Approving and Adopting the Guidelines for Extension of Contracts for General Services

April 28, 2005

GPPB RESOLUTION NO. 08-05

APPROVING AND ADOPTING THE GUIDELINES FOR EXTENSION OF CONTRACTS FOR GENERAL SERVICES

WHEREAS, Republic Act No. 9184 (R.A. 9184), otherwise known as "Government Procurement Reform Act" and its Implementing Rules and Regulations Part A (IRR-A) took effect on 26 January 2003 and 08 October respectively; HcISTE

WHEREAS, Section 63.1 of the IRR-A of R.A. 9184 provides that the Government Procurement Policy Board (GPPB), as established in Section 63 of R.A. 9184 shall have the power to formulate and amend public procurement policies, rules and regulations, and amend, whenever necessary the IRR-A;

WHEREAS, there is a need to prescribe the rules and procedures to govern situations wherein contracts of general services entered into by government agencies warrant contract extension for the purpose of averting hiatus in support services for the operations of procuring entity as an emergency measure and to avoid interruption of government service;

WHEREAS, the members of the Technical Working Group of the GPPB during its meeting held on 26 April 2005 reviewed the draft Guidelines for Extension of Contracts for General Services and recommends that these Guidelines be submitted to the GPPB for review and approval;

WHEREAS, during the 4th GPPB meeting held on 28 April 2005 at Unit 2506 Raffles Corporate Center, F. Ortigas Jr. Ave., Ortigas Center, Pasig City, the Members of the Board discussed, considered and unanimously agreed to approve and adopt the Guidelines for Extension of Contracts for General Services, a copy of which is attached hereto as Annex "A" to form an integral part hereof; and

NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested in Us by law, hereby RESOLVE to approve and adopt the GUIDELINES FOR EXTENSION OF CONTRACTS FOR GENERAL SERVICES, attached hereto as Annex "A".

This resolution shall take effect immediately.

APPROVED this 28th day of April, 2005 at Pasig City, Philippines

(SGD.) EMILIA T. BONCODINSecretary

ROMULO L. NERIDirector General

NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY

DEPARTMENT OF NATIONAL DEFENSE

DEPARTMENT OF EDUCATION

DEPARTMENT OF HEALTH

DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT

DEPARTMENT OF ENERGY

DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

DEPARTMENT OF FINANCE

DEPARTMENT OF TRADE AND INDUSTRY

DEPARTMENT OF SCIENCE AND TECHNOLOGY

DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS

PRIVATE SECTOR REPRESENTATIVE

Attested by:

(SGD.) JOSE MARTIN C. SYQUIA

Board Secretary, GPPB

Executive Director, GPPB-TSO

GUIDELINES FOR THE EXTENSION OF CONTRACTS FOR GENERAL SERVICES

1.0 POLICY STATEMENT

As a general policy, extensions of contracts for general services are discouraged.

2.0 SCOPE

These guidelines shall govern the extension of on-going contracts of general services which are essential, indispensable, or necessary to support the operation of the Procuring Entity or for the enhancement of the welfare of its personnel to include, but shall not be limited to, services such as equipment maintenance, janitorial and security services, and internet and telephone services.

3.0 PURPOSE

These guidelines are formulated to identify the conditions for the allowance of contract extension and to prescribe the rules and procedures governing the same, for the purpose of averting hiatus in support services indispensable in the operations of a procuring entity.

4.0 CONDITIONS FOR EXTENSION

4.1 The Head of the Procuring Entity may extend the duration or effectivity of an on-going contract about to expire, under the following conditions:

a. The original contract subject of the extension was awarded as a result of competitive bidding, Limited Source Bidding or Negotiated Procurement, when appropriate, duly and lawfully undertaken by the procuring entity pursuant to the provisions of Republic Act 9184 (R.A. 9184). CSaITD

b. There should be a certification by the Head of the Procuring Entity or his duly authorized representative that it has substantially undertaken the procurement activities required prior to award under R.A. 9184.

c. The Head of the Procuring Entity or his duly authorized representative certifies that, due to circumstances beyond its control, it cannot award a new contract within a month after the expiration of the term of the original contract.

4.2 In any case, the Head of the Procuring Entity or his duly authorized representative, shall certify that the contemplated extension is merely an emergency measure to maintain status quo in the operations of the Procuring Entity and to avoid interruption of service.

5.0 RULES FOR EXTENSION

5.1 Unless otherwise approved by the Government Procurement Policy Board (GPPB) and upon written request of the Procuring Entity, contract extension shall be allowed only on a periodic month-to-month basis not to exceed an aggregate period of two (2) months. The monthly extension shall reckon from the day immediately following the last day of the period of the original contract; provided, that the Procuring Entity, prior to that date, has completed all procurement activities required prior to award. Succeeding monthly extensions shall reckon from the day immediately following the last day of the period of the preceding monthly extension.

5.2 Any contract extension must be subject to the condition that the service provider has not violated any of the provisions of the original contract.

5.3 The Procuring Entity shall ensure the expeditious completion of the procurement process.

5.4 The terms and conditions of the original contract shall not be changed or modified, except when changes or modifications will redound to the advantage of the government at no additional cost to the Procuring Entity.

5.5 No further contract extension shall be allowed after the Procuring Entity shall have issued the Notice to Proceed in favor of the contract awardee except to complete the period of the original contract or the agreed period of the extension. The Procuring Entity shall ensure that contract periods of the renewed contract and the new contract shall not overlap.

6.0 EFFECTIVITY

These guidelines or any amendments hereto shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines. ECaSIT