NPM No. 011-2018
Requesting Entity: Department Of Labor And Employment (DOLE)
Issues Concern: Direct Financial and Material Assistance
Whether the implementation of DOLE Integrated Livelihood Program and Emergency Employment Program (DILEEP) under direct administration scheme is exempted from the rigorous procurement process pursuant to Section 4.5 of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.
The Government Procurement Policy Board has issued Circular No. 01-2017, dated 9 February 2017, clarifying the term direct financial and material assistance under Section 4.5(a) of the 2016 IRR of RA 9184.
Under the direct administration scheme of DILEEP, raw materials, equipment, tools and jigs are provided to the beneficiaries. These items are classified as goods that are subject to the procurement rules and procedures under RA 9184 and its IRR. According to Section 5 of RA 9184 and its IRR, “goods” refer to all items, supplies, materials and general support services, except Consulting Services and infrastructure projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind, including non-personal or contractual services, such as, the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplies provided by the procuring entity for such services.
Further, raw materials, equipment, tools and jigs do not fall within the definition of the terms financial assistance and material assistance under Section 3.3 of Circular No. 01-2017 as they cannot be equated to actual cash or check, or their substitutes in the form of coupon, stub, guaranty letter, promissory note or voucher that has monetary value. Pointedly, Section 3.5 of the same Circular emphasized that if the direct financial or material assistance takes the form of goods, supplies or items that are to be procured (e.g., relief goods), the same do not fall within the coverage of the cited provision, but is subject to procurement rules and regulations embodied in RA 9184 and its IRR.
From the foregoing, it is our considered opinion that the direct administration scheme of DILEEP does not fall within the ambit of Section 4.5(a) of the 2016 IRR of RA 9184 such that the raw materials, equipment, tools and jigs intended to be provided to the beneficiaries shall be procured in accordance with the procurement rules and regulations embodied in RA 9184 and its IRR. The term “direct financial and material assistance” refers only to actual cash or check, or their substitutes in the form of coupon, stub, guaranty letter, promissory note or voucher that has monetary value.