EO 359 - Govt Procurement Policy and Procedures

The Board is chaired by the Secretary of Budget and Management (DBM).
Members include Secretaries of Finance (DOF), Trade and Industry (DTI), Health (DOH), National Defense (DND), Public Works and Highways (DPWH), Education, Culture and Sports (DECS), and a PICPA representative.
It promulgates rules and regulations to implement the procurement policy.
The Board may consult the Commission on Audit (COA) chairman on relevant matters.
It conducts periodic evaluations on centralized procurement effectiveness based on:
1. Price competitiveness versus the open market.
2. Compliance with quality standards set by the Bureau of Product Standards.
3. Delivery timeliness to client agencies.
The Board can commission independent surveys for evaluation.
Hold-over status of Procurement Council members automatically terminates upon effectivity.

Procurement Service (PS) of the DBM operates as the central procurement unit.
The Inter-Agency Bids and Awards Committee, created under Letter of Instructions No. 755, seats within the PS to help implement the procurement system.
Regional Depots are established under DBM per Executive Order No. 86 to facilitate local procurement of common-use supplies.

Applies to all national government agencies including State Universities and Colleges.
Includes government-owned or controlled corporations and their subsidiaries.
Local government units may voluntarily join the system.
Direct procurement by agencies is allowed only for emergency supplies when PS delivery is delayed, subject to accounting and auditing rules.

PS prescribes detailed operating procedures which remain effective unless modified with SPB consultation and Procurement Policy Board approval.
Procedures include:
- Preparation and submission of annual agency procurement programs.
- Annual procurement programs must reflect in agencies' Work and Financial Plans.
- These plans inform DBM quarterly allotments and monthly funding warrants.
- Deficiencies in appropriations may be covered by savings or lump-sum funds as determined by DBM.

Procurement Council Circular No. 1; Joint Circular 77-2 (amended by Circular No. 3 and 3ai); Joint Circular No. 3-B; and DBM-DTI-COA Memorandum Circular (October 1, 1987) are revoked or modified if inconsistent.