Title
Decentralizing gov't contracts and records
Law
Executive Order No. 301
Decision Date
Jul 26, 1987
Corazon C. Aquino's Executive Order No. 301 decentralizes the approval process for government negotiated contracts, lease agreements, and records disposal, empowering agency heads to expedite transactions while ensuring compliance with established guidelines and oversight by the Commission on Audit.
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Questions (EXECUTIVE ORDER NO. 301)

Negotiated contracts can be entered into without public bidding when supplies are urgently needed in emergencies, when used in projects that cannot be delayed, when materials are sold by exclusive distributors without substitutes, when bids have failed twice, when it is most advantageous to the government, or when purchasing from a government agency.

Under the decentralized system, the head of the department or agency or the governing board of a government-owned or controlled corporation can enter into negotiated contracts without prior approval by higher authorities, subject to COA audit jurisdiction.

The COA has audit jurisdiction over negotiated contracts entered into by government agencies to ensure compliance with existing rules and regulations and prescribed standards.

Negotiated contracts involving P2,000,000 up to P10,000,000 must be signed by the Secretary and two other Undersecretaries.

The Presidential Committee on Negotiated Contracts created under Executive Order No. 298 was abolished. Pending contracts with the committee shall be processed per existing procedures and signed by the Secretary of General Services.

No. EO No. 301 specifically excludes infrastructure or public works contracts and contracts with prescribed approval ceilings under Executive Order No. 164 dated May 5, 1987.

The Department of Public Works and Highways (DPWH) formulates the uniform standards or guidelines for lease contracts involving privately-owned or government-owned buildings or spaces.

Agency heads have the authority to determine the reasonableness of lease terms and rental rates and to enter into lease contracts without prior approval, subject to DPWH guidelines and COA audit jurisdiction.

The Records Management and Archives Office of the Department of Education, Culture and Sports prescribes uniform standards for disposal of valueless or unnecessary government records. Agencies have authority to dispose of such records subject to COA audit and must report such disposals to the Archives Office.

EO No. 301 takes effect immediately upon its signing on July 26, 1987.

No, provisions requiring the President's approval for contracts awarded through public bidding or negotiation remain in force despite EO No. 301.


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