EXECUTIVE ORDER NO. 164
EXECUTIVE ORDER NO. 164 - PROVIDING
ADDITIONAL GUIDELINES IN THE PROCESSING AND APPROVAL OF CONTRACTS OF
THE NATIONAL GOVERNMENT
WHEREAS,
as a consequence of the continued expansion of developmental projects
and increased delivery of essential public services to the people, the
volume and value of government contracts have substantially increased
over the years;
WHEREAS, in view of such increase in the contracting activities of the
government and in line with the government’s policy of decentralization
and administrative delegation which is intended to expedite the
implementation of projects, it is thus necessary that Secretaries and
governing boards of government-owned or controlled corporations be
provided with greater authority to approve contracts to implement
projects falling within their respective jurisdiction;
WHEREAS, to ensure that essential materials and services needed by the
government are procured at the most economical and advantageous terms,
there is a need to expand the membership of the Prequalifications, Bids
and Awards Committees existing in every Department/Agency Implementing
Office so as to include representatives from the private sector, as
non-voting members;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do
hereby order:
Section 1. Ceiling for infrastructure Contracts. —
The following shall be the ceilings for all civil works, construction
and other contracts for infrastructure projects, including supply
contracts for said projects, awarded through public bidding or through
negotiation, which may be approved by the Secretaries of Public Works
and Highways, Transportation and Communications, Local Government with
respect to Rural Road Improvement Project, and governing boards of
government-owned or controlled corporations.
AwardedThrough AwardedThrough
Public Bidding Public Negotiation
a. Secretary
of Public
Works and
Highways P100
Million P10 Million
b. Secretary of
Transportation
and
Communications 100
Million 10 Million
c. Secretary
of Local
Government
with
respect to
the Rural
Road
Improvement 100
Million 2 Million
Project
d. Governing
Boards of Infra-
structure
Corporations
(National
Power Corporation,
National
Irrigation Administration,
Metropolitan
Waterworks
and Sewerage
System,
National
Housing Authority,
Philippine
Ports Authority,
National
Electrification
Administration, Export
Processing
Zone Authority,
Philippine
National Railways,
Local Water
Utilities
Administration, Light Rail Transit
Authority and
Philippine
National Oil
Company) P50
Million P5 Million
e. Governing
Boards of
Non-Infrastructure
Corporations
7.5 Million 1 Million
Save as provided for above, the approval ceilings signed to the
department/ agency involved in national infrastructure and construction
projects shall remain at their present levels.
Sec. 2. Contracts for Approval by the President. —
Contracts for infrastructure projects, including contracts for the
supply of materials and equipment to be used in said projects, which
involve amounts above the ceiling provided in the preceding section
shall be approved by the President: Provided, That the President may,
when conditions so warrant, and upon recommendation of the National
Economic and Development Authority, revise the aforesaid ceilings of
approving authority.
Sec. 3. Approval of Consultancy Contracts. — All
purely consultancy contracts relating to infrastructure projects,
regardless of amount, shall be approved by the Secretaries concerned,
in accordance with the Guidelines on the Hiring of Consultancy to be
promulgated by the National Economic and Development Authority:
Provided, That the National Economic and Development Authority shall be
furnished by the departments, agencies or government corporations
concerned, copies of all consultancy contracts entered into by them
involving an amount in excess of P1 million for monitoring
purposes.
Sec. 4. Delegation of Authority to Governing
Boards of Government Corporations. — The Secretaries are hereby
authorized to delegate to the governing boards of government-owned or
controlled corporations which are attached to or are under the
administrative supervision of their respective departments, the
authority to approve contracts for infrastructure projects entered into
by said corporations involving amounts which are beyond the ceiling
provided for government corporations under Section 1 hereof but which
are within the approving authority of the Secretaries concerned under
the said Section . In the case of government corporations which are
attached to or under the Office of the President, the delegation shall
be made by the Executive Secretary.
Sec. 5. Public Bidding of Contracts; Exceptions. —
As a general rule, contracts for infrastructure projects shall be
awarded after open public bidding to bidders who submit the lowest
responsive/evaluated bids. Open Public Bidding shall be conducted among
pre-qualified contractors in accordance with existing laws, rules and
regulations not inconsistent with the provisions of this Executive
Order. The Award of such contracts through negotiation shall not be
allowed by the Secretary or Governing Board of the Corporation
concerned within the limits as stated in Section 1 hereof in the
following cases:
a.
In times of emergencies arising from natural
calamities where immediate action is necessary to prevent imminent loss
of life and/or property, in which case, direct negotiations or
simplified bidding may be undertaken;
b. Failure to
award the contract after competitive public bidding for valid cause or
causes, in which case, simplified bidding may be undertaken;
c. Where the
construction project covered by the contract is adjacent or contiguous
to an on-going projects and it could be economically prosecuted by the
same contractor, in which case, direct negotiation may be undertaken
with the said contractor at the same unit prices and contract
conditions, less mobilization costs, provided, that he has no negative
shippage and has demonstrated a satisfactory performance. Otherwise,
the contract shall be awarded through public bidding.
Sec. 6. Contracts for Community Employment and
Development Program Projects. — Contracts covering projects under the
Community Employment and Development Program of the government shall be
awarded through open public bidding: Provided, that the invitation to
bid for the said projects shall be advertised at least once within one
week in a newspaper of local circulation within the province where the
project is situated, through posting of notices in the premises of the
municipal/provincial office, and through other forms of media, such as
radio and television: Provided, further, That the deadline for
submission of bids for projects costing not more than P1 million each
may be shortened for one week after the date of such invitation,
posting of notices or advertisement through other forms of media.
Sec. 7. Constitution of the Prequalification, Bids
and Awards Committee. — Each department/Office/agency shall have in its
head office or in its implementing offices a Prequalification, Bids and
Awards Committee which shall be responsible for the conduct of
prequalification of contractors, biddings, evaluation of bids and
recommending awards of contract. Each Prequalification, Bids and Awards
Committee shall be composed of the following:
a.
A Chairman (regular) who should at least be a third
ranking official of the department/agency/ implementing Office.
b. An
Executive Officer and Secretary (regular) who is a Legal Officer of the
department/ office/agency implementing Office.
c. A
Technical Member (regular) to be designated by the head of the
department/ office/agency/implementing office.
d. Two
members (provisional) with experience in the type of projects to be
bidded and in project management, duly designated by the head of the
department/office/agency/implementing office on a project-to-project
basis.
e. A
representative from at least one of the following organizations who
shall be a non-voting member:
1.
Philippine Institute of Civil Engineers
2. Philippine
Constructors Association
3. National
Confederation of Contractors Associations of the Philippines, Inc.
4. Philippine
Institute of Certified Public Accountants
The
representation in the Prequalification, Bids and Awards Committee of
the abovementioned private organizations shall be made as follows:
1.
During the prequalification stage, the
representative to be invited shall come from the Philippine Institute
of Certified Public Accountants.
2. In the
bidding, bid evaluation and award stages, a representative each from
the Philippine Institute of Certified Public Accountants and from the
Philippine Contractors Association or the National Confederation of
Contractors Association of the Philippines, Inc. shall be invited as
non-voting members of the Prequalification, Bids and Awards Committee
without prejudice to inviting another representative/s from any of the
other organizations mentioned above.
Sec. 8. Approval of Other Types of Government
Contracts. — All other types of government contracts which are not
within the coverage of this Executive Order shall continue to be
processed and approved in accordance with existing laws, rules and
regulations.
Sec. 9. Applicability of Presidential Decree No.
1594 and Its Implementing Rules. — The provisions of Presidential
Decree No. 1594 and its Implementing Rules and Regulations shall,
except as modified in this Executive Order, continue to be applicable.
Sec. 10. Repealing Clause. — All laws, orders,
issuances, rules and regulations or parts thereof inconsistent with
this Executive Order are hereby repealed or modified
accordingly.
Sec. 11. Effectivity. — This Executive Order
shall take effect immediately.
Done in the City of Manila,
this 5th day of May, in the year of Our Lord, nineteen hundred and
eighty-seven.
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Since 19.07.98.