NPM 004-2012

Requesting Entity: Laguna Lake Development Authority

Issues Concern: Agency-to-Agency Agreements



Whether the Laguna Lake Development Authority (LLDA) can directly engage the services of the University of the Philippines - Los Baños (UPLB) through UPLB Foundation Incorporated (UPLBFI) for LLDA's project entitled "institutional Strategic and Developmental Agreement for Laguna Lake Water" or "ISDA sa LAWA" Project.

Please be advised that a government entity may engage the services of another government entity, through Negotiated Procurement (Agency-to-Agency), subject to the compliance with the prescribed conditions and procedures under existing rules and the Guidelines on Agency-to-Agency Agreements (Guidelines). The Guidelines require that the government entity to be engaged, referred to as the Servicing Agency, must have the mandate to deliver the required goods and services or to undertake the infrastructure project or consultancy required. In addition, the Servicing Agency should have the necessary tools and equipment required for the project.

Considering that UPLB, being another government entity, provided that it satisfies the definition and requirements of a Servicing Agency under the Guidelines, we are of the view that LLDA may directly engage the UPLB, without need of an intermediary, such as the UPLBFI, upon the former's determination that the conditions and procedures required under the Guidelines are complied with.

It bears stressing, however, that the required service should be undertaken by UPLB, through its key officials and personnel, and not through another entity. If the entity being engaged is a private organization, the LLDA and the UPLB may be considered to be engaging a private entity without the benefit of public bidding.