Department of Budget and Management (DBM) Acting Secretary Kim Robert de Leon on Thursday pushed for long-term planning and multi-year contracting for government agencies’ recurring needs to prevent supply shortages and service disruptions.
In the latest episode of “A.S.K. – Alamin kay Sec. Kim,” De Leon cited recurring government requirements such as driver’s license cards and passport booklets, saying agencies should anticipate these needs instead of addressing shortages only after supplies run out.
“Kung pangmatagalan ang pangangailangan, dapat marunong din tayong magplano nang pangmatagalan (If the need is long-term, we should also know how to plan for it in the long term),” De Leon said.
He added that multi-year contracts could help government agencies ensure continuous supplies and services while improving procurement planning and efficiency.
He, however, stressed that a longer contract does not automatically mean lower costs.
“Hindi porke mas mahaba ang kontrata, automatic nang mas mura (Just because the contract is longer does not automatically mean it is cheaper),” De Leon said, noting that market conditions and actual costs must still be considered.
De Leon also clarified that multi-year contracts do not give the government a “blank check” to spend the entire contract amount.
He said not every recurring government requirement should automatically be covered by a multi-year contract.
The nature of the requirement, applicable procurement rules, and the arrangement that provides the best value for the government should all be considered, he said.
He added that contract prices may be renegotiated when warranted under applicable rules.
“Long-term ang kontrata. Pero hindi long-term blank check. May budget discipline pa rin every year. May rules pa rin. At may accountability pa rin sa bawat piso (The contract is long-term, but it is not a long-term blank check. There is still budget discipline every year. There are still rules. And there is still accountability for every peso),” he said.
De Leon said better planning should help ensure that government services remain available when Filipinos need them.
Under the New Government Procurement Act, qualified regular and recurring services may also be renewed, subject to applicable conditions and safeguards. (PNA)