Negotiated Procurement for Non-Similar Adjacent Project
National Housing Authority · 2024
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What Happened?
Category: ProcurementIssue: Non-complianceThe agency used a special procurement method to hire a contractor for a housing project, but the contractor was already doing a different kind of project (a footbridge) nearby, and the rules only allow this if the projects are similar.
Why It Matters
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Original Audit Finding Excerpt
"The rehabilitation of the concrete footbridge is neither similar nor related to the scope of works for the construction of 81 units of Houses on Stilts. Hence, the use of the negotiated procurement method casts doubt on the reasonableness and defeats the purpose of competitive bidding, potentially compromising transparency, fairness, and procurement of infrastructure projects at the most advantageous price for the government."