Government Procurement Law
Section 9. Multi-Year Contracting. - NGAs, including SUCs, implementing multi-year programs, activities, and projects shall request the DBM for the issuance of a MYCA prior to the commencement of any procurement activity for multi-year projects: Provided, that for multi-year projects to be funded from internally generate income of SUCs, the SUCs shall secure prior authority from its Board before starting any procurement activity covering the full contract cost.
In the case of GOCCs, GFIs, and SUCs, they shall secure prior authority from their respective governing Boards before commencing procurement activities for multi-year projects covering the full contract cost. For LGUs, they shall secure any equivalent document issued by their respective Sanggunian authorizing them to enter into multi-year contracts.
The total project cost reflected in the MYCA or its equivalent document shall be the basis or reference for the ABC of the procurement contract.