Question & AnswerQ&A (MEMORANDUM ORDER NO. 213)
Payment on a letter of credit shall not be made until delivery and acceptance of the goods as certified by the procuring entity in accordance with the delivery schedule provided in the contract.
The cost for the opening of the letter of credit shall be for the account of the local or foreign supplier and must be stated in the bidding documents.
For Section 53 item (a), the procuring entity must draw up a list of at least three suppliers, contractors, or consultants in good standing who will be invited to submit bids and negotiate with the bidder who submitted the lowest calculated or highest rated bid. If that bidder's offer is not responsive, negotiations proceed in ascending order based on bids.
The contract award shall be posted on the Government Electronic Procurement System (G-EPS) website, the procuring entity’s website if available, and in a conspicuous place within the premises of the procuring entity.
Negotiations may be made with a previous supplier, contractor, or consultant of good standing of the procuring entity concerned, or with a supplier, contractor, or consultant of good standing located within the vicinity where the calamity or emergency occurred.
All bid prices are considered fixed prices and are not subject to price escalation during contract implementation, except under extraordinary circumstances and with prior approval of the Government Procurement Policy Board (GPPB).
All contracts shall be denominated and payable in Philippine currency, and this must be stated in the bidding documents. However, payment in foreign currency may be allowed subject to GPPB guidelines.
If bids are received denominated in foreign currency, the exchange rate prevailing on the day of the bid opening shall be used for bid comparison and evaluation.
The Memorandum Order took effect immediately upon its publication in a newspaper of general circulation.