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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 755 -
RELATIVE TO THE ESTABLISHMENT OF AN INTEGRATED PROCUREMENT SYSTEM FOR
THE NATIONAL GOVERNMENT AND ITS INSTRUMENTALITIES |
The Minister of the Budget
The Minister of Finance
The Acting Chairman, Commission on Audit
WHEREAS, the Government seeks to attain economy and efficiency in all aspects of its operations, consistent with the National Cost Reduction Program;
WHEREAS, the cost of government operation can be substantially reduced through greater efficiency in the procurement of supplies and materials;
WHEREAS, innovations in procurement have been tested by the Ministry of the Budget, the Ministry of Finance and the Commission on Audit through the Procurement Pilot Project;
WHEREAS, the Procurement Pilot Project has identified improvements in policy and procedure that need to be institutionalized so as to achieve greater economy in government operations;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby Order and Instruct:
Statement
of Policy
Organization
3. The Procurement Council, with the assistance of the Procurement Service, shall design and implement an integrated procurement system for supplies, materials and other items needed by the government. It shall undertake the following specific functions:
a.
Identify those supplies, materials, and such other items, including
equipment and construction material, which can be economically
purchased through central procurement and which it shall cover within
its scope of activity;
b. Determine
the technical specifications of items that it will procure for agencies
of the government;
c. Identify
the sources of supply which are able to offer the best prices, terms
and other conditions for the items procured by government;
d. Purchase,
warehouse and distribute items for resale to agencies of government,
including government owned or controlled corporations;
e. Operate a
paper converting plant which will service the requirements of
government;
f. Undertake
continuing studies to improve and develop the government procurement
system, coverage and procedure.
4. The Procurement Service shall be attached to the Ministry of the Budget for administrative supervision purposes.
5. The Procurement Service shall be staffed by persons on detail from the member-agencies of the Council and/or by contractual personnel. The Service shall not have any permanent employees. Transportation, representation and other allowances may be granted its staff members, at rates as may be approved under policies of the Office of Compensation and Position Classification and the Council.
6. The Council shall adopt the policies and procedures that will ensure least prices and maximum quality of commodities handled.
Policies
and Guidelines
8. National government agencies and government- owned or controlled corporations shall purchase all their requirements from the Procurement Council/Service, of items that are decided upon as being within its coverage. The list of items that shall be handled by the Council/Service shall include paper and office supplies and the most commonly used items of government usage, as may be approved by the President. Exceptions may be made for Regional Offices of national government agencies, for specific agencies, or for items, with the Council's approval.
9. The Ministries/Bureaus/Offices/Agencies of the government shall routinely report to the Procurement Council, data on current purchases, as a means of cross- checking on the cost of items procured by the Service. The Resident/Corporate Auditors of the government shall routinely report to the Procurement Service, information on agency purchases as may be required by the Council, including data on purchases made for items not covered by the Council such as specifications, source and unit cost.
Funding
11. The Minister of the Budget shall release from the National Priorities Support Fund the following amounts:
a.
Rehabilitation and renovation of the former San Miguel closure plant
which shall be the site of the Procurement Service warehouse — ten
million pesos;
b. Expansion
and operation of the Project and its paper converting plant, delivery
equipment, delivery and other operating expenses — ten million
pesos;
Exemptions
a.
Executive Order No. 298, S-1940; Executive Order No. 302, S-1040;
Executive Order No. 290, S-1958; Executive Order No. 218, S-1970;
Executive Order No. 284, S-1971; Executive Order No. 323, S-1971.
b. Letter of
Instructions No. 83 dated May 29, 1973; Letter of Instructions No. 488
dated August 18, 1976; Letter of Instructions No. 501 dated January 28,
1977; Letter of Implementation No. 47, S-1976; and Presidential
Memo-Circular No. 1012 dated October 19, 1977.
c. COA
Circular No. 76-26 dated April 6, 1976; COA Memorandum Circular Nos.
460 and 640 re; Implementation of LOI No. 83; and COA Circular No.
78-84 dated August 1, 1978; and
d. Such other
rules and regulations in connection with the procurement of supplies,
materials and equipment not otherwise cited above.
Rules
and Regulations
Repeal
Clause
Done in the City of Manila, this 18th of October, in the year of Our Lord, nineteen hundred and seventy-eight.
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