NPM 095-2014

Requesting Entity: Government Service Insurance System (GSIS)

Issues Concern: Extension of Lease Contract



Whether GPPB can approve a procuring entity's extension of contract.

[I]t is beyond the power of the Government Procurement Policy Board (GPPB) to approve extensions of contracts. Based on its mandate under Section 63 of RA 9184, it does not have the power to approve acts that are within the power of the procuring entities

Whether a procuring entity can extend its lease contract.

As an emergency measure, a procuring entity has the discretion to extend the duration or effectivity of contracts of lease of office space about to expire, for a period not exceeding one (1) year to maintain status quo in its operations and to avoid interruption of such services that are essential, indispensable, or necessary to support the operations of GSIS in accordance with the general conditions for extension pursuant to Section 4 of the Revised Guidelines on the Extension of Contracts for General Support Services (Guidelines).

Pursuant to Section 5.1 of the Guidelines all contract extension shall be subject to the approval of the Head of the Procuring Entity (HOPE) or his duly authorized representative upon recommendation of the Bids and Awards Committee. And in case the proposed contract extension exceeds six (6) months, the HOPE shall immediately report to GPPB in writing of its intent to extend beyond six months pursuant to Section 5.2 of the Guidelines. Nonetheless, the approval of GPPB is not required.