NPM No. 142-2016
Requesting Entity: Legal Services Group Development Bank of the Philippines (DBP)
Issues Concern: Multi-Year Contracts; Foreign Bidder
1. Maximum year of the annual maintenance contract in case of multi-year contracts
Republic Act (RA) No. 9184 and its 2016 Revised Implementing Rules and Regulations (IRR) are silent as regards the maximum number of years the annual maintenance contract can be procured. As such, the duration of the Multi-Year Contract will depend on the sound discretion of the Procuring Entity subject to government budgeting, accounting and auditing rules, and depending on its necessity subject to the approval of the Head of the Procuring Entity, in DBP’s case, its Board.
2. Definition of Foreign and Local Bidder (Consultants)
[T]he following are considered as local consultants for purposes of participating in government procurement:
- 1. Duly licensed Filipino citizens/sole proprietorships;
- 2. Partnerships duly organized under the laws of the Philippines and of which at least sixty percent (60%) of the interest belongs to citizens of the Philippines;
- 3. Corporations duly organized under the laws of the Philippines and of which at least sixty percent (60%) of the outstanding capital stock belongs to citizens of the Philippines;
- 4. Cooperatives duly organized under the laws of the Philippines, and of which at least sixty percent (60%) belongs to citizens of the Philippines; or
- 5. Persons/entities forming themselves into a joint venture, i.e., a group of two (2) or more persons/entities that intend to be jointly and severally responsible or liable for a particular contract: Provided, however, That Filipino ownership or interest thereof shall be at least sixty percent (60%). For this purpose, Filipino ownership or interest shall be based on the contributions of each of the members of the joint venture as specified in their JVA.
For those individual, sole proprietorship, partnership, corporation or joint venture not falling under the above-enumeration, they shall be considered as foreign bidders. It bears stressing that under Section 24.3.3 of the 2016 Revised IRR of RA 9184, foreign consultants may be hired in the event Filipino consultants do not have the sufficient expertise and capability to render the services required under the project, as determined by the Head of the Procuring Entity, subject to the submission of documents in accordance with Section 37.1.4(a)(iv) of the 2016 Revised IRR of RA 9184.