Negros state college quizzed on armchair purchase

MANILA, Philippines - The Carlos Hilado Memorial State College (CHMSC) in Negros Occidental purchased 520 steel armchairs in 2011, spending over P400,000 in government funds.

State auditors are not questioning the procurement but are demanding an explanation as to why the contract was given to the highest bidder.

In a report released only recently, the Commission on Audit (COA) said the CHMSC should justify its move which goes against the rules on competitive bidding under the Government Procurement Reform Act.

Records show a bidding was conducted on May 24, 2011 for the procurement of 520 steel armchairs for the new ICT building in the school’s Fortune Towne campus.

Two companies took part in the bidding: Hardy Marketing Enterprises from Bacolod City which offered a bid of P415,220 or P798.50 per armchair, and Industrial Power Control System Inc. from Valenzuela City whose bid was P416,000 or P800 per piece. 

Records also show that the Bids and Awards Committee (BAC) found the bidding documents of both firms as compliant and the amount of bid bonds they posted as sufficient.

However, on June 8, 2011 the state college executed a notice to proceed and contract of agreement awarding the transaction to Industrial Power Control System Inc. in the amount of P416,000.

Based on the documents presented, COA said the lowest calculated responsive bid would be that of Hardy Marketing Enterprises “which is obviously way below the bid” of Industrial Power Control System Inc.

The CHMSC management told state auditors that they did not award the contract to the lowest bidder because it did not comply with the required specifications for the steel armchairs.

Nevertheless, the school officials, according to COA, should strictly adhere to the provisions of Republic Act 9184 in the awarding of contracts to the lowest calculated responsive bidder which is the most advantageous to the government. 

“We recommend further that the BAC submit a written explanation on why the contract was awarded to the Industrial Power Control System Inc. when Hardy Marketing Enterprises offered the lowest bid,” COA said.