EXECUTIVE ORDER NO. 359 June 2, 1989
REITERATING THE POLICY AND PRESCRIBING GUIDELINES AND PROCEDURES IN THE IMPLEMENTATION OF THE PROVISIONS OF EXECUTIVE ORDER NO. 285, "ABOLISHING THE GENERAL SERVICES ADMINISTRATION AND TRANSFERRING ITS FUNCTIONS TO APPROPRIATE GOVERNMENT AGENCIES" ON THE OPERATION OF A PROCUREMENT SYSTEM FOR COMMON-USE OFFICE SUPPLIES, MATERIALS AND EQUIPMENT
WHEREAS, the cost of government operations can be substantially reduced through greater efficiency in the procurement of supplies, materials and equipment;
WHEREAS, innovations in procurement have been successfully tested by the Department of Budget and Management (DBM), Department of Finance (DOF) and the Commission on Audit (COA) through the Pilot Procurement Project and subsequently the Procurement Service;
WHEREAS, the said policies, procedures and innovations should be institutionalized in line with the provisions of Letter of Instructions No. 755 and Executive Order No. 285 mandating the operation of a government-wide procurement system and price monitoring of common-use supplies, materials, and equipment;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested...
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Executive Orders
Reiterating the Policy and Prescribing Guidelines and Procedures in the Implementation of the Provisions of Executive Order No. 285, "Abolishing the General Services Administration and Transferring Its Functions To Appropriate Government Agencies" on the Operation of A Procurement System For Common-Use Office Supplies, Materials and Equipment
Executive Order No. 359
Summary of Executive Order No. 359
Reiterating the Policy and Prescribing Guidelines and Procedures in the Implementation of Executive Order No. 285
I. Policy Reiteration (Section 1)
• The procurement of government supplies, materials, and equipment shall be done in the most economical and efficient manner by purchasing directly from reliable sources in economic lot sizes, observing optimum specifications, and making prompt payment.
II. Organization (Section 2)
• A Procurement Policy Board is established, consisting of the Secretary of Budget and Management as Chairman and Secretaries of Finance, Trade and Industry, Health, National Defense, Public Works and Highways, Education, Culture and Sports, and a representative from the Philippine Institute of Certified Public Accountants as Members.
• The Board shall promulgate rules and regulations to carry out the policy and intent of this Executive Order, which shall serve as the basis for the procurement operation of the Procurement Service (PS) of the Department of Budget and Management (DBM) and other government agencies.
• The Board shall conduct periodic evaluation of the effectiveness of the centralized procurement system carried out by the Procurement Service in terms of economy and efficiency, measured against comparable prices in the open market, compliance with established standards and quality, and meeting delivery time standards to client agencies.
• The Procurement Service (PS) of the DBM and its Inter-Agency Bids and Awards Committee shall be maintained as the regular organizational units to implement and operate a central procurement system.
• DBM shall establish Regional Depots as part of the regular organization structure of the Procurement Service.
III. Coverage (Section 3)
• All national government agencies, including State Universities and Colleges and government-owned or controlled corporations and their subsidiaries, that require common-use supplies, materials, and equipment are covered by this Executive Order.
• Local government units may avail of the central procurement system on a voluntary basis.
• Agencies are allowed to procure directly for emergency needs whenever there is a significant delay in the delivery of urgently needed supplies by the Procurement Service, subject to existing accounting and auditing rules and regulations.
IV. Operating Procedures (Section 4)
• The operating procedures of the procurement system shall be prescribed by the Procurement Service (PS) and shall cover the following:
- Preparation and submission of the annual agency procurement programs for brand-new supplies, materials, and equipment covered by the procurement system.
- The appropriations for the Annual Procurement Programs of Agencies shall be identified in their annual Work and Financial Plan, which shall serve as the basis for DBM to release the Agency's quarterly allotments and monthly funding warrants.
- In case of deficiency of available appropriations, such deficiency shall be covered by savings from any appropriate lump-sum funds as determined by DBM.
V. Repealing Clause (Section 6)
• The provisions of Procurement Council Circular No. 1, Joint Circular 77-2 as amended by Procurement Circular No. 3 and 3a, Joint Circular No. 3-B, and Joint DBM-DTI-COA Memorandum Circular dated October 1, 1987, that are inconsistent with this Executive Order are hereby revoked or modified accordingly.
VI. Effectivity (Section 7)
• This Executive Order shall take effect immediately.
Reiterating the Policy and Prescribing Guidelines and Procedures in the Implementation of Executive Order No. 285
I. Policy Reiteration (Section 1)
• The procurement of government supplies, materials, and equipment shall be done in the most economical and efficient manner by purchasing directly from reliable sources in economic lot sizes, observing optimum specifications, and making prompt payment.
II. Organization (Section 2)
• A Procurement Policy Board is established, consisting of the Secretary of Budget and Management as Chairman and Secretaries of Finance, Trade and Industry, Health, National Defense, Public Works and Highways, Education, Culture and Sports, and a representative from the Philippine Institute of Certified Public Accountants as Members.
• The Board shall promulgate rules and regulations to carry out the policy and intent of this Executive Order, which shall serve as the basis for the procurement operation of the Procurement Service (PS) of the Department of Budget and Management (DBM) and other government agencies.
• The Board shall conduct periodic evaluation of the effectiveness of the centralized procurement system carried out by the Procurement Service in terms of economy and efficiency, measured against comparable prices in the open market, compliance with established standards and quality, and meeting delivery time standards to client agencies.
• The Procurement Service (PS) of the DBM and its Inter-Agency Bids and Awards Committee shall be maintained as the regular organizational units to implement and operate a central procurement system.
• DBM shall establish Regional Depots as part of the regular organization structure of the Procurement Service.
III. Coverage (Section 3)
• All national government agencies, including State Universities and Colleges and government-owned or controlled corporations and their subsidiaries, that require common-use supplies, materials, and equipment are covered by this Executive Order.
• Local government units may avail of the central procurement system on a voluntary basis.
• Agencies are allowed to procure directly for emergency needs whenever there is a significant delay in the delivery of urgently needed supplies by the Procurement Service, subject to existing accounting and auditing rules and regulations.
IV. Operating Procedures (Section 4)
• The operating procedures of the procurement system shall be prescribed by the Procurement Service (PS) and shall cover the following:
- Preparation and submission of the annual agency procurement programs for brand-new supplies, materials, and equipment covered by the procurement system.
- The appropriations for the Annual Procurement Programs of Agencies shall be identified in their annual Work and Financial Plan, which shall serve as the basis for DBM to release the Agency's quarterly allotments and monthly funding warrants.
- In case of deficiency of available appropriations, such deficiency shall be covered by savings from any appropriate lump-sum funds as determined by DBM.
V. Repealing Clause (Section 6)
• The provisions of Procurement Council Circular No. 1, Joint Circular 77-2 as amended by Procurement Circular No. 3 and 3a, Joint Circular No. 3-B, and Joint DBM-DTI-COA Memorandum Circular dated October 1, 1987, that are inconsistent with this Executive Order are hereby revoked or modified accordingly.
VI. Effectivity (Section 7)
• This Executive Order shall take effect immediately.