NPM 032-2005

Requesting Entity: Department of Budget and Management - Regional Office II

Issues Concern: Applicability of Section 53 (f) of the IRR – A of R.A. 9184



Clarification on the propriety and legality of the application of Section 53 (f) of the Implementing Rules and Regulations Part A (IRR – A) of Republic Act No. 9184 (R.A. 9184) in its activity to engage the services of an individual consultant for the management and operation of the Cagayan Town Center

Having determined and established that the project falls under the contemplation of Section 53 (f), the Provincial Government, it is submitted, may directly negotiate with a qualified individual consultant, subject to the pertinent requirements provided for in R.A. 9184 and its IRR-A. To be clear, general rules in the procurement of consulting services as prescribed in Section 24 of the IRR-A, as to the conditions for the allowance of such procurement and the eligibility of the consultant to be hired, shall be followed to the extent reasonably possible.

However, the provisions regarding eligibility check, under Section 24.7, are not applicable as the same treats merely of the situations where shortlisting and competitive bidding is required and/or is necessary. This is not the situation in the case where the mode of procurement used is negotiation. Notably, Under Sec 53 (f) of the IRR-A, the procuring entity directly negotiates with a consultant of its trust and confidence and/or is known to render highly technical or proprietary consultancy services.

Proceeding from this premise, where negotiations are used as mode of procurement, no bid documents are tendered by any prospective consultant and, therefore, verification, validation or ascertainment of statements made therein may no longer be viable or necessary under the circumstance. This is because, in this case, other than those required to establish expertise or experience in the relevant field, there are no documents to speak of. The eligibility, qualification, appropriate education, training and relevant experience to render the consultancy services are all verified, validated, and ascertained during the negotiations. In other words, the documents required to establish expertise or experience are made subject, not to an eligibility check, but to the negotiations where verification, validation and ascertainment of the same can be made.

Nonetheless, pursuant to Section 8.2.1 of the IRR–A of R.A. 9184, posting shall be made with the G-EPS as to the procurement opportunity and results of the awards, for transparency purposes.