NPM 115-2004

Requesting Entity: National Economic and Development Authority Regional Office VIII

Issues Concern: Purchase of Goods from another Agency of the Government through Negotiated Procurement



Whether or not EVISNet, a government project established to promote information exchange among members of the Regional Development Council (RDC) of Region VIII and provide internet access to government agencies and State Universities and Colleges (SUCs), may be considered as an agency of the government, from which goods, such as internet services may be procured by another government agency through Negotiated Procurement under Section 53 (e) of Republic Act No. 9184 (R.A. 9184) and its Implementing Rules and Regulations Part A (IRR-A).

It is inferred [from our research] that EVISNet does not fall under the aforementioned definition of Agency of the Government considering that the former cannot be properly classified as any of the various units or entities of the government identified in the said definition. A careful reading of the background of EVISNet would reveal that such is in the nature of a government project which is created by a mere resolution, established and operated through an agreement between two contracting government agencies; and hence, may be terminated upon completion of the project, or at the instance of the DOST as so provided in the MOA entered into on January 26, 2000, between the latter as the Grantor, and the NEDA as the Grantee.

On the other hand, as discussed above, an agency of the government may only be created by the Constitution or by statute, not by a mere resolution endorsed by a government entity that is not the legislature; nor through an agreement or contract between two government agencies. In the same way, an administrative agency may only be altered or abolished by constitutional or legislative amendment.

Parenthetically, there is no way that the aforesaid Project, by itself, may be considered as an agency of the government from whom goods may be procured by another government agency through Negotiated Procurement under Section 53 (e) of R.A. 9184 and its IRR-A.

It is our view, however, that should any government agency or SUC wish to procure internet services from EVISNet through the aforesaid alternative method of procurement, such procuring entity should be dealing with and/or procuring from NEDA Region VIII, as the latter is the government agency that actually handles the operations, finances and procurement for the Project; and further, NEDA is definitely characterized as an Agency of the Government from which procurement of goods by another government entity may be allowed through Negotiated Procurement.