Authorizing the DPWH Secretary to Adopt Fast-Track Procedures for Awarding Urgent Infrastructure Projects

February 28, 1990

NATIONAL EMERGENCY MEMORANDUM ORDER NO. 10

AUTHORIZING THE SECRETARY OF PUBLIC WORKS AND HIGHWAYS TO ADOPT FAST-TRACK PROCEDURES FOR AWARDING URGENT INFRASTRUCTURE PROJECTS AND FOR PROCURING URGENT CONSULTANCY SERVICES, SUPPLIES, MATERIALS AND EQUIPMENT, SUBJECT TO CERTAIN CONDITIONS

Pursuant to the powers vested in me by Republic Act No. 6826, and in order to expedite the execution of urgent infrastructure projects in support of the priority task of economic reconstruction, I, CORAZON C. AQUINO, President of the Philippines, do hereby authorize the Secretary of the Department of Public Works and Highways (DPWH) to undertake the following "fast-track" mode of awarding urgent infrastructure projects and for procurement of urgent consultancy services, supplies, materials and equipment:

SECTION 1. Construction Projects. —

a. Implementation of Eligible Projects by Administration or Negotiated Contract.

The DPWH Secretary may authorize the implementation by administration or negotiated contract, thru canvass bidding, of infrastructure projects not costing more than P100,000,000 and falling under the following types:

(1) Projects whose public bidding has failed for a valid cause, such as where there is no prequalified constructors or bidders, or only one constructor is prequalified or has submitted a responsive bid.

(2) Projects whose contracts have been rescinded or terminated wholly or partly.

(3) Projects that respond to emergencies arising from natural calamities where immediate action is needed to prevent imminent loss of life and/or property, particularly in calamity areas proclaimed by the President of the Philippines, such as repair of collapsed bridges, cut road sections, breached dikes, unroofed schoolbuildings, and other Priority I projects.

(4) Projects in areas where the peace and order situation is critical as certified by the Secretary of National Defense.

(5) Projects where time is of the essence, e.g., those which have to be started/completed at earliest time in order to meet deadlines set under Presidential directives or international commitments, or to take advantage of critical construction periods affected by natural phenomenon such as weather as may be determined by the Secretary of Public Works and Highways.

The DPWH may also implement, either by administration or negotiated contract, thru canvass bidding, the above types but with costs exceeding P100,000,000, subject to prior approval of the President of the Philippines.

b. Work by Administration as First Option

For the above types of projects, the DPWH shall, as a first option, consider project implementation by administration, either by the DPWH itself thru its central/field units or by the Armed Forces of the Philippines (AFP) engineering units thru Memoranda of Agreement.

Where the projects are, as determined by the DPWH Secretary, beyond the capabilities of the DPWH and the AFP engineering units to undertake by administration, they may be implemented by negotiated contract thru canvass bidding.

c. Eligible Constructors for Negotiated Contracts

Participation in canvass biddings for negotiated contracts shall be limited to those constructors duly accredited by the DPWH for the project category and size (subclassification) and which are included in a Master List pursuant to the uniform guidelines issued by the Inter-Agency Committee mentioned in Section IB 1.4 of the rules and regulations implementing P.D. No. 1594, and such other hurdle requirements that may be promulgated by the Secretary of Public Works and Highways to emphasize the strict requirements of good track record performance and/or capability requirements to qualify for inclusion in the Master List.

d. Procedure for Selection of Constructors and Awards of Contract

(1) Conformably to the preceding paragraph, a Special DPWH Committee composed of the following shall prepare a Master List of accredited constructors, which shall be updated regularly, who may be considered for negotiated contract thru canvass bidding:

Undersecretary, DPWH	Chairman
Assistant Secretary of Legal Affairs, DPWH	Member
Director, Bureau of Construction, DPWH	Member
Representative from the Office of the
	President of the Philippines	Member
Representative from the Construction
	Industry Authority of the Philippines	Member

 

(2) The DPWH central Prequalification, Bids and Awards Committee (PBAC) shall choose a minimum of three (3) accredited constructors by drawing lots from the Master List.

(3) The PBAC shall prequalify/predisqualify the chosen constructors for the subject contract in accordance with the provisions of the Implementing Rules and Regulations of Presidential Decree No. 1594. If less than the minimum of three (3) constructors prequalify, the PBAC shall draw additional names from the Master List and prequalify/predisqualify them until the required minimum of three (3) prequalified constructors is attained.

(4) The chosen prequalified constructors shall submit their sealed bids to the PBAC.

(5) The PBAC shall evaluate the bids and recommend to the DPWH Secretary the award to the lowest evaluated bid not exceeding the Approved Agency Estimate (AAE). Alternatively, the PBAC may negotiate simultaneously with the prequalified constructors to arrive at the lowest price below the AAE.

(6) The award is subject to the approval of the DPWH Secretary.

SECTION 2. Consulting Services. —

The DPWH Secretary may fast-track the process of hiring consultants for infrastructure projects where time is of the essence, as follows:

(1) The DPWH shall prepare a "long list" of accredited consultants for different types of services. These consultants may be firms or individuals.

(2) Without need of advertisement, for specific projects, the DPWH Secretary may approve a "shortlist" of at least three qualified consultants drawn from the long list who shall be invited to submit their proposals.

(3) The DPWH may award the consultancy contract to the most advantageous proposal and negotiate the terms therefor.

SECTION 3. Procurement of Supplies, Materials and Equipment. —

The procurement of supplies, materials and equipment for DPWH infrastructure projects may be fast-tracked thru a negotiated contract subject to the provisions of Executive Order No. 301, dated 26 July 1987, as amended.

This urgent Memorandum Order shall take effect two (2) days after its publication in at least two (2) national newspapers of general circulation, and shall continue to be enforced for the duration of the national emergency.

DONE in the City of Manila, this 28th day of February, in the year of Our Lord, Nineteen Hundred and Ninety.