is per%itted: Se!tion <1. -ire!t Contra!tin'. -ire!t Contra!tin' %a# $e resorted to on"# in an# of the fo""o9in' !onditions: a. Pro!ure%ent of &oods of proprietar# nature, 9hi!h !an $e o$tained on"# fro% the proprietar# sour!e, i.e., 9hen patents, trade se!rets and !op#ri'hts prohi$it others fro% %anufa!turin' the sa%e ite%s4

$. Bhen the Pro!ure%ent of !riti!a" !o%ponents fro% a spe!ifi! %anufa!turer, supp"ier, or distri$utor is a !ondition pre!edent to ho"d a !ontra!tor to 'uarantee its pro6e!t perfor%an!e, in a!!ordan!e 9ith the provisions of his !ontra!t4 or !. Those so"d $# an ex!"usive dea"er or %anufa!turer, 9hi!h does not have su$-dea"ers se""in' at "o9er pri!es and for 9hi!h no suita$"e su$stitute !an $e o$tained at %ore advanta'eous ter%s to the 'overn%ent. .E%phasis supp"ied./ Note that 9hi"e on"# one !ondition is needed to 6ustif# dire!t !ontra!tin', t9o .0/ of the stated !onditions a!tua""# exist in the present !ontrovers# there$# exe%ptin' the -eed of Sa"e fro% the reFuire%ent of a prior !o%petitive $iddin', na%e"#: Se!. <1.a/ on the pro!ure%ent of 'oods of proprietar# nature and Se!. <1.!/ on the pro!ure%ent of 'oods so"d $# an ex!"usive dea"er that does not have su$-dea"ers se""in' at a "o9er pri!e and for 9hi!h a suita$"e su$stitute !an $e o$tained at ter%s %ore advanta'eous to the 'overn%ent. The -eed of Sa"e invo"ves the pro!ure%ent of proprietar# 'oods Under Se!. <1.a/, the -eed of Sa"e is exe%pt fro% !o%petitive $iddin' as it invo"ves 'oods of Eproprietar# nature.E &oods are !onsidered of Eproprietar# natureE 9hen the# are o9ned $# a person 9ho has a prote!ta$"e interest in the%0 or an interest prote!ted $# the inte""e!tua" propert# "a9s. Our Inte""e!tua" Propert# Code prote!ts, a%on' others, ori'ina" 9or(s, as provided for under Se!tion 230, 9hi!h reads in part: Chapter II ORI&IN*L BOR7S Se!. 230. Literar# and *rtisti! Bor(s.230.2 Literar# and artisti! 9or(s, hereinafter referred to as E9or(sE, are ori'ina" inte""e!tua" !reations in the "iterar# and artisti! do%ain prote!ted fro% the %o%ent of their !reation and sha"" in!"ude in parti!u"ar: xxxx .n/ Co%puter pro'ra%s4 and xxxx 230.0 Bor(s are prote!ted $# the so"e fa!t of their !reation, irrespe!tive of their %ode or for% of expression, as 9e"" as of their !ontent, Fua"it# and purpose. .E%phasis supp"ied./ In the !ase at $ar, petitioners have raised the ar'u%ent that Se!. <1.a/ of R* ;2?5 !annot app"# $e!ause the E S and the PCOS fir%9are are E%ere !o%ponent.s/ of the entire *uto%ated E"e!tion S#ste%E that a"so in!"udes the PCOS hard9are, !anvassin' s#ste% and servers "isted in *nnexes EEE and EE-2E of the -eed of Sa"e. This ar'u%ent, ho9ever, fai"s to !onsider the fa!t that this proprietar# soft9are is a $und"ed soft9are Ethat is so"d to'ether 9ith hard9are, other soft9are, or servi!es at a sin'"e pri!e.E8 In Phi"ippine !ontra!t "a9, one spe!ies of an indivisi$"e o$6e!t is a divisi$"e thin' 9hi!h the parties treated as indivisi$"e.5 *rti!"e 200< of the Civi" Code provides: *rt. 200<. +or the purpose of the pre!edin' arti!"es, o$"i'ations to 'ive definite thin's x x x sha"" $e dee%ed to $e indivisi$"e. xxxx Ao9ever, even thou'h the o$6e!t or servi!e %a# $e ph#si!a""# divisi$"e, an o$"i'ation is indivisi$"e if so provided $# "a9 or intended $# the parties.

In the present !ase, not on"# 9as the o$6e!t of the !ontra!t a deter%inate thin', the parties "i(e9ise a'reed that the su$6e!t -eed of Sa"e is for the pur!hase of the entire first !o%ponent.< Bhi"e the hard9are and soft9are are, $# their nature, separa$"e, the parties, ho9ever, intended to treat the% as indivisi$"e. Su!h $ein' the !ase, the soft9are !annot then $e pro!ured 9ithout the a!!o%pan#in' hard9are on 9hi!h the# are e%$edded. In other 9ords, 9hat 9as pur!hased $# the CO ELEC 9as the 9ho"e s#ste%, that is, the entire first !o%ponent of the ori'ina" *ES Contra!t, 9hi!h in!"udes the soft9are needed for the PCOS %a!hines !onsistin' of the E"e!tion ana'e%ent S#ste% .E S/ and the PCOS fir%9are> app"i!ations, prote!ted $# our !op#ri'ht "a9s, to'ether 9ith the hard9are.3 Bein' insepara$"e $# !ontra!tua" stipu"ation, the CO ELEC is thus reFuired to pro!ure the hard9are and the proprietar# soft9are and fir%9are provided $# S%art%ati!-TI . To further sho9 the i%portan!e of treatin' the soft9are and hard9are as indivisi$"e, 9ithout S%art%ati!-TI @s E S 9hi!h di!tates the fun!tionin' of the entire s#ste%, $# dire!tin' the pro!esses $# 9hi!h the PCOS and the CCS hard9are and soft9are interpret the data s!anned fro% the !ast $a""ots and "ater a!!u%u"ate, ta""# and !onso"idate a"" the votes !ast, the PCOS hard9are are "ife"ess. The E S is the funda%enta" soft9are on 9hi!h a"" other app"i!ations and %a!hines in the entire S%art%ati!-TI *ES depend. It serves as the $rain that !o%%ands a"" other !o%ponents in the entire *ES. The 'oods su$6e!ts of the assai"ed pro!ure%ent are so"d ex!"usive"# $# S%art%ati!-TI 9hi!h has no su$-dea"er and for 9hi!h no suita$"e su$stitute !an $e o$tained at ter%s %ore advanta'eous to the 'overn%ent In addition to the fore'oin', it is i%portant to unders!ore that the E S app"i!ation 9hi!h has $een %anufa!tured, !onfi'ured and !usto%i)ed $# S%art%ati!-TI ? to fit the needs of Phi"ippine e"e!tions !annot $e o$tained fro% an# sour!e other than S%art%ati!-TI . This satisfies the reFuire%ent under Se!. <1.!/ of R* ;2?5, vi): Se!tion <1. -ire!t Contra!tin'. -ire!t Contra!tin' %a# $e resorted to on"# in an# of the fo""o9in' !onditions: xxxx .!/Those so"d $# an ex!"usive dea"er or %anufa!turer, 9hi!h does not have su$-dea"ers se""in' at "o9er pri!es and for 9hi!h no suita$"e su$stitute !an $e o$tained at %ore advanta'eous ter%s to the 'overn%ent. +or the !ondition provided under Se!. <1.!/ of R* ;2?5 to exist, three e"e%ents %ust $e esta$"ished: 2. The 'oods su$6e!t of the pro!ure%ent are so"d $# an ex!"usive dea"er or %anufa!turer4 0. The ex!"usive dea"er or %anufa!turer does not have su$-dea"ers se""in' the sa%e 'oods at "o9er pri!es4 8. There are no suita$"e su$stitutes for the 'oods offered $# another supp"ier at ter%s %ore advanta'eous to the 'overn%ent. In this re'ard, I su$%it that a"" these e"e%ents are present in the !ase at $ar. *s dis!ussed, the spe!ifi! 'oods su$6e!t of the assai"ed -eed of Sa"e are 'oods of proprietar# nature as the# in!"ude the S%art%ati! E S, 9hi!h is a proprietar# soft9are that !annot $e used, redistri$uted, or %odified 9ithout the per%ission of S%art%ati!.; This soft9are, to'ether 9ith the PCOS fir%9are21 and hard9are, is o9ned and distri$uted ex!"usive"# $# respondent S%art%ati!-TI . Aen!e, the first e"e%ent of the !ondition set forth in Se!. <1.!/ is !"ear"# present. On the existen!e of the se!ond e"e%ent, it is an un!ontested fa!t that S%art%ati!-TI has no su$-dea"ers22 and that there are no other persons se""in' the said soft9are and hard9are,20 %u!h "ess se""in' the% at pri!es "o9er than that offered $# S%art%ati!-TI under the Fuestioned -eed of Sa"e. *s to the third e"e%ent, that there is no suita$"e su$stitute for the hard9are and soft9are offered $# S%art%ati!-TI , it is %ateria" to re!a"" that for the auto%ation of the 0121 e"e!tions, on"# t9o $idders Fua"ified, S%art%ati!-TI and the Indra Consortiu% .Indra/, and that the ter%s offered $# S%art%ati!-TI are far $etter than that of Indra on severa"

%ateria" points, the %ost i%portant of 9hi!h is that Indra pe''ed the "ease pri!e of 6ust <3,082 PCOS %a!hines at PhP 22.00 $i""ion, PhP 5 $i""ion %ore than the pri!e offered $# S%art%ati!-TI for the "ease of ?0,111 PCOS %a!hines. It is, thus, reasona$"e to !on!"ude that, as of the %o%ent, no other supp"ier !an %at!h S%art%ati!-TI @s offer, 9hi!h even in!"uded the !ontested OTP over %ore than ?2,111 PCOS units at on"# PhP 2.? $i""ion, or <1J of the "ease pri!e of the ori'ina" 011; *ES Contra!t and a"%ost PhP 3 $i""ion "ess than that esti%ated $# the CO ELEC to pur!hase the sa%e nu%$er of PCOS %a!hines .9ithout the soft9are and a!!o%pan#in' hard9are/ $ased on the "o9est !a"!u"ated responsive $id for the 0121 e"e!tions. Bith the a$ove !onsiderations, I respe!tfu""# su$%it that the ter%s of the pro!ure%ent !ontra!t are undenia$"# %ore advanta'eous to the 'overn%ent. The assai"ed -eed of Sa"e pro%otes e!ono%# and effi!ien!#, and o$tains for the %ost advanta'eous pri!e *nent the "ast reFuisite, I a% of the opinion that it is "i(e9ise present in the instant !ase. In addition to the !onsiderations dis!ussed a$ove 9hi!h sho9 that the CO ELEC is no "on'er in a position to see( other supp"iers, as petitioners 9ou"d have it, re!a"" that the auto%ation of the 0128 e"e!tions is $o%$arded 9ith nu%erous !o%p"i!ations, in!"udin' ti%e and $ud'et !onstraints. Note that $ased on the $ids su$%itted for the 0121 auto%ated e"e!tions, the CO ELEC deter%ined that the funds needed for the pro!ure%ent of 20<,111 PCOS %a!hines to ensure a >11:2 voter-to-pre!in!t ratio is around PhP 20.?< $i""ion. Ao9ever, it 9as on"# 'iven a PhP 3.;> $i""ion $ud'et for the entire auto%ation of the 0128 e"e!tions, 9hi!h 9i"" invo"ve not on"# the pro!ure%ent of the eFuip%ent $ut a"so the pri!e of the a""ied servi!es. This $ud'et is o$vious"# insuffi!ient for the Co%%ission to $e a$"e to perfor% its %andate of auto%atin' the up!o%in' 0128 e"e!tions. To further add to the 'overn%ent@s advanta'e, S%art%ati!-TI a"so shou"dered the stora'e pri!e of the PCOS units and offered the% for sa"e 9ithout !onsiderin' inf"ation or puttin' a pri!e on the enhan!e%ents and %odifi!ations de%anded $# CO ELEC. Too, o$tainin' %ore funds fro% Con'ress and 'oin' throu'h 9ith !o%petitive $iddin', as insisted $# petitioners, 9i"" eat up the pre!ious ti%e ne!essar# to test and %odif# a ne9 *ES, if an#, and prepare and edu!ate the e"e!torate and po"" offi!ers on its operation to prevent an# hu%an $"unders that %i'ht "ead to an erroneous de!"aration of the resu"ts of an e"e!tion, 9hen here is a s#ste% 9ith 9hi!h the e"e!torate and the !on!erned po"" offi!ia"s are a"read# fa%i"iar 9ith. This not on"# redu!es the attendin' ti%e !onstraint for it a$$reviates the "earnin' !urve of a"" the parties !on!erned, it a"so %ini%i)es the errors attri$uta$"e to the variations and differen!es offered $# a ne9 *ES, as seen in the 0121 e"e!tions 9here the s#ste% 9as used for the first ti%e on a nationa" s!a"e. Besides, to reFuire the CO ELEC to pro!ure a ne9 and, as de%anded $# petitioners, f"a9"ess *ES for the 0128 e"e!tions 9ith a $ud'et of Php 0.0 $i""ion, at "east Php < $i""ion short of the ori'ina" a%ount reFuested, is reFuirin' the Co%%ission to exe!ute a finan!ia" %ira!"e 9ith on"# a fe9 %onths to pu"" it off. &iven the prevai"in' !onditions and the !onstraints i%posed on CO ELEC, the !ourse of a!tion ta(en $# the po"" $od# proves to $e the %ost effi!ient and e!ono%i!a" avenue that 'uarantees the !ondu!t of an auto%ated e"e!tion in 0128. Pro!urin' the sa%e, tested *ES fro% the supp"ier 9ho he"ped the !ondu!t of a su!!essfu" and pea!efu" e"e!tion in 0121 dispenses the need for additiona" fundin' and so reserves the re%ainin' ti%e $efore the e"e!tions for the !ondu!t of essentia" %odifi!ations and enhan!e%ents on the S%art%ati!-TI *ES that !ou"d re%ove the pro$"e%s !o%p"ained of $# petitioners. Aen!e, I su$%it that dire!t !ontra!tin' 9ith S%art%ati!-TI for the hard9are and soft9are su$6e!t of the -eed of Sa"e is 6ustified under Se!. <1.!/ of R* ;2?5. *CCOR-IN&LG, I vote to -ENG the PRESBITERO 0. $ELASCO, 0R. *sso!iate ,usti!e otions for Re!onsideration.