Procurement and Disposal General Rule
- Supplies procurement to be done through competitive public bidding.
- Unserviceable or unneeded supplies to be sold by public auction where applicable.
Definition of "Supplies"
- Includes all goods except real estate necessary for public business or activities.
- Covers equipment, furniture, stationery, construction materials, personal property.
- Includes non-personal or contractual services like repair, maintenance, trucking, janitorial, security.
Requisition Requirements
- No supply order filled without a written requisition.
- Requisition made by head of office certifying necessity and specifying project or activity.
Certification of Appropriation
- Every requisition must be accompanied by a certification from the local treasurer confirming appropriation and fund availability.
Approval of Requisitions
- Approval by head of office with control over appropriation is sufficient except:
- Stock supplies require approval of local chief executive and auditor.
- Supplies costing over P10,000 require approval of local chief executive and auditor.
- Furniture and equipment for stock purchase prohibited.
Call for Bids
- Local treasurer issues the call for bids showing detailed specifications, terms, conditions, delivery, payment.
- Right reserved to waive defects not related to specifications.
- Non-compliance with specifications cannot be waived.
Publicity in Bidding
- Widest publicity required: mailed notices to known participants, posting in public places.
- Optionally published thrice in a local newspaper.
- Bid opening in presence of auditor representative who certifies bid abstract.
Committee on Award
- Established in every local government unit.
- Composed of local chief executive (Chairman), local treasurer, and head of requesting department; if dual capacity, a legislative body member appointed.
Award Criteria
- Awarded to lowest compliant and responsible bidder meeting all specifications.
- "Lowest complying and responsible bid" defined by price, technical compliance, dealer status, and past compliance.
- Terms and conditions include bonding, delivery, and payment terms.
Procurement Without Public Bidding
- Allowed via:
- Personal canvass of at least three merchants by a 3-person committee.
- Emergency purchases.
- Direct purchase from manufacturers or exclusive distributors.
- Through Bureau of Supply Coordination.
- Purchase from government entities or foreign governments.
- Specific monetary limits established for personal canvass by class of local government.
Emergency Purchases
- Urgent cases preventing regular bidding process.
- Delivery and utilization within 15 days.
- Post-purchase requisition required documenting all aspects including urgency, price certification, and availability of funds.
Direct Procurement from Manufacturers
- Allowed from duly licensed Philippine manufacturers for local products.
- Should canvass among multiple manufacturers for best price.
Procurement from Exclusive Distributors
- Allowed for foreign origin supplies from exclusive Philippine agent certified by Bureau of Supply Coordination.
- Conditions: no sub-dealers selling cheaper, and no suitable substitutes available at lower price.
Procurement through Bureau of Supply Coordination
- Local governments may use this option under Bureau's rules.
Procurement from Government Entities or Foreign Governments
- Allowed directly from government entities including foreign governments with diplomatic relations, subject to Office of the President's authorization for foreign purchases.
Annual Procurement Program
- Prepared by local treasurer by April 15 for upcoming fiscal year.
- Lists estimated supplies, quantities, descriptions, estimated cost, and inventory on hand.
- Estimated cost must not exceed total supply appropriations.
- Purchases must be included in approved program except emergencies or urgent needs.
- Excess cash conversion to stock supplies prohibited beyond approved plan.
Accountability for Government Property
- Heads of departments primarily accountable for government property assigned to them.
- Custodians immediately accountable to department heads.
- Records maintenance and semi-annual reporting to local treasurer required.
- Buildings under accountability of local treasurer.
Responsibility for Property Use and Care
- Persons in physical possession or custody responsible for proper use and safekeeping.
- Due diligence required in utilization and safekeeping.
Liability for Loss or Damage
- Accountable person liable for money value if illegal, improper, or unauthorized use or negligence causes loss, damage or deterioration.
- Acting under superior's direction does not relieve liability; superior officer responsible for directing improper use.
- Security heads liable for losses arising from security negligence.
Credit for Loss in Transit or Casualty
- Must notify provincial/city auditor within 30 days and apply for relief with evidence.
- Failure to notify bars relief or credit for loss.
- Credit allowed only with Commission on Audit approval and limited to losses not exceeding P10,000.
Disposal of Property
- Unserviceable or unneeded property inspected and appraised by auditor or representative.
- Valueless items destroyed in presence of inspecting officer.
- Valuable items sold at public auction supervised by Committee on Award and auditor representative.
- Auction notices posted in public places and published in newspapers depending on value thresholds.
Negotiated Sale of Property
- Private sale allowed at prices determined by Committee on Award.
- Requires Commission on Audit approval if costs exceed specified thresholds.
- Real property disposal requires Office of the President and Commission on Audit approval regardless of value.
Transfer of Property Without Cost
- Unserviceable or unneeded property may be transferred to other government units at appraised value.
- Requires approval of local legislative body and head of receiving department.
Transitory Provisions
- All government property previously assigned deemed transferred to respective department heads upon decree approval.
- Transfer must be accomplished officially within 90 days.
Implementing Rules and Regulations
- Secretary of Finance and Secretary of General Services to promulgate implementing rules.
- Rules include testing, inspection, and standardization requirements.
- Rules effective only with Commission on Audit concurrence.
Repealing Clause
- All inconsistent laws, decrees, or parts thereof revoked, repealed or modified accordingly.
Effectivity
- Decree takes effect immediately upon approval.