NPM No. 022-2017

Requesting Entity: Department of Foreign Affairs (DFA) Office of Consular Affairs

Issues Concern: Third-Party Outsourcing of the Visa Application Process



Guidance on the procurement formalities required for the proposed third-party outsourcing of visa applications, in order to modernize and streamline visa applications in Foreign Service Posts (FSPs) and to respond to the Presidential directive to hasten the processing of visas for Chinese nationals.

[I]n case of projects where the government entity partners with the private sector entity, where the latter shoulders the cost through a Public Private Partnership arrangement; or where the former is set to earn or profit by way of partnership rather than spend public funds, commonly termed as Joint-Venture, it is advisable to look into the applicability of the BOT Law and the Joint-Venture Guidelines2 issued by the National Economic and Development Authority (NEDA). Note, however, that the Joint-Venture Guidelines issued by NEDA applies only to government-owned and/or controlled corporations (GOCCs), government corporate entities (GCEs), government instrumentalities with corporate powers (GICPs), government financial institutions (GFIs) and state universities and colleges (SUCs)

Anent all the foregoing, the law and its IRR cover the acquisition of goods, civil works, and consulting services by government, which contemplates procurement of projects to be funded by public funds. It must be emphasized, however, that although the transaction does not fall under the procurement law and its associated rules, it is but prudent and judicious for government agencies to transact only with an entity that is legally, technically and financially capable to perform and execute the project sought to be undertaken. It is likewise advisable to consult with the Commission on Audit for appropriate and more authoritative clarifications relative to the applicable auditing and accounting rules governing the transaction.