Prohibition on Automatic Contract Renewal and Public Bidding Requirement
- Contracts for public service or for supplying materials, equipment, and supplies to the government or its branches, agencies, or instrumentalities shall not be renewed or entered into without public bidding.
- This prohibition is excepted only under very extraordinary reasons.
Establishment of a Determining Committee for Exceptions
- A Committee composed of the Executive Secretary (Chairman), the Auditor General, and the Secretary of Justice is empowered to determine the existence of extraordinary reasons allowing exemption from public bidding.
- In case of a tie vote within the Committee, the decision shall be referred to the President for final resolution.
Emergency Procurement Exception
- The Head of the Department can certify that supplies, materials, or equipment are urgently needed due to an emergency involving possible loss or damage to life or property.
- Such certified supplies may be procured by the Director of Supply without public bidding but only after thorough market canvassing.
- This provision ensures immediate government response while maintaining some competitive pricing discipline.
Procurement from Exclusive Dealers Exception
- Supplies, materials, or equipment sold by an exclusive dealer or manufacturer, without sub-dealers selling at lower prices, may be procured without public bidding.
- This exception applies when no suitable substitutes are available elsewhere at more advantageous terms to the government.
Legal Authority and Effectivity
- The amendment is issued by the President of the Philippines, Diosdado Macapagal, exercising lawful powers vested to him.
- The order formalizes and directs compliance with these revised procurement rules for government contracts.
- Signed and issued in Manila, June 1, 1963.