FREQUENTLY ASKED QUESTIONS (FAQs) FOR THE

GOVERNMENT FARES AGREEMENT (GFA)

AWARENESS

1. What is the Government Fares Agreement (GFA)?

The Government Fares Agreement is an initiative of the Department of Budget and

Management and the PS-PhilGEPS that will ensure fast, efficient, flexible and savings in
time, energy & money when processing the air transportation needs of all government
officers, employees and personnel for their official domestic trips.

PS-PhilGEPS has considered Airline Tickets as commonly required by the whole of

government. Thus, online reservation and purchase of airline tickets from Philippine
Airlines (PAL) and Cebu Pacific (CEB) are now considered part of the PS Catalogue of
Common Supplies and Equipment (CSE).

2. What is the Legal Basis for GFA?

Please refer to the sections of Administrative Order No. 17, s. 2011 below:

SECTION 1. Reiteration of Policy. The national government hereby reiterates the policy
that procurement of government supplies, materials, and equipment shall be done in
the most transparent and competitive manner by purchasing from legally, technically,
and financially capable sources in economic lot sizes, by observing cost-efficient
specifications, and by making prompt payment. In line with this, all government
agencies shall procure their common-use supplies from the PS and use the PhilGEPS in
all their procurement activities, including publishing all their bid opportunities and
posting all their awards and contracts in it, in accordance with R.A. No. 9184.

SECTION 2. Coverage. This Administrative Order shall apply to all National Government
Agencies, including Military and Police Units; Government-Owned and/or -Controlled
Corporations (GOCCs); Government Financial Institutions (GFIs); State Universities and
Colleges (SUCs); and Local Government Units (LGUs).

SECTION 6, b) Expansion of Product List. Regularly conduct a survey to determine other

products commonly purchased by procuring entities for addition to the list of common-
use supplies.

Furthermore, you may also refer to Sec. 53 (e) of Republic Act 9184 which states,
Subject to the guidelines specified in the IRR, purchases of Goods from another agency
of the Government, such as the Procurement Service of the DBM, which is tasked with a
centralized procurement of commonly used Goods for the government in accordance
with Letters of Instruction No. 755 and Executive Order No. 359, series of 1989.
3. Which Government Agencies must use the GFA?

The GFA initially intended to cover the 24 selected pilot agencies (list in Question No. 4)
which will enter into a Memorandum of Agreement (MOA) with PS-PhilGEPS and
undergo hands-on training for the use of the Airline Portals.

Eventually, since use of the PS-PhilGEPS for procurement of CSE is mandated under R.A.
9184 and Administrative Order 17 (refer to Question No. 2) for all government agencies
and instrumentalities including local government units, it should be used by the whole
of government.

Note that other agencies, not appearing in the list below, may also avail of the GFA by
enrolling in the system.

4. Which are the identified pilot agencies for the GFA?

The 24 pilot agencies are as follow:

1. Office of the President of the 13. Department of Interior and Local

Philippines
2. Office of the Vice-President of the
Philippines
3. Department of Education - Main
Office
4. Department of Agrarian Reform -
Main Office
5. Department of Environment and
Natural Resources - Main Office
6. Department of Budget and
Management
7. Department of Social Welfare and
Development - Main Office
8. Department of Energy
9. Department of Agriculture - Main
Office
10. Department of Finance
11. Department of Foreign Affairs - Main
Office
12. Department of Health - Main Office
Government - Main Office
14. Department of Justice - Main Office
15. Department of Labor and
Employment - Main Office
16. Department of National Defense -
Procurement Unit
17. Department of Public Works and
Highways - Main Office
18. Department of Science and
Technology
19. Department of Trade and Industry -
Main Office
20. National Economic and Development
Authority - Main Office
21. Department of Transportation
22. Presidential Communications Office
23. Department of Tourism
24. Procurement Service-Philippine
Government Electronic Procurement
System

These agencies were identified based from the records of DBM and Airline Partners as
having the highest domestic airfare utilization.
5. Is it mandatory for Government Agencies to use PAL and CEB only?

No. PS-PhilGEPS intention for the GFA is for other major airlines to participate so that
agencies can choose the best rates and schedules for their local air travel requirements.

PAL and CEB were able to comply with the initial requirements set by PS-PhilGEPS.
Thus, an agreement for the use of an online portal for the GFA was initiated. In addition,
they were able to extending special discounts and privileges. PS-PhilGEPS is in the
process of making similar arrangements with the remaining airlines.
While the GFA is being implemented, it does not prevent government agencies from
procuring their requirements from other airlines when their desired travel scheduled
cannot be served by PAL or CEB.

6. When will the GFA take effect?

The GFA is now in effect and all agencies have to do is register.

REGISTERING IN THE GFA

7. What are the requirements for an agency to join in the GFA?

The agency must submit to the PS-PhilGEPS the following requirements:

a. Duly accomplished Travel Ticketing Registration Form which may be

downloaded in the PS-PHILGEPS website at link below:

http://ps-philgeps.gov.ph/home/images/BAD/GFARegistrationForm.pdf

b. Signed MOA by the Head of the Procuring Entity (HOPE). Three (3) original
copies are required. The copy of the MOA may also be downloaded at this link:

http://ps-philgeps.gov.ph/home/images/BAD/GFAMOA.pdf

c. Photocopy of government-issued ID of the HOPE.

d. Duly accomplished Agency Procurement Request Form 02 which may be

downloaded in the PS-PhilGEPS website at link below:

http://ps-
philgeps.gov.ph/home/images/Downloads/APR%20FORM%20NO.%2002.xlsx

e. Fund Transfer
8. How to Register in GFA?

In order to be enrolled in the GFA to use the portals for reservations and bookings, the
government agency must:

1. Go to PS-PhilGEPS website (www.ps-philgeps.gov.ph) then click the

Procurement Service logo. Download the required documents indicated in
Question No. 7
2. Submit the accomplished documents and payment to the Sales Division of PS-
PhilGEPS Main Office (Paco, Manila)
3. PS-PhilGEPS will issue an Official Receipt
4. PS-PhilGEPS Officer will register the agency to the web portals of the airline
partners
5. Agency will receive an e-mail notification regarding the account activation which
includes the credit line, User ID and password within two (2) weeks
6. Log in at the preferred airline web portal through www.ps-philgeps.gov.ph using
the Procurement Service link and go to What We Sell then click Airline Travel

9. What is the Tax Identification Number (TIN) of PS-PhilGEPS?

The PS-PhilGEPS TIN is 000-449-457-016.

10. For check deposit, what should we indicate as Payor to?

Please indicate Procurement Service in the required field.

11. How can a government agency comply with the requirements if located outside
NCR?

We suggest that the requirements should be submitted to the nearest PS Depot Office in
the area of the procuring entity. The PS Depot Office will then coordinate with PS-Main
for the creation of the accounts of the agency.

BENEFITS

12. What are the benefits of the Government Fares Agreement to Government
Agencies?

Under the GFA, agencies will have following benefits:

Philippine Airlines Cebu Pacific

Easy access and efficient booking of airline ticket through the travel portals of PAL
and CEB in the PS website
Waived Processing/Web Administration Fee of P250.00 on all domestic bookings
 No charges on first rebooking
Access to Agencys credit line
8 to 9% discount on fares*
Waived Processing Fee ($12.00) on Features Online Travel Fund
all international bookings Management
Access to VIP Lounge and additional
10 kg baggage allowance**
*Exclusive of one percent (1%) Service Fee
**Limited to assigned Heads of the Agencies

13. Are airline tickets purchased under the GFA tax-free?

Basically, airline tickets are non-taxable since this is a Government to Government

Agreement. The PS-PhilGEPS will be responsible for the taxes.

14. Can an agency book nternational flights through GFA?

Yes, international flights operated by the Airline Partners are available in the portal.
However, the GFA covers discounts for domestic/local tickets only. As of the moment,
only the ticketing service fee is waived by PAL for international tickets which amount to
Twelve Dollars ($12.00) per ticket.

15. How can agencies avail of the PAL Elite Membership Card?

Since the Elite Membership Cards issued by PAL are only limited, these will be reserved
for the HOPEs of the pilot agencies or to other agencies until such cards are exhausted.

OTHER CONCERNS

16. How would agencies know if the airline ticket in the Airline Web Portal is already
the discounted price?

The Airline Web Portal already reflects the discounted airfare. Special promotions such
as Weekend Sale and other promotional airfares are not covered by the GFA. Agencies
are not precluded from availing of these promotions.

17. Can agencies purchase directly to PAL or CEB?

Yes, it is discouraged, though. Other than the possibility of receiving Commission on

Audit (COA) suspension or disallowances in audit, the discounted rates and other
conditions under the GFA will not be extended if it is not done through the PS-PhilGEPS-
activated portal access.

18. Can government employees avail of the GFA for personal travel?
 No, the special discounted fares and other benefits will only be extended to official
travels and agencies enrolled under the GFA.
19. How will agencies replenish their funds under the GFA?

To clarify terminologies, the Airline Web Portals use the term credit line for the
available funds of each agency against which purchase of travel tickets may be drawn
against. However, since the agency has duly deposited in advance with the PS-PhilGEPS
funds for the GFA, it works as funds held in trust or a debit line.

The agency will be notified by the PS-Accounting Division when its deposit with PS-
PhilGEPS has been consumed at 50% level and when it is time to replenish its travel
fund.

20. How will bookings be affected when the agency has reached availment of 50% of
their debit/credit line? What if the debit/credit line has been totally exhausted?

The booking of the agency will not be affected if the credit/debit reaches 50% because
they still have advance payment. The agency, however, will be receiving notifications
for the replenishment of their funds. When the funds are totally exhausted, the agency
will temporarily be unable to book flights and such privilege will only be re-activated by
the Airline Partners upon the advice of the PS-PhilGEPS Comptroller after receipt of the
fund replenishment.

21. Can agencies use or transfer their unutilized deposits from undelivered Common
and Non-Common Use Supplies/Requirements lodged under Due To/Due From
Agencies and use these to procure under the GFA?

No. While we have classified air fares as Commonly Used there will be an issue
especially in the Accounting Division of the agencies in terms of recording and
reporting. The budget for Office Supplies and Travel are separate line items in the
Maintenance and Other Operating Expenses (MOOE) and there is a procedure in order
to re-align such funds. Therefore, for proper monitoring and efficiency of the process,
PS-PhilGEPS shall maintain the utilization of these funds separately.

22. Will agencies need to prepare an Agency Procurement Request (APR) Form every
time they avail of booking under the GFA?

No. APRs will only be required when the agencies enter into a MOA and deposit the
advance funding. Subsequent APRs will only be prepared by the agencies when they
replenish their funds with the PS-PhilGEPS.

23. What if an agency will not sign the MOA or enrol in the GFA?

The MOA will ensure that agencies are dedicated to the provisions set forth under GFA
and operationalize procurement of air travel tickets at special benefits and discounted
fares.
24. From an enrolled agency, who must attend the orientation and training on the
GFA and use of the Airline Web Portal?

From a government agency, only two (2) representatives are required to attend, namely
-the Division Head or the authorized signatory of the agency; the appointed Corporate
Administrator or the Travel Arranger.

25. Who should be the Corporate Administrator? What are his/her roles?

The Corporate Administrator is:

a) the Authorized representative of the agency

b) the initial travel arranger of the agency
c) responsible in managing travel arrangers and branch office
d) can add/create new offices, edit details of the offices, activate or deactivate a
branch office, and Delete any branch office
e) can add/create new travel arranger/s, edit details of the travel arranger/s,
activate, deactivate, or delete a Travel arranger
f) can reset password for a specific travel arranger
g) can assign roles upon creation of new travel arranger, Corp Administrator can
assign roles
h) responsible in handling the credit line of the company
i) can assign or remove access of a travel arranger to the credit line

26. What does a Travel Arranger do?

The Travel Arranger:

a) handles the booking facility in the portal

b) manages the Address book
c) has access to the reservations list for managing bookings
d) ensures that ticket numbers are generated once a booking is paid
e) ensures that passenger receives e-ticket
f) receives e-mail alerts on flight changes will be received by the travel arranger,
he/she therefore, should be able to alert the passenger of any change in the
itinerary

27. We observed that there is also a payment option for credit card. How can we
control Travel Arrangers from purchasing airline tickets through the GFA using
their personal credit cards for fares?

Since disabling the Credit Card payment feature would complicate the management of
accounts, an internal policy should be implemented by the agency to prevent the
improper use of accounts created through the GFA and its benefits. PAL and CEB will
also provide PS a report reflecting all transactions made using Credit Card as Form of
 Payment if any. It will be monitored by PS to ensure that Credit Line Payment option
will only be used. Personal interests will be considered a deviation of the GFA. The
computation will be the difference of the GFA rate and gross rate plus Ticketing Service
Charge for such transactions.

28. Can a Travel Arranger choose a preferred seat for a passenger?

In the web portal, the Travel Arranger may choose from the designated seating
locations which are free of cost only. Again, an internal procedure should be developed
by an agency to guide the Travel Arrangers and avoid unwanted charges.

29. Can an agency request for an in-house GFA orientation and hands-on training?

Yes, through a formal letter signed by a duly authorized official of agency addressed to
Ms. Leah Marasigan-Valdez, Chief of the Marketing Division. The request should also
contain the schedule (date and time), venue, number of participants and indicate
shouldering of meals and required equipment. The signed letter may be scanned and
emailed to pjdeguzman@ps-philgeps.gov.ph for faster accommodation.

30. Can an agency pull out the remaining balances for GFA?

Yes, the designated Main Contact Person of the agency may coordinate with the
Comptroller Division of PS to process such request provided, however, that indeed
there are still balances.

31. How should we determine which airline to choose?

Implementation of an internal policy is suggested to get the most beneficial to the

government. Government agencies are advised to discuss this within the organization
to come up with reliable procedures in getting the best airline fare value for their
passengers.

32. Is there a minimum and maximum amount to be maintained for the travel fund?

There is no minimum or maximum amount required. We suggest, though, that you

deposit one (1) quarter of your annual total airline fare requirement to give room for
other bookings in airlines not covered by the GFA.

33. In case at a later time we decided to increase or decrease the travel fund, do we
need to execute another MOA?

Should you wish to increase or decrease the travel fund, only a supplemental MOA will
be required.