NIA foils try to chop up P205-M project in Isabela

Screengrab from www.nia.gov.ph

The National Irrigation Administration (NIA) has thwarted an attempt by officials in its Isabela regional office to split an irrigation project into smaller contracts to sidestep a limit on the value of projects that local offices can award to contractors.

Documents provided to the Inquirer showed that NIA’s Region 2 office based in Cauayan City attempted to bid out several components of the P205.45-million Dibuluan River irrigation project in San Agustin, Isabela.

In November 2013, the regional office—then headed by Irrigation Manager Vicente Galvez—posted bidding notices for the project divided into seven components. The notices were posted on the Philippine Government Electronic Procurement System (PhilGEPS) website.

These included two contracts worth P54 million and P36.8 million for the construction of canal and canal structures; and two contracts worth P44.4 million and P43.9 million for the construction of a settling basin, protection works and canal structures.

Clearance required

The Dibuluan River irrigation project at a cost of P205.45 million would have required clearance from the national office had it been bid out in a single deal.

Later that same month, NIA Administrator Claro Maranan sent out a memo to all regional directors, and operations and project managers ordering the temporary suspension of bidding for projects valued at “more than the existing delegated authority.”

Splitting prohibited

The so-called “splitting” of contracts is prohibited under NIA’s Memorandum Circular No. 20 of 2012. In the past, splitting allowed regional offices to bid out projects without having to go to their head offices for approval.

Under current rules, a NIA regional director has the power to approve projects worth up to P40 million; the agency head, projects worth more than P40 million up to P100 million; and agency board of directors, projects over P100 million.

Bidding, work program

In the case of the Dibuluan River irrigation project, not only was the deal broken down into several components, the bidding dates were also set ahead of the submission of the project’s program of works to the NIA engineering department.

The program of works is the basis for a project’s bidding and is a requirement before it can be bid out.

Because of these rules, the NIA acting deputy administrator for operations, Modesto Membreve, ordered the agency’s Region 2 office in December 2013 to repackage and resubmit the program of works for the Dibuluan River irrigation project with only two packages, at most, instead of the seven-component structure.

Despite these orders from the head office, NIA’s Region 2 office proceeded with the bidding and opened the bids last Jan. 23 and belatedly presented the program of works for the project to the NIA board, which deferred action on the issue.

Rebidding

In February, the NIA board approved the revised program of works and ordered that the Dibuluan project be rebid.

Galvez has since been relieved of his Region 2 office responsibilities and reassigned to NIA’s Quezon City head office.

Originally posted: 9:04 pm | Tuesday, April 15th, 2014

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