NPM 012-2014

Requesting Entity: Philippine Science High School System - Ilocos Region Campus (PSHS-Ilocos)

Issues Concern: Implementation of Infrastructure Projects by Administration



PSHS-Ilocos is seeking clearance and guidance on the execution of its infrastructure projects, namely, Construction of Road Networks, Parking Area, and Drainage Canals (Phase II) and Construction of the Multi-purpose Gymnasium, through administration.

Clearance from the Government Procurement Policy Board (GPPB) and its Technical Support Office (TSO) is not a requirement in implementing projects by administration sanctioned under the Revised Guidelines for the Implementation of Infrastructure Projects by Administration (Guidelines).

Section 3 of the said Guidelines enumerates the conditions and requirements in implementing projects "by administration", thus:

(1) The project to be undertaken by administration shall be included in the approved Annual Procurement Plan of the procuring entity.

(2) The implementing agency, i.e., the government unit undertaking the construction of an infrastructure project, must have the following qualifications:

(a) Track record of having completed, or supervised a project, by administration or by contract, similar to and with a cost of at least fifty percent (50%) of the project at hand; and

(b) Own tools and construction equipment to be used or have access to such tools and equipment owned by other government agencies.

(3) The project to be undertaken by administration by the implementing agency must cost Twenty Million Pesos or less. Projects costing more than said threshold are subject to the limitations and approval requirements under Section 3.3 of the Guidelines.

(4) No contractor shall be used by the procuring entity, directly or indirectly, for works undertaken by administration.

(5) Procurement of tools and construction equipment shall be subject to the rules on public bidding.

(6) The manual labor component may be undertaken in-house by the implementing agency, by job order, or through pakyaw contracting system in accordance with Section 4 of the Guidelines.