Law Summary

Amendment Overview

This Executive Order amends the fourth paragraph of Executive Order No. 298 dated August 12, 1940, as modified by Executive Order No. 146 dated December 27, 1955. The amendment provides specific conditions under which highway district engineers, city engineers, or project engineers may make direct purchases of spare parts for public works machinery.

Direct Purchases by Engineers

• Legal Principle: Engineers are permitted to make direct purchases of spare parts from companies in their provinces or nearby provinces under certain conditions.

• Key Definitions:

  • Direct Purchases: Acquisitions made without the standard public bidding process.
  • Spare Parts: Components necessary for the operation and maintenance of machinery and equipment used in public works.

• Important Requirements:

  • Purchases must be from companies known to the engineers.
  • Prices should include the usual government discounts and an additional discount for cash purchases.
  • If monthly purchases exceed ₱3,000.00, prior authority from the Secretary of Public Works and Communications must be obtained.
  • Approval from the Auditor General or a designated representative is required for purchases, except when spare parts are urgently needed for immediate use and not for stockpiling.

• Relevant Timeframes:

  • No specific timeframes are detailed in the amendment for the purchasing process, but the requirement for prior authority indicates a procedural step must be completed before exceeding the monetary threshold.

Exceptions to Standard Procedures

• Urgent Needs Clause:

  • In cases where spare parts are urgently required, the usual requirement for prior approval from the Auditor General can be bypassed.

• Consequences of Non-Compliance:

  • While the text does not explicitly state penalties for non-compliance, failure to secure necessary approvals may lead to administrative repercussions or invalidation of the purchase.

Cross-References

• Related Executive Orders:
  • Executive Order No. 298 (August 12, 1940) - Original framework governing contracts and public bidding.
  • Executive Order No. 146 (December 27, 1955) - Previous amendment affecting the same provisions.

Key Takeaways

• The amendment allows specific engineers to make direct purchases of spare parts under controlled conditions, facilitating quicker procurement for public works.
• Purchases over ₱3,000.00 require prior approval from the Secretary of Public Works and Communications.
• The Auditor General's approval is mandatory unless the parts are urgently needed.
• This Executive Order streamlines the procurement process while ensuring accountability and oversight.