LEGAL OPINION NO.

02-2016

FOR : ATTY. CESAR E. ROMANO, JR.

Manager, Legal Services Department

FROM : ARCADIO DC. BENITEZ, JR.

Corporate Attorney IV, LSD

SUBJECT : LEGAL OPINION ON

DATE : 31 March 2016

This is a legal opinion on whether or not the provision of guarantee lines by

HGC violates Section _____ of the Omnibus Election Code COMELEC
Resolution No. 99811 entitled “IN THE MATTER OF PRESCRIBING THE
CALENDAR OF ACTIVITIES AND PERIODS OF CERTAIN PROHIBITED ACTS IN
CONNECTION WITH THE MAY 09, 2016 NATIONAL AND LOCAL
ELECTIONS”, .

Section Under the above stated Resolution, it is elementary that all government
procurements shall be done through competitive public bidding, except as
otherwise provided by the IRR. The five (5) exceptions, collectively called by the
IRR as the “Alternative Methods of Procurement”, are provided in Sections 49-53
of Rule XVI and these are the following:

1. Limited Source Bidding;

2. Direct Contracting;
3. Repeat Order;
4. Shopping; and
5. Negotiated Procurement.

Applying the said provisions to the issue at hand, the procurement of gasoline,
diesel, fuels and lubricants, which can be classified as goods, thus, shall be
done thru competitive public bidding. HGC, however, can forego the conduct of
such bidding if it can show that the procurement falls under any of the above-
stated exceptions.

In preparing the terms of reference and eventual awarding of the contract to

the winning bidder, HGC must take note of the provisions of the IRR especially
with Rule XIX which provides for the rule on Contract Prices and Warranties
and GPPB Resolution No. 05-2005, given that the prices of the said goods are
highly prone to escalations. As regards contract implementation, Annex D 2 of
the IRR would be of guidance.

1
Henceforth, “Resolution”.
2
Entitled “CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT OF GOODS,
SUPPLIES AND MATERIALS”.
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Premises considered, it is opined that in the procurement of gasoline, diesel,
fuels and lubricants for its day to day operations, HGC should strictly observe
the provisions of the GPRA, its Revised IRR and GPPP Resolution No. 05-2005.

It is also recommended that the Bids and Awards Committee Secretariat shall
regularly coordinate and inquire with the GPPB as to the updates on the rules
and guidelines regarding the procurement of the said goods.

Respectfully submitted,

ARCADIO DC. BENITEZ, JR.

I concur:

ATTY. CESAR E. ROMANO, JR.

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