NPM 111-2004

Requesting Entity: Bangko Sentral ng Pilipinas

Issues Concern: Queries on R.A. 9184 and its IRR-A



1. Whether or not the Director of the Administrative Services Department (ASD) of BSP can approve the recommendation of the award of contract made by the procuring unit of the BSP, which is the ASD, and/or issue the Notice of Award to the winning bidder in procurement of goods undertaken through Shopping.

Considering that the BSP is a government financing institution (GFI), it is clear from the foregoing rules (Sections 5 and 37.2.1, IRR-A) that the aforementioned tasks of approving the recommendation of award of the contract and issuing the corresponding Notice of Award are lodged with the governing board of the BSP or its duly authorized official, who may be its Chairman. As such, we believe that as long as the Director of the ASD is authorized by the governing board of the BSP to perform the aforecited tasks and functions, the former can validly act and assume such powers in behalf of the latter for procurement of goods undertaken through Shopping by the BSP.

2. Whether in renewal of contract for consulting services of individual consultants, whose contracts are on a six (6)- month basis, it is sufficient for the end-user unit to submit the said renewal of contract to the head of the procuring entity for approval or it is necessary that another bidding process be undertaken by the Bids and Awards Committee (BAC) for such procurement of consulting services.

In view of the aforecited provision (Section 53, IRR-A), we believe that if the contract of consulting services that has to be renewed was procured through Competitive Bidding, the BAC should conduct another bidding process for the procurement of such consulting services; considering that as a general rule, the procuring entities shall adopt public bidding as the general mode of procurement, whereas alternative methods of procurement shall be resorted to only in highly exceptional cases provided under R.A. 9184 and its IRR-A.

On the other hand, for consultancy contracts of individual consultants whose services were previously hired on the basis of Negotiated Procurement under Section 53 (f) of the IRR-A of R.A. 9184, the contract may be renewed upon the expiration of its term. In such case, we are of the opinion that it is sufficient for the end-user unit to submit the renewal of contract of the individual consultant to the head of the procuring entity for approval.