Definition of Terms


Is an authorization issued by the Department of Budget and Management to an agency (UP) which allows it to incur obligations within a specified amount, that is, within a legislative appropriation.

Annual Procurement Plan

Refers to the itemized list prepared by the head of the office showing the kind, estimated quantity, estimated cost, description of supplies or property together with the balance on hand, if any required by the agency for the ensuing fiscal year.

Annual Procurement Program

Refers to the itemized list prepared by the head of agency (local, national, GOCC) showing the kind, estimated quantity, estimated cost, description of supplies together with the balance on hand, if any required by the Agency for the ensuing fiscal year. The annual procurement program shall be essentially based on the annual procurement plan.

Approved Budget for the Contract (ABC)

Refers to the budget for the contract duly approved by the Head of the Procuring Entity, as provided for in the General Appropriations Act and/or continuing appropriations, in the case of National Government Agencies; the Corporate Budget for the contract approved by the governing Boards, pursuant to E.O. No. 518, series of 1979, in the case on the National Government-Owned and/or Controlled Corporations, Government Financial Institutions and State Universities and Colleges; and the Budget for the contract approved by the respective Sanggunian, in the case of Local Government Units.


Is an authorization made by laws or other legislative enactment for payments to be made with funds of the government under specialized conditions and/or for specified purposes.

Authorized Government Depository Bank (AGDB)

Refers to a government bank duly authorized by the Bangko Sentral ng Pilipinas to maintain deposits and cash balances of the National Government Agencies (NGAs), Local Government Units (LGUs), Government-Owned or Controlled Corporations (GOCCs) and State Universities (SUCs).

Authority to Accept Payment (ATAP)

Refers to the form issued by the Bureau of the Treasury to the Fidelity bond applicant for presentation to the AGDB authorizing the receipt of bond premium (Annex A).


Refers to the Bids and Awards Committee established in accordance with Article V of IRR-RA 9184.


Refers to a signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor or consultant in response to the Bidding Documents.

Bidding Documents

Refers to documents issued by the Procuring Entity as the basis for BIDS, furnishing all information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects, and Consulting Services to be provided.

Bureau of the Treasury (BTr)

Refers to the agency under the Department of Finance authorized under E.O. 449 s. 1997 in relation to the Public Bonding Law, PD No. 1145 and E.O. 292, s. 1987 to provide fidelity bond to all accountable public officers.

By Administration

Refers to the procedure by which the implementation of an infrastructure project is carried out under the administration and supervision of the concerned agency through its own personnel.


Refers to the procedure by which the implementation of an infrastructure project is carried out under the administration and supervision of the concerned agency through its own personnel.

Common-use Supplies and Equipment

Refer to those goods, materials and equipment that are used in the day-to-day operations of procuring entities in the performance of their functions. CSE shall be those included in the electronic catalogue of the PhilGEPS.

Competitive Bidding

Refers to a method of procurement which is open for participation of any interested party and which consists of the following processes: advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and opening of bids, post qualification, and award of contract, the specific requirements and mechanics of which shall be defined in the IRR to be promulgated under RA 9184. “Competitive Bidding” and “Public Bidding” shall have the same meaning and shall be used interchangeably.

Commission on Audit (COA)

Refers to the constitutional agency which implements Government Auditing Code of the Philippines (P.D. 1445).

Confirmation Letter

Refers to the letter issued by the BTr DO/PO to the Head of Agency, stating the name of bonded public officer, amount of bond, risk number and the period of effectivity of bond (Annex B).

Consulting Services

Refers to services for Infrastructure Projects and other types of projects/activities or professional expertise that are beyond the capability and/or capacity of the government to undertake such as, but not limited to: (1) advisory and review services; (2) pre-investment or feasibility studies; (3) design; (4) construction supervision; (5) management and related services; and (6) other technical services or special studies.

Commutation of Leave Credits

Refers to conversion of unused leave credits to their corresponding money value.


Touching or joining at the edge or boundary; adjacent.


Issued to a person whose entrance and continuity in the service is based on the trust and confidence of the appointing authority or of the head of the organizational unit where he/she is assigned; co-existent with the incumbent; limited by the duration of the project; or co-existent with the period for which an agency or office was created.

Cumulation of Leave Credits

Refers to incremental acquisition of unused leave credits by an official or employee.


Is the movement of an employee from one position to another with reduction in duties, responsibilities, status or rank, which may or may not involve reduction in salary and is not disciplinary in nature.


Temporary movement of an employee from one department or agency to another which does not involve a reduction in rank, status or salary.

Emergency Purchase

Is a purchase through direct requisition or order by the procuring entity without public bidding. Due to emergency, i.e.,many event or occurrence wherein the need for supplies, materials, equipment or services has become exceptionally urgent or absolutely indispensable as to prevent imminent danger to, or loss of life or property or to avoid detriment to public service.


Refer to all items, supplies, materials and general support services, except Consulting Services and infrastructure projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity. These may be in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind including nonpersonal or contractual services such as the repair and maintenance of equipment and furniture, as well as, trucking, hauling, janitorial, security, and related or analogous services as well as procurement of materials and supplies provided by the Procuring Entity for such services. The term “related” or “analogous services” shall include, but is not limited to, lease of office space, media advertisements, health maintenance services, and other services essential to the operation of the Procuring Entity.

Implementing Agency

Refers to any government unit undertaking the construction of an infrastructure project.

Immediate Family

Refers to the spouse, children, parents, unmarried brothers and sisters, and any relative living under the same roof or dependent upon the employee for support. (Amended by CSC MC 6, s. 1999)

Infrastructure Projects

Include the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technnology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings, and other related construction projects of the government.

Inventory Custodian Slip

Is a form used by the Supply and/or Property Custodian to issue tangible items with amounts of less than P15,000.00 to the end-user in order to establish accountability over them.


Refers to a person or entity that carries out, under his own responsibility, supervision and control the performance or completion of a specific job, service, or work which has been farmed out by another for the latter’s benefit.


Refers to employment of individuals to undertake piece or lump sum works, or intermittent jobs of short duration not exceeding six months on a daily basis.

Labor-only Contractor

Refers to a person or entity that engages in the supply of workers/laborers to an employer but does not have substantial capital or investment in the form of tools, equipment, machineries, work premises among others; and the workers recruited and placed to perform activities directly related to the principal business of the employer.

Leave of Absence

Is generally defined as a right granted to officials and employees not to report for work, with or without pay, as may be provided by law and as the rules prescribe.

Maternity Leave

Refers to leave of absence granted to female government employees legally entitled thereto in addition to vacation and sick leave. The primary intent or purpose of granting maternity leave is to extend working mothers some measures of financial help and to provide her a period of rest and recuperation in connection with her pregnancy.


Refers to payment in advance under prescribed limits and subject to specified term and conditions of the money value of leave credits of an employee upon his request without actually going on leave.

Original Appointment

Refers to the initial entry into the career and non-career service.


Refers to a system of hiring a labor group for the performance of a specific work and/or service incidental to the implementation of an infrastructure project by administration whereby tools and materials are furnished by the implementing agency. For the specific work/service output, a lump sum payment is made either through the group leader or divided among the pakyaw workers and disbursed using a payroll system.

Paternity Leave

Refers to the privilege granted to married male employee allowing him not to report for work for seven (7) days while continuing to earn the compensation, on the condition that his legitimate spouse has delivered a child or suffered a miscarriage, for purposes of enabling him to effectively lend care and support to his wife before, during, and after childbirth as the case may be and assist in caring for his newborn child.

Permanent Appointment

Issued to a person who meets all the minimum qualification requirements of the position to which he/she is being appointed, including the appropriate eligibility prescribed, in accordance with the provisions of law, rules and standards promulgated in pursuance thereof. This includes all levels of positions.


Refers to the period between conception and delivery or birth of a child. For purposes of maternity leave, miscarriage is within the period of pregnancy.


Refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by the Procuring Entity. In case of projects involving mixed procurements, the nature of the procurement, i.e., Goods, Infrastructure Projects or Consulting Services, shall be determined based on the primary purpose of the contract. Procurement shall also include the lease of goods and real estate. With respect to real property, its procurement shall be governed by the provisions of R.A. 10752 and other applicable laws, rules and regulations.

Procuring Entity

Refers to the office/unit wherein the request to procure goods and supplies emanate.

Project Procurement Management Plan

Refers to the procurement plan of a specific program/project/activity of the agency. This shall include information on whether the program/project/activity will be contracted out, implemented by Administration or consigned; the type and objective of contract to be employed; the extent/size of contract, contract scopes/package, the procurement methods to be adopted, time schedule for each procurement activity and contract implementation, and estimated budget for the general components of the contract.


Is the advancement of an employee from one position to another with an increase in duties and responsibilities as authorized by law, and usually accompanied by an increase in salary. It may be from one department or agency to another within the same department or agency.

Property Acknowledgement Receipt (PAR)

The PAR shall be used in the Supply and/or Property Division/Unit to record the issuance of Property, Plant and Equipment to the end-user. It shall be maintained by fund cluster and shall be renewed every three years or every time there is a change in custodianship/user of the property.

Public Bonding Law (PBL)

Refers to the Public Bonding Law Sections 313 – 338, Chapter 15, Revised Administrative Code of 1917.

Public Funds

Refers to funds under the possession, custody, or control of a public officer by the virtue of his/her official position/designation which include public moneys of every sort and other resources pertaining to the Government Agency.

Public Officer

Refers to any person who, by direct provision of the law, popular election, or appointment by competent authority, shall take part in the performance of public functions in the Government of the Republic of the Philippines or shall perform in said Government or in any its branches public duties as an employee, agent or subordinate official of any rank or class (Art. 203, Revised Penal Code).

Purchase Order

A form/document used by the agency/entity, addressed to a supplier, to deliver specific quantities of supplies/goods/property subject to the terms and conditions contained in the PO.


Fixed minimum number of eligible members or stockholders (shareholders) who must be present (physically or by proxy) at a meeting before any official business may be transacted or a decision taken therein becomes legally binding.


Is the re-issuance of an appointment during reorganization, devolution, salary standardization, re-nationalization or similar events. Reappointment presupposes no gap in the service.


Movement of an employee across the organizational structure within the same department or agency, which does not involve a reduction in rank, status or salary.


Is the reappointment of a person who has been previously appointed to a position in the career or non-career service under permanent status but was separated therefrom as a result of reduction in force, reorganization, retirement, voluntary resignation, or of any non-disciplinary actions such as dropping from the rolls and other modes of separation. Reemployment presupposes a gap in the service.


Is the issuance of an appointment to a person who has been previously appointed to a position in the career service and who has, through no delinquency or misconduct, been separated therefrom or to one who has been exonerated of the administrative charges unless the decision exonerating him specifies restoration to his previous position.


Refers to the subsequent appointment issued upon the expiration of the appointment of the contractual/casual personnel or temporary appointment if a qualified eligible is not actually available, as certified by the Civil Service Regional Director or Field Officer. Renewal presupposes no gap in the service.

Relocation Leave

Refers to a special leave privilege granted to an official/employee whenever he/she transfers residence.


A sabbatical is a form of leave that may be granted to a member of the faculty for study, research or some scholarly or creative work, rest, renewal for a period not exceeding one (1) year with full salary.


Movement of an employee from one department or agency to another which is temporary in nature and which may or may not require the issuance of an appointment which may either involve compensation and benefits.

Sick Leave

Refers to leave of absence granted only on account of sickness or disability on the part of the employee concerned or any member of his immediate family.

Special Leave Privileges

Refers to leave of absence which officials and employees may avail of for a maximum of three (3) days annually over and above the vacation, sick, and maternity and paternity leaves to mark personal milestones and/or attend to filial and domestic responsibilities.

Splitting of contracts

It happens when two (2) or more contracts for similar goods are made in favor of one dealer or supplier within one (1) month of each other and analogous cases.


Issued when the regular incumbent of a position is temporarily unable to perform the duties of his position, as when he is on approved leave of absence, under suspension, is on scholarship grant, or is on secondment. This is effective only until the return of the former incumbent. A substitute appointment is issued only if the leave of absence of the incumbent is at least three (3) months, except in the case of teachers.

Temporary Appointment

Issued to a person who meets the education, experience, and training requirements for the position to which he/she is being appointed to except for the appropriate eligibility but only in the absence of a qualified eligible actually available, as certified by the Civil Service Regional Director or Field Officer. The appointment shall not exceed twelve months, reckoned from the date it was issued. However, the appointee may be replaced sooner if a qualified eligible who is willing to accept the appointment becomes actually available.

Terminal Leave

Refers to the money value of the total accumulated leave credits of an employee based on the highest salary rate received prior to or upon retirement date/voluntary separation.


Is the movement of employee from one position to another which is of equivalent rank, level, or salary without break in the service involving the issuance of an appointment.


Refers to the change in position title with the corresponding increase in salary grade. Positions are upgraded in order to attain effectively the functions and duties attached to the position, and for the employee to perform an all-around adaptability in meeting diverse work assignments. This requires issuance of appointment.

Vacation Leave

Refers to leave of absence granted to officials and employees for personal reasons, the approval of which is contingent upon the necessities of the service.