Providing for the Cabinet Standing Committee to Assume Pertinent Functions Relative to the Review and Approval of Contracts

July 18, 1984

LETTER OF INSTRUCTIONS NO. 1417

 

PROVIDING FOR THE CABINET STANDING COMMITTEE TO ASSUME PERTINENT FUNCTIONS RELATIVE TO THE REVIEW AND APPROVAL OF CONTRACTS, AND FOR OTHER PURPOSES

WHEREAS, there is now need for an appropriate body to assume authority to review and approve contracts for infrastructure projects of national government agencies involving certain amounts pursuant to the guidelines approved by the President on January 20, 1983 and as modified on May 19, 1983;

WHEREAS, Executive Order No. 520 dated January 24, 1979 created the Central Tender Board with the authority to conduct competitive public biddings of pertinent government projects, which authority however was not fully implemented, with the result that the function of the Board in effect evolved into reviewing and evaluating government contracts for the final consideration of the President in coordination with the Presidential Management Staff;

WHEREAS, Letter of Instruction No. 646 dated December 22, 1977 created a Contract Review Committee to assist the President in the review and evaluation of contracts among others for civil works and for consultancy services which require the approval of the President, and subsequently to evaluate and review all contracts for infrastructure projects which require final consideration by the appropriate body or the President; and

WHEREAS, there is a need to rationalize the mechanism for the review and award of pertinent contracts by integrating in a single body responsibility for these functions, including related supportive staff work therefor.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, as do hereby order and direct:

SECTION 1. Assumption by the Cabinet Standing Committee of the Authority to Review and/or Approve Contracts. — The Cabinet Standing Committee, hereinafter referred to as the Committee, is directed to assume pertinent powers and functions relative to the review and/or approval of contracts for infrastructure projects of national government agencies involving certain amounts pursuant to the guidelines as modified and approved by the President on May 19, 1983. CAIHTE

SECTION 2. Powers and Functions of the Committee Relative to Contracts. — The Committee shall have the following powers and functions:

(a) Assist the President in the review and evaluation of contracts that require the approval of the President;

(b) Approve contracts pursuant to the "Guidelines Governing the Delineation of Approving Authority for Contracts Covering Infrastructure Projects of National Government Agencies" approved by the President on May 19, 1983, hereafter known as the Guidelines;

(c) Formulate and recommend policies, standards and guidelines governing the award of contracts of national and local governments, including government-owned and/or -controlled corporations;

(d) Adjudicate and settle such claims and disputes as may be referred to the Committee by the President, with regards to policies, guidelines, plans and programs pertaining to government contracts as well as in the implementation thereof; and

(e) Perform such other functions as may be assigned or delegated to it by the President.

The actions of the Committee in the exercise of its powers and functions shall not be subject to review by the Cabinet, unless otherwise directed by the President.

The Committee may invite other Cabinet members or heads of agencies concerned to attend the meetings of the Committee and participate in its deliberations or provide clarifications and other information as needed with respect to contracts under consideration.

SECTION 3. Non-Infrastructure Ministries. — The term Non-Infrastructure Ministries defined in Section 2 of the Guidelines is hereby redefined to mean the ministries and similar agencies other than the Ministry of Public Works and Highways, the Ministry of Transportation and Communications, and the Ministry of Energy.

SECTION 4. Submission of Contracts to the Committee. — The minister concerned shall submit to the Committee for evaluation and review all contracts for infrastructure projects which require final consideration by the Committee or the President, as the case may be, in accordance with the limits of approving authority specified in the Guidelines.

SECTION 5. Approval of Consultancy Contracts. — The minister concerned shall approve all purely consultancy contracts relating to infrastructure regardless of amount, provided that the clearance on a no-objection basis of the National Economic and Development Authority is secured to effect uniformity of rates and contract provisions.

SECTION 6. Approval of Similar or Other Types of Government Contracts. — All other types of government contracts that are not within the coverage of the Guidelines shall be processed and approved in accordance with existing applicable laws, rules and regulations.

The above provision in this Section in relation to the provisions of Sections 1 and 2 of the Guidelines shall be without prejudice for the Committee to review and approve similar or other types of contracts, including those by local governments, that may be referred to it by the Office of the President for final action, or to review and submit recommendations thereon.

SECTION 7. Applicability of Guidelines, Except as Modified. — The provisions of the Guidelines, except as modified in this Letter of Instructions, shall continue to be applicable. The Guidelines may be revised by the Committee with the approval of the President.

SECTION 8. Administrative and other Aspects Pertaining to the Committee. — The Committee may have a separate Secretariat which shall provide technical and administrative support to the Committee relative to its functions regarding contracts as mentioned above. The Committee is also authorized to provide honoraria and/or allowances to detailed and contractual personnel at such rates as it may determine in accordance with existing applicable rules and regulations.

The Committee shall meet as often as necessary at the call of the Chairman. The presence of four (4) members shall constitute a quorum, and all decisions shall require the concurrence of at least four (4) members.

The members of the Committee are authorized to receive per diems for each meeting attended at such rates as may be determined by the Committee in accordance with existing applicable rules and regulations.

The Contract Review Committee created under Letter of Instructions No. 646 and the Central Tender Board created under Executive Order No. 520 are hereby abolished and their applicable appropriations, records, equipment, property and such personnel as may be necessary are transferred to the Secretariat of the Committee herein above established in this Section.

The Committee is authorized to issue such rules and regulations as may be necessary for the proper implementation of the provisions of this Letter of Instructions.

SECTION 9. Appropriation. — The Director General of the Office of Budget and Management is authorized to release such funds as may be necessary from the appropriations of the defunct Executive Committee or from any applicable appropriation item under Batas Pambansa Blg. 640, in addition to the funds transferred under Section 10 hereunder, for the organizational and operational expenses of the Committee during calendar year 1984. Thereafter, the amount necessary for the annual operation of the Committee shall be included in the General Appropriations Act. DETACa

SECTION 10. Repealing Clause. — All laws, decrees, orders, proclamations, rules, regulations, or parts thereof, which are inconsistent with any of the provisions of this Letter of Instructions are hereby repealed or modified accordingly.

SECTION 11. Separability Clause. — Any portion or provision of this Letter of Instructions that may be declared unconstitutional shall not have the effect of nullifying the other provisions thereof; provided, that such remaining portions can still stand and be given effect in their entirety to accomplish the objectives of this Letter of Instructions.

SECTION 12. Effectivity. — This Letter of Instructions shall take effect immediately.

DONE in the City of Manila, this 18th day of July, in the year of Our Lord, Nineteen Hundred and Eighty-Four.