2011-12-28

NPM 040-2011

Requesting Entity: Clark International Airport Corporation

Issues Concern: Guidelines on the Procurement of Security and Janitorial Services and Multi-Year Contracts

 

Details

Clarification on the applicability of the Guidelines on the Procurement of Security and Janitorial Services (Guidelines) to government-owned ľand-controlled corporations (GOCCs), particularly, the option to enter into multi-year contracts for such services.

For your guidance, Section 2 of the Guidelines clearly indicates that it shall apply to all government agencies, without any distinction or qualification. Thus, following the well-recognized rule "ubi lex non distinguit, nec nos distinguire debemus", the Guidelines also applies to GOCCs. Therefore, CIAC is required to follow the Guidelines in its plan to enter into multi-year contracts for its security and janitorial services.

However, considering that DBM has issued DBM Circular 2004-12 prescribing the guidelines and procedures for the implementation of multi-year contracts, we urge you to validate with DBM if said circular applies to CIAC. In addition, "inasmuch as accountability for entering into multi-year contracts solely rests on your Bids and Awards Committee and the Head of Procuring Entity, we urge you to validate if your governing board 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 services be procured on a yearly basis."