NPM 030-2009

Requesting Entity: Mactan-Cebu International Airport Authority

Issues Concern: Multi-Year Contracts



Entering into Multi-Year Contracts other than for Security and Janitorial Services.

R.A. 9184 and its IRR-A are silent on the issue of multi-year contracts. The Guidelines on the other hand, does not make any categorical pronouncement that multi-year contracts may be availed of only in the case of janitorial and security services contracts. Said Guidelines simply state that it shall be applicable to the pronouncement of janitorial and security services.

In addition, Section 23 of the General Provisions of Republic Act No. 9524 or the 2009 General Appropriations Act provides that no agency shall enter into a multi-year contract without securing a Multi-Year Obligational Authority (MYOA) issued by the Department of Budget and Management (DBM) for the purpose. Corollary, the DBM has issued Circular Letter No. 2004-12 dated 27 October 2004 which prescribes the guidelines and procedure for the implementation of multi-year contracts by national government agencies.