RMC No. 55-2017: Publishes the full text of National Budget Circular No. 570 entitled “Prescribing Guidelines for Issuance of Multi-Year Obligational Authority (MYOA) for Multi-Year Projects (MYPs) Covering the Procurement of Regular and Recurring Services”

Key points

1. Coverage. The Circular covers national government departments, bureaus, offices, agencies and operating units, including CFAG commissions and offices and State Universities and Colleges, with Multi-Year Contracts approved by the DBM. The services are janitorial and security, water supply, telecommunications, rental of office space and equipment, lease-purchase agreements, and others identified in later issuances.
2. When MYOAs are issued. The DBM issues MYOAs for recurring services only if savings would be generated in a contract exceeding one year, timely delivery would be hampered by annual bidding, or a locked-in contract would be more advantageous to the agency.
3. Request requirements. The agency submits a fully accomplished Request Form for MYOA. It also submits the agency head’s certification that procurement for the project has not started as of the request date.
4. Limits on the contracts. The agency’s liability for a year is limited to available appropriations for that year, and obligations in a calendar year cannot exceed the allotment released. An annual review lets the agency negotiate a lower price if actual cost falls per market analysis, and procurement follows guidelines of the Government Procurement Policy Board and/or DBM.

Who is affected

• National government departments, bureaus, offices, agencies and operating units
• State Universities and Colleges
• Constitutional Fiscal Autonomy Group commissions and offices