Purpose of the Guidelines
- Strictly define conditions under which one government agency may procure goods, services, or infrastructure projects from another agency without public bidding.
- These arrangements are known as Agency-to-Agency Agreements under Section 53 (e) of the IRR-A of R.A. 9184.
Scope and Exceptions
- Excludes infrastructure projects undertaken by the Armed Forces of the Philippines Corps of Engineers (AFPCOE), governed separately.
- Excludes procurement of goods from the Procurement Service, which has centralized procurement powers.
Key Definitions
- Cost-benefit Analysis: Assessment comparing the benefits versus implementation costs to guide procurement decisions.
- Procuring Agency: Government units that purchase goods or services or engage other agencies to deliver projects.
- Servicing Agency: The government unit providing goods, infrastructure services, or consulting, except GOCCs with proprietary functions competing with the private sector.
General Conditions for Agency-to-Agency Agreements
- Requires Cost-benefit Analysis proving it to be more efficient and economical.
- Cannot exceed 25% of the Procuring Agency’s total procurement budget for each category (goods, infrastructure, consulting).
- Servicing Agency must have a mandate and necessary tools/equipment to deliver required goods or services.
- For infrastructure:
- The Servicing Agency must have completed or supervised similar projects costing at least 50% of the current project.
- It must not engage private contractors directly or indirectly; work must be done in-house, by job-order, or pakyaw contracting.
- Performance and warranty securities may be required per existing laws.
- All procurement by the Servicing Agency follows R.A. 9184 rules.
- Subject to standard budgeting, accounting, and auditing regulations.
Procedural Requirements
- End-user unit conducts Cost-benefit Analysis considering market costs and agency capacity.
- Certification by Servicing Agency official confirming compliance with prescribed conditions.
- Bids and Awards Committee (BAC) reviews and recommends the Agency-to-Agency procurement.
- The head of Procuring Agency approves the BAC resolution.
- Memorandum of Agreement (MOA) must be signed between agencies, including any provisions on performance and warranty securities.
- Transparency ensured by posting procurement information for seven days on:
- PhilGEPS
- Procuring Agency’s website
- Conspicuous physical locations at the Procuring Agency.
Effectivity
- Guidelines take effect fifteen (15) days after publication in the Official Gazette or a newspaper of general circulation.