EXECUTIVE ORDER NO. 520 January 24, 1979
ESTABLISHING THE CENTRAL TENDER BOARD, DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Sec. 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;...
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Executive Orders
Establishing the Central Tender Board, Defining Its Powers and Functions, Providing Funds Therefor, and for Other Purposes
Executive Order No. 520
Declaration of Policy
Sec. 1: All government projects involving civil, electrical and mechanical engineering works, and supply and installation of equipment and materials, except those authorized by law to be undertaken by administration, shall be undertaken through competitive public bidding to ensure economy and efficiency.
Exceptions to Public Bidding
Sec. 2: Agencies may award contracts without public bidding in the following cases:
- Emergencies arising from natural calamities where immediate action is necessary to prevent imminent loss of life and/or property. (Sec. 2a)
- Failure to award the contract after competitive public bidding for valid causes. (Sec. 2b)
- Innovative or experimental projects under guidelines promulgated by the Central Tender Board. (Sec. 2c)
- Termination or deletion of an existing contract, where awarding to a different contractor through public bidding would cause unnecessary delay. (Sec. 2d)
- Cases of urgent necessity as certified by the agency and approved by the President. (Sec. 2e)
Other Conditions for Negotiations
Sec. 3: The authority to negotiate contracts shall not be issued unless:
- The program of work and government cost estimates for the project have been prepared and approved.
- The contractors have been pre-qualified in accordance with the rules and procedures prescribed by the Central Tender Board.
Central Tender Board
Sec. 4: A Central Tender Board is created, composed of:
- The Executive Director, Presidential Management Staff
- Representative of the National Economic and Development Authority
- Representative of the Ministry of the Budget
- Representative of the agency concerned
- Another member appointed by the President, preferably a representative of the Philippine Contractors Association
The members shall elect the Chairman who shall serve for 2 years.
Primary Function of the Board
Sec. 5: The Central Tender Board shall have the sole authority to conduct competitive public biddings for projects mentioned in Section 1 and make the necessary awards, unless otherwise instructed by the President. The President may create a special bid committee for major national government projects.
Powers and Functions of the Board
Sec. 6: The Central Tender Board shall have the following powers and functions:
- Receive, process and approve applications for registration and pre-qualification of contractors. (Sec. 6a)
- Categorize projects and define the required contractor's eligibilities to participate in the bidding. (Sec. 6b)
- Check, verify and evaluate contractors' compliance with the Order, rules and regulations, and contract terms. (Sec. 6c)
- Organize its own staff and call upon government officials or private sector for assistance. (Sec. 6d)
- Exercise all powers necessary or incidental to attain the purposes of this Order, including promulgation of internal rules and procedures. (Sec. 6e)
Meetings and Quorum
Sec. 7: The Board shall meet at least once a month, and special meetings may be convoked by the Chairman or upon request of at least 2 members. The presence of 3 members shall constitute a quorum, and all decisions shall require the concurrence of at least 3 members.
Remuneration of Board Members
Sec. 8: The members of the Board shall receive per diems for each meeting attended as provided by their rules and regulations.
Permanent Executive Staff
Sec. 9: The Board shall be assisted by the Presidential Management Staff in the exercise of its functions and responsibilities.
Technical Committees
Sec. 10: The Board may create technical advisory committees from government agencies to provide advisory services on specialized fields, and is authorized to grant allowances in accordance with existing laws, rules and regulations.
Rules and Regulations
Sec. 11: The Board shall issue rules and regulations necessary for the proper implementation of this Order, containing:
- Criteria for determining contractor eligibilities, classifying projects, evaluating bids, and awarding contracts. (Sec. 11a)
- Procedures for advertisements, public bidding, evaluation and selection of bids, objections to pre-qualification, bid admission, and contract award. (Sec. 11b)
- Provisions defining minimum terms and conditions required in government contracts, including adjustments. (Sec. 11c)
- Measures to enhance local contractor capabilities, encourage utilization of local resources, avoid collusion, and monitor contractor's resources, experience and accomplishments. (Sec. 11d)
Project Plans and Specifications
Sec. 12: Each government agency shall be responsible for preparing the necessary programs of work, plans, specifications and cost estimates of the project, which shall be approved in accordance with existing laws and procedures.
Transitory Period
Sec. 13: Until the Board is constituted and operational, government agencies shall continue performing their respective functions pertaining to awarding of contracts in accordance with existing rules, regulations and procedures.
Appropriation
Sec. 14: The Minister of the Budget is directed to release funds necessary for the organizational and operational expenses of the Board during Calendar Year 1979, and thereafter to include the amount necessary for the annual operation of the Board in the General Appropriations Bills.
Repealing Clause
Sec. 15: 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.
Sec. 1: All government projects involving civil, electrical and mechanical engineering works, and supply and installation of equipment and materials, except those authorized by law to be undertaken by administration, shall be undertaken through competitive public bidding to ensure economy and efficiency.
Exceptions to Public Bidding
Sec. 2: Agencies may award contracts without public bidding in the following cases:
- Emergencies arising from natural calamities where immediate action is necessary to prevent imminent loss of life and/or property. (Sec. 2a)
- Failure to award the contract after competitive public bidding for valid causes. (Sec. 2b)
- Innovative or experimental projects under guidelines promulgated by the Central Tender Board. (Sec. 2c)
- Termination or deletion of an existing contract, where awarding to a different contractor through public bidding would cause unnecessary delay. (Sec. 2d)
- Cases of urgent necessity as certified by the agency and approved by the President. (Sec. 2e)
Other Conditions for Negotiations
Sec. 3: The authority to negotiate contracts shall not be issued unless:
- The program of work and government cost estimates for the project have been prepared and approved.
- The contractors have been pre-qualified in accordance with the rules and procedures prescribed by the Central Tender Board.
Central Tender Board
Sec. 4: A Central Tender Board is created, composed of:
- The Executive Director, Presidential Management Staff
- Representative of the National Economic and Development Authority
- Representative of the Ministry of the Budget
- Representative of the agency concerned
- Another member appointed by the President, preferably a representative of the Philippine Contractors Association
The members shall elect the Chairman who shall serve for 2 years.
Primary Function of the Board
Sec. 5: The Central Tender Board shall have the sole authority to conduct competitive public biddings for projects mentioned in Section 1 and make the necessary awards, unless otherwise instructed by the President. The President may create a special bid committee for major national government projects.
Powers and Functions of the Board
Sec. 6: The Central Tender Board shall have the following powers and functions:
- Receive, process and approve applications for registration and pre-qualification of contractors. (Sec. 6a)
- Categorize projects and define the required contractor's eligibilities to participate in the bidding. (Sec. 6b)
- Check, verify and evaluate contractors' compliance with the Order, rules and regulations, and contract terms. (Sec. 6c)
- Organize its own staff and call upon government officials or private sector for assistance. (Sec. 6d)
- Exercise all powers necessary or incidental to attain the purposes of this Order, including promulgation of internal rules and procedures. (Sec. 6e)
Meetings and Quorum
Sec. 7: The Board shall meet at least once a month, and special meetings may be convoked by the Chairman or upon request of at least 2 members. The presence of 3 members shall constitute a quorum, and all decisions shall require the concurrence of at least 3 members.
Remuneration of Board Members
Sec. 8: The members of the Board shall receive per diems for each meeting attended as provided by their rules and regulations.
Permanent Executive Staff
Sec. 9: The Board shall be assisted by the Presidential Management Staff in the exercise of its functions and responsibilities.
Technical Committees
Sec. 10: The Board may create technical advisory committees from government agencies to provide advisory services on specialized fields, and is authorized to grant allowances in accordance with existing laws, rules and regulations.
Rules and Regulations
Sec. 11: The Board shall issue rules and regulations necessary for the proper implementation of this Order, containing:
- Criteria for determining contractor eligibilities, classifying projects, evaluating bids, and awarding contracts. (Sec. 11a)
- Procedures for advertisements, public bidding, evaluation and selection of bids, objections to pre-qualification, bid admission, and contract award. (Sec. 11b)
- Provisions defining minimum terms and conditions required in government contracts, including adjustments. (Sec. 11c)
- Measures to enhance local contractor capabilities, encourage utilization of local resources, avoid collusion, and monitor contractor's resources, experience and accomplishments. (Sec. 11d)
Project Plans and Specifications
Sec. 12: Each government agency shall be responsible for preparing the necessary programs of work, plans, specifications and cost estimates of the project, which shall be approved in accordance with existing laws and procedures.
Transitory Period
Sec. 13: Until the Board is constituted and operational, government agencies shall continue performing their respective functions pertaining to awarding of contracts in accordance with existing rules, regulations and procedures.
Appropriation
Sec. 14: The Minister of the Budget is directed to release funds necessary for the organizational and operational expenses of the Board during Calendar Year 1979, and thereafter to include the amount necessary for the annual operation of the Board in the General Appropriations Bills.
Repealing Clause
Sec. 15: 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.