Guidelines on Gov't Procurement System EO 359

A Procurement Policy Board is created under Republic Act No. 6688 Section 51.
Board comprises Secretary of Budget and Management (Chairman), Secretaries of Finance, Trade and Industry, Health, National Defense, Public Works and Highways, Education, Culture and Sports, and a PICPA representative.
The Board is responsible for promulgating procurement rules and regulations.
The Board consults the Commission on Audit on relevant matters.
It conducts periodic evaluations on:
1. Price competitiveness compared to the open market.
2. Compliance with quality standards set by the Department of Trade and Industry’s Bureau of Product Standards.
3. Timeliness of delivery to client agencies.
Independent surveys may be commissioned for evaluation.
Hold-over status of existing Procurement Council members ends upon effectivity.

The Procurement Service (PS) of the DBM and its Inter-Agency Bids and Awards Committee continue as the implementing units for the centralized procurement system.
Regional Depots are established under the PS for local purchase by government agencies.

All national government agencies, State Universities and Colleges, GOCCs and subsidiaries must use the system for common-use supplies, materials, and equipment.
Local government units can opt into the system voluntarily.
Direct procurement outside the system is allowed only for emergency situations due to supply delays.
Such emergency procurement remains subject to accounting and auditing regulations.

Detailed procedures are set by the Procurement Service, with approval from the Procurement Policy Board.
Procedures include preparation and submission of annual procurement programs for new supplies.
Procurement programs must be aligned with annual Work and Financial Plans.
These plans guide DBM’s release of quarterly allotments and monthly funding warrants.
Deficiencies in appropriations can be covered by savings from lump-sum funds as determined by DBM.

Prior circulars and memorandum circulars related to government procurement standards that conflict with this Executive Order are revoked or modified accordingly.