NPM 072-2004

Requesting Entity: Bureau of Internal Revenue

Issues Concern: Negotiation of Contract Entered Into Prior to the Effectivity of Republic Act 9184 (R.A. 9184) and its Implementing Rules and Regulations Part A (IRR-A)



Request for guidance/clarification on whether the Bureau of Internal Revenue (BIR) may negotiate the multi-year contracts it entered into with the Philippine Computer Associates International, Inc. (PCA) prior to the effectivity of R.A. 9184 and its IRR-A.

As mentioned in the above-quoted provision (Sec. 77, IRR-A), the governing laws, rules and regulations depend on the time the procurement activity is advertised. Hence, having been made prior to the effectivity of R.A. 9184 and its IRR-A, the contract implementation provisions of any of the laws, rules and regulations then applicable shall govern the two (2) multi-year contracts between BIR and PCA.

Moreover, we are of the opinion that the contracts, with a duration of ten (10) and five (5) years, should be considered binding between its parties until such time said contracts are terminated. Any negotiation during such periods shall be governed by the provisions of the contract, supplemented only by procurement laws, rules and regulations then applicable.