AWARDING of contracts may already proceed for programs and projects that underwent early procurement if the amount needed can be covered by the funds available under a reenacted budget, the Department of Budget and Management (DBM) said.
The DBM said a number of contracts for ongoing projects, particularly those that had undertaken early procurement activities (EPA) last year, will be awarded under the reenacted budget this 2019.
Under early procurement, agencies begin their procurement activities, short of award, using figures in the National Expenditure Program (NEP) as basis for amounts specified in their contracts.
Circular 09-2018 issued by the Government Procurement Policy Board guides procuring entities in the award of contract undertaken through the Early Procurement Act. It stipulates that “procurement projects covering recurring activities or projects, hence appropriations therefor are included in both the FY 2018 GAA and FY 2019 NEP, undertaken through EPA under the FY 2019 NEP may be awarded on the basis of the FY 2019 Reenacted Budget.”
It also stated that procuring entities shall not award any procurement project if the amount appropriated under the FY 2019 Reenacted Budget is lower than the amount of contract to be awarded. The DBM pointed out that the circular is “consistent” with its earlier pronouncements that there would be no new projects under a reenacted budget.
The circular states that “[new] activities or projects that are included in the FY 2019 NEP, hence not part of the FY 2018 GAA, may be awarded on the basis of the FY 2019 GAA”. New projects will have to wait until the passing of the GAA before they can have their contracts awarded. We still encourage them, however, to conduct early procurement activities if they have not done so,” Budget Secretary Benjamin E. Diokno said in a statement.