Facts:

The case involves the Bureau of Customs (BOC), represented by Commissioner Alberto D. Lina, and the Department of Budget and Management-Procurement Service (DBM-PS), represented by Executive Director Jose Tomas C. Syquia, as petitioners against Hon. Paulino Q. Gallegos, the presiding judge of the Regional Trial Court (RTC) of Manila, Branch 47, and the purported joint venture of Omniprime Marketing, Inc. and Intrasoft International, Inc., represented by Annabelle A. Margaroli, as respondents. The events leading to this case began on December 20, 2006, when ASEAN member countries, including the Philippines, signed the Protocol to Establish and Implement the ASEAN Single Window (ASW Protocol). This agreement aimed to develop National Single Windows (NSW) based on international standards for trade facilitation and customs modernization. The Philippines initiated its NSW project in phases, with Phase One completed in October 2010 and Phase Two, known as the Enhanced Customs Proce...

Facts:

Background and Initiation of the Project

• In December 2006, ASEAN member-countries, including the Philippines, signed the Protocol to Establish and Implement the ASEAN Single Window (ASW Protocol) to foster trade facilitation and modernization of customs.
• The Philippines embarked on its National Single Window (NSW) project in two phases: Phase One (PNSW 1) initiated in 2009 and completed in October 2010, and Phase Two (PNSW 2) involving an Enhanced Customs Processing System.
• The PNSW 2 project was designed to integrate the existing electronic systems into a single, fully electronic, paperless, and man-contact-free process that allowed for a one-time submission of data by traders and synchronous processing by the Bureau of Customs (BOC).

Procurement Process and Bidding Details

• Utilizing funds appropriated in the General Appropriations Acts for calendar years 2010 and 2012, the BOC, via its procuring entity, and the Department of Budget and Management-Procurement Service (DBM-PS) issued a Request for Expression of Interest (RFEI) on October 15, 2014, for consultants.
• The bidding process had a total approved budget of P650 million and involved multiple bidders, including:
• The private respondent—the Joint Venture of Omniprime Marketing, Inc. and Intrasoft International, Inc.
• E-Konek & ILS & FS JV, whose major shareholder was the then BOC Commissioner, Alberto D. Lina.
• Delays in announcing the shortlist and highest rated bid (HRB) occurred, partly due to an interview of project team members requested by former Deputy Commissioner Primo Aguas, despite such an interview not being a legal or regulatory requirement.
• Eventually, on April 13, 2015, the DBM-PS Bids and Awards Committee (BAC) issued a Notice of HRB and an Invitation to Negotiate to the private respondent, followed by commencement of financial proposal and contract negotiations on April 17, 2015.

Cancellation of Bidding Process

• On April 23, 2015, Commissioner Lina was appointed as head of the BOC, and shortly thereafter, on May 6, 2015, he sent a letter to DBM-PS Executive Director Jose Tomas C. Syquia requesting the discontinuance of the procurement process for the PNSW 2 project.
• Acting on this directive, Director Syquia issued a Notice of Cancellation on May 7, 2015, effectively aborting the bidding process.
• The private respondent, having been declared the highest bidder and expecting contract award based on the law, filed a petition for certiorari and mandamus, along with requests for a Temporary Restraining Order (TRO) and preliminary injunctions, challenging the cancellation and seeking to compel the continuation of the procurement process.

Trial Court Proceedings and Issuance of the Injunctive Relief

• The petition was filed before the Regional Trial Court (RTC) and led to a TRO being issued on July 28, 2015.
• On August 24, 2015, the RTC promulgated the Omnibus Order which:
• Denied the petitioners’ (BOC and DBM-PS) motion to dismiss.
• Granted the private respondent’s application for a writ of preliminary injunction, enjoining the cancellation measures.
• Ordered the continuation of the remaining procurement processes, including the signing of the contract and issuance of the Notice to Proceed.
• Directed the posting of an injunctive bond amounting to P500,000.00.
• On August 26, 2015, the RTC issued the corresponding writ of preliminary injunction.

Filing of the Petition for Certiorari by the Petitioners

• Instead of filing a motion for reconsideration of the RTC decision, petitioners (BOC and DBM-PS) directly filed a petition for certiorari before the Supreme Court.
• Their petition challenged both the factual and procedural bases of the RTC’s Omnibus Order and the issuance of the injunctive writ.

Issue:

Procedural Issue

• Whether the petitioners’ failure to file the mandatory motion for reconsideration—as required under Rule 65 of the Rules of Court—renders their petition procedurally defective.
• Whether direct filing with the Supreme Court, bypassing lower court remedies, violates the doctrine of hierarchy of courts.

Substantive Issue

• Whether the respondent Judge (Presiding Judge Paulino Q. Gallegos) gravely abused his discretion in issuing the RTC’s Omnibus Order and the injunctive writ.
• Whether the cancellation of the bidding process for the PNSW 2 project, based on Commissioner Lina’s directive and DBM-PS’s subsequent Notice of Cancellation, was legally justified under Section 41(c) of R.A. No. 9184.
• Whether the nature of the contract (consulting services information technology project) falls within or outside the ambit of R.A. No. 8975 (pertaining to infrastructure projects).

Ruling:

• (Subscriber-Only)

Ratio:

• (Subscriber-Only)

Doctrine:

• (Subscriber-Only)