Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 755)
The National Government adopts a policy of procuring supplies and materials in the most economical and efficient manner by purchasing directly from reliable sources in economic lot sizes, observing optimum specifications, and making payment accordingly.
The Procurement Service is the body created from the conversion of the Procurement Pilot Project to implement the provisions on integrated government procurement. It is attached to the Office of the President and reports to the Procurement Council.
The Procurement Council consists of the Minister of the Budget as Chairman, and as members, the Chairman of the Commission on Audit, the Minister of Finance, the Minister of Industry, and the Presidential Assistant for Economic and Development Affairs.
They include identifying items for central procurement, determining technical specifications, identifying reliable sources at the best prices, purchasing and distributing items to government agencies, operating a paper converting plant, and undertaking studies to improve the procurement system.
Yes, national government agencies and government-owned or controlled corporations must purchase all requirements within the coverage of the Procurement Council/Service except for approved exceptions.
Priority is given to companies registered with the Board of Investments and those without past due obligations with government financing institutions, and only reliable, adequately capitalized suppliers that are reputable and duly licensed are selected.
The Procurement Service is exempted from multiple Executive Orders and Letter of Instructions related to procurement, as well as certain COA Circulars and Memorandum Circulars as enumerated to facilitate integrated procurement operations.
The Ministry of the Budget may withhold amounts from agencies' quarterly allotments and transfer to the Procurement Service as deposits, and funds are also released from the National Priorities Support Fund for rehabilitation, operations, and establishment of a revolving fund for procurement operations.
Resident and Corporate Auditors must report routinely to the Procurement Service information on agency purchases, including on items not covered by the Council, to enable cross-checking and monitoring of procurement costs and compliance.
No, the Procurement Service is staffed by persons on detail from member agencies of the Council or contractual personnel, and it does not have permanent employees.