Question & AnswerQ&A (EXECUTIVE ORDER NO. 40)
The purpose of Executive Order No. 40 is to amend the third paragraph of Executive Order No. 298 dated August 12, 1940, regarding the prohibition of automatic renewal of contracts, requiring public bidding before entering into new contracts, and providing exceptions thereto.
A Committee composed of the Executive Secretary as Chairman, the Auditor General, and the Secretary of Justice has the authority to determine very extraordinary reasons that may allow a contract to be renewed without public bidding.
When there is a tie in the voting of the Committee, the case shall be submitted to the President for decision.
The Director of Supply may purchase without public bidding when the Head of the Department certifies on the requisition that the items are urgently needed to meet an emergency involving loss or damage to life or property, or are needed for a project or activity that cannot be delayed without harming public service, and after a thorough canvass of the market.
Yes, the Director of Supply can purchase from an exclusive dealer or manufacturer without public bidding if there are no sub-dealers selling at lower prices and no suitable substitutes can be obtained elsewhere under more advantageous terms.
Contracts for public service or for furnishing supplies, materials and equipment to the government or any of its branches, agencies or instrumentalities are covered by this Executive Order.
The automatic renewal of contracts without public bidding is prohibited, except under very extraordinary reasons determined as provided.
The Executive Secretary acts as the Chairman of the Committee composed to decide on whether a contract may be renewed or entered into without public bidding for very extraordinary reasons.
A thorough canvass of the market must be conducted before supplies, materials, or equipment can be purchased without public bidding in emergency situations after the Head of the Department certifies the urgent need.