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Lease of privately-owned real estate (GPPB 019-2007)

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Lease of privately-owned real estate (GPPB 019-2007)

Post by urbanDRIFTER on Thu Aug 06, 2009 6:18 pm

Hi guys, regarding lease of private buildings and the annual contract of lease is about to expire, does the GOCC have to enter into another public bidding or negiotated procurement (GPPB Reso 019-2007) or can you just renew the contract of lease? Are there any specific guidelines on this that we have to follow?

Thanks in advance for the info.
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Re: Lease of privately-owned real estate (GPPB 019-2007)

Post by engrjhez® on Thu Aug 06, 2009 10:56 pm

urbanDRIFTER wrote:Hi guys, regarding lease of private buildings and the annual contract of lease is about to expire, does the GOCC have to enter into another public bidding or negiotated procurement (GPPB Reso 019-2007) or can you just renew the contract of lease? Are there any specific guidelines on this that we have to follow?

Thanks in advance for the info.

Welcome urbanDRIFTER!

Since the current contract expires soon, you will have to conduct Public Bidding again for the new contract and terms (remember that Public Bidding is a general rule and that Alternative Methods should only be resorted on highly exceptional cases). I believe this step is the most beneficial for any agency at this point. Very Happy
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Re: Lease of privately-owned real estate (GPPB 019-2007)

Post by urbanDRIFTER on Fri Aug 07, 2009 10:45 am

Thank you engrjhez for the quick response!
So if a GOCC or agency would have to conduct public bidding annually (or negotiated procurement if proper under the circumstances), wouldnt it create a hiatus on the part of the agency, or the very least financially onerous if there would be a possibility that the office would be transferred from building to building annually?
Of course the agency will incure leasehold improvement expenses prior to moving at the same time public knowledge of the office has already been established and moving again will mean starting to inform the public again.
I hope you could shed light on this matter. tnx!
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Re: Lease of privately-owned real estate (GPPB 019-2007)

Post by riddler on Fri Aug 07, 2009 11:00 am

urbanDRIFTER wrote:Thank you engrjhez for the quick response!
So if a GOCC or agency would have to conduct public bidding annually (or negotiated procurement if proper under the circumstances), wouldnt it create a hiatus on the part of the agency, or the very least financially onerous if there would be a possibility that the office would be transferred from building to building annually?
Of course the agency will incure leasehold improvement expenses prior to moving at the same time public knowledge of the office has already been established and moving again will mean starting to inform the public again.
I hope you could shed light on this matter. tnx!

I dont think ther are rules that limits the lease COntracts for 1 year, drifter... engrjhez is right, that the cost of leasing an office space shall be subjected to a competitive bidding. But, to spare your agency from transferring from one building space to another building annually... Can you specify a term of Contract Lease to your PBD, say 3-5 years? para di naman uncomfortable sa inyo.
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Re: Lease of privately-owned real estate (GPPB 019-2007)

Post by engrjhez® on Fri Aug 07, 2009 6:49 pm

As engr.ruel pointed out, if the terms would be more advantageous on multi-year contracts, then your decision to have it by 3, 5, 10 or more years shall be of no question. There are specific circulars prohibiting multi-year contracts, but applicable for NGAs only. Please visit this link for more info. Very Happy
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Re: Lease of privately-owned real estate (GPPB 019-2007)

Post by sunriser431 on Sun Aug 09, 2009 9:27 am

For Purpose of Discussion
The provision of EO 301 dated July 26, 1987 is amended,repealed? or still applicable? DECENTRALIZING ACTIONS ON GOVERNMENT NEGOTIATED CONTRACTS, LEASE CONTRACTS AND RECORDS DISPOSAL. For complete txt click this link

http://www.gppb.gov.ph/laws_rules/laws/EO_301-1987.pdf

additional info. click this link [url]http://www.gppb.gov.ph/opinions/view_opinion.asp?o_id=225[/url]
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Re: Lease of privately-owned real estate (GPPB 019-2007)

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