Local Government Code of 1991
Section 371. Procurement from Exclusive Philippine Agents or Distributors. - Procurement may, in the case of supplies of foreign origin, preferably be made directly from the exclusive or reputable Philippine distributors or agents, subject to the following conditions:
(a) That the Philippine distributor has no subdealers selling at lower prices; and
(b) That no suitable substitutes or substantially the same quality are available at lower prices.