NPM 021-2008

Requesting Entity: DBP Data Center, Inc.

Issues Concern: Definition of Agency under GPPB Resolution 03-2007



1. Whether or not the distinction made by GPPB Resolution 03-2007 between GOCCs incorporated under the Corporation Code and those created by special law is germane to the purpose or rationale of R.A. 9184.

[N]ote the legal opinion of the OGCC that the GPPB, by express provision of R.A. 9184, has the quasi-legislative power to formulate and amend the implementing rules and regulations of R.A. 9184. Such power includes the right to classify as long as the disctinction is germane to the purpose of the law, concerns all members of the class, and applies equally to present and future conditions.

Consequently, applying said conditions to this particular case, the OGCC rules that the distinction between GOCCs formed under the Corporation Code and those with special charters is grounded on the 1987 Constitution and is germane to the declared principle of competitiveness in government procurement under R.A. 9184.

2. Whether or not GPPB Resolution 03-2007 defeats the performance by DCI of its primary mandate to service the information technology requirements of DBP and forces DCI to deal with DBP and other government agencies only through competitive bidding even if no financial prejudice would be incurred in its transactions.

[N]ote that the OGCC has already opined that GOCCs formed udner the Corporation Code may enter into agency-to-agency agreements with another GOCC as long as a parent-subsidiary relationship exists between the two. Thus, contrary to the allegations of DCI, GPPB Resolution 03-2007 does not render nugatory the primary mandate of DCI, which is to service the information technology requirements of DBP, its parent company.