Globe Telecom Internet Exchange (GIX) Service Contract

September 20, 2001 BIR RULING [DA-168-01] MEMORANDUM FOR : Estelita C. Aguirre Deputy Commissioner Resource Management Group FROM : Edmundo P. Guevara Deputy Commissioner Legal and Inspection Group SUBJECT : Globe Telecom Internet Exchange (GIX) Service Contract DATE : August 9, 2001 This refers to your letter, dated July 14, 2001, requesting for counsel on whether or not it is proper for you to sign the Globe Telecom Internet Exchange (GIX) Service Contract considering that the contract pertains to services rendered from April 1, 2000 to December 31, 2000. Please be informed that under Subsection 5.15, Section 5.0 of Executive Order 302 "PROVIDING POLICIES, GUIDELINES, RULES AND REGULATIONS FOR THE PROCUREMENT OF GOODS/SUPPLIES BY THE NATIONAL GOVERNMENT', the successful bidder should execute the contract with the concerned agency within fifteen (15) calendar days upon receipt of the Notice of Award: "5.0 Contract Award and Implementation 5.1.5 The successful bidder should execute the contract with the concerned agency within fifteen (15) calendar days upon receipt of the Notice of Award. Each unsuccessful bidder shall also be notified of the award through official notices/communications. Notice of Award shall be made available to the public when requested." Globe Telecom, Inc. received the Notice of Award, dated March 13, 2000, not later than March 24, 2000, the date it submitted to the PBAC-IT the draft Globe Telecom Internet Exchange (GIX) Service Contract. Therefore, the contract should have been executed not later than April 8, 2000. CAaEDH Premises considered, it is the considered opinion of this Office that it is not proper for you to sign the Globe Telecom Internet Exchange (GIX) Service Contract for the period April 1, 2000 to December 31, 2000. This, however, is without prejudice to the right of Globe Telecom, Inc. to be paid for services actually rendered to the BIR from April 1, 2000 to December 31, 2000. In COA Decision No. 229, dated October 21, 1980, the Commission on Audit ruled: "With all the foregoing facts and circumstances, in line with the recommendation of the Minister of Public Works and since the supplementary contract was executed long after the work was completed, this Commission believes and so holds that the payment in the amount of P93,797.00 only on the basis of quantum meruit may be allowed, in keeping with the time-honored principle that "no one may be permitted to unjustly enrich himself at the expense of another." Records show that during the opening of the technical proposals for the Internet Service of the BIR on February 11, 2000, Globe Telecom, Inc. was the only compliant bidder thus the PBAC-IT recommended that the contract be awarded to it. Records further show that on March 29, 2000, pending the execution of the Globe Telecom Internet Exchange (GIX) Service Contract, Globe Telecom, Inc. was ordered to proceed/start with the internet services in accordance with the Terms of Reference/Technical Specifications so as to prevent interruption thereof considering that the contract of the internet service provider at that time will expire on March 31, 2000. In view of the foregoing facts peculiar to this case, the BIR may pay Globe Telecom, Inc. the agreed price for the internet service provided that there is a certification that the latter actually rendered said service to the BIR from April 1, 2000 to December 31, 2000. IcHDCS (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group