NPM 009-2008

Requesting Entity: City of Iligan

Issues Concern: Splitting of Contracts



Whether or not the separation of the procurement of pipes (goods) from civil works (infra) in the implementation of a water supply project constitutes splitting of contracts as prohibited under Section 54 of the IRR-A of RA 9184.

[T]he proposed scheme does not constitute splitting of contracts. Under Section 54.1 of the IRR-A, splitting of contracts means the division or breaking up into smaller quantities and amounts, or dividing contract implementation into different phases or sub-contracts, for the purpose of evading or circumventing the requirements of RA 9184 or its IRR-A, especially the necessity of public bidding. Since both procurement of pipes and civil works will be conducted through public bidding, their separation does not appear to be for the purpose of circumventing the requirements of RA 9184 nor its IRR-A.