Question & AnswerQ&A (Republic Act No. 8667)
The main policy reiterated is that 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.
The Procurement Policy Board is established to promulgate rules and regulations to carry out the policy of efficient government procurement and to serve as the basis for the Procurement Service and other government agencies' procurement operations. It also evaluates the effectiveness of the centralized procurement system.
The Board consists of the Secretary of Budget and Management (DBM) as Chairman, and the Secretaries of Finance, Trade and Industry, Health, National Defense, Public Works and Highways, Education, Culture and Sports as members, along with a representative from the Philippine Institute of Certified Public Accountants (PICPA).
The Procurement Service (PS) of the Department of Budget and Management (DBM) along with its Inter-Agency Bids and Awards Committee is responsible for the operation and implementation of the central procurement system.
Local government units may avail of the central procurement system on a voluntary basis, but they are not mandatorily covered by the Order.
The criteria include: (1) comparable prices in the open market; (2) compliance with established standards and quality formulated by the Bureau of Product Standards; and (3) meeting delivery time standards to client agencies.
Yes, agencies may procure directly in emergency situations when 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.
The DBM shall establish Regional Depots as part of the Procurement Service’s organization to facilitate local purchase of common-use supplies, materials, and equipment requirements by government agencies.
The annual agency procurement programs included in their annual Work and Financial Plan serve as the basis for the release of quarterly allotments and monthly funding warrants by the Department of Budget and Management.
Any procurement-related circulars and implementing guidelines inconsistent with this Executive Order, such as Procurement Council Circular No. 1 and related joint circulars, are revoked or modified accordingly.