NPM 052-2013

Requesting Entity: Bureau of Internal Revenue (BIR)

Issues Concern: Purchase of Community Tax Certificate (CTC)



Clarification on the appropriate method of procurement for the purchase of CTCs considering that the BIR has exclusive authority to cause the printing and distribution of such to different local government units in accordance with Section 164, Article XI, Book II of RA 7160.

[I]n cases where procurement from another agency of the government is more efficient and economical, Negotiated Procurement under Section 53.5 (Agency-to-Agency Agreements) of the revised Implementing Rules and Regulations of Republic Act No. 9184 may be resorted to. This rule allows a government entity to procure from another government entity without need of public bidding, subject to compliance with the prescribed conditions and procedures under existing rules and the Guidelines on Agency-to-Agency Agreements (Guidelines).

[S]ince Negotiated Procurement under Section 53.5 (Agency-to-Agency Agreement) of the IRR of RA 9184 appears to be the more appropriate method for the procurement of CTC, the procuring entity is advised to comply with the conditions and requirements provided in the Guidelines. As such, the certification from the BIR, as the Servicing Agency, that it has the mandate to deliver the goods required to be procured, and that it owns or has access to necessary tools required for the project must necessarily be obtained by the procuring entity.