Non-Policy Opinions


NPM 096-2012

Requesting Entity: Agilex Security Agency Inc. (ASAI)

Issues Concern: Computation of Net Financial Contracting Capacity (NFCC)



Clarification on the contract duration that will be referred to for determining the value of K in the computation of the NFCC provided under Section of the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.

[S]ection 23(a)(vi) of the revised IRR of RA 9184 was lifted from Sections 16.2.1 of the IRR of Executive Order (EO) 40, the executive issuance predecessor of RA 9184. As clarified in Policy Matter No. 002-2002, the value of "K" mentioned in Sections 16.2.1 and 16.2.2 of the IRR of EO 40 shall be based in the duration of the contract under consideration, or the would be contract subject of the bidding opportunity. Relative to the issue at hand, the same interpretation may be adopted for the present formula under Section 23(a)(vi) of the revised IRR, particularly in determining the value of "K", i.e., the "contract duration" refers to the duration of the contract subject of the public bidding.