NPM 004-2014

Requesting Entity: Borja Construction Coordinates and Allied Services Incorporated

Issues Concern: Nature of Procurement



Whether the "installation" of an air conditioning system is a construction activity and therefore should be properly classified as procurement of an infrastructure project.

[T]he PE, ably guided by RA 9184 and its Implementing Rules and Regulations (IRR), is in the best position to determine the correct classification of its procurement activities, whether it be Goods or Infrastructure Projects. When the procurement consists of a mix of goods, or infrastructure project, it shall be considered a mixed procurement, and the nature of the procurement shall be determined based on the primary purpose of the contract.

[T]he motivation and underlying reason behind the project is of primordial importance as this will dictate the nature and categorization of the procurement and the process and procedures to be adopted moving forward.

In exercising this responsibility, the PE should be guided by the parameters and conditions in the relevant provisions of RA 9184 and its IRR on what should be considered as Goods or Infrastructure Projects procurement.