Requesting Entity: Philippine Tourism Promotions Board (PTPB)

Issues Concern: Direct Contracting (Country Brand Campaign)

Details

Whether PTPB could resort to Direct Contracting as an alternative method of procurement under Section 50 of RA 9184 and its IRR in its procurement of services for the development of the country brand campaign concept.

Direct Contracting as an alternative method of procurement under Section 50 of RA 9184 applies only to procurement of goods.

Thus, it is imperative that the procuring entity identify the principal objective and the essential aspect of the service in order to determine the more appropriate nature of the procurement. Should the services be primarily a consultancy service, even though it may include or result in the production of goods, the same would be treated as procurement of consulting services and thus, cannot be acquired through Direct Contracting.

[T]o be able to avail of Direct Contracting, the PTPB should first establish that the services of a firm that will conceptualize, develop, and produce the necessary materials for the country brand campaign is considered procurement of goods. Thereafter, it should identify which of the conditions under Section 50 exists to warrant resort thereto.