Question & AnswerQ&A (Resolution NO. 06-2018)
Section 63(b) of Republic Act No. 9184 and Section 63.1(b) of the 2016 revised IRR authorize the GPPB to formulate public procurement policies, rules and regulations, and amend the IRR whenever necessary.
Section 43 provides that the rules and guidelines for the implementation and termination of contracts awarded pursuant to the provisions of the Act shall be prescribed in the IRR.
Section 53.10 allows Negotiated Procurement in the case of Lease of Real Property and Venue, subject to the provisions of Annex H of the 2016 IRR of RA 9184 on Consolidated Guidelines for Alternative Methods of Procurement.
The new provision requires the end-user to conduct a cost-benefit analysis prior to lease contract expiration to assess rental rates and costs, and consult relevant government agencies, and if favorable to the lessor, the Head of the Procuring Entity may renew the lease contract without new procurement.
The CBA must compare rental rates charged by the current lessor against others in the area, analyze whether a new contract is more expensive considering transfer costs and accessibility, and consider any new policies or directives by relevant government agencies.
The procuring entity must procure a new lease contract in accordance with Section 53.10 of the IRR of RA 9184 and the Guidelines on Lease of Real Property and Venue.
No, the renewal of the contract of lease of real property need not be reflected in the APP as clarified by the amended guidelines.
Expansion or reduction may be considered for efficiency and economy provided that the leased premises can accommodate space requirements, are based on the end-user's needs, and subject to existing budgeting, accounting and auditing rules.
The amendment takes effect fifteen (15) days following its publication in the Official Gazette or a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three certified true copies of the resolution.
The amendment was approved by the Government Procurement Policy Board (GPPB), represented by various government departments including Budget and Management, Education, Energy, Finance, Health, Interior and Local Government, National Defense, Science and Technology, Trade and Industry, National Economic and Development Authority, and a Private Sector Representative.