Law Summary
Overview
This document, issued by President Ferdinand E. Marcos, establishes rules regarding the approval process for certain infrastructure contracts awarded by government agencies in the Philippines. It outlines the financial thresholds requiring presidential approval and the consequences of non-compliance.
Approval Requirements for Contracts
Contracts Exceeding P10,000,000 (Domestic Bidding)
- All contracts awarded by infrastructure agencies through domestic competitive bidding for locally funded projects must receive the approval of the President if they exceed P10,000,000.
Contracts Exceeding P40,000,000 (International Bidding)
- Contracts resulting from international competitive bidding for foreign-assisted projects requiring the concurrence of a foreign financing institution must also be approved by the President if they exceed P40,000,000.
Consequences of Non-Compliance
- Null and Void Contracts
- Any contracts entered into without the requisite presidential approval as specified in this instruction shall be considered null and void, having no force and effect.
Contracts Governed by Other Regulations
- Reference to LOI No. 620
- Contracts entered into by other national government offices, agencies, and instrumentalities, including government-owned or controlled corporations, shall continue to be governed by Letter of Instructions No. 620.
Notification Requirements
- Informing the Office of the President
- All relevant contracts must be immediately reported to the Office of the President.
Repeal of Inconsistent Regulations
- Modification of Existing Rules
- All orders, rules, regulations, and letter of instructions inconsistent with this directive, including but not limited to LOI No. 620, are hereby repealed or modified accordingly.
Key Takeaways
- Contracts for infrastructure projects exceeding P10,000,000 (domestic) or P40,000,000 (foreign-assisted) require presidential approval.
- Contracts lacking this approval are null and void.
- Other national government contracts will continue to follow LOI No. 620.
- The Office of the President must be informed of all such contracts.
- Previous inconsistent regulations have been repealed or modified.