NPM 127-2013

Requesting Entity: Department of Transportation and Communications (DOTC)

Issues Concern: Definition of General Support Services



Whether encoding services may be deemed included in the definition of general support services.

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 broadly 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, the term "general support services" is 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.

In this regard, if the encoding services being acquired by DOTC are essential, indispensable, or necessary to support its operations, then such service may be considered within the coverage of the term "general support services".

Whether DOTC may enter into a contract for encoding services on a multi-year basis.

[T]he Revised Guidelines on Extension of Contracts for General Support Services does not prohibit procuring entities from entering into contracts on a multi-year basis. It simply provides that contracts for general support services can be extended, but not to exceed one (1) year for the purpose of averting hiatus in support services essential, indispensable, or necessary in the operations of a procuring entity.

[T]he General Appropriations Act provides that no agency shall enter into a multi-year contract without securing a Multi-Year Obligational Authority (MYOA) from the Department of Budget and Management (DBM) following the provisions of Circular Letter No. 2004-12 dated 27 October 2004.

Accordingly, we wish to clarify that although encoding services may be classified as general support services, DOTC must have secured a MYOA from DBM for the multi-year contract it entered into for such service in order that it may be validly renewed.