NPM No. 082-2017


Issues Concern: Multi-Year Contract



Appeal for the GPPB`s consideration to authorize the MWSS RO to enter into multi-year contracts for its procurement of analytical laboratory services for water and wastewater quality.

There is nothing in Republic Act (RA) No. 9184, the Government Procurement Reform Act, and its 2016 revised Implementing Rules and Regulations (IRR) that proscribes or limits procuring entities from entering into Multi-Year Contracts (MYCs) for their procurement activities to those involving security and janitorial services. We wish to note, however, that this is subject to budgetary requirements as may be required by the Department of Budget and Management (DBM), such as securing a Multi-Year Obligational Authority (MYOA) following DBM Circular-Letter (CL) No. 2015-7 for a multi-year contract involving a project without full budget for the duration of the contract. In the case of Government Owned and/or Controlled Corporation (GOCC), it is prudent to validate if the governing board is authorized to enter into multi-year contracts under GOCC`s enabling law or corporate charter, and if there is an additional budgetary authority, similar to MYOA, required for the purpose.

Procuring entities, such as the MWSS, may enter into Multi-Year Projects that is evidenced by Multi-Year Contracts for any of their procurement activities, subject to compliance with the requirements of a MYOA issued by the DBM; or through a similar document issued and authorized by the MWSS`s Board as may be allowed by its Charter; and/or any other applicable requisites provided by existing laws or corporate charter.