NPM No. 071-2017


Issues Concern: Negotiated procurement under Section 53.5 (Agency-to-Agency)



(1)    Whether or not Vicente Sotto Memorial Medical Center (VSMMC) may be considered as Servicing Agency under RA 9184.

VSMCC may qualify as a Servicing Agency as contemplated under Section 53.5 of the 2016 IRR of RA 9184, if the conditions set forth in Section V.D.5(b) are complied with. Particularly, VSMMC must have the mandate to deliver the goods and services required to be procured by the Procuring Agency and the absorptive capacity to undertake the project. It must own or has access to the necessary tools and equipment required for the project, however, sub-contracting by the Servicing Agency is not allowed.

(2)    What are eligibility documents that will be required from VSMMC in the conduct of the Negotiated Procurement (Agency-to Agency).

Appendix A, Annex “H” of the 2016 IRR of RA 9184, which lists down the documentary requirements for the alternative methods of procurement covered by the Guidelines, did not provide any eligibility or documentary requirements that must be submitted by the Servicing Agency. Accordingly, as long as the conditions under Section 53.5 and Section V.D.5(b) are present and the procedural guidelines under Section V.D.5(c) are followed, no other document is required from the Servicing Agency before the Procuring Entity engages the services of the latter.