Amendment to Lease Guidelines in RA 9184 IRR

Leasing of real property and venue falls under the alternative methods of procurement allowed by Section 53.10 of the 2016 IRR of RA 9184.
Annex H of the 2016 IRR consolidates guidelines for alternative procurement methods, including leases.

At the end-user level within the procuring entity, a cost-benefit analysis (CBA) must be conducted before contract renewal.
- The CBA compares current rental rates with those of other lessors in the area.
- It assesses whether renewing the lease is economically viable when factoring transfer costs and accessibility considerations.
- Consultation with relevant government agencies on new policies or directives regarding leases is encouraged.
Renewal is allowed if the CBA favors the existing lessor; otherwise, the procuring entity must initiate a new lease procurement process in line with Section 53.10 and related guidelines.
Expansion or reduction of leased space during the lease term or renewal is permitted for efficiency, provided the space can meet the entity’s needs and complies with applicable budgeting and auditing regulations.

Renewal of lease contracts does not need to be included in the Annual Procurement Plan (APP).
The amendments were adopted following recommendations from an inter-agency technical working group and the GPPB Technical Support Office.
The amendments aim to align contractual arrangements with government interests, adapt to changes in the procurement landscape, and uphold the principles of RA 9184.

The amendment takes effect 15 days after publication in the Official Gazette or a nationally circulated newspaper.
Three certified true copies of the resolution must be filed with the University of the Philippines Law Center.

The resolution was approved by the Government Procurement Policy Board on May 18, 2018.
Representatives from multiple key government departments and private sector participated in the approval, including Budget and Management, Education, Finance, Health, National Defense, and Trade and Industry.

The integration of cost-benefit analysis as a mandatory step prior to renewal emphasizes fiscal prudence.
Encouragement of inter-agency consultation underscores the dynamic nature of government policy on property leases.
The amendments reiterate the principle of transparency and accountability in public procurement while allowing administrative flexibility.
The specific exemption of lease renewals from the Annual Procurement Plan reduces procedural burdens for routine contract continuations.