Law Summary
Approval of Government Contracts Awarded Through Public Bidding
- Heads of Procuring Entities have full authority to approve contracts awarded through public bidding, regardless of amount.
- Certification under oath required to affirm compliance with laws and regulations.
- Authority may be delegated in writing subject to limitations.
- "Head of Procuring Entity" defined per Republic Act No. 9184.
Exceptions to Public Bidding
- Sections 48-53 of Republic Act No. 9184 allow alternative procurement methods for certain projects and goods.
- Exceptions apply only in prescribed cases.
Approval of Government Contracts via Alternative Procurement Methods
- For contracts of at least P500 million:
- GPPB opinion required confirming contract falls under exception to public bidding.
- NEDA Director-General approval required before proceeding.
- Heads of Procuring Entities may approve contract after meeting these conditions and certifying compliance.
- For contracts below P500 million:
- Heads of Procuring Entities have full authority to approve, with certification under oath.
- Authority may be delegated and subject to limitations.
Authority to Bind the Government
- Government contracts require approval and signature of Heads of Procuring Entities or duly authorized officials.
- Contracts entered into without authority or contrary to law are invalid and not binding.
- Officials are accountable to ensure contracts comply with laws and government priorities.
Government Contracts Requiring Presidential Action or Approval
- Contracts requiring the President's approval must first be acted upon by the NEDA Board.
- Submission to NEDA within 7 days of agency approval, including all documentation.
- NEDA must submit recommendation within 30 days.
- NEDA Director-General must notify agency within 7 days of Board action.
- If approved, agency heads have full powers to execute contracts, certifying legality and government benefit.
Governing Law for Government Contracts
- Procurement of infrastructure projects, goods, and consulting services governed by Republic Act No. 9184.
- Acquisition of right-of-way or sites governed by Republic Act No. 8974.
- Build-Operate-Transfer contracts governed by Republic Act Nos. 6957 and 7718.
- ODA-funded contracts governed by respective laws and subject to GPPB guidelines.
Joint Venture Agreements
- NEDA and GPPB to issue guidelines promoting transparency, competitiveness, and accountability.
- Guidelines ensure compliance with public bidding requirements when applicable.
Transactions of Government Financial Institutions
- Ordinary transactions of government financial institutions exempt from this Executive Order.
- Subject instead to laws and Department of Finance regulations.
Submission of Government Contracts
- All contracts of at least P300 million must be submitted to NEDA within 7 days of signing/approval.
- Submission includes related agreements, permits, and detailed summary of governing laws.
Splitting of Government Contracts
- Splitting contracts to evade public bidding prohibited.
- Splitting defined as dividing contracts into smaller parts or phases to circumvent legal requirements.
Local Government Units
- Procurement contracts of LGUs are subject to Republic Act No. 9184 and its rules, regardless of funding source.
Prospective Application
- All contracts, including those under processing/review per previous Executive Order No. 109-A, shall follow this new Executive Order.
Repeal and Amendment
- Executive Order No. 109-A is repealed.
- Other issuances inconsistent with this order are repealed or modified accordingly.
- Specific memoranda related to joint ventures and lease of real estate are amended.
Effectivity
- The Executive Order takes effect immediately upon publication in two newspapers of general circulation.