NPM No. 016-2019

Requesting Entity: Department of Labor and Employment (DOLE)

Issues Concern: Direct Financial or Material Assistance



Are raw materials, equipment and tools, and jigs for distribution to the program beneficiaries of DOLE considered a direct financial or material assistance under Section 4.5 (a) of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184?

[T]he grant of direct financial assistance or material assistance to the program beneficiaries is not considered procurement activities which would require public bidding.

Based on the Government Procurement Policy Board issued Circular No. 01-2017, financial assistance is limited to the provision of actual cash or check while material assistance refers to substitutes for cash such as vouchers, stubs, coupons and the like. Thus, the direct grant of cash vouchers, stubs, coupons and similar instruments to the program beneficiaries of DOLE are not subject to the procurement law and rules as there is no procurement activity to begin with.

On the other hand, the procurement of goods, infrastructure projects and consulting services necessary in the implementation of your programs require compliance with the provisions of RA No. 9184 and its 2016 revised IRR.