7/25/2019 10. DBM PS vs. Kolonwel Trading

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Department Of Budget And Management Procurement Service Vs Kolonwel Trading, G!

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acts:

Before the Court are these consolidated three (3) petitions for review under Rule 45 of the Rulesof Court, with a prayer for a temporary restraining order, to nullify and set aside the rder dated

!ecem"er 4, #$$% of the &anila Regional 'rial Court (R'C), Branch , in *+ Civil Case o-

$%.%$$, a special civil action for certiorari and prohi"ition thereat commenced "y hereinrespondent /olonwel 'rading (/olonwel for short) against the !epartment of Budget and

&anagement +rocurement *ervice (!B&.+*), et al- 0t the core of the controversy are the

 "idding and the eventual contract awards for the supply and delivery of some 1-5 million copies

of &a2a"ayan (social studies) tet"oo2s and teachers manuals, a proect of the !epartment of ducation (!epd)- 'he contract was awarded to several pu"lishers for the different tet"oo2s

and /olonwel was dis6ualified for which it appealed to the 7nter.0gency Bids and 0wards

Committee "ut was denied- /olonwel filed with the R'C of &anila a special civil action for 

certiorari and prohi"ition with a prayer for a temporary restraining order ('R) and8or writ of  preliminary inunction- !oc2eted as *+ Civil Case o- $%.%$$, and raffled to Branch of 

the court, the petition sought to nullify 70B0C Res- os- $$.#$$% and $$.#$$%.0 and to setaside the contract awards in favor of other pu"lishers- ther pu"lishers filed a motion to dismiss

/olonwel9s petition on several grounds, among them want of urisdiction and lac2 of cause of 

action, inter alia alleging that the latter had pursued udicial relief without first complying withthe protest procedure prescri"ed "y Repu"lic 0ct (R-0-) o- 4, otherwise 2nown as the

;<overnment +rocurement Reform 0ct-=-

-ssue:

>hether or not the R'C erred in assuming urisdiction over the case despite /olonwel9s failureto o"serve the protest mechanism provided under *ec- 55, *ec- 51 and 5 of the <overnment+rocurement Reform 0ct "ecause it is a foreign funded proect-

!uling:

'he Court is una"le to lend concurrence to the trial court9s and respondent9s positions on the

interplay of the protest and urisdictional issues- 0s may "e noted, that *ection 55 of R-0- o-

4 sets three (3) re6uirements that must "e met "y the party desiring to protest the decision of the Bids and 0wards Committee (B0C)- 'hese are: ) the protest must "e in writing, in the form

of a verified position paper? #) the protest must "e su"mitted to the head of the procuring entity?

and 3) the payment of a non.refunda"le protest fee- 'he urisdictional caveat that authori@escourts to assume or, inversely, precludes courts from assuming, urisdiction over suits assailing

the B0C9s decisions is in turn found in the succeeding *ection 5 which provides that the courts

would have urisdiction over such suits only if the protest procedure has already "een completed-Considering that the respondent9s petition in R'C &anila was actually filed in violation of the

 protest process set forth in *ection 55 of R-0- o- 4, that court could not have lawfully

ac6uired urisdiction over the su"ect matter of this case- 7n fact, *ection 5, supra, of R-0- o-

4 emphatically states that cases filed in violation of the protest process therein provided;shall "e dismissed for lac2 of urisdiction-= 'he 6uestion as to whether or not foreign loan

agreements with international financial institutions, such as Aoan o- 1.+, parta2e of an

eecutive or international agreement within the purview of the *ection 4 of R-0- o- 4, has "een answered "y the Court in the affirmative in 0"aya, supra- *ignificantly, 0"aya declared that

the R+.B7C loan agreement was to "e of governing application over the C+ 7 proect and that

the B7C +rocurement <uidelines, as stipulated in the loan agreement, shall primarily govern the procurement of goods necessary to implement the main proect- >RDR, the instant

consolidated petitions are <R0'! and the assailed rder dated !ecem"er 4, #$$% of the

Regional 'rial Court of &anila in its *+ Case o- $%.%$$ is EAA7D7! and *' 0*7!-