2011-05-25

NPM 010-2011

Requesting Entity: Local Government of Quezon City

Issues Concern: Multi-year Contracts by Local Government Units

 

Details

Whether the Local Government of Quezon City may enter into a multi-year contract for the cleaning, collection, and disposal of solid waste within its jurisdiction.

[R]epublic Act No. 9184 and its Implementing Rules and Regulations are silent on the issue of multi-year contract particularly with regard to said services. Nonetheless, it is not to be understood that procuring entities are prohibited from entering into multi-year contracts inasmuch as it is an acceptable form of contractual arrangement. xxx

xxx In this regard, we urge you to validate if your Local Chief Executive is authorized to enter into multi-year contracts, and whether there is no additional budgetary authority required for the purpose. Otherwise, we strongly suggest that the contract of services be procured on a yearly basis.