MALACAÑANG
ManilaBY THE PRESIDENT OF THE PHILIPPINES
Executive Order No. 109 May 27, 2002
STREAMING THE RULES AND PROCEDURES ON THE REVIEW AND APPROVAL OF ALL CONTRACTS OF DEPARTMENTS, BUREAUS, OFFICES AND AGENCIES OF THE GOVERNMENT, INCLUDING GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS AND THEIR SUBSIDIARIES
WHEREAS, in line with the government's program of good governance, there is a need to streamline procedures for the review and approval of government contracts for the expeditious implementation of development projects and the speedy delivery of basic services while promoting transparency, impartiality, and accountability in government transactions;
WHEREAS, to achieve the foregoing, the National Economic and Development Authority (NEDA) has recommended the issuance of this Executive Order;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:
Section 1. Public Bidding. It is the policy of this Administration that all Government Contracts shall be awarded through open and competitive public bidding, save in exceptional cases provided by law and applicable rules and regulations, as described...
Details
Amends
n/a
Amended by
n/a
Executive Orders
Streaming The Rules and Procedures on the Review and Approval of all Contracts of Departments, Bureaus, Offices and Agencies of the Government, including Government-Owned or Controlled Corporations and their Subsidiaries
Executive Order No. 109
Summary of Executive Order No. 109
Public Bidding
- It is the policy that all government contracts shall be awarded through open and competitive public bidding, except in exceptional cases provided by law and applicable rules and regulations. (Section 1)
- Department Secretaries have full authority to give final approval and/or enter into all government contracts awarded through public bidding, regardless of the amount involved. (Section 1)
- Department Secretaries and heads of agencies are responsible for ensuring that all contracts are in accordance with laws, rules, regulations, and government priorities. (Section 1)
Exceptions to Public Bidding
- Exceptions are allowed for: (Section 2)
1. Infrastructure projects, supply contracts, civil works, and related contracts as provided under specific laws and regulations.
2. Procurement of goods, supplies, materials, and related services as provided under Executive Order No. 40 and its implementing rules.
3. Consulting services as provided under Executive Order No. 40 and its implementing rules.
Requirements for Exception from Public Bidding
- For contracts involving at least P300 million, the Department Secretary must obtain: (Section 3)
1. An opinion from the Secretary of Justice that the contract falls within the exceptions.
2. Approval from the NEDA Director-General to proceed with a specific alternative mode of procurement.
- After compliance, Department Secretaries have full authority to give final approval for such contracts.
- For contracts below P300 million, Department Secretaries can determine if it falls under exceptions and approve without the above requirements. (Section 3)
Governing Laws for Government Contracts
- Different types of contracts are governed by specific laws and regulations, including: (Section 4)
1. BOT contracts governed by Republic Act No. 6957 and its implementing rules.
2. Infrastructure projects governed by the Revised Administrative Code of 1987, Presidential Decree No. 1594, and Executive Order No. 40.
3. Goods, supplies, materials, and related services governed by Executive Order No. 40.
4. Consulting services governed by Executive Order No. 40.
5. Lease contracts for goods, supplies, and materials governed by Executive Order No. 40.
6. ODA-funded contracts governed by Republic Act No. 4860 and Republic Act No. 8182.
Joint Venture Agreements
- NEDA shall issue guidelines for joint venture agreements with private entities to promote transparency, impartiality, and accountability. (Section 5)
Requirements for All Government Contracts
- All contracts must be: (Section 7)
1. Processed completely by the concerned agency.
2. Signed and/or approved by the agency head, governing board, and Department Secretary.
3. Accompanied by certifications from the Department Secretary, agency head, and governing board that the contract is in accordance with laws and regulations.
Authority to Bind the Government
- All contracts require approval of the Department Secretary after being signed by the agency head or governing board. (Section 8)
- Department Secretaries have full authority to approve contracts, but may delegate authority for contracts below P300 million.
- Contracts entered into without authority are invalid and not binding on the government.
Government Contracts Requiring Presidential Action/Approval
- Contracts required by law to be acted upon/approved by the President must first be favorably acted upon by the NEDA Board chaired by the President. (Section 9)
- Such contracts must be submitted to NEDA within 7 days of Department Secretary's approval, along with supporting documents.
- NEDA has 30 days to submit its recommendation to the NEDA Board.
- NEDA must notify the Department Secretary of the NEDA Board's action within 7 days.
Submission of Government Contracts
- A copy of all contracts involving at least P300 million must be submitted to NEDA within 7 days of signing/approval, along with supporting documents. (Section 10)
Splitting of Government Contracts
- Splitting of contracts to evade requirements, especially public bidding, is not allowed. (Section 11)
Local Government Units
- Contracts of Local Government Units funded by the national government shall be governed by this Executive Order. (Section 12)
- Local Government Units are encouraged to apply the provisions of this Executive Order for their own contracts.
Implementing Guidelines, Rules, and Regulations
- NEDA shall issue guidelines, rules, and regulations to implement this Executive Order within 30 days, subject to the President's approval. (Section 14)
- Guidelines shall cover ODA-funded contracts, joint venture agreements, and submission of contracts to NEDA.
- NEDA may recommend penalties for violations.
- NEDA shall submit a list of all contracts required by law to be acted upon/approved by the President.
Applicability of Existing Laws
- Provisions of various existing laws and regulations shall continue to be applicable. (Section 15)
Repeal and Amendment
- Various executive orders, administrative orders, memoranda, and other issuances are repealed or amended accordingly. (Section 16)
Public Bidding
- It is the policy that all government contracts shall be awarded through open and competitive public bidding, except in exceptional cases provided by law and applicable rules and regulations. (Section 1)
- Department Secretaries have full authority to give final approval and/or enter into all government contracts awarded through public bidding, regardless of the amount involved. (Section 1)
- Department Secretaries and heads of agencies are responsible for ensuring that all contracts are in accordance with laws, rules, regulations, and government priorities. (Section 1)
Exceptions to Public Bidding
- Exceptions are allowed for: (Section 2)
1. Infrastructure projects, supply contracts, civil works, and related contracts as provided under specific laws and regulations.
2. Procurement of goods, supplies, materials, and related services as provided under Executive Order No. 40 and its implementing rules.
3. Consulting services as provided under Executive Order No. 40 and its implementing rules.
Requirements for Exception from Public Bidding
- For contracts involving at least P300 million, the Department Secretary must obtain: (Section 3)
1. An opinion from the Secretary of Justice that the contract falls within the exceptions.
2. Approval from the NEDA Director-General to proceed with a specific alternative mode of procurement.
- After compliance, Department Secretaries have full authority to give final approval for such contracts.
- For contracts below P300 million, Department Secretaries can determine if it falls under exceptions and approve without the above requirements. (Section 3)
Governing Laws for Government Contracts
- Different types of contracts are governed by specific laws and regulations, including: (Section 4)
1. BOT contracts governed by Republic Act No. 6957 and its implementing rules.
2. Infrastructure projects governed by the Revised Administrative Code of 1987, Presidential Decree No. 1594, and Executive Order No. 40.
3. Goods, supplies, materials, and related services governed by Executive Order No. 40.
4. Consulting services governed by Executive Order No. 40.
5. Lease contracts for goods, supplies, and materials governed by Executive Order No. 40.
6. ODA-funded contracts governed by Republic Act No. 4860 and Republic Act No. 8182.
Joint Venture Agreements
- NEDA shall issue guidelines for joint venture agreements with private entities to promote transparency, impartiality, and accountability. (Section 5)
Requirements for All Government Contracts
- All contracts must be: (Section 7)
1. Processed completely by the concerned agency.
2. Signed and/or approved by the agency head, governing board, and Department Secretary.
3. Accompanied by certifications from the Department Secretary, agency head, and governing board that the contract is in accordance with laws and regulations.
Authority to Bind the Government
- All contracts require approval of the Department Secretary after being signed by the agency head or governing board. (Section 8)
- Department Secretaries have full authority to approve contracts, but may delegate authority for contracts below P300 million.
- Contracts entered into without authority are invalid and not binding on the government.
Government Contracts Requiring Presidential Action/Approval
- Contracts required by law to be acted upon/approved by the President must first be favorably acted upon by the NEDA Board chaired by the President. (Section 9)
- Such contracts must be submitted to NEDA within 7 days of Department Secretary's approval, along with supporting documents.
- NEDA has 30 days to submit its recommendation to the NEDA Board.
- NEDA must notify the Department Secretary of the NEDA Board's action within 7 days.
Submission of Government Contracts
- A copy of all contracts involving at least P300 million must be submitted to NEDA within 7 days of signing/approval, along with supporting documents. (Section 10)
Splitting of Government Contracts
- Splitting of contracts to evade requirements, especially public bidding, is not allowed. (Section 11)
Local Government Units
- Contracts of Local Government Units funded by the national government shall be governed by this Executive Order. (Section 12)
- Local Government Units are encouraged to apply the provisions of this Executive Order for their own contracts.
Implementing Guidelines, Rules, and Regulations
- NEDA shall issue guidelines, rules, and regulations to implement this Executive Order within 30 days, subject to the President's approval. (Section 14)
- Guidelines shall cover ODA-funded contracts, joint venture agreements, and submission of contracts to NEDA.
- NEDA may recommend penalties for violations.
- NEDA shall submit a list of all contracts required by law to be acted upon/approved by the President.
Applicability of Existing Laws
- Provisions of various existing laws and regulations shall continue to be applicable. (Section 15)
Repeal and Amendment
- Various executive orders, administrative orders, memoranda, and other issuances are repealed or amended accordingly. (Section 16)