Palace authorizes streamlined procurement with new EO
PRESIDENT Rodrigo R. Duterte signed Executive Order (EO) No. 34 simplifying procurement process by allowing government agencies to proceed with some transactions without obtaining the approval of the Government Procurement Policy Board (GPPB).
Signed by Mr. Duterte on July 17, the latest EO permits government agencies to no longer seek the authorization of GPPB if their heads qualify that a proposed procurement undertaking falls within the exceptions from public bidding and that an alternative mode of procurement is appropriate.
The new EO amended former President Gloria Macapagal-Arroyo’s EO No. 423 series of 2005, which spells out rules and procedures on the review and approval of all government contracts.
Under Section 4 of the old EO, the head of the procuring entity is required to obtain the approval of the GPPB before resorting to any alternative modes of procurement for government contracts amounting to at least P500 million.
Such alternative methods, as listed in Republic Act No 9184, include limited-source bidding, direct contracting, shopping, repeat order, and negotiated procurement.
“The requirement of GPPB determination and approval as to appropriateness of the alternative method of procurement to be adopted adds to the total procurement process timeline, and defeats the very purpose of resorting to alternative methods of procurement, which is to promote economy and efficiency,” Mr. Duterte’s EO read in part.
In order to “streamline, expedite, and make more efficient the current procurement process,” EO 34 allows the head of the procuring entity to pursue alternative methods of procurement.
But such measure can only be done provided that the agency’s head issues a “certification under oath that the contract falls within the exceptions from public bidding, and is being entered into with faithful compliance…”
“Except for government contracts required by the law to be acted upon and/or approved by the President, the Head of the Procuring Entity shall have full authority to give final approval and/or enter into said Government contracts through alternative methods,” the document also said.
On government contracts requiring presidential action or approval, EO 34 said such contracts must be submitted with “complete documentation” to the director- general of the National Economic and Development Authority (NEDA) within seven days from approval of the head of procuring entity for review.
Mr. Duterte has expressed frustration over the slow procurement process especially for hospital equipment and weapons for the military.