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NPM No. 072 2017

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Cortes Reynaldo Angelito
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17 views3 pages

NPM No. 072 2017

Uploaded by

Cortes Reynaldo Angelito
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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R e p u b I i c of th e P h i I i p p i n es

GOVERNMENT PROCUREMENT POLICY gOARD


TECHNICAL SUPPORT OFFICE

NPN No. 072-2017

21 December 2017

MS. MARV GRACE PASCUAL


Disbursement Division, Financial Accounting Department
BANGKO SENTRAL NG PILIPINAS
A. Mabini St. cor. P. Ocampo St.
Malate, Manila 1004

Re: Acceptabilitv of Non-Policy Matter Opinions -

Dear Ms. Pascual:

This refers to your request for guldance on the applicability of Non-Policy Matter
(NPM) Opinions being issued by the Government Procurement Policy Board-Technical
Support Office (GPPB-TSO), and whether they are acceptable and be considered valid
references in making decisions.

Authority to Issue Non-Policy Matter


Opinions by the GPPB-TSO -

Section 63 of Republic Act (RA) No. 9184 mandates the GPPB as the sole
administrative authority imbued with quasi-legislative and incidental powers to determine the
policy direction in the area of public procurement through the formulation of procurement
rules, regulations and guidelines. In line with this, the GPPB-TSO was created under the
same Section 63 of RA 9184. Section 63.3 of the 2016 revised Implementing Rules and
Regulations (IRR) of RA No. 9184 also mandates the GPPB-TSO to provide research,
technical, and administrative support to the GPPB, including research-based procurement
policy recommendations and rule-drafting, among others.

In this regard, in order to be effective and efficient, the GPPB’s proper and immediate
response to requests for opinions and/or comments was made through the CPPB-TSO’s
issuance of Non-Policy Matter (NPM) Opinions. Thus, the GPPB, pursuant to Resolution No.
03-2003, dated 26 May 2003, authorized the GPPB-TSO, through its Executive Director, to
issue NPM Opinions in response to requests of National and Local Government Agencles
dealing with non-policy procurement related matters or issues, or technical applications of
the procurement niles and regulations.

Accordingly, Non-Policy Matter Opinions are being issued by the GPPB-TSO


pursuant to the authority granted by the GPPB, in accordance with the latter's quasi-
legislative power and mandate to determlne policy direction in the area of government
procurement through the formulation of procurement rules, regulations and guidelines.

Unit 2506 Raffles Corporate Center, F. Ortigas)r. Road, Ortigas Center, Pasig City, Philippines 1605
(02) 900-674) to 44 www.gppb.gov.ph * gppb@gppb.gov.ph
Interpretation of Administrative Agencies
Accorded great respect bv the Courts -

The opinions of the GPPB-TSO can be given weight with regard to the interpretation
of RA 9184 and its 2016 Revised IRR. In the case of Pest Management Association of the
Philippines v. Fertilizer and Pesticide Authority, ct al., the Honorable Supreme Court
emphasized that “[t]he lnterpretation of an administrative government agency, which is
tasked to implement a statute is generally accorded great respect and ordinarily controls the
construction of the courts.”

The underlying reason for this rule was explained in Nestle Philippines, Inc. v. Court
ofAppeals' in this wise:

The rationale for this rule relates not only to the emergence of the
multifarious needs of a modem or modernlzing society and the establishment
of diverse administrative agencies for addressing and satisfying those needs; it
also relates to the accumulation of experience and growth of specialized
capabilities by the administrative agency charged with implementing a
particular statute. In AstuTias Sugar Central, Inc. vs. Commissioner of
Customs2, the Court stressed that executive officials are presumed to have
familiarized themselves with all the considerations pertinent to the
meaning and purpose of the law, and to have formed an independent,
conscientious and competent expert opinion thereon. The courts give
much weight to the government agency officials charged with the
implementation of the law, their competence, expertness, experience and
informed judgment, and the fact that they frequently are the drafters of
the law they interpret." (Emphasis supplied)

All told, NPM Opinions issued by the GPPB-TSO are not in the nature of laws or
court decisions that would have for its effect the application of the principle of stare decisis
(adherence to precedents), but these are opinions rendered by the agency based on careful
study, research and application of the tenets and crucibles of the procurement law and its
allied rules and regulations. Since the GPPB-TSO is tasked to provide research, technical,
and administrative support to the GPPB including research-based procurement policy
recommendations and rule-drafting, among others, its NPM Opinions can be accorded great
respect considering the knowledge, experience and expertise the agency gained in the
application and interpretation of the law; including the formulation of the ensuing rules and
allied guidelines where its participation was instrumental.

In sum, we wish to stress the following:

1. Non-Policy Matter Opinions are being issued by the GPPB-TSO pursuant


to the authority granted by the GPPB, ln accordance with the latter's
quasi-legislative power and mandate to determine policy direction in the
area of government procurement through the formulation of procurement
rules, regulations and guidelines; and

' Nestle Philippines, Inc., vs. Court ofA ppeals and Securities and Exchange Commission, G.R. No. 86738,
November 13, 1991.
2
29 SCRA 617 (1969).
2. The Non-Policy Matter Opinions of the Government Procurement Policy
Board - Technical Support Office can be accorded great respect
considering the knowledge, experience and expertise the agency gained in
the application and interpretation of the law; including the formulation of
the ensuing rules and allied guidelines where lts participation was
instrumental.

We hope this opinion issued by the GPPB-TSO provided sufficient guidance on the
matter. Note that this is issued on the basis of particular facts and situations presented, and
may not be applicable given a different set of facts and circumstances. Should you have
further questions, please do not hesitate to contact as.

Very truly yours,

TIAGO
x"eculive Director V

/‘/sd

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