Title
Decentralizing gov't contracts and records
Law
Executive Order No. 301
Decision Date
Jul 26, 1987
Corazon C. Aquino's Executive Order No. 301 decentralizes the approval process for government negotiated contracts, lease agreements, and records disposal, empowering agency heads to expedite transactions while ensuring compliance with established guidelines and oversight by the Commission on Audit.
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Decentralization of Negotiated Contracts: Guidelines

  • Public bidding is required for contracts involving public services or supplies.
  • Exceptions to public bidding include:
    • Urgent needs involving risk to life or property.
    • Time-sensitive projects whose delay would harm public service.
    • Procurement from exclusive distributors/manufacturers without suitable alternatives.
    • Supplies unsuccessfully bid twice due to lack of bidders or unsatisfactory bids.
    • Cases where negotiated purchase is more advantageous, as determined by the department head.
    • Purchases from other government agencies.

Jurisdiction Over Negotiated Contracts

  • Department or agency heads, or governing boards of government-owned/controlled corporations, may enter negotiated contracts without prior higher approval.
  • Conditions include availability of funds, compliance with guidelines, and audit by COA.
  • Contracts between PHP 2,000,000 and PHP 10,000,000 must be signed by the Secretary and two Undersecretaries.

Abolition of Presidential Committee on Negotiated Contracts

  • The Presidential Committee on Negotiated Contracts established under EO No. 298 (1940) is abolished.
  • Pending contracts are to be processed under existing procedures and signed by the Secretary of General Services.

Presidential Approval of Contracts

  • Existing laws requiring Presidential approval for contracts awarded by public bidding or negotiation remain in effect.

Coverage and Limitations

  • The decentralization applies specifically to negotiated contracts for public services or supplies per EO No. 298.
  • It excludes infrastructure/public works contracts and contracts with approval ceilings set by EO No. 164 (1987).

Decentralization of Lease Contracts: Guidelines

  • The Department of Public Works and Highways (DPWH) shall set uniform standards for lease contracts involving privately-owned buildings for government use or vice versa.

Jurisdiction Over Lease Contracts

  • Heads of agencies may determine the reasonableness of lease terms and rental rates and enter into leases without higher approval.
  • Compliance with DPWH standards and COA audit jurisdiction is required.

Reporting on Lease Contracts

  • Agency heads act as property administrators.
  • They must prepare and submit periodic occupancy and lease status reports to the DPWH.

Decentralization of Records Disposal: Guidelines

  • The Records Management and Archives Office of the Department of Education, Culture and Sports prescribes uniform standards for disposal of valueless/unnecessary records.

Jurisdiction Over Records Disposal

  • Agencies may dispose of valueless records through their records units.
  • Disposal is subject to COA audit and compliance with prescribed standards.

Reporting on Records Disposal

  • Agencies must submit reports to the Records Management and Archives Office detailing the records disposed and their manner of disposal.

Miscellaneous Provisions

  • Repeals or modifies inconsistent laws, decrees, executive orders, and issuances.
  • The Executive Order takes effect immediately upon approval.

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