Title
EXECUTIVE ORDER NO. 98
Date
Apr 24, 1937
Manuel L. Quezon mandates that all government contracts for public services and supplies must undergo public bidding before renewal, ensuring transparency and accountability, with exceptions only granted after consultation with key officials.
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Law Summary

Purpose of the Executive Order

  • Legal Principle/Provision: This Executive Order amends Executive Order No. 16 to reinforce the requirement of public bidding for government contracts.
  • Key Definitions Introduced:
    • "Public Service": Services rendered to the public by the government.
    • "Public Bidding": The process of soliciting bids from the public for government contracts.
  • Important Requirements: Contracts must undergo public bidding unless exceptions apply.

Policy Statement

  • Legal Principle/Provision: It is stated as a matter of public policy that government contracts for services, supplies, and materials should be awarded through public bidding.
  • Key Definitions Introduced: None specifically outlined in this section.
  • Important Requirements:
    • Automatic renewal of government contracts upon expiration is contrary to public policy.
  • Relevant Timeframes: No specific timeframes are mentioned for the bidding process.

Prohibition of Automatic Renewal

  • Legal Principle/Provision: Contracts for public services or government supplies shall not be renewed automatically upon expiration.
  • Key Definitions Introduced:
    • "Extraordinary Reasons": Conditions under which contracts may be renewed without public bidding.
  • Important Requirements:
    • Renewal without bidding is allowed only for extraordinary reasons.
    • Prior consultation with the Auditor General, the Secretary of Justice, and the Secretary of the Department concerned is mandatory.
    • Presidential approval is required before proceeding with renewal.
  • Relevant Timeframes: Contracts are subject to renewal conditions immediately upon expiration.

Consultation and Approval Process

  • Legal Principle/Provision: A structured process is mandated for any contract renewal outside of public bidding.
  • Key Definitions Introduced: None specifically outlined in this section.
  • Important Requirements:
    • Mandatory consultation with:
      • Auditor General
      • Secretary of Justice
      • Secretary of the Department concerned
    • Presidential approval must be secured.
  • Relevant Timeframes: No specific deadlines provided for consultation or approval.

Execution and Authority

  • Legal Principle/Provision: The order is executed under the authority of President Manuel L. Quezon.
  • Key Definitions Introduced: None specifically outlined in this section.
  • Important Requirements:
    • The order is effective upon signing and publication.
  • Relevant Timeframes: The order was signed on April 24, 1937.

Key Takeaways

  • Executive Order No. 98 mandates public bidding for government contracts, reinforcing the prohibition against automatic renewals.
  • Contracts may only be renewed without bidding in extraordinary circumstances after a thorough consultation and with presidential approval.
  • This order aims to enhance transparency and accountability in the awarding of government contracts, ensuring adherence to public policy and governance standards.

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