NPM No. 086-2015

Requesting Entity: Duty Free Philippines Corporation

Issues Concern: Direct Contracting; Executive Order No. 423



Request for guidance and approval relative to the plan to engage the services of an identified consultant through Negotiated Procurement of Direct Contracting

[A]s a rule, the Government Procurement Policy Board (GPPB) and its Technical Support Office have no power under Republic Act No. 9184 and its Implementing Rules and Regulations to approve any request from procuring entities to resort to any of the alternative methods of procurement in their procurement activities in lieu of Competitive Bidding.

As an exception, Executive Order No. 423, as amended, requires procuring entities to seek GPPB’s approval for contracts to be procured through any of the alternative methods of procurement with an Approved Budget for the Contract of at least PhP500 Million. Such approval should first be secured stating therein that said procurement activity falls within the exceptions from public bidding and that the proposed specific alternative method of procurement is appropriate.

Procuring entities cannot resort to Direct Contracting modality, in lieu of Competitive Bidding, in their procurement of consulting services or infrastructure projects since said modality applies only to the procurement of goods.