Question & AnswerQ&A (GPPB Resolution NO. 18-2007)
The policy rationale is that while the government generally purchases its requirements from the private sector through open and competitive public bidding, in exceptional cases, procurement from another government agency is more efficient and economical, allowing negotiated procurement under Section 53(e).
The guidelines apply to agency-to-agency procurement arrangements under Section 53(e) of the IRR-A of R.A. 9184, excluding infrastructure projects by the AFP Corps of Engineers and procurement of goods from the Procurement Service.
Procuring Agency refers to any units of the government including departments, bureaus, offices, instrumentalities, government-owned or controlled corporations (GOCCs), or local governments, or distinct units thereof that purchase goods or engage services or undertake infrastructure projects.
GOCCs incorporated under Batas Pambansa Blg. 168 or the Corporation Code of the Philippines with proprietary functions enabling them to compete with the private sector are excluded as Servicing Agencies under Section 53(e).
Conditions include a cost-benefit analysis proving efficiency and economy, procurement amount not exceeding 25% of the Procuring Agency's budget per category, Servicing Agency having mandate and access to tools, and for infrastructure projects, additional requirements like previous similar project experience and in-house implementation without private contractors.
The total amount of procurement through Agency-to-Agency Agreements shall not exceed twenty-five percent (25%) of the Procuring Agency's total procurement budget for each category, as reflected in its approved Annual Procurement Plan (APP).
Procedural steps include conducting a cost-benefit analysis by the end-user unit, securing a certificate from the Servicing Agency affirming compliance, BAC resolution recommending the arrangement, approval by the head of the Procuring Agency, and entering into a Memorandum of Agreement (MOA).
General information about the procurement must be posted for seven calendar days in the Philippine Government Electronic Procurement System (PhilGEPS), the Procuring Agency's website and its electronic service provider if any, and any conspicuous place in the Procuring Agency's premises.
No, the Servicing Agency must implement infrastructure projects in-house, by job order, or through the pakyaw contracting system and shall not directly or indirectly engage private contractors.
Yes, the Procuring Agency may require the Servicing Agency to post a performance security under Section 39 and/or a warranty security under Section 62 of R.A. 9184 as agreed in the MOA.