On March and April 2006, the National Printing Office Bids & Awards Committee (NPO-BAC) conducted competitive biddings for the printing of accountable forms of the Land Transportation Office (LTO). Bestforms, Inc. and Readyforms, Inc. secured the awards and were issued their respective Notices of Awards.
However, prior to the issuance of the Notice of Award to Bestforms, Inc. for the April 12 bidding, NPO discovered that Bestforms violated NPO rule on security printing based on an inspection conducted by its officials at its printing premises. In addition, substandard paperstock was allegedly used by Bestforms for the printing of LTO Certificates of Registration.
The NPO revoked Bestforms accreditation as private security printer of NPO. Hence, the contracts awarded previously to Bestforms were subjected to a re-bidding through Limited Source Bidding on June 13-14, 2006.
Readyforms won these biddings and was issued with the corresponding Notices of Award. The same corporation was also awarded the supply of LTO forms through Negotiated Procurement.
Aggrieved, Bestforms filed an administrative complaint against the NPO officer-in-charge and other officials before the Ombudsman alleging that NPO officers and NFI knowingly conspired with each other to manipulate the award of the printing of contracts to the latter.
The Ombudsman found De Guzman and co-respondents guilty of grave misconduct and ordered them dismissed from service with forfeiture of benefits, except accrued leave benefits. The basis was the failure of respondents to observe procedures laid down in RA 9184 or the “Government Procurement Reform Act” for the Limited Source Biddings it conducted on June 13-14, and in entering into a Negotiated Procurement with RFI.
The Court of Appeals affirmed the Ombudsman’s findings and observed that procedures in competitive bidding should likewise be observed in Limited Source Bidding.
Issue:
Whether or not de Guzman is liable for grave misconduct for the failure of the NPO-BAC to comply with the requirements under RA 9184 for limited-source bidding and negotiated procurement
Ruling:
The Court denied the petition.
Under RA 9184, all acquisitions of goods, consulting services, and the contracting for infrastructure projects by any branch, department, office, agency, or instrumentality of the government, including state universities and colleges, government-owned and/or –controlled corporations, government financial institutions, and local government units shall be done through competitive bidding. Alternative methods of procurement are allowed under RA 9184 but only in highly exceptional cases and under the conditions set forth in Article XVI thereof. Alternative methods include Limited Source Bidding and Negotiated Procurement.
The requirements of a pre-bid conference, written invitation to observers, and posting of the IAEB must still be followed in alternative modes of procurement.
The NPO-BAC also failed to comply with the procedural requirements for Limited Source Bidding and Negotiated Procurement.
Misconduct is defined as the transgression of some established and definite rule of action, more particularly, unlawful behavior or gross negligence by a public officer. It becomes grave when it involves any of the additional elements of corruption, willful intent to violate the law, or to disregard established rules, which must be established by substantial evidence.
