2017-12-20

NPM No. 042-2017

Requesting Entity: Center for International Trade Expositions and Missions (CITEM)
Issues Concern: Multi-Year Contract

Details
Whether CITEM can engage services on a multi-year basis which is similar to the general support services in
accordance with the Guidelines on the Procurement of Security and Janitorial Services and Guidelines on
the Extension of Contracts for General Support Services.

[F]or recurring project components that are to be procured in a year, albeit separately and repeatedly, the proper
recourse to ensure efficiency and faster delivery of CITEM services to its stakeholders is by grouping similar items
and procure the same by packages or lots. Procurement of projects by lot is a recognized mechanism under existing
government procurement rules. In such a case, the Philippine Bidding Documents (PBD) for the Procurement of
Goods, particularly Clause 1.2 of the Instructions to Bidders (ITB) and the corresponding Bid Data Sheet (BDS)
provision, requires Procuring Entities (PEs) to provide the name, identification, and number of lots specific to the
bidding.

...

In this regard, it is our considered view that for programs or projects which will not take more than one year to
complete and not requiring multi-year appropriations, it is no longer necessary to secure a MYOA from the DBM prior
to the bidding of the project. This notwithstanding, we refer you to the DBM, as the agency that issued the Updated
Guidelines for Issuance of Multi-Year Obligational Authority (MYOA) for a more authoritative and definitive
clarification on the matter.

Non-Policy Opinions
2014-05-05
NPM 016-2014
Requesting Entity: Department of Health (DOH)
Issues Concern: General Support Services; Multi-year Contracts

Details
Whether general support services other than security and janitorial services may be entered into through a
multi-year contract facility.
Section 2 of the Guidelines on the Procurement of Security and Janitorial Services (Guidelines) explicitly states that it
shall not be applicable to other general support services such as repair and maintenance of equipment and furniture,
trucking, hauling, and other services. The Guidelines only state that multi-year contracts shall be applicable to the
procurement of janitorial and security services.

Non-Policy Opinions
2013-12-27
NPM 127-2013
Requesting Entity: Department of Transportation and Communications (DOTC)
Issues Concern: Definition of General Support Services

Details
Whether encoding services may be deemed included in the definition of general support services.

Republic Act No. (RA) 9184 and its revised Implementing Rules and Regulations (IRR) define Goods to refer to
general support services, including non-personal or contractual services, and related or analogous services. This
definition broadly covers all kinds of similarly natured services that are essential to the operation of the procuring
entity. Moreover, in the Revised Guidelines on the Extension of Contracts for General Support Services, the term
"general support services" is understood to include those services that are essential, indispensable, or necessary to
support the operations of the procuring entity or for the enhancement of the welfare of its personnel, including non-
personal or contractual services.

In this regard, if the encoding services being acquired by DOTC are essential, indispensable, or necessary to support
its operations, then such service may be considered within the coverage of the term "general support services".

Whether DOTC may enter into a contract for encoding services on a multi-year basis.

[T]he Revised Guidelines on Extension of Contracts for General Support Services does not prohibit procuring entities
from entering into contracts on a multi-year basis. It simply provides that contracts for general support services can
be extended, but not to exceed one (1) year for the purpose of averting hiatus in support services essential,
indispensable, or necessary in the operations of a procuring entity.

[T]he General Appropriations Act provides that no agency shall enter into a multi-year contract without securing a
Multi-Year Obligational Authority (MYOA) from the Department of Budget and Management (DBM) following the
provisions of Circular Letter No. 2004-12 dated 27 October 2004.

Accordingly, we wish to clarify that although encoding services may be classified as general support services, DOTC
must have secured a MYOA from DBM for the multi-year contract it entered into for such service in order that it may
be validly renewed.