NPM No. 029-2015

Requesting Entity: National Kidney and Transplant Institute (NKTI)

Issues Concern: Consignment Agreement



Whether a consignment agreement is governed by the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.

[S]ince there is no acquisition of goods and fund expenditure on the part of government relative to a consignment agreement, such consignment arrangement is not procurement as defined in RA 9184 and its IRR. This notwithstanding, consignment is mentioned in Section 7.3.2 of the IRR where the parameters for its adoption and implementation were clearly laid down, at least to this extent, the IRR of RA 9184 applies to consignment agreement between the consignor entity and the consignee, the procuring entity.