APPENDIX 12
GUIDELINES ON PROCUREMENT OF WATER, ELECTRICITY,
TELECOMMUNICATIONS AND INTERNET SERVICE PROVIDERS
1. SCOPE AND APPLICATION
These guidelines shall govern the procurement of water, electricity, telecommunications (landline and
cellular phone), and internet service providers by government agencies as end users. Section 5 (h) of
Republic Act No. (R.A.) 9184 defines goods as referring to all items, supplies, materials, and general
support services which may be needed in the transaction of public business or in the pursuit of any
government undertaking. Such definition necessarily indudes the procurement of Internet service
providers and public utility services, such as water. electricity, and telecommunication services.
2. PURPOSE
These guidelines are formulated to meet the following objectives:
2.1 Prescribe the appropriate method under R.A. 9184 that applies to the procurement of water,
electricity, telecommunications, and Internet service providers; and
2.2 Provide additional guidelines to ensure that contractual arrangements with service providers
continue to be favorable to the interest of the government applying cost-benefit analysis and, thus,
remain consistent with the principles of R.A. 9184.
3. PROCEDURES AND GUIDELINES
3.1 Water and Electricity Services Considering that water and electricity service providers are
granted exdusive franchises to operate within a specific territory, procurement of water and
electricity services shall be done through direct contracting under Section 50 (c) of the Implementing
Rules and Regulations (IPR)'' of R.A. 9184. This provision does not apply to the purchase of bottled
water or to the procurement by any agency of the government, whether national or local, in its
operation as water or electric concessionaire (e.g. repair of pumping stations). 3.2
Telecommunications(Landline and cellular phones)
3.2.1 Existing lines
Telephone and cellular lines are critical in the day-to-day pursuit of public business. Their
continuity ensures proper coordination within the organization and the efficient delivery of
public service. Further, telephone and cellular numbers are usually identified with certain
government agencies or a range of public services that the government may offer (e.g., 117). As
such: