NPM No. 119-2016

Requesting Entity: Development Bank of the Philippines (DBP)

Issues Concern: Classification of Procurement



Whether the proposed procurement of operational risk information system is to be classified as procurement of goods or procurement of consulting services.

[I]t is our considered view that the determination of whether a customized modification needed for a software is minimum or major for the ultimate purpose of determining the classification of a procurement project, depends on the identified needs of the procuring entity taking into consideration the relevant provisions of RA 9184 and its 2016 Revised IRR. Consequently, if a procurement requires adequate external technical and professional expertise that are beyond the capability and/or capacity of the procuring entity to undertake, the procurement may be classified as procurement of consulting services; otherwise, the procurement may be considered simple services classified as goods procurement. Further, in case of mixed procurement (partly goods and partly consulting services), that which is the primary or foremost purpose shall dictate the cadence in identifying the true nature of the procurement.