Question & AnswerQ&A (EXECUTIVE ORDER NO. 359)
The main policy reiterated is that 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.
The Procurement Policy Board is established, consisting of the Secretary of Budget and Management as Chairman and members including the 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.
The Board is tasked to promulgate rules and regulations to carry out the procurement policy, conduct periodic evaluations of the centralized procurement system's effectiveness, and may consult the Chairman of the Commission on Audit on relevant matters.
The Procurement Service (PS) of the Department of Budget and Management operates the central procurement system.
Local government units may avail themselves of the central procurement system on a voluntary basis.
Government agencies may procure directly for emergency needs if there is a significant delay in delivery by the Procurement Service, subject to existing accounting and auditing rules and regulations.
All national government agencies, including State Universities and Colleges and government owned or controlled corporations and their subsidiaries, are covered.
The criteria include comparison of prices with the open market, compliance with standards and quality as formulated by the Bureau of Product Standards, and meeting delivery time standards for client agencies.
Their hold-over status automatically terminates and ceases.
Agencies must prepare and submit annual procurement programs for brand-new supplies, materials, and equipment covered by the system. The appropriations must be identified in their annual Work and Financial Plan, which serves as the basis for quarterly allotments and funding warrants by the Department of Budget and Management.
The deficiency shall be covered by savings from any appropriate lump-sum funds as determined by the Department of Budget and Management.
Yes, it revokes or modifies inconsistent provisions of Procurement Council Circular No. 1; Joint Circular 77-2 as amended by Procurement Circular No. 3 and 3ai; Joint Circular No. 3-B; and the DBM-DTI-COA Memorandum Circular dated October 1, 1987.
It took effect immediately upon signing on June 2, 1989.