2008-09-16

NPM 022-2008

Requesting Entity: Metro Iloilo Water District

Issues Concern: Multi-Year Contract

 

Details

Whether or not multi year contracts for ten (10) years do not violate R.A. 9184 and its IRR-A.

R.A. 9184 and its IRR-A are silent on the issue of multi-year contracts. Nonetheless, for guidance purposes, we would like your good office to take note of the DBM Circular Letter No. 2004-12 dated 27 October 2004 which prescribes the guidelines and procedures for the implementation of multi-year contracts.

Further, we would like to direct the attention of the agency concerned to the corporate charter or legislative franchise, if any, for purposes of determining whether entering into multi-year contracts is among the powers granted to the governing board. Otherwise, such act may be declared ultra vires, at a later time.