Mandatory Competitive Bidding
- Competitive bidding is required to ensure acquisition of the most suitable and cost-efficient industrial plants and technology
- Aims to prudently utilize the Philippines' foreign exchange reserves
- Competitive bidding regulations to be issued and promulgated by the Ministry of Industry subject to the President’s approval
Uniform General Terms and Conditions
- Contracts must incorporate uniform general terms and conditions as integral parts
- These terms are designed to protect the Government’s interests and ensure efficient and economical project realization
- Terms may be modified on a contract-to-contract basis to reflect project-specific requirements and financial conditions
- The Ministry of Industry shall issue uniform general terms and conditions for various types of contracts, including lump sum turnkey and cost-plus contracts, upon Presidential approval
Definition of "Government"
- Encompasses the Government of the Republic of the Philippines and its ministries, bureaus, offices, commissions, and agencies
- Includes government-owned or controlled corporations, subsidiaries, or affiliates
- Applies regardless of whether acting in a proprietary or governmental capacity, or in joint ventures with the private sector
Application to Private Entities
- The Decree also applies to contracts by private persons or entities
- Applies when financing or financial guarantees for projects are obtained from the Government
Consequences of Non-Compliance
- Contracts entered without compliance to competitive bidding or without the required general terms and conditions shall be disapproved by responsible officials
- If approved despite non-compliance, such contracts shall be unenforceable against the Government or local private contracting party
- Responsible government officials may face penalties provided by law
Repeal and Modification of Inconsistent Laws
- Existing laws, decrees, orders, administrative issuances, or regulations inconsistent with this Decree are repealed or modified accordingly
Effectivity of the Decree
- Decree takes effect ten (10) days after publication in the Official Gazette or a newspaper of general circulation in Metropolitan Manila
- Publication must include the competitive bidding regulations and uniform general terms and conditions relevant to the type of contract concerned