NPM 048-2009

Requesting Entity: DTC - Mactan-Cebu International Airport Authority

Issues Concern: Single Largest Contract



Whether or not the single largest contract requirement of fifty percent (50%) as provided in Section 23.11.2 of the IRR-A may be reduced.

[T]he GPPB had already issued last 22nd of July 2009 its GPPB Resolution No. 03-2009 and took effect last 2nd of September 2009, the IRR of RA 9184 x x x.

Pursuant to Section 23 of the said IRR, a distinction has been introduced on the single largest contract requirement in so far as procurement of goods is concerned. Specifically, for the procurement of services and non-expendable supplies, the single largest contract requirement is retained at fifty percent (50%), while, for expendable supplies, this has been lowered to twenty-five percent (25%).

As exception to the rule stated above, the 50% requirement may be reduced if, at the outset and after market research, applying the general rule will likely result to either to failure of bidding or a monopoly. In this case, the procuring entity may require the submission of at least two (2) similar contracts whose aggregate amount must be at least equivalent to the required percentage, and the largest of the similar contracts of which amounts to at least 50% of the required percentage.

However under Section of IRR the single largest contract requirement for infrastructure projects remains to be 50%, as per Section of the IRR.