EXECUTIVE ORDER NO. 520
EXECUTIVE ORDER NO. 520 -
ESTABLISHING THE CENTRAL TENDER BOARD, DEFINING ITS POWERS AND
FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Section 1. Declaration of Policy. — All government projects
involving civil, electrical and mechanical engineering works, and
supply and installation of equipment and materials, except those which
are authorized by law to be undertaken by administration, shall be
undertaken, except as herein provided, through competitive public
bidding to ensure economy and efficiency.
Sec. 2. Exceptions. — Any agency or
instrumentality of the government may award or enter into such contract
without public bidding only in the following instances:
a)
In time of emergencies arising from natural calamities where immediate
action to provide the required facilities is necessary to prevent
imminent loss of life and/or property;
b) When there
is failure to award the contract after competitive public bidding for
valid cause or causes;
c) Where the project
is innovative in character and for experimental purposes, under such
guidelines as may be promulgated by the Board herein created;
d) When an
existing contract is terminated or a portion thereof deleted, and
awarding of contract to a different contractor through public bidding
would entail unnecessary delay to the detriment of the government and
of the general public; and
e) In cases of
urgent necessity as certified by the agency concerned and approved by
the President.
Sec. 3. Other Conditions for Negotiations. — The
authority to negotiate contracts mentioned in the preceding section
shall not be issued unless the necessary program of work and the
government cost estimates for the project have been prepared and duly
approved, and the contractors applying to negotiate for the project
have been duly pre-qualified in accordance with the rules and
procedures prescribed by the Central Tender Board herein created.
Sec. 4. Central Tender Board. — To carry out the
objectives of this Order, there is hereby created a Central Tender
Board, which shall be composed of five (5) members as follows:
a)
The Executive Director, Presidential Management Staff;
b)
Representative of the National Economic and Development Authority;
c)
Representative of the Ministry of the Budget;
d)
Representative of the agency concerned; and
e) Another
member to be appointed by the President of the Philippines, preferably
a
representative of the Philippine
Contractors Association.
The above members shall elect the Chairman who shall serve for a period
of two years.
Sec. 5. Primary Function of the Board. — Unless
otherwise instructed by the President of the Philippines, it shall have
the sole authority to conduct competitive public biddings for such
projects mentioned in Section 1 hereof and make the necessary awards.
The President may create a special bid committee, whenever he deems
such move expedient to consider bids for major national government
projects.
Sec. 6. Powers and Functions. — The Central Tender
Board shall have the following powers and functions.
a)
Receive, process and approve, under such terms and conditions as it may
deem necessary to promote the objectives of this Order, applications
for registration and pre-qualification to determine the contractors who
may be allowed to participate in the bidding of projects covered by
this Order. It shall effect the classification of contractors according
to their respective qualifications and capabilities consistent with the
licensing law on the matter and taking into consideration the
requirements of particular type of projects;
b)
Accordingly, and on the basis of sizes, costs and technical
requirements of projects, categorize all such projects, and define the
required contractor’s eligibilities to participate in the bidding
thereon;
c) Check,
verify and evaluate periodically, with the assistance of other
government agencies, contractors’ compliance with the provisions of
this Order and with rules and regulations prescribed by the Board, as
well as with the terms and conditions of their contracts with the
government.
d) Organize
its own staff as hereunder prescribed and may, from time to time, call
upon appropriate government officials or the private sector for
assistance in the exercise of its powers and functions;
e) Generally
exercise all the power necessary or incidental to attain the purposes
of this Order, including the promulgation of its internal rules and
procedures governing meetings, organization and staffing.
Sec. 7. Meeting and Quorum. — The Board shall meet
as often as necessary but not less than once a month on such day as it
may fix. Special meeting may be convoked upon the call of the Chairman
or upon the written request of at least two (2) of its members. The
presence of three (3) members shall constitute a quorum, and all
decisions shall require the concurrence of at least three (3)
members.
Sec. 8. Remuneration of Members of the Board. —
The members of the Board shall receive such per diems for each meeting
of the Board attended as shall be provided by their rules and
regulations.
Sec. 9. Permanent Executive Staff. — The Board, in
the exercise of its functions and responsibilities, shall be assisted
by the Presidential Management Staff.
Sec. 10. Technical Committees. — The Board may
create such technical advisory committees as are necessary, with
members coming from any government agency, to provide advisory services
on certain specialized fields and is hereby authorized to grant
allowances in accordance with existing laws, rules and regulations.
Sec. 11. Rules and Regulations. — The Board shall
issue rules and regulations as may be necessary for the proper
implementation of the provisions of this Order. Such rules and
regulations shall contain, among others, the following:
a)
Criteria for determining the eligibilities or qualifications of
contractors; for classifying government infrastructure projects, for
evaluation of bids, and in the awarding of such government contracts,
whether negotiated or bid;
b) Procedures
in the advertisements of projects, the conduct of public bidding and
the evaluation and selection of bids, including such machinery for
objections to the pre-qualification of a contractor, the admission of
any bid, or award of any such government contract;
c) Provisions
defining, whenever practical, the minimum terms and conditions required
in all such government contracts including adjustments thereof;
and
d) Measures to
enhance capabilities of local contractors, to encourage utilization of
local equipment, experts and consultants, to avoid collusion among
contractors and government staff, and to monitor contractor’s financial
or capital resources, experience and project accomplishments.
Sec. 12. Project Plans and Specifications. — Each
government agency charged with implementing a particular government
project shall be responsible for preparing the necessary programs of
work, including all relevant plans, specifications and cost estimates
of such project or any portion thereof, which shall be approved in
accordance with existing laws and procedures.
Sec. 13. Transitory Period. — Until such time as
the Board is constituted and becomes operational, the government
agencies concerned shall continue performing their respective functions
pertaining to awarding of contracts in accordance with existing rules,
regulations and procedures pertinent thereto.
Sec. 14. Appropriation. — The Minister of the
Budget is hereby directed to release such funds out of the
appropriation for Special Activities Fund, Current Operating
Expenditures, or from any applicable appropriations thereunder, as
shall be necessary for the organizational and operational expenses of
the Board during the Calendar Year 1979, and thereafter to include in
the General Appropriations Bills, the amount necessary for the annual
operation of the Board.
Sec. 15. Repealing Clause. — The provisions of
Executive Order Nos. 64, 65, 95, 147, 212-A, 269, 314, 323, and
Memorandum Circular No. 102 and other orders, rules and regulations
that are inconsistent and in conflict herewith are hereby modified or
repealed accordingly.
Done in the City of Manila,
this 24th day of January, in the year of Our Lord, nineteen hundred and
seventy-nine.
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