D E C I S I O N

Records disclose that in 1996, the Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA), Quezon City, bought through negotiated purchase twenty (20) pieces of psychrometric tables at P15,300 each for a total cost of P306,000. The purchase was made by PAGASA from Fourth Wind Marketing after three (3) failed biddings were conducted for the purpose. It appears that during the first two (2) public biddings held on May 29 and June 23, 1996, respecively, no bidders participated despite due notice. The third bidding conducted on July 9, 1996 was likewise declared a failure because only Fourth Wind Marketing submitted a bid and its bidder's bond was invalid. On the fourth bidding held on October 24, 1996, only Fourth Wind Marketing submitted a responsive offer of P15,300 per unit. Consequently, the Prequalification, Bids and Awards Committee (PBAC), PAGASA, decided to negotiate with Fourth Wind Marketing for the supply of the subject items pursuant to the provisions of Executive Order No. 302.

Upon post-audit of said transaction, the Auditor disallowed the amount of P77,060, detailed as follows:

In a letter dated August 10, 1998, Director Leoncio Amadore of PAGASA requested reconsideration of the disallowance contending, among others, that the award to Fourth Wind Marketing was made only after three (3) failed biddings; that the items were urgently needed; and that the mode of procurement adopted is allowed under E.O. No. 302. Notwithstanding the justifications, the Auditor reiterated her stand on the disallowance. Hence, this appeal.

Director Amadore averred, in a letter-appeal dated September 30, 1998, that the Invitation to Bid on the subject items was published in three newspapers of general circulation and was posted in three conspicuous places at the City Halls of Quezon City, Makati and Manila.

After a circumspect evaluation of the facts herein obtaining, this Commission finds the appeal meritorious. The award of the contract through negotiation was made by PAGASA to Fourth Wind Marketing after three (3) failed biddings. The pertinent provisions under the Implementing Rules and Regulations of E.O. No. 302 appears to have been complied with by management to transact the subject negotiated purchase, to wit:

The canvass made by the Auditor, although taken from identified suppliers, may not be given greater weight than the bidding process made by the PAGASA. It would be absurd to purchase from the suppliers identified by the Auditor when in truth and in fact, they never made known their intention to supply the subject items and never participated in the biddings despite due notice. More so, unless no evidence of fraud or intention to defraud the government is found in the records, the presumption of regularity in the performance of official duties by government officials concerned shall always prevail.

Premises considered, and in view of the favorable action of the Director, National Government Audit Office I, this Commission, as embodied in NGAO I Decision No. 2000-016 dated March 20, 2000, the instant appeal is hereby granted. Accordingly, the disallowance on the purchase of psychrometric tables in the amount of P77,060 is hereby lifted.