COMMISSION ON AUDIT MEMORANDUM NO. 98-034 November 6, 1998
TO
:
All COA Assistant Commissioners, COA Directors of Central and Regional
Offices, Heads of Auditing Units/Teams and All Others Concerned.
SUBJECT:
Amendments to the Guidelines on the Procurement of Consulting for
Government Projects (Implementing Rules and Regulations) Approved by the
NEDA Board.
For the guidance and information of all concerned, enclosed is a copy of the
Amendments to the Guidelines on the Procurement of Consulting Services for Government
Projects duly approved by the NEDA Board. These amendments were disseminated by the
Secretary of Socio-Economic Planning and Chairman of the NEDA Committee on Infrastructure
(INFRACOM) in a letter dated 26 October 1998. These amended guidelines shall become
effective ten (10) days from the date of the dissemination thereof.
By Authority of the Chairman:
(SGD.) SOFRONIO B. URSAL, Commissioner, OIC
PROPOSED AMENDMENTS TO THE GUIDELINES ON THE PROCUREMENT OF
CONSULTING SERVICES FOR GOVERNMENT PROJECTS
(IMPLEMENTING RULES AND REGULATIONS)
EXISTING PROVISION:
1.
Document Title
Guidelines on the Procurement of Consulting Services for Government Projects
(Implementing Rules and Regulations)
2.
Sec. 3.1
Creation of PEAC
3.1.2(d) Member (provisional) - at least two (2), with experience in the type of
project/activity where consultancy is required, duly designated by the Head of the
department/office/agency local government unit on a project to project basis
3.
Sec. 3.3
Organization of Consultants
3.3.1 The umbrella organization of consultant recognized by the government shall be
composed of the various organizations of consultants who may be engaged by the
government...The government may consult and deal with this umbrella organization on
matters relating to the industry.
4.
Sec. 5.2
Announcement of Project for Consulting Services
5.
Sec. 5.4
Processing of Prequalification Statements/Forms
5.4.1 The prequalification statements shall be evaluated by the PEAC to determine the
short list of Consultants who will be invited to submit proposals. The short list shall
consist of three (3) to seven (7) firms, with five (5) as the preferable number.
6.
Sec. 5.5
5.5.2
8.
The invitation shall generally include the following:
Sec. 5.6
5.6.1
Invitation for Proposals
Evaluation of Technical Proposals
The Technical proposals shall be evaluated based on the following criteria:
a.
Quality of personnel to be assigned to the project which covers suitability
of key staff to perform the duties of the particular assignments and general
qualifications and competence including education and training of key staff.
b.
Experience and capability of the Consultants which includes records of
previous engagement and quality of performance in similar and in other projects,
relationship with previous and current clients; and overall work commitments,
geographical distribution of current/impending projects and attention to be given
by the Consultant.
c.
Plan of approach and methodology with emphasis on the substance of
the proposal as to the plan of approach and interpretation of project problems
and solutions.
9.
5.6.2 For the evaluation of proposals, numerical ratings shall be used along the lines
shown in Appendix "D" - "Criteria for Selection of Consultants."
10.
5.6.3 The evaluation of proposals shall be completed within forty-five (45) days,
depending on the size and complexity of the project, after the closing date for receipt of
proposals.
11.
5.6.4 The PEAC shall submit the results of its evaluation and recommend the ranking
in descending order of the Consultants to the Secretary/Agency Head (for those not
attached to a department)/governing boards of government owned or controlled
corporations (GOCC)/boards or councils of local government units for
consideration/approval within five (5) working days after the evaluation of the proposals
shall have been completed. In case of foreign-assisted projects, the results of the
evaluation together with the criteria used shall be submitted to the foreign financial
institutions as required/agreed upon within five (5) working days after approval of the
same by the Secretary/Agency Head (for those not attached to a department)/governing
boards of GOCCs/Boards or councils of local government units. In line with item (d) of
the policy objectives, short-listed consultants shall likewise be furnished and other
interested parties shall be given access to the results of the evaluation after the
approval of the resolution of the award.
13.
Sec. 5.7
Two-Envelope System
5.7.1
As a general policy, the selection of Consultants shall be made on the criteria
described above without consideration of the estimated cost or financial terms of the
services. A two-stage procedure shall be adopted whereby each Consultant is required
to submit his technical and priced or financial proposals simultaneously in separate
sealed envelopes. The financial proposal for the first in rank, Consultant shall be
opened only after the ranking has been established and approved. When the
negotiation with the first in rank Consultant fails, the financial proposal of the second in
rank Consultant shall be opened and so on; provided that the amount indicated in the
envelope shall be made as the basis of the subsequent negotiations and the total
contract amount shall not exceed the amount indicated in the envelope.
16.
Sec. 5.10 Direct Selection/Negotiation
5.10.1
Direct selection/negotiation of consultants as may be differentiated from the
usual open competitive selection procedure may be conducted only when any of the
following conditions exists and the implementing department/office/agency/
corporation/local government unit is not capable of undertaking the project by
administration and upon approval by the head of agency/office or other appropriate
authority:
18.
a.
In times of emergencies or when time is of the essence arising from
natural calamities or other causes where immediate action is necessary
to prevent loss of life and/or property/resources or to comply with
commitments
c.
Take-over of consultancy contracts which have been rescinded or
terminated partly or wholly.
Sec. 5.11 Administrative Recourse in Cases of Misrepresentation
5.11.1
The department/agency/corporation shall have a right of administrative
recourse or action, as herein below specified, against any Consultant who is found to
have committed any of the following acts, among others.
a)
Misrepresentation of any information in the sworn prequalification
statements to be submitted to the PEAC in accordance with Section 3.2 of these
Guidelines;
b)
Misrepresentation of information in the technical proposal with respect to
qualification and experience of personnel to be assigned to the undertakings;
and
20.
Sec 6.2
Salaries or Billing Rates
22.
Sec. 8.2
Performance Guarantee
To guarantee the faithful performance of the consultant under contract,
the final payment shall be withheld until after a certificate of completion indicating
satisfactory completion of the consultancy services shall have been issued by
the concerned government agency.
23.
Sec. 8.3
Extension of Services under Supplemental Agreement
The services of the Consultant may be extended for the performance of
additional work (man-months) not covered under the original agreement through
supplemental agreement. The remuneration to the Consultant for the additional
man-months shall be governed by the provisions of the original agreement. The
terms and conditions of the original agreement for the performance of the
additional services shall also govern. Under no circumstances, however, shall
supplemental agreements be entered into for more than two consecutive
duration. Procurement of consulting services after a second supplemental
agreement shall be done through the usual process of procurement of consulting
services as if the services are to be needed for the first time.
24.
APPENDIX B, CRITERIA FOR SHORT LISTING OF CONSULTANTS
The percentage/weights shown herein serve only as illustrative examples.
The percentages/weights to be used shall be at the discretion of the
department/office/agency/corporation/local
government
unit
concerned
depending on the complexity of the project. The actual percentages/weights to
be used in short-listing the consultants shall be indicated in the Letter of
Invitation.
PROPOSED AMENDMENTS:
1.
Change document title to:
IMPLEMENTING RULES AND REGULATIONS on the Procurement of Consulting
Services for Government Projects
2.
Amend as follows:
3.1.2 (d) Member (provisional) - at least two (2), ONE OF WHOM SHOULD BE THE
END-USER OF THE SERVICES with experience in the type of project/activity where
consultancy is required, duly designated by the Head of the department/office/agency
local government unit on a project to project basis
3.
Add the following phrase after the last line of Sec. 3.3.1:
THE NEDA COMMITTEE ON INFRASTRUCTURE SHALL BE THE APPROPRIATE
GOVERNMENT BODY THAT SHALL RECOGNIZE THE CONSULTANTS UMBRELLA
ORGANIZATION.
4.
Add the following as Sec. 5.2.2
FOR PROJECTS/CONTRACTS FOR CONSULTING SERVICES WITH A VALUE OF
P300,000 BELOW AND/OR THOSE WHOSE DURATION IS LESS THAN 4 MONTHS,
PROCURING ENTITIES NEED NOT RESORT TO PUBLISHED INVITATION.
HOWEVER, SPLITTING OF CONTRACTS TO AVOID THE PUBLICATION
REQUIREMENT IS PROHIBITED. THE PROJECT SHOULD BE POSTED ON
BULLETIN BOARDS OR ANY CONSPICUOUS PLACE WITHIN THE PREMISES OF
THE CONCERNED AGENCIES AND AT LEAST THREE (3) FIRMS SHALL BE
INVITED TO SUBMIT COMPLETE PROPOSALS.
5.
Add the following after the last line of Sec. 5.4.1:
IF THERE IS ONLY ONE PREQUALIFIED FIRM, THE AGENCY WILL HAVE THE
OPTION TO INVITE THAT FIRM TO SUBMIT A PROPOSAL OR DIRECTLY INVITE
OTHER CONSULTING FIRMS.
6.
Delete the word "generally"
7.
Add as new provision:
SEC.5.5.3 IN CASE ONLY ONE SHORTLISTED CONSULTANT SUBMITS ITS
TECHNICAL AND FINANCIAL PROPOSAL, THE PEAC HAS THE OPTION TO
DECLARE THE SELECTION PROCESS A FAILURE OR CONSIDER THE LONE
PROPOSAL FOR AWARD PROVIDED IT PASSES THE EVALUATION.
8.
Add after 5.6.1:
FOR COMPLEX UNDERTAKINGS, SPECIALLY THOSE INVOLVING NEW
CONCEPTS/TECHNOLOGY, PARTICIPATING SHORT-LISTED CONSULTANTS/
CONSULTING FIRMS MAY BE REQUIRED, AT THE OPTION OF THE
CLIENT/INVITING AGENCY, TO MAKE AN ORAL PRESENTATION TO BE
PRESENTED BY THE NOMINATED PROJECT MANAGER OR THE HEAD OF THE
CONSULTANTS/CONSULTING FIRMS WITHIN FIFTEEN (15) DAYS AFTER THE
DEADLINE FOR SUBMISSION OF TECHNICAL PROPOSALS.
9.
Insert after the last line of Sec. 5.6.2:
IN THE EVALUATION OF THE TECHNICAL PROPOSALS, THE HIGHEST AND
LOWEST SCORES OF A FIRM FOR EACH CRITERION SHALL NOT BE
CONSIDERED IN DETERMINING THE TOTAL SCORES OF THE CONSULTANTS.
10.
Amend Sec.5.6.3 as follows:
5.6.3 AFTER THE PROPOSALS HAVE BEEN SUBMITTED TO THE PEAC AND
DURING THE EVALUATION PERIOD, LOCAL OR FOREIGN CONSULTANCY FIRMS
WHICH HAVE SUBMITTED THEIR OWN PROPOSALS ARE PROHIBITED FROM
MAKING ANY KING OF COMMUNICATION WITH ANY PEAC MEMBERS INCLUDING
ITS STAFF AND PERSONNEL REGARDING MATTERS CONNECTED TO THEIR
PROPOSALS. The evaluation of the Technical Proposals shall be completed in NOT
MORE THAN THIRTY (30) DAYS AFTER THE DEADLINE for receipt of proposals.
11.
Insert after first sentence:
THE SECRETARY/AGENCY HEAD/GOVERNING BOARDS OF GOVERNMENT
OWNED OR CONTROLLED CORPORATIONS/BOARDS OR COUNCILS OF LOCAL
GOVERNMENT UNITS SHALL APPROVE/DISAPPROVE THE RECOMMENDATIONS
OF THE PEAC WITHIN FIFTEEN (15) DAYS AFTER RECEIPT OF THE RESULTS OF
THE EVALUATION OF TECHNICAL PROPOSALS FROM THE PEAC.
12.
Add as new provision:
SEC. 5.6.5 NEDA, THE UMBRELLA ORGANIZATION OF CONSULTANTS, AND ALL
PARTICIPATING SHORT-LISTED CONSULTANTS/CONSULTING FIRMS SHALL BE
FURNISHED THE RESULTS (RANKING AND TOTAL SCORES ONLY) OF THE
EVALUATION AFTER THE APPROVAL BY THE HEAD OF OFFICE.
13.
Retitle 5.7 from "Two-Envelope System" to "Consultant Selection Procedure" and insert
the following as 5.7.1:
AS A GENERAL POLICY, THE SECRETARY/AGENCY HEAD (FOR THOSE NOT
ATTACHED TO A DEPARTMENT)/GOVERNING BOARDS OF GOCCS/BOARDS OR
COUNCILS OF LOCAL GOVERNMENT UNITS SHALL HAVE THE OPTION AS TO
THE SELECTION PROCEDURE (QUALITY-BASED OR QUALITY COST BASED) TO
BE ADOPTED WHICH SHALL BE DISCLOSED IN THE ADVERTISEMENT.
5.7.1 becomes 5.7.2 and amend as follows:
FOR THE QUALITY-BASED SELECTION PROCEDURE, the selection of Consultant
shall be made based only on the criteria described above without consideration of the
estimated cost or financial terms of the services. A two-stage procedure shall be
adopted whereby each Consultant...
5.7.3 becomes 5.7.4 and amend as follows:
FOR THE QUALITY-COST BASED SELECTION PROCEDURE, THE FINANCIAL
PROPOSAL TOGETHER WITH THE TECHNICAL PROPOSAL SHALL BE
CONSIDERED IN THE SELECTION OF CONSULTANTS. THE FINANCIAL AND
TECHNICAL PROPOSALS SHALL BE GIVEN CORRESPONDING WEIGHTS WITH
THE FINANCIAL PROPOSAL GIVEN A WEIGHT OF 25% UP TO A MAXIMUM OF
50%. THIS SHALL BE INDICATED IN THE INVITATION TO SUBMIT PROPOSALS
OR INCLUDED IN THE TERMS OF REFERENCE. THE EXACT WEIGHT IS TO BE
APPROVED BY THE HEAD OF AGENCY UPON THE RECOMMENDATION OF THE
PEAC. THE WEIGHT OF THE TECHNICAL CRITERIA INDICATED IN APPENDIX D
OF THESE GUIDELINES SHALL BE ADJUSTED ACCORDINGLY SUCH THAT THEIR
TOTAL WEIGHT IN PERCENT TOGETHER WITH THE WEIGHT IN PERCENT
TOGETHER WITH THE WEIGHT GIVEN TO THE FINANCIAL PROPOSAL SHALL
ADD UP TO ONE HUNDRED PERCENT (100%). SUBSEQUEST NEGOTIATIONS
WITH THE FIRST IN RANK CONSULTANT SHALL NO LONGER BE PURSUED AS
THE COST HAS ALREADY BEEN CONSIDERED IN THE EVALUATION. FIRMS
WHOSE FINANCIAL PROPOSAL EXCEEDS THE PUBLISHED AGENCY BUDGET
SHALL AUTOMATICALLY BE DISQUALIFIED.
15.
5.7.2 becomes 5.7.3 and add the following after the last sentence:
THERE SHOULD ABSOLUTELY BE NO REPLACEMENT OF PERSONNEL BEFORE
THE AWARDING OF CONTRACT UNLESS THE DELAY IN THE SELECTION
PROCESS IS DUE TO THE FAULT OF THE GOVERNMENT. THE AGENCY SHALL
IMMEDIATELY CONSIDER NEGOTIATION WITH THE NEXT RANKED FIRM IF
REPLACEMENT OF PERSONNEL BY THE FIRST RANKED FIRM IS CONDUCTED.
ONCE THE CONTRACT HAS BEEN AWARDED, NO REPLACEMENT SHALL BE
ALLOWED UNTIL AFTER 50% OF THE PERSONNEL'S MAN-MONTHS HAS BEEN
SERVED. VIOLATORS WOULD BE FINED WITH THE REFUND OF THE REPLACED
PERSONNEL'S BASIC RATE AND SHOULD NOT BE LESS THAN 50% OF THE
TOTAL BASIC RATE FOR THE DURATION OF THE ENGAGEMENT.
16.
Amend as follows:
a.
In times of emergencies or when time is of the essence, AS CERTIFIED
BY THE DEPARTMENT SECRETARY AND UPON THE RECOMMENDATION
OF THE DEPARTMENT'S PEAC.
c.
Take-over of consultancy contracts which have been rescinded or
terminated partly or wholly, BY GIVING THE RIGHT OF FIRST REFUSAL TO
CONSULTANTS/CONSULTING FIRMS WHICH PARTICIPATED IN THE
ORIGINAL COMPETITIVE SELECTION IN ORDER OF RANKING.
18.
Amend as follows:
5.11.1
The department/agency/corporation shall have a right of administrative
recourse/IMPOSE THE FOLLOWING ADMINISTRATIVE SANCTIONS, ON
COMMITTED OFFENSES/VIOLATIONS DURING THE PREQUALIFICATION,
EVALUATION, AWARD, AND WORK PROSECUTION:
20.
a)
DISQUALIFICATION FROM THE SELECTION PROCESS FOR A PERIOD
OF TWO (2) YEARS FOR THE FIRST OFFENSE AND PERPETUAL
DISQUALIFICATION
FOR
THE
SECOND
OFFENSE
ON
MISREPRESENTATION OF ANY INFORMATION IN THE SWORN
PREQUALIFICATION STATEMENTS, TECHNICAL AND FINANCIAL
PROPOSALS, SUCH AS FALSIFICATION OF DOCUMENTS/FORGING
OF SIGNATURES, AND OTHERS.
b)
DISQUALIFICATION FOR A PERIOD OF ONE (1) YEAR FOR THE
FIRST OFFENSE, DISQUALIFICATION FOR TWO (2) YEARS FOR
THE SECOND OFFENSE AND PERPETUAL DISQUALIFICATION FOR
SUCCEEDING OFFENSE ON ANY OF THE FOLLOWING:
1.
UNJUSTIFIED FAILURE OR UNREASONABLE REFUSAL OF THE
SHORT-LISTED CONSULTANTS TO SUBMIT TECHNICAL AND
FINANCIAL PROPOSALS.
2.
ACTS/VIOLATIONS
BY
THE
CONSULTANT
OF
THE
PROVISIONS/CONDITIONS
OF
THE
CONSULTANCY
AGREEMENT.
Add as Sec. 6.2.2:
THE UMBRELLA ORGANIZATION OF CONSULTANTS SHALL FROM TIME TO TIME
DISSEMINATE INFORMATION ON THE RATES OR FEES OF CONSULTANTS PER
EXPERTISE AS GUIDE TO THE PEAC AND END-USER DURING FINANCIAL
NEGOTIATION.
21.
NEW PROVISION:
Add as Section 8.1 and adjust succeeding sections accordingly
8.1
COST OF CONSULTING SERVICES
NO INCREASE IN COST SHALL BE ALLOWED BEYOND AND ABOVE THE
CONTRACT AMOUNT INDICATED IN THE AGREEMENT FOR CONSULTING
SERVICES EXCEPT FOR THE FOLLOWING:
A.
ADJUSTMENT IN RATES IN ACCORDANCE WITH SECTION 6.9
(ESCALATION)
B.
ADDITIONAL WORKS NOT COVERED UNDER THE SCOPE OF WORKS
CONTAINED IN THE CONSULTING SERVICES AGREEMENT; AND,
C.
ADDITIONAL COSTS THAT MAY BE INCURRED DUE TO REASONABLE
DELAYS (GREATER THAN 15% OF APPROVED CONTRACT
DURATION) IN PROJECT IMPLEMENTATION DUE TO ACTS
UNDENIABLY ATTRIBUTABLE TO GOVERNMENT AND/OR FORCE
MAJEURE AS DETERMINED BY THE HEAD OF AGENCY.
SUCH INCREASE IN COSTS SHALL BE COVERED BY A SUPPLEMENTAL
AGREEMENT AND SUBJECT TO THE APPROVAL OF THE CONCERNED HEAD OF
AGENCY OR GOVERNING BOARDS OF GOVERNMENT-OWNED AND
CONTROLLED CORPORATIONS (GOCCS) AND GOVERNMENT FINANCING
INSTITUTIONS (GFIS), BUT IN NO CASE SHALL THE TOTAL COSTS, INCLUDING
SUCH INCREASE, EXCEED THE LIMITS OF THE PERCENTAGE FEES SET FORTH
IN SECTION 6.8.5.
22.
Insert after the last sentence:
THE FINAL PAYMENT SHOULD NOT BE LESS THAN 10% OF THE TOTAL
CONTRACT AMOUNT BUT MAY BE RELEASED IF SUBSTITUTED BY A SURETY
BOND OF THE SAME AMOUNT, CALLABLE ON DEMAND, OR A LETTER OF
CREDIT FROM AN ACCREDITED INSURANCE OR FINANCIAL INSTITUTION. THE
BOND SHOULD ONLY BE HELD WITHIN ONE YEAR.
23.
Amend as follows:
The services of the Consultant may be extended for the performance of additional work
(man-months) not covered under the original agreement through supplemental
agreement. The remuneration to the Consultant for the additional man-months,
INCLUDING THE TERMS AND CONDITIONS FOR ADDITIONAL WORK, shall be
governed by the provisions of the original agreement. [The terms and conditions of the
original agreement for the performance of the additional services shall also govern.
Under no circumstances, however, shall supplemental agreements be entered into for
more than two consecutive duration.] THE TOTAL CONSULTANCY COST OF ALL
SUPPLEMENTAL AGREEMENTS SHALL NOT EXCEED 50% OF THE ORIGINAL
CONTRACT AMOUNT REGARDLESS OF THE NUMBER OF SUPPLEMENTAL
AGREEMENTS. SHOULD ADDITIONAL CONSULTING SERVICES BE REQUIRED
FOR THE PROJECT THAT WILL RESULT IN A TOTAL ADDITIONAL CONSULTING
COST GREATER THAN 50% OF THE ORIGINAL CONTRACT AMOUNT,
CONSULTANT/CONSULTING FIRM SHALL BE ENGAGED THROUGH THE
PROCESS STIPULATED IN THESE IRR. [Procurement of consulting services after a
second supplemental agreement shall be done through the usual process of
procurement of consulting services as if the services are to be needed for the first time.]
24.
The term "percentages/weights" is proposed to be modified to include "criteria", i.e.:
"percentage/weights/CRITERIA."
RATIONALE:
1.
This is to convey that this instrument has the force and effect of a law as it implements
EO No. 164.
2.
The inclusion of the final end-user is being proposed to ensure that the PEAC
deliberations and selection of consultants adhere to the requirements of the end-user,
who should have a clear knowledge of the project outputs.
3.
There is a need to identify the appropriate government body which shall
recognize/certify the consultants umbrella organization.
The cost of advertising twice in newspapers is quite substantial for low budget
consulting services that it defeats the objective of economy and efficiency.
4.
The selection process normally takes about 8 months and this may even be shortened
for these types of contracts.
5.
For clarity. The existing provision is silent on the action to be taken in case only one
firm is prequalified.
6.
This is to stress the mandatory inclusion in the invitation of the itemized information in
the succeeding subparagraphs under the section.
7.
For clarity. The Guidelines is silent on the options of the PEAC in case only one
technical proposal is received.
8.
This is to provide the PEAC with more information on the new concept/technology to
help ensure that same is really understood.
9.
The proposed scoring method will help eliminate biased scoring in the ranking of
consultants.
10.
The prohibition to make further communication with a PEAC member including its staff
and personnel is for the PEAC to make an independent, fair and impartial selection to
whom the consultancy service shall be awarded. The number of days for completion of
the evaluation was reduced to 30 days, a more reasonable time period.
11.
This is a new section wherein a specific deadline is given to the Head of Office to
approve/disapprove the recommendations of the PEAC.
12.
This is a new section that obligates the government agency to automatically furnish all
concerned with a copy of the results of the evaluation.
13.
The Head of Office is given the discretion to choose the consultant selection procedure
(quality-based or quality cost based). Some projects of simple, repetitive and standard
design such as standard buildings, roads, artesian wells, etc., will require more or less
the same level of technical expertise, thus the financial proposal will be a major factor
for consideration.
15.
This provision is placed to discourage the replacement of key personnel before and after
award of contract.
16.
a.
This section now identifies the responsible official who can certify to the
emergency.
c.
18.
This section is similar to the old section except that priority to take over is given
to the participants of the competitive selection.
a.
Misrepresentation will not be limited only to the technical proposal with respect to
qualification and experience of the personnel but also on basic rates and billing factor.
The Consultants will be very cautious in the documents that they will submit and this will
help ensure authenticity.
b.
These offenses can possibly be committed by the Consultants, which may cause
delays in the procurement process and in the implementation of government
projects.
20.
This proposal is being recommended so as to pre-empt any other questionable findings
of the COA on cost of the consultancy, particularly on the salary ranges of the
consultants.
21.
This will make the Consultancy Guidelines consistent with the provision of the IRR/RA
8182 (ODA Act)
22.
The final payment may not be substantial, especially for multi-year contracts, to
encourage some consultants from performing/completing the required services
satisfactorily.
23.
This is similar to the old section except that the extension is based on the value and not
on the number of extensions of the contract.
24.
This is to give the agencies the flexibility to reclassify the items.