Lease of privately owned real estate can be procured thru negotiated procurement.

Another item has been added by the GPPB to the enumeration of the items that can be procured through negotiated procurement under Section 53 of the Implementing Rules and Regulations-A (IRR-A) of RA 9184.

Through Resolution No. 2007-04 dated May 4, 2007, the lease of privately owned real estate for official purpose is now included as one of the instances where a procuring entity can resort to negotiated procurement. Prior to the passage of the said resolution, rental of office space can only be procured through public competitive bidding. But feedbacks from procuring entities revealed that public bidding does not usually result to the most advantageous terms for the government. On the other hand, in resorting to negotiated procurement, agencies are afforded the flexibility to consider factors such as location and building structures as well as providing them control measures to ensure reasonableness of rental rates.

With this resolution, there are now nine (9) instances where negotiated procurement can be applied, namely: failure of bidding for the second time; during state of calamity; take-over of contracts; project that is adjacent or contiguous to an on-going project; purchase of goods from another government agency; hiring of consultants that are highly technical or proprietary, and primarily confidential or policy determining; procurement with prior approval from the President; small value procurement (with ABC of P50,000 and below); and lease of privately owned real estate.