NPM No. 064-2015

Requesting Entity: Tax Clearance; Direct Contracting

Issues Concern: Bangko Sentral ng Pilipinas Department of General Services - Security Plant Complex



Whether a Tax Clearance is required to be submitted by suppliers in the procurement of goods through Direct Contracting under Section 50 of Republic Act (RA) No. 9184 and its revised Implementing Rules and Regulations (IRR)

[T]he procuring entity has the discretion as to what legal, technical and financial eligibility documents to require under the Direct Contracting modality, with a caveat that it shall "[d]irectly negotiate a contract with a technically, legally and financially capable supplier, contractor or consultant." On the other hand, it must be emphasized that the use of Alternative Methods of Procurement is couched upon the principles of efficiency and economy, such that requiring too many eligibility documents may, in the process, defeat the very purpose for which the relevant alternative procurement modalities were introduced and institutionalized.