NPM 021-2006

Requesting Entity: National Economic and Development Authority - Region XIII - CARAGA

Issues Concern: Clarification on Section 4 of Republic Act 9184



Whether the procurement of grains by Farm Level Grain Centers (FLGCs), a local business enterprise created by Local Government Units (LGUs) and funded by the Spanish Government, is exempt from the requirements of Republic Act No. 9184 (R.A. 9184).

[T]he procedure for the procurement of grains by the FLGCs shall be governed by the MoA entered into between the Spanish and the Philippine Government as embodied in the approved FLGC Manual of Operations. While R.A. 9184 generally applies to all procurement activities of the government, whether national or local, it is specifically stated in its Section 4 that any treaty or international or executive agreement affecting procurement activities to which the Philippine Government is a signatory shall be observed.

Therefore, FLGCs may be allowed to procure palay grains based on its own procedures in conformity with their Manual of Operations. However, other procurement activities of the FLGCs, such as the procurement of supplies, are subject to the provisions of R.A. 9184.