NPM No. 151-2015
Requesting Entity: Philippine Postal Corporation (PhilPOST)
Issues Concern: Multi-year contract
Clarification on the propriety of the contractual arrangement wherein a procuring entity will contract out a multi-year contract service with the Business Process Outsourcing (BPO) companies.
[I]nasmuch as accountability for entering into multi-year contracts solely rests on the Bids and Awards Committee (BAC) and the Head of the Procuring Entity (HOPE), it is prudent to validate if your governing board is authorized to enter into multi-year contracts under the law creating PhilPost, and whether there is no additional budgetary authority, similar to MYOA, required for the purpose. In the event that PhilPost's governing board is not authorized to enter into multi-year contracts, the proposed customer service contract with a BPO should be procured on a yearly basis.