2013-03-01

PM 01-2013

Requesting Entity: Department of National Defense (DND)

Issues Concern: Applicability of the Revised Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184 to Procurement Activities Covered by Treaty or International or Executive Agreement

 

Details

Whether RA 9184 and its revised IRR do not apply to procurement activities that are covered by a Treaty or International or Executive Agreement pursuant to Section 4 of RA 9184 and its IRR.

RA 9184 and its IRR govern government procurement activities regardless of source of funds, but recognizes the application of any Treaty or International or Executive Agreement, to which the government is a signatory, when such Treaty or International or Executive Agreement expressly provides the use of a set of procurement rules and regulations other than those provided in RA 9184 and its IRR.

Thus, we wish to clarify that government procurement activities covered by a Treaty or International or Executive Agreement are exempted from the application and coverage of RA 9184 and its IRR, and do not need prior approval by the GPPB, including those projects undertaken through any of the alternative modalities amounting to at least PhP 500 Million, when the applicable Treaty or International or Executive Agreement expressly provides the use of rules and regulations other than RA 9184 and its IRR.

At this point, allow us to stress that Executive Order 459, Series of 1997 lays down the policy and rules concerning the negotiation of Treaties, International Agreements, and Executive Agreements, and vests upon the Department of Foreign Affairs the authority to determine whether an agreement is a Treaty or International or Executive Agreement. Hence, in resorting to Section 4 of RA 9184 and its IRR, it is imperative for the procuring entity to establish, through DFA confirmation, that the procurement activity is covered by an agreement that is a Treaty or International or Executive Agreement, and the same agreement expressly provides the use of procurement rules other than RA 9184 and its IRR.