Requesting Entity: Tanay Water District

Issues Concern: Agency-to-Agency Mode of Negotiated Procurement


Whether the Procuring Entity can engage the technical assistance of the Development Academy of the Philippines (DAP) in the development of a Quality Management System (QMS) through Negotiated Procurement under the Agency-to-Agency modality

Pursuant to V.D.5 of the Guidelines, Agency-to-Agency Agreements may only be resorted to if the following conditions are complied with:

i. The Procuring Entity shall justify that entering into an Agency-to-Agency Agreement with the Servicing Agency is more efficient and economical to the government;

ii. Servicing Agency has the mandate to deliver the goods and services required to be procured or to undertake the infrastructure project or consultancy required by the Procuring Agency;

iii. Servicing Agency has the absorptive capacity to undertake the project;

iv. Servicing Agency owns or has access to the necessary tools and equipment required for the project;

v. Sub-contracting is not allowed. However, the servicing agency may implement the infrastructure project in-house, by job-order, or through the pakyaw contracting system; and

vi. For procurement of infrastructure projects, the Servicing Agency must have a track record of having completed, or supervised a project, by administration or by contract, similar to and with a cost of at least fifty percent (50%) of the project at hand. (Emphasis supplied)