QuestionsQuestions (LETTER OF INSTRUCTION NO. 761)
The General Manager of the Metropolitan Waterworks and Sewerage System (MWSS) was granted full emergency authority to restore the Ipo Dam Complex intake and the associated pumping station facilities to full normal operations within the shortest possible time, including contracting, purchasing, and authorizing related actions for emergency restoration works.
It stated that a large portion of the concrete retaining wall collapsed due to the after-effects of Typhoon “Kading” (October 27, 1978), reducing water delivery capacity to only one-third of rated capacity. It also cited flood damage that submerged MWSS pumps and required rehabilitation of a major pumping station, plus road damages and bridge limitations preventing heavy transport—together necessitating emergency solutions.
On a cost-plus basis to furnish supplies, materials, equipment, labor, and stores, to undertake necessary civil-structural restoration works according to MWSS plans.
LOI 761 authorized direct purchase without public bidding as an exemption to: Executive Order No. 208 (s. 1940), as amended; Executive Order No. 201 (s. 1949), as amended; and Memorandum Circular No. 193 (s. 1972).
The exemption applies to supplies, materials, equipment, and stores other than those furnished by DMCI, procured on an emergency basis.
It authorized MWSS to enter into negotiated contracts for other miscellaneous services “as, and when, needed.”
Yes. It authorized advance payment to contractors for mobilization purposes and for the procurement of supplies, materials, and equipment where applicable.
It authorized the rendition of overtime services, including the payment of allowances, to all government personnel involved in the reconstruction and allied work.
The Minister of Public Highways and/or the Commanding General of the 51st Engineering Brigade (for emergency road repairs and bridge reinforcement along the Ipo-Bicti Highway), and the Commanding General of the Philippine Air Force (to provide helicopters and crew for airlifting needed items).
To disseminate necessary information with emphasis on conservation of water for the next succeeding months.
It indicates that the usual procurement requirement of public bidding can be bypassed for the covered emergency procurement, because the issuance expressly provides an exemption from enumerated procurement rules. Law students should also consider that such authority is exceptional, time-bound/conditioned on emergency, and must be exercised consistent with the purpose stated in the issuance.
It links specific infrastructure failures and transportation/pumping failures caused by the typhoon and river over-banking to the need for rapid restoration and therefore to the grant of expanded contracting, procurement, and manpower authorities.
It reduced the Ipo Dam Complex’s capability to deliver water to Metro Manila to only a third of its rated capacity of 300 million gallons per day (mgd).
Roads leading to the disaster area suffered slides, breaks, and wash-outs making them impassable to heavy transport and equipment; additionally, the Bailey bridge at Bicti needed reinforcement because it could not allow passage of heavy equipment.
It signals a contracting model where the contractor is reimbursed for allowable costs plus an additional fee/markup, which can help expedite mobilization and performance during emergency restoration by reducing uncertainty while aligning contract terms to actual project costs.