NPM No. 023-2019

Requesting Entity: Governance Commission for GOCCs-Employees Association

Issues Concern: Procurement Activities Sourced from Collective Negotiation Agreement Incentive



Whether RA No. 9184 and its 2016 revised IRR are applicable in the conduct of procurement activities of the Governance Commission for GOCCs – Employees Association (GCG-EA) funded from the Maintenance and Other Operating Expense (MOOE) savings of the GCG.

At the outset, it bears emphasis that the nature of the funds to be used in the procurement activity is essential in the determination of the applicability of the provisions of RA No. 9184. In the case at hand, the identified basis for the supposed “transfer of funds” from the GCG to the GCG-EA is DBM Budget Circular (BC) No. 2015-00s in relation to Public Sector Labor-Management Council No. 04, s. 2002, which authorizes the use of the thirty (30) percent MOOE savings in a given fiscal year to fund projects for the improvement of the employees` working conditions.

There is nothing in the said provision that authorizes the transfer of funds from the agency to its union.

The HoPE is further authorized to outsource the conduct of procurement if it does not have the proficiency or capability to undertake a particular procurement project by requesting other government agencies, as its procurement agent, to conduct the same on its behalf.

The existing rules do not, however, allow private entities like public sector unions to act as procurement agents as the Government Procurement Policy Board has yet to issue the rules for this purpose.