NPM 066-2012

Requesting Entity: Metropolitan Waterworks And Sewerage System (MWSS)

Issues Concern: Commencement of Procurement Activities Prior to Issuance of Certificate of Availability of Funds or Allotment



Whether the MWSS could proceed with the publication of the Invitation to Bid for the procurement of infrastructure projects on the design and strengthening of the Angat Dam and Dyke Project (Project), even without the Certificate of Availability of Funds (CAF) or without an issued allotment.

[U]nder Department of Budget and Management (DBM) Circular No. 2010-9, procuring entities, including Government-Owned and/or Controlled Corporations (GOCCs) that are tapped as implementing units and recipients of fund transfers from the national government, can start undertaking the initial processes of their procurement activities, even without the receipt yet of the allotments issued by the DBM.

x x x However, the procuring entity may issue the notice of award to the winning bidder only upon receipt of the Special Allotment Release Order (SARO) or Agency Budget Matrix (ABM) or upon receipt of actual cash transfer by the GOCC.

Based on the foregoing, we are of the opinion that MWSS may publish the “Invitation to Bid” for the Project even prior to the issuance of the CAF or without an issued allotment. However, we wish to emphasize that it cannot award the contract without the SARO or the CAF.