NPM No. 042-2017
Requesting Entity: Center for International Trade Expositions and Missions (CITEM)
Issues Concern: Multi-Year Contract
Whether CITEM can engage services on a multi-year basis which is similar to the general support services in accordance with the Guidelines on the Procurement of Security and Janitorial Services and Guidelines on the Extension of Contracts for General Support Services.
[F]or recurring project components that are to be procured in a year, albeit separately and repeatedly, the proper recourse to ensure efficiency and faster delivery of CITEM services to its stakeholders is by grouping similar items and procure the same by packages or lots. Procurement of projects by lot is a recognized mechanism under existing government procurement rules. In such a case, the Philippine Bidding Documents (PBD) for the Procurement of Goods, particularly Clause 1.2 of the Instructions to Bidders (ITB) and the corresponding Bid Data Sheet (BDS) provision, requires Procuring Entities (PEs) to provide the name, identification, and number of lots specific to the bidding.
In this regard, it is our considered view that for programs or projects which will not take more than one year to complete and not requiring multi-year appropriations, it is no longer necessary to secure a MYOA from the DBM prior to the bidding of the project. This notwithstanding, we refer you to the DBM, as the agency that issued the Updated Guidelines for Issuance of Multi-Year Obligational Authority (MYOA) for a more authoritative and definitive clarification on the matter.