EXECUTIVE ORDER NO. 164 May 5, 1987
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;...
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Executive Orders
Providing Additional Guidelines in the Processing and Approval of Contracts of the National Government
Executive Order No. 164
EXECUTIVE ORDER NO. 164
Providing Additional Guidelines in the Processing and Approval of Contracts of the National Government
I. Ceiling for Infrastructure Contracts
- Sets ceilings for civil works, construction, and other infrastructure projects, including supply contracts, awarded through public bidding or negotiation, that may be approved by the following officials/entities (Sec. 1):
• Secretary of Public Works and Highways: P100 million (public bidding), P10 million (negotiation)
• Secretary of Transportation and Communications: P100 million (public bidding), P10 million (negotiation)
• Secretary of Local Government (Rural Road Improvement Project): P100 million (public bidding), P2 million (negotiation)
• Governing Boards of Infrastructure Corporations: P50 million (public bidding), P5 million (negotiation)
• Governing Boards of Non-Infrastructure Corporations: P7.5 million (public bidding), P1 million (negotiation)
II. Contracts for Approval by the President (Sec. 2)
• Contracts for infrastructure projects, including supply contracts, involving amounts above the ceilings in Section 1 shall be approved by the President.
• The President may revise the ceilings upon recommendation of the National Economic and Development Authority.
III. Approval of Consultancy Contracts (Sec. 3)
• 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.
• The National Economic and Development Authority shall be furnished copies of consultancy contracts exceeding P1 million for monitoring purposes.
IV. Delegation of Authority to Governing Boards of Government Corporations (Sec. 4)
• The Secretaries are authorized to delegate to the governing boards of government-owned or controlled corporations the authority to approve contracts for infrastructure projects beyond the ceilings provided in Section 1, but within the approving authority of the Secretaries.
• For government corporations attached to or under the Office of the President, the delegation shall be made by the Executive Secretary.
V. Public Bidding of Contracts; Exceptions (Sec. 5)
• As a general rule, contracts for infrastructure projects shall be awarded after open public bidding to the lowest responsive/evaluated bidder.
• Open public bidding shall be conducted among pre-qualified contractors in accordance with existing laws, rules, and regulations.
• Exceptions to public bidding where negotiation is allowed:
1. In times of emergencies arising from natural calamities where immediate action is necessary (direct negotiations or simplified bidding)
2. Failure to award the contract after competitive public bidding for valid causes (simplified bidding)
3. Where the project is adjacent or contiguous to an ongoing project and can be economically prosecuted by the same contractor (direct negotiation under certain conditions)
VI. Contracts for Community Employment and Development Program Projects (Sec. 6)
• Contracts for projects under the Community Employment and Development Program shall be awarded through open public bidding.
• The invitation to bid shall be advertised at least once within one week in a local newspaper, posted in municipal/provincial offices, and through other media.
• For projects costing not more than P1 million, the deadline for submission of bids may be shortened to one week after the invitation/advertisement.
VII. Constitution of the Prequalification, Bids and Awards Committee (Sec. 7)
• Each department/office/agency shall have a Prequalification, Bids and Awards Committee responsible for prequalification of contractors, biddings, evaluation of bids, and recommending awards.
• The Committee shall include representatives from private organizations (Philippine Institute of Civil Engineers, Philippine Contractors Association, National Confederation of Contractors Associations of the Philippines, Inc., Philippine Institute of Certified Public Accountants) as non-voting members.
VIII. Approval of Other Types of Government Contracts (Sec. 8)
• Other types of government contracts not covered by this Executive Order shall continue to be processed and approved in accordance with existing laws, rules, and regulations.
IX. Applicability of Presidential Decree No. 1594 and Its Implementing Rules (Sec. 9)
• The provisions of Presidential Decree No. 1594 and its Implementing Rules and Regulations shall continue to be applicable, except as modified by this Executive Order.
X. Repealing Clause (Sec. 10)
• All laws, orders, issuances, rules, and regulations inconsistent with this Executive Order are repealed or modified accordingly.
XI. Effectivity (Sec. 11)
• This Executive Order shall take effect immediately.
Providing Additional Guidelines in the Processing and Approval of Contracts of the National Government
I. Ceiling for Infrastructure Contracts
- Sets ceilings for civil works, construction, and other infrastructure projects, including supply contracts, awarded through public bidding or negotiation, that may be approved by the following officials/entities (Sec. 1):
• Secretary of Public Works and Highways: P100 million (public bidding), P10 million (negotiation)
• Secretary of Transportation and Communications: P100 million (public bidding), P10 million (negotiation)
• Secretary of Local Government (Rural Road Improvement Project): P100 million (public bidding), P2 million (negotiation)
• Governing Boards of Infrastructure Corporations: P50 million (public bidding), P5 million (negotiation)
• Governing Boards of Non-Infrastructure Corporations: P7.5 million (public bidding), P1 million (negotiation)
II. Contracts for Approval by the President (Sec. 2)
• Contracts for infrastructure projects, including supply contracts, involving amounts above the ceilings in Section 1 shall be approved by the President.
• The President may revise the ceilings upon recommendation of the National Economic and Development Authority.
III. Approval of Consultancy Contracts (Sec. 3)
• 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.
• The National Economic and Development Authority shall be furnished copies of consultancy contracts exceeding P1 million for monitoring purposes.
IV. Delegation of Authority to Governing Boards of Government Corporations (Sec. 4)
• The Secretaries are authorized to delegate to the governing boards of government-owned or controlled corporations the authority to approve contracts for infrastructure projects beyond the ceilings provided in Section 1, but within the approving authority of the Secretaries.
• For government corporations attached to or under the Office of the President, the delegation shall be made by the Executive Secretary.
V. Public Bidding of Contracts; Exceptions (Sec. 5)
• As a general rule, contracts for infrastructure projects shall be awarded after open public bidding to the lowest responsive/evaluated bidder.
• Open public bidding shall be conducted among pre-qualified contractors in accordance with existing laws, rules, and regulations.
• Exceptions to public bidding where negotiation is allowed:
1. In times of emergencies arising from natural calamities where immediate action is necessary (direct negotiations or simplified bidding)
2. Failure to award the contract after competitive public bidding for valid causes (simplified bidding)
3. Where the project is adjacent or contiguous to an ongoing project and can be economically prosecuted by the same contractor (direct negotiation under certain conditions)
VI. Contracts for Community Employment and Development Program Projects (Sec. 6)
• Contracts for projects under the Community Employment and Development Program shall be awarded through open public bidding.
• The invitation to bid shall be advertised at least once within one week in a local newspaper, posted in municipal/provincial offices, and through other media.
• For projects costing not more than P1 million, the deadline for submission of bids may be shortened to one week after the invitation/advertisement.
VII. Constitution of the Prequalification, Bids and Awards Committee (Sec. 7)
• Each department/office/agency shall have a Prequalification, Bids and Awards Committee responsible for prequalification of contractors, biddings, evaluation of bids, and recommending awards.
• The Committee shall include representatives from private organizations (Philippine Institute of Civil Engineers, Philippine Contractors Association, National Confederation of Contractors Associations of the Philippines, Inc., Philippine Institute of Certified Public Accountants) as non-voting members.
VIII. Approval of Other Types of Government Contracts (Sec. 8)
• Other types of government contracts not covered by this Executive Order shall continue to be processed and approved in accordance with existing laws, rules, and regulations.
IX. Applicability of Presidential Decree No. 1594 and Its Implementing Rules (Sec. 9)
• The provisions of Presidential Decree No. 1594 and its Implementing Rules and Regulations shall continue to be applicable, except as modified by this Executive Order.
X. Repealing Clause (Sec. 10)
• All laws, orders, issuances, rules, and regulations inconsistent with this Executive Order are repealed or modified accordingly.
XI. Effectivity (Sec. 11)
• This Executive Order shall take effect immediately.