Republic of the Philippines

DEPARTMENT OF AGRARIAN REFORM

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