Question & AnswerQ&A (MEMORANDUM ORDER NO. 213)
The purpose of Memorandum Order No. 213 is to approve amendments to Sections 42.5, 54.2 (b)(d), and 61.1 of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act No. 9184 to streamline and improve procurement procedures.
The President of the Republic of the Philippines has the authority to approve amendments to the IRR-A of RA 9184, as exercised by President Gloria Macapagal-Arroyo in this order.
Section 42.5 allows procuring entities to issue letters of credit in favor of local or foreign suppliers, but no payment shall be made until delivery and acceptance of goods. The cost for opening the letter of credit shall be borne by the supplier and must be stated in the bidding documents.
Under Section 54.2(b), the procuring entity must draw up a list of at least three suppliers, contractors, or consultants in good standing to invite for bidding and negotiation. Negotiations proceed in ascending order if the lowest bid is not responsive, and contract award information must be posted on the G-EPS website and the procuring entity's conspicuous place.
Negotiations may be made with previous suppliers, contractors, or consultants of good standing or those situated within the vicinity where the calamity or emergency occurred.
Awards of contracts must be posted at the G-EPS website, the procuring entity's website if any, and in a conspicuous place within the premises of the procuring entity.
Section 61.1 states that all bid prices shall be considered fixed prices and not subject to price escalation during contract implementation, except under extraordinary circumstances and with prior approval from the Government Procurement Policy Board (GPPB).
Contracts shall be denominated and payable in Philippine currency. However, the procuring entity may provide in the bidding documents that obligations may be paid in foreign currency, subject to GPPB guidelines.
Bids denominated in foreign currency shall be evaluated based on the exchange rate prevailing on the day of the bid opening for purposes of comparison and evaluation.
The amendments take effect immediately upon their publication in a newspaper of general circulation.