Section 40Sec./Art. 40

Procurement of CSE. - All NGAs, GOCCs, GFIs, SUCs, and LGUs shall comply only procure their CSE from PS-DBM, subject to its availability. In case of unavailability of stock or for purposes of efficiency, practically, and/or economic viability. Procuring Entities may procure their CSEs from other sources, subject to guidelines to be issued by the GPPB.

Due to the efficiency and economy of bulk purchasing, the PS-DBM may deal directly with manufacturers or exclusive distributors subject to legal, technical, and financial requirements, ensuring that products are obtained from reliable sources, of the best quality, and at the most advantageous price for the whole of government. Access to goods and equipment in economic lost sizes may likewise be achieved by PS-DBM through consignment or any appropriate contractual arrangement.

For purposes of this Section, consignment shall refer to an arrangement where the consignor gives actual or constructive possession of goods, equipment, and services to the consignee without transfer of ownership and disbursement of government funds between consignee and consignor, and such goods, equipment, and services are to be sold by the consignee for and on account of the consignor at terms advantageous to the government. The consignee shall remit the proceeds of the PhilGEPs electronic marketplace may be used as a consignment platform for goods and equipment.

PS-DBM, which is tasked with the centralized procurement of CSE for the government in accordance with Letter of Instruction (LOI) No. 755, series of 1978, E.O. No. 359, series of 1989, and Administrative Order No. 17, series of 2011, shall develop the parameters in the identification, expansion, and the definition of requirements and specifications of CSEs through the conduct of market scoping, market survey and market availability.

ARTICLE V

BIDS AND AWARDS COMMITTEE