NPM 050-2009

Requesting Entity: Commission on Audit - Lung Center of the Philippines

Issues Concern: Propriety of Award Thru Negotiated Contract



Seeking guidance on the propriety of the award of the subject project thru negotiated contract pursuant to Section 54.2 (e) of the IRR-A of RA 9184.

Section 53 (d) of IRR-A mandates that Negotiated Procurement where the subject contract is adjacent or contiguous to on-going infrastructure project may be resorted to provided the conditions [enumerated therein] exist.

[This] is without prejudice to existing provisions against splitting of contracts, and in relevant Commission on Audit circulars and issuances on the matter.

Lastly, we concur insofar as stating that the terms "adjacent" and "contiguous" shall be considered synonymous and shall mean that the projects are in actual physical contract with each other, pursuant to Section 54.2 (f) of IRR-A.