NPM No. 023-2017
Requesting Entity: Securities and Exchange Commission (SEC)
Issues Concern: Agency-to-Agency Agreements
Determining the 25% Threshold -
In computing the allowable threshold of twenty-five (25%) under section 5(a)(ii) of the Guidelines, please be guided by the following illustration:
Total amount of projects (per category) undertaken
through Agency-to-Agency Agreements
-------------------------------------------------------- x 100 = 25% threshold or less
Total Procurement Budget for each category
as reflected under the agency`s APP
Please take note that the categories contemplated under the Guidelines are those acquisition by the government that are within the coverage of RA 9184 and its IRR, that is, goods (including general support services), infrastructure projects, and consulting services.
Procurement of Goods; Lease of
Venue or Real Estate Property -
[T]he procurement of lease of venue or real estate property is considered as goods procurement. Accordingly, Lease Agreements are considered in determining the total goods procurement undertaken through Agency-to-Agency Agreement as the numerator in the above formula, and in the total budget for goods procurement category as the denominator in the above formula.
Agency-to-Agency Agreements should not
Exceed 25% of the Total Projects per Category
[T]he total amount of goods procurement under Agency-to-Agency Agreement, including Lease Contracts undertaken through Agency-to-Agency Agreement, whether for venue or real estate, should not exceed the total budget for procurement of goods as indicated in the APP.
Annual Procurement Plan -
As regards the APP to be used as basis for the computation of the total procurement per category, it should be the APP for the year in which the Agency-to-Agency Agreements were entered into by the PE and the Servicing Agency, which is the year that the funds were appropriated and sourced for the said projects.
Multi-Year Obligational Authority (MYOA); Multi-Year Contract (MYC) –
MYOA is an authorization document issued by the DBM to government agencies that undertake Multi-year projects with funding requirements spread over two (2) years or more. Such projects are evidenced by MYC entered into by the parties. MYOA assures the general public that government projects are adequately funded and their implementation will not be delayed. For MYCs that require MYOA, the funds appropriated cover only the first year. The succeeding years of the contract will be funded every year until it is completed. Hence, in determining the compliance of the PE in the total amount of projects (per category) undertaken through Agency-to-Agency Agreements, as the numerator in the illustration above, the costs of the projects corresponding to the respective year of the appropriated funds should be considered.