NPM 139-2012

Requesting Entity: Bureau of Internal Revenue (BIR)

Issues Concern: Printing of Fuson Stamps



Whether the Implementing Guidelines on Agency-to-Agency Agreements (Guidelines) apply to BIR's engagement of the services of APO Production Unit (APO) for the Printing of Secured Fuson Stamps (Project) to be affixed on each manufactured pack of cigars and cigarettes, wherein the BIR will not pay anything to APO, and instead will allow APO to recoup and recover its investment through the sale of the fuson stamps to Cigarette and Tobacco Manufacturers.

[T]he arrangement being pursued by BIR and APO involves more of a Principal-Agent relationship, which is outside the ambit of Republic Act 9184 and its revised Implementing Rules and Regulations, rather than the acquisition of services from another Agency of the government rightfully contemplated under an Agency-to-Agency procurement setup. In this regard, the engagement of APO need not be governed by the Guidelines.