Revised Guidelines on the Extension of Contracts for General Support Services

September 28, 2007

GPPB RESOLUTION NO. 23-07

APPROVING AND ADOPTING THE REVISED GUIDELINES ON THE EXTENSION OF CONTRACTS FOR GENERAL SUPPORT SERVICES

WHEREAS, Section 63 of Republic Act No. 9184 (R.A. 9184) and Section 63.1 of the Implementing Rules and Regulations Part A (IRR-A) provide that the Government Procurement Policy Board (GPPB) shall have the power to formulate and amend public procurement policies, rules and regulations, and amend, whenever necessary the IRR-A; ITSacC

WHEREAS, pursuant to such power, the GPPB issued the Guidelines on Extension of Contracts for General Services last 28 April 2005;

WHEREAS, the foregoing guidelines authorize the extension of contracts for general services beyond the allowable period of two (2) months, subject to GPPB approval;

WHEREAS, the GPPB amended said Guidelines to extend the allowable period for contract extension from two (2) months to six (6) months last 20 January 2006;

WHEREAS, the Inter-Agency Technical Working Group, during its 8th and 9th regular meetings held last 17 August and 14 September 2007, respectively, recognized the need to further revise said Guidelines, deliberated on and approved the revisions to the Guidelines, and accordingly recommends them to the GPPB for its approval;

NOW, THEREFORE, premises considered, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE, to approve and adopt the "Revised Guidelines on the Extension of Contracts for General Support Services" attached hereto as Annex A.

This resolution shall take effect immediately.

APPROVED this 28th of September 2007 at Pasig City, Philippines.

(SGD.) ROLANDO G. ANDAYA, JR.Secretary

AUGUSTO B. SANTOSOIC-Director General

 

NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY

DEPARTMENT OF NATIONAL DEFENSE

DEPARTMENT OF EDUCATION

DEPARTMENT OF HEALTH

DEPARTMENT OF THE 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.) RUBY U. ALVAREZ

Board Secretary, GPPB

ANNEX A

REVISED GUIDELINES ON THE EXTENSION OF CONTRACTS FOR GENERAL SUPPORT SERVICES

1.0 POLICY STATEMENT

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

2.0 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 essential, indispensable, or necessary in the operations of a procuring entity. DCESaI

3.0 SCOPE AND APPLICATION

These guidelines shall govern the extension of ongoing contracts of general support services which are essential, indispensable, or necessary to support the operations of any of the procuring entities or for the enhancement of the welfare of its personnel to include, but shall not be limited to, non-personal or contractual services such as maintenance of equipment and furniture, janitorial and security services.

However, these guidelines shall not apply to contracts with water, electricity, telecommunications, and internet service providers, which shall be governed by the Guidelines on Procurement of Water, Electricity, Telecommunications and Internet Service Providers provided issued by the Government Procurement Policy Board under Resolution No. 19-2006, dated 6 December 2006.

4.0 GENERAL CONDITIONS FOR EXTENSION

Procuring entities may extend the duration or effectivity of an ongoing contract about to expire, under the following conditions:

4.1 No contract extension shall exceed one (1) year.

4.2 The original contract subject of the extension was awarded in accordance with the provisions of Republic Act 9184 (R.A. 9184) and its Implementing Rules and Regulations Part A (IRR-A).

4.3 The procuring entity concerned has substantially undertaken the procurement activities required prior to award of the new contract under R.A. 9184 and its IRR-A.

4.4 The aforesaid contract extension is undertaken due to circumstances beyond its control and the procuring entity concerned cannot award a new contract within a month after the expiration of the term of the original contract.

4.5 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. SECHIA

4.6 The current service provider has not violated any of the provisions of the original contract.

4.7 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.

5.0 PROCEDURAL REQUIREMENTS

5.1 All contract extensions shall be subject to the prior approval of the Head of the Procuring Entity or his/her duly authorized representative upon recommendation of the Bids and Awards Committee.

5.2. In addition to the foregoing, if the proposed contract extension exceeds six (6) months, the Head of the Procuring Entity or his/her duly authorized representative shall immediately report to the Government Procurement Policy Board in writing of its intent to extend beyond six months.

6.0 REPEALING CLAUSE

These Guidelines repeal GPPB Resolution 08-2005 and the amendments thereto per GPPB Resolution 03-2006, dated 28 April 2005 and 11 March 2006, respectively.

7.0 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.

Published in The Manila Times on October 26, 2007.