NPM 064-2014

Requesting Entity: Bureau of Plant Industry

Issues Concern: Qualification of GOCCs for Negotiated Procurement (Agency-to-Agency) under Section 53.5 of the IRR of RA 9184



Clarification on the requirements for a GOCC to be engaged as Servicing Agency by Procuring Entities in contracts procured through Agency to Agency modality of Negotiated Procurement.

GPPB Resolution No. 12-2013 amends Section 53.5 (Agency-to-Agency) of the IRR of RA 9184 and its Guidelines insofar as it removes the disqualification of non-chartered GOCCs from being engaged as Servicing Agency for projects procured through Negotiated Procurement (Agency-to-Agency).

This being the case, whether chartered or non-chartered, GOCC"s may now be engaged as Servicing Agency through Negotiated Procurement under the Agency to Agency modality, once the following conditions are complied with:

(i) Conduct of a cost-benefit Analysis by the Procuring Agency indicating that entering into an Agency-to-Agency Agreement with the Servicing Agency is more efficient and economical for the government;

(ii) Total amount of all goods, consulting, and infrastructure projects undertaken or to be undertaken through Agency-to-Agency Agreements shall not exceed twenty-five percent (25%) of the Procuring Entity"s total procurement budget for each category (i.e. goods, infrastructure, or consulting) as reflected in its approved APP;

(iii) Servicing Agency has the mandate to deliver the goods and services required to be procured or to undertake the infrastructure project or consultancy required by the Procuring Agency; and

(iv) Servicing Agency owns or has access to the necessary tools and equipment required for the project.