NPM No. 048-2017
Requesting Entity: SOCIAL SECURITY SYSTEM (SSS)
Issues Concern: Applicability of Republic Act (RA) No. 9184
Whether the SSS` proposed long term lease and development project will have no conflict with RA 9184 or the Government Procurement Reform Act.
[T]here are two (2) important elements to be considered in determining whether an activity is procurement that is covered by RA 9184 and its IRR, thus:
1. The activity involves the acquisition of goods, consulting services, and the contracting for infrastructure projects; and
2. Public funds are utilized or is contemplated to be spent.
[I]f the activity does not involve acquisition of goods, consulting service, and contracting for infrastructure projects using public funds, the same is not considered procurement under RA 9184. Section 4.5(c) of the 2016 IRR of RA 9184 specifically provides that “lease of government-owned property as lessor for private use” is not considered procurement activity covered by RA 9184 and its 2016 Revised IRR. . Considering that the SSS project involves lease of government-owned property for private use, RA 9184 and its 2016 IRR shall not apply to the proposed long term lease and development.
[H]owever, should SSS opt for cash as mode of rental payment, the subsequent use of such cash rentals, as public funds, for the procurement of goods, infrastructure project or consulting services shall be covered by RA 9184 and its 2016 Revised IRR.