Republic of the Philippines

BIDS AND AWARDS COMMITTEE

City Hall Bldg., J.P. Rosales Ave., Doongan, Butuan City

02 January 2020

Mr. JESUS MISAEL D. ALMENDRALEJO

Audit Team Leader
Commission on Audit
Office of the City Auditor
Butuan City

Dear Auditor Almendralejo:

This refers to the Audit Observation Memorandum No. 2019-024 dated 11

December 2019, which we received on 16 December 2019, relative to the
Procurement of 1 unit Tri Axle Low Bed Trailer under P.R. No. 1253-2019-City
Engineering Office-Continuing Appropriation with Contract Reference No. GOODS-
2019-035.

We respectfully submit our comments/justifications as follows:

COA Observations Comments/ Justifications

The specification of
one (1) unit Tri-Axle
Low Bed Trailer
costing Php 1.9
Million, delivered, duly
inspected and
accepted was not in
accordance with the
contract, thus casted
doubt on the
regularity of the
delivery and legality of
the transaction.
On the part of the Bids and Awards Committee (BAC), we
humbly affirm our commitment to conduct our
procurement activities in compliance with the provisions
of Republic Act (RA) No. 9184.
On 30 April 2019, the BAC conducted the Pre-
procurement Conference for the subject item discussing,
among others, the specifications prepared by the end-
user and attached to the purchase request. The
Committee found said specifications to be in order.
Finding the procurement ready, the BAC convened for
the pre-bidding conference on 10 May 2019 wherein the
BAC clarified and/or explained the requirements, terms,
conditions, and specifications. No amendments to the
specifications were made during that time.

During the Deadline of Submission of Bids on 24 May

2019, two bidders dropped their bids, including the
supplier of this subject procurement, CARAGA FILCHIN
Corporation. As shown in the BAC Resolution on the
Preliminary Examination of Bids, only said bidder passed
the preliminary examination.

Phone : (085) -3072

Fax : (085) -5737
Email : .butuan@gmail.com
Website : http://www.butuan.gov.ph
 Republic of the Philippines
BIDS AND AWARDS COMMITTEE
City Hall Bldg., J.P. Rosales Ave., Doongan, Butuan City

Accordingly, the same was subjected to bid evaluation.

The Bill of Quantities (BOQ) submitted by the bidder
contained the exact specifications required by the City
Government. Subsequently, post-qualification was
conducted last May 31, 2019 up to June 6, 2019.

The BAC finally declared said bidder as the Single

Calculated and Responsive Bid through BAC Resolution
No. 35, which was approved by the City Mayor as the
Head of the Procuring Entity.

As a consequence thereof, the Notice of Award was

issued on 06 August 2019 and the execution of the
Contract transpired on 26 September 2019. Eventually,
both the Notice to Proceed, and the Purchase Order (PO)
reflecting the same specifications in the BOQ, and that
attached to the purchase request, were issued and
received by the supplier the following day, 27 September
2019.

As part of our standard procedure and considering that

the procurement process is already completed, we
forwarded the approved and received PO to the City
General Services Office in anticipation of the delivery of
the item.
We hope that this explanation will merit your kind and favorable
consideration. Notwithstanding, we commit to always uphold the governing
principles on government procurement enshrined in RA No. 9184.

Thank you very much.

Very truly yours,

Atty. MARIA JONIKA GONZAGA ROMANO

BAC Secretariat Head

Noted by:

Mr. ARMANDO A. PEREZ, Sr.

BAC Chairperson

Phone : (085) -3072

Fax : (085) -5737
Email : .butuan@gmail.com
Website : http://www.butuan.gov.ph