NPM 022-2012

Requesting Entity: Bases Conversion and Development Authority

Issues Concern: Negotiated Procurement (Adjacent or Contiguous)



Clarification on the term Consulting Service as used in Section 53.4 of the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184.

For your guidance, the provisions on Negotiated Procurement apply to goods, infrastructure projects, and consulting services where the procuring entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant. In the case of Negotiated Procurement (Adjacent or Contiguous), Section 53.4 of the IRR clearly states that it applies to infrastructure projects and consulting services. Said provision does not qualify or limit the term "consulting service" to those involving infrastructure projects. Hence, we are of the opinion that Negotiated Procurement (Adjacent or Contiguous) may be used to procure all types of consulting services as defined in Section 5(i) of the IRR.

Nature of an Adjacent and Contiguous Contract in Consulting Services.

[W]e wish to clarify that the term "consulting service" as used in Section 53.4 of the IRR is not limited to consulting services related to or implemented alongside infrastructure projects. The nature of an "adjacent or contiguous" contract means that the projects are in actual physical contact with each other in the case of infrastructure projects, and shall refer to a necessary connection between the subject matters, outputs, components or deliverables of the ongoing contract and the contract to be negotiated for purposes of project continuity or completion, in the case of consulting services.