Guidelines for Infrastructure Procurement via Negotiation and Administration

Applies to National Government Agencies (NGAs), GOCCs, GFIs, SUCs, and Local Government Units (LGUs).
Separately governed guidelines exist for projects by the AFP Corps of Engineers.
Establishes procedural standards for negotiatied procurement under Section 54.2(d) of IRR-A and administration of infrastructure projects.

By Administration: Implementation done directly by agency personnel under agency supervision.
Force Account: Subset of administration where remaining work (≤10% cost and ≤₱2M) contracts out to a qualified contractor with cost-plus markup.
Implementing Agency: Government or government-controlled entities executing the project.
Job-Contractor: Entity responsible for a delegated job under its own supervision.
Job-Order: Short-term employment for piece/lump sum work with duration ≤6 months.
Labor-Only Contractor: Supplies labor without substantial capital or investment, and labor performs duties relating directly to principal business.
Pakyaw: System of hiring labor groups with tools/materials provided by agency and lump sum payment.
Skilled, Semi-skilled, Unskilled Work: Classification based on complexity and required judgment.

Applicable only when immediate action is necessary to address imminent danger or restore vital services caused by calamity/emergency.
Monetary limit: ₱2,000,000 unless presidential approval is granted.
Projects above ₱2,000,000 must use short-listing under Section 54.2(b).
Head of Agency or Local Chief Executive must certify the existence of conditions and justification for negotiated procurement.
Negotiations must be with bona fide contractors from agency registry or local vicinity with prior satisfactory similar contracts.
Transparency ensured via posting on Government Electronic Procurement System (G-EPS) and agency website.

Agency must have completed similar projects by contract or administration of at least 50% value and possess or have access to required equipment.
No use of contractors allowed for works by administration.
Head of agency must certify compliance with conditions before project commencement.
Documentation must include detailed design, equipment and manpower schedules, and equipment leasing MOAs if applicable.
Procurement of tools and equipment follows approved Project Procurement Management Plan (PPMP).
Project approval required from agency head.
Project cost caps: max ₱5,000,000 per project; NGAs/GOCCs/GFIs/SUCs capped at 25% of budget for infrastructure projects; LGUs capped at 50% of infrastructure fund.
Force Account application allows contracting out unfinished portion (≤10% cost and ≤₱2,000,000) to qualified contractors under cost-plus markup; otherwise competitive bidding required.

Manual labor may be performed in-house by personnel, through job-orders, or pakyaw contracting system.
Pakyaw labor groups should be sourced locally from Barangays, municipalities, or province depending on skill level.
Barangay leaders involved in organizing pakyaw labor groups with assistance from a Project Facilitator.
Pakyaw work contracts require competitive selection where applicable, organized into groups to maximize labor participation.
Group leader elected to act on behalf of the group; replacements allowed.
Pakyaw groups must not be regular contractors or linked to labor-only or job-contractors formed for this purpose.
Maximum contract amount per pakyaw group is ₱500,000.

These guidelines repeal GPPB Resolution 08-2004 related to administration or force account projects.
Take effect 15 days after publication in the Official Gazette or a newspaper with nationwide circulation.
Filing of certified copies required with the University of the Philippines Law Center.