LEASE OF VENUE

 [A]lthough Section 48.2 of the IRR of RA 9184

reiterates the general rule that public bidding is
the general mode of procurement, the same
section allows procuring entities to resort to
alternative methods of procurement in highly
exceptional cases and subject to the conditions
required by RA 9184, its revised IRR, and
applicable guidelines. Among these highly
exceptional cases is Negotiated Procurement
(Lease of Real Property) under Section53.10 of
the IRR.
The Implementing Guidelines for Lease of
Privately-Owned Real Estate and Venue which
provides the procedures and conditions for
procurement of contracts of lease of real
property does not require resort to public
bidding as a pre-condition x x x. (NPM 07-2012)
Legal Basis for Lease of
Venue
 Section 53.10 of the Revised IRR
of RA 9184
 Guiding Principle
 Preference of use of publicly owned real
estate or venue.
 However, we can avail privately owned real
estate or venue provided the end-user can
justify why availing as such despite there is
publicly owned real estate or venue.
 The venue must be meticulously chosen by
the procuring entity after taking
consideration, among others, the need of
prudence, economy, nature of event and
level of security.
 Differences of the
following:
 Recommendation

 Justifcation

 Market Analysis

 Cost Benefit Analysis

 What is a market
analysis?
 This is the basis of determining the Approved
Budget for the Contract (ABC) for Lease of
Venue by determining the mid-point range
from the prevailing lease rates for venue
within the vicinity of the selected location
complying with the criteria and technical
specification of the end-user.
 How to make a Market
Analysis
 Make a criteria and technical specifications as basis
for determining the lease rates and intended
requirement
 Canvass and inquire about the lease rates of hotels in
the intended location using the criteria nd technical
specifications.
 Gather all the quotations obtained within the
intended location or vicinity and determine the mid
point of the range.
Ex. Lease rates ranges from PhP1,200 to Php2,100. The
mid point range is PhP1,650.00. The mid point range is the
basis of your ABC and this amount should be reflected in
the PRAS of the end-user.
 Cost Benefit Analysis
 Refers to a tool used to aid decision-making by
evaluating the benefits to be attained from an
action against the costs for its implementation.
 Once technical specifications have been finalized, at
least three (3) price quotations shall be obtained
within the vicinity of the selected location.
 For purposes of these Guidelines, the cost-benefit
analysis should consider, among others:
a. the costs of the lease and compliance with all
the requirements as indicated in the rating
factors, and
b. Consider the market analysis of prevailing lease
rates within the vicinity of the selected location.
 Continuation…
 The venue being offered by the Lessor with the LCB
shall then be rated in accordance with the
technical specifications prepared pursuant to
Appendix A of the DA Procurement Manual or the
RFQ. Compliance rating with technical
specifications may be conducted through ocular
inspection, interviews, or other forms of due
diligence.
 The end-user, based on the result of the Cost
Benefit Analysis, shall recommended the LCB to the
procuring entity, through the BAC.