Question & AnswerQ&A (EXECUTIVE ORDER NO. 359)
The main policy reiterated is that the procurement of government supplies, materials, and equipment must be done in the most economical and efficient manner by purchasing directly from reliable sources in economic lot sizes, observing optimum specifications, and making prompt payment.
The Procurement Policy Board consists of the Secretary of Budget and Management as Chairman, and as members, the Secretaries of Finance, Trade and Industry, Health, National Defense, Public Works and Highways, Education, Culture and Sports, and a representative from the Philippine Institute of Certified Public Accountants.
The Board is responsible for promulgating rules and regulations to implement the procurement policy, evaluating the effectiveness of the centralized procurement system by the Procurement Service in terms of economy and efficiency, and potentially commissioning independent surveys related to procurement.
All national government agencies, including State Universities and Colleges, government owned or controlled corporations and their subsidiaries, are covered. Local government units may avail themselves of the system on a voluntary basis.
Yes, agencies are allowed to procure directly for emergency needs when there is a significant delay in delivery by the Procurement Service, subject to existing accounting and auditing rules and regulations.
The Procurement Service implements and operates the central procurement system and maintains its Inter-Agency Bids and Awards Committee. It also establishes Regional Depots to facilitate local procurement of common-use supplies, materials, and equipment.
Agencies must prepare and submit annual procurement programs for brand-new supplies, materials, and equipment covered by the procurement system. Appropriations for these programs must be identified in the agency's annual Work and Financial Plan.
The Department of Budget and Management uses the Work and Financial Plan as a basis for releasing the agency's quarterly allotments and monthly funding warrants. If there are deficiencies in appropriations, they can be covered by savings from appropriate lump-sum funds determined by the DBM.
Procurement Council Circular No. 1; Joint Circular 77-2 as amended by Procurement Circular No. 3 and 3ai; Joint Circular No. 3-B; and DBM-DTI-COA Memorandum Circular dated October 1, 1987, that are inconsistent with EO No. 359, are revoked or modified accordingly.
EO No. 359 took effect immediately upon its signing on June 2, 1989.