NPM No. 013-2016

Requesting Entity: House of Representatives (HOR)

Issues Concern: Multi-year contracts (MYCs)



Whether a government agency may resort to multi-year contracts specifically for the procurement of office uniforms.

Whether there are other forms of general support services that may be procured under multi-year coverage.

[T]here is nothing in RA 9184 and its IRR that limits procuring entities from entering into MYCs for their procurement activities only to those involving security and janitorial services. However, in the implementation of Multi-Year Projects (MYPs) covered by MYCs, where the total cost is not available for the first year, procuring entities shall request the Department of Budget and Management (DBM) for the issuance of a Multi-Year Obligational Authority (MYOA) following DBM Circular-Letter (CL) No. 2015-7.

[A] careful reading of the GAA and DBM CL No. 2015-7 issued by DBM shows that procuring entities may enter into Multi-Year Projects that is evidenced by Multi-Year Contracts for any of their procurement activities, subject to compliance with the requirement of a MYOA issued by the DBM and any other applicable requisites provided by law or DBM's issuances.