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.
- Mandatory consultation with:
- 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.