NPM No. 134-2017


Issues Concern: Head of the Procuring Entity; Procurement Outsourcing



Clarification on who is considered the Head of the Procuring Entity (HoPE) in a case where the project of procurement of goods or services of a government department, office or agency funded from its own budget is done or coursed through PS-DBM or PITC under an agreement where the latter is tasked to conduct the public bidding and other related activities for such procurement.

Under Section 7.3.3 of the 2016 revised IRR of RA 9184, where the Procuring Entity does not have the proficiency or capability to undertake a particular procurement, as determined by the HoPE concerned, it may outsource the procurement tasks by requesting other GoP agencies to undertake such procurement for them, through the execution of a memorandum of agreement containing specific arrangements, stipulations and covenants, in accordance with government budgeting, accounting and auditing rules.

From the foregoing, in case the Procuring Entity outsource its procurement tasks, the HoPE remains that of the Procuring Entity, unless the functions of the HoPE were likewise delegated to the Head of the other GoP agency, as specified in the memorandum of agreement, subject to existing government budgeting, accounting and auditing rules.