To Approve and Adopt Amendments to GPPB Guidelines on Contract Extension for General Services

January 20, 2006

GPPB RESOLUTION NO. 03-06

TO APPROVE AND ADOPT AMENDMENTS TO GPPB GUIDELINES ON CONTRACT EXTENSION FOR GENERAL SERVICES

WHEREAS, the Government Procurement Policy Board (GPPB) created under Republic Act No. 9184 (R.A. 9184), otherwise known as "Government Procurement Reform Act", issued the GPPB Guidelines on Extension of Contracts for General Services on 28 April 2005 which took effect on 5 July 2005; EHcaDT

WHEREAS, the above-mentioned guidelines govern the extension of ongoing 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;

WHEREAS, provided the conditions for contract extensions have been met under the said guidelines, procuring entities are allowed to extend its existing contracts for general services on a periodic month-to-month basis but not to exceed two (2) months unless otherwise approved by the GPPB;

WHEREAS, in view of the foregoing provision, several requests for approval for contract extension were received by the GPPB for consideration and approval;

WHEREAS, the Inter-Agency Technical Working Group (IATWG) in its meeting on 5 January 2006 recommends that the necessary approval by the GPPB as required under the guidelines be removed and allow procuring entities to assume responsibility in cases where extension of contracts would have to be made beyond the allowable two-month period subject to existing rules and regulations;

WHEREAS, the GPPB in its 1st meeting on 20 January 2006 unanimously agreed to extend the allowable period for contract extension as provided in the Guidelines for Extension of Contracts for General Services from two (2) months to six (6) months; and still require the approval of the GPPB for contract extension beyond six (6) months.

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 amendments to GPPB Guidelines on Extension of Contracts for General Services issued through Resolution No. 08-2005 dated 28 April 2005. CDEaAI

Section 5.1 of the guidelines shall be amended, as follows:

Unless otherwise approved by the GPPB and upon written request by the Procuring Entity, contract extension shall be allowed only on a periodic month-to-month basis not to exceed an aggregate period of six (6) months. The first 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 substantially undertaken 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.

This resolution shall take effect immediately.

APPROVED this 20th of January 2006 at Pasig City, Philippines.

(SGD.) ROMULO L. NERI (SGD.)	AUGUSTO B. SANTOS
Secretary	Secretary
Department of Budget and	National Economic and
Management	Development Authority
(SGD.)
National Economic and	Department of National
Development Authority	Defense
(SGD.)	(SGD.)
Department of Education	Department of Health
(SGD.)	(SGD.)
Department of the Interior	Department of Energy
and Local Government
(SGD.)	(SGD.)
Department of Public Works and Highways	Department of Finance
(SGD.)	(SGD.)
Department of Trade and Industry	Department of Science and Technology
(SGD.)	(SGD.)
Department of Transportation	Private Sector Representative
and Communications
Attested by:
(SGD.) ELMER H. DORADO
OIC Board Secretary, GPPB
Officer-in-Charge, GPPB-TSO