NPM No. 133-2015

Requesting Entity: Presidential Management Staff (PMS)

Issues Concern: Government Procurement Policy Board (GPPB) Resolution No. 03-2015



Whether GPPB Resolution No. 03-2015 , particularly the rules on the adjustment of Approved Budget for the Contract (ABC), applies to lease of office space following the termination of the previously awarded lease contract to a private entity.

A careful perusal of its provisions reveals that GPPB Resolution No. 03-2015 applies when the method of procurement resorted to by the Procuring Entity (PE) is either Competitive Bidding, Limited Source Bidding or Negotiated Procurement under Section 53.1 (Two-Failed Biddings) of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 as the Resolution mentions Sections 35.2, 35.3 and 53.1 of the IRR of RA which refer to these methods of procurement. The cited provisions pertain to the mandatory review of terms, conditions and specifications of the Bidding Documents, including its cost estimates, and the adjustment of ABC. Pointedly, these provisions state that any adjustment of the ABC shall be subject to required approvals.

In this regard, it is our considered view that GPPB Resolution No. 03-2015 does not apply to the adjustment of ABC for lease of office space that will be undertaken through Negotiated Procurement under Section 53.10 of the IRR of RA 9184. This notwithstanding, any adjustment of ABC for any method of procurement shall be:

1. reflected in the updated PPMP and APP;

2. approved by the HOPE or its duly designated second-ranking official;

3. consistent with the approved yearly budget; and

4. comply with the provisions of NBC No. 559, in relation to FY 2015 GAA, when the adjustment will entail realignment of funds.