NPM 063-2009

Requesting Entity: Department of Foreign Affairs

Issues Concern: Extension of Health Insurance Contract



1. Whether healthcare insurance is considered general support service.

[T]he definition of "Services" under the Manual of Procedures for the Procurement of Goods and Services (Volume 2 of the Generic Procurement Manuals dated June 2006) also covers "related services" and "analogous services" which shall include, but not be limited to, lease or purchase of office space, media advertisements, health maintenance services, and other services essential to the operation of the procuring entity.

2. Whether the extension of health insurance contracts beyond six months should be approved by the GPPB.

[U]nder the [Revised Guidelines on Extension of Contracts for General Support Services], all contract extensions shall be subject to prior approval of the Head of Procuring Entity or his/her duly authorized representative upon recommendation of the BAC. In the event that the proposed contract extension exceeds six (6) months, what is incumbent upon the Head of the Procuring Entity is to immediately report in writing to GPPB of its intention to extend the said service. The GPPB's approval for such extension, however, is not necessary.