Policy and purpose
- Executive Order No. 301 declares a government policy to promote economy, efficiency and effectiveness in the delivery of public services.
- Executive Order No. 301 recognizes that centralized review and approval mechanisms cause red tape and delay in emergency and other time-sensitive situations.
- Executive Order No. 301 decentralizes the processing and final approval of negotiated contracts, lease contracts, and records disposal to the agencies concerned.
- Executive Order No. 301 requires decentralization to operate subject to uniform standards or guidelines and COA review and audit jurisdiction.
Legal basis and prior issuances
- Executive Order No. 301 bases decentralization on existing centralized systems previously tied to Executive Order No. 298 (issued August 12, 1940) for negotiated contracts review and approval.
- Executive Order No. 301 refers to prior centralized systems for lease reasonableness under Executive Order No. 290 (issued March 14, 1958).
- Executive Order No. 301 refers to prior centralized systems for disposal of government records under Executive Order No. 290.
- Executive Order No. 301 references the Department of Public Works and Highways (DPWH) role in lease valuation and standards.
- Executive Order No. 301 cites Executive Order No. 164 (dated May 5, 1987) for cases where ceilings for approval by Department Heads have been prescribed.
Decentralization of negotiated contracts
- Section 1 provides that any provision of law, decree, executive order, or other issuance contrary to Section 1 is overridden for purposes of negotiated procurement exceptions.
- Section 1 requires that no contract for public services or for furnishing supplies, materials and equipment to the government (and its branches, agencies, or instrumentalities) shall be renewed or entered into without public bidding, except in the listed situations.
- Section 1 allows non-bidded negotiated purchase in emergencies where supplies are urgently needed to meet an emergency involving loss of, or danger to, life and/or property.
- Section 1 allows negotiation when supplies are for a project/activity that cannot be delayed without causing detriment to public service.
- Section 1 allows negotiation when supplies are sold by an exclusive distributor or manufacturer who does not have sub-dealers selling at lower prices and when no suitable substitute can be obtained elsewhere at more advantageous terms to the government.
- Section 1 allows negotiation when procurement was unsuccessfully placed on bid for at least two consecutive times, either due to lack of bidders or because offers were exorbitant or non-conforming to specifications.
- Section 1 allows negotiation when it is apparent that negotiated purchase is most advantageous to the government, as determined by the Department Head concerned.
- Section 1 allows negotiation when the purchase is made from an agency of the government.
Jurisdiction and signature rules for negotiated contracts
- Section 2 authorizes negotiated contracts for public services or furnishing supplies, materials, or equipment to be entered into by the department or agency head or the governing board of the government-owned or controlled corporation concerned.
- Section 2 removes the need for prior approval by higher authorities for such negotiated contracts.
- Section 2 conditions authority on availability of funds, compliance with the standards or guidelines in Section 1, and COA audit jurisdiction under existing rules and regulations.
- Section 2 requires that negotiated contracts involving P 2,000,000 up to P 10,000,000 be signed by the Secretary and two other Undersecretaries.
Abolition and presidential approval continuity
- Section 3 abolishes the Presidential Committee on Negotiated Contracts created under Executive Order No. 298 dated August 12, 1940 as amended.
- Section 3 directs that negotiated contracts pending with the abolished Presidential Committee on Negotiated Contracts must be processed under existing procedures.
- Section 3 provides that pending negotiated contracts must be signed by the Secretary of General Services.
- Section 4 keeps in force provisions of existing laws requiring Presidential approval of contracts of national government offices, agencies, and instrumentalities, including government-owned or controlled corporations, whether awarded through public bidding or by negotiation.
Scope and coverage limits for negotiated contracts
- Section 5 states that the references in Section 1 and Section 2 concern negotiated contracts for public services or for furnishing supplies, materials and equipment to government under Executive Order No. 298, as amended.
- Section 5 recognizes that the negotiated-contract decentralization does not apply to infrastructure or public works contracts.
- Section 5 states that the negotiated-contract decentralization does not apply to government contracts for which ceilings for approval by the Department Heads concerned have been prescribed under Executive Order No. 164 dated May 5, 1987.
Decentralization of lease contracts (DPWH standards)
- Section 6 provides that any law, decree, executive order, or other issuance contrary to Section 6 is overridden for lease standards.
- Section 6 requires the Department of Public Works and Highways (DPWH) to formulate uniform standards or guidelines for determining the reasonableness of:
- the terms of lease contracts, and
- the rental rates involved.
- Section 6 applies to DPWH leasing functions involving privately-owned buildings or spaces for government use and government-owned buildings or space for private use.
- Section 7 authorizes agency heads intending to rent privately-owned buildings or spaces for their use to determine the reasonableness of terms and rental rates and to enter into lease contracts without prior approval by higher authorities.
- Section 7 authorizes agency heads intending to lease out government-owned buildings or spaces for private use to determine reasonableness of terms and rental rates and to enter into lease contracts without prior approval by higher authorities.
- Section 7 conditions the authority in Section 7 on compliance with the DPWH uniform standards or guidelines established under Section 6 and the COA audit jurisdiction in accordance with existing rules and regulations.
- Section 8 requires the agency heads concerned to act as administrators of the rented or leased properties and to prepare and submit periodic reports on the status of lease and occupancy to, and as may be required by, the DPWH.
Decentralization of records disposal
- Section 9 provides that any contrary law, decree, executive order, or other issuance is overridden for purposes of records disposal standards.
- Section 9 requires the Records Management and Archives Office of the Department of Education, Culture and Sports to prescribe uniform standards or guidelines for the disposal or destruction of valueless or unnecessary records by government agencies.
- Section 10 authorizes government agencies, through their respective record units or their equivalent, to dispose of valueless records.
- Section 10 conditions disposal authority on COA audit jurisdiction and compliance with existing rules and regulations.
- Section 10 further conditions disposal on compliance with the uniform standards or guidelines of records disposal prescribed by the Records Management and Archives Office.
- Section 11 requires that for every record disposal undertaken by an agency, a report must be prepared and submitted to the Records Management and Archive Office.
- Section 11 requires the report to briefly describe the records disposed of and the manner of their disposition.
Repeal and separability effect
- Section 12 repeals or modifies accordingly all laws, decrees, executive orders, and other issuances (or parts thereof) that are inconsistent with Executive Order No. 301.
- Section 13 provides that Executive Order No. 301 takes effect immediately.