NPM 062-2007

Requesting Entity: Philippine Health Insurance Corporation

Issues Concern: Extension of Contracts for General Services



1. Is the contract for photocopying services covered by the GPPB Guidelines for the Extension of Contracts for General Services? If so, may the Procuring Entity extend the said contract on periodic month-to-month basis until such time that an award is made, not to exceed an aggregate period of six (6) months?

Considering that photocopying services is necessary for the operation of the Corporation, the extension thereof is covered by the Guidelines for the Extension of Contracts for General Services. However, the Revised Guidelines for the Extension of Contracts for General Services does not provide for retroactive application, hence, any contract extension which your company may have contemplated before 10 November 2007 shall still be governed by the old Guidelines which, in essence, allowed contract extensions on a periodic basis not to exceed six (6) months subject to the conditions in Section 4 thereof.

Under the Revised Guidelines, the period for contract extension has been extended up to one (1) year provided the approval of the head of the procuring entity is first obtained and the conditions and procedural requirements under Sections 4 and 5 thereof are strictly complied with. Further, any intention by the head of the procuring entity or his authorized representative to extend any contract for general services must be immediately reported to the GPPB.

2. Granting the answer to the first question is in the affirmative, does the contract as a product of repeat order qualify under the term "original contract" in which case the Procuring Entity may extend the contract on periodic month-to-month basis, reckoned from the day immediately following the last day of the period of the contract awarded by repeat order?

[I]f the contract was awarded to the service provider through repeat order, said contract cannot be extended in accordance with the Revised Guidelines considering that the contracts that may be extended are only those which have been the result of Competitive Bidding, Limited Source Bidding, or Negotiated Procurement.