NPM 082-2013

Requesting Entity: Cultural Center of the Philippines (CCP)

Issues Concern: Multi-Year Contract for Engineering Service



1. Whether engineering services (e.g., services of an engineering contractor for the maintenance of CCP’s buildings’ civil, electrical, and mechanical facilities) can be included in the same general support services category as janitorial and security services.

2. Whether the CCP can hire a contractor for said service for up to three (3) years.

Republic Act No. (RA) 9184 and its Revised Implementing Rules and Regulations (IRR) define Goods to refer to general support services, including non-personal or contractual services, and related or analogous services. This definition covers all kinds of similarly natured services that are essential to the operation of the procuring entity. Moreover, in the Revised Guidelines on the Extension of Contracts for General Support Services , general support services are understood to include those services that are essential, indispensable, or necessary to support the operations of the procuring entity or for the enhancement of the welfare of its personnel, including non-personal or contractual services. Therefore, it can be deduced from the foregoing that engineering services for the maintenance of the CCP offices and facilities may be considered as within the contemplated coverage of general support services, in the same vein as are the services for janitorial and security.

However, neither the Government Procurement Policy Board (GPPB) nor its Technical Support Office has the authority to grant permission to CCP to hire an engineering contractor for up to three (3) years. RA 9184 and its IRR are silent on the matter of multi-year contracts. Nonetheless, it is not to be understood that procuring entities are prohibited from entering into multi-year contracts inasmuch as it is an acceptable form of contractual arrangement. In addition, Department of Budget and Management (DBM) Circular Letter No. 2004-12, which identifies the requirements for the engagement of services on a multi-year basis by national government agencies, can be adhered to for proper guidance on the issue.