Duterte orders streamlining of gov’t procurement process

President Duterte has issued a new order further simplifying the government’s procurement procedures for projects, goods and services to attain an optimal and expedient system.

In Executive Order (EO) No. 34, the President has allowed government agencies to proceed with alternative methods of procurement instead of public bidding without getting permission from the Government Procurement Policy Board (GPPB) provided that certain conditions are met.

The new order amends EO 423 issued in 2005 by then President Arroyo on the rules and procurers on the review and approval of government contracts.

In the past, the head of the procuring entity must obtain GPPB approval to gain exemption from public bidding before proceeding with an alternative form of procurement.

Among these methods are limited source or selective bidding, direct contracting, repeat order, and negotiated procurement.

“The requirement of GPPB determination and approval as to the appropriateness of the alternative method of procurement to be adopted adds to the total procurement process and timeline, and defeats the very purpose of resorting to alternative methods of procurement, which is to promote economy and efficiency,” the order read.

“It has not become necessary to further amend Section 4 of EO 423 as amended to streamline, expedite and make more efficient the current procurement procedures in order to achieve a more optimal and expedient procurement system,” it added.

Under the EO, the head of procuring entity may proceed with alternative methods of procurement once he/she determines the contract falls under any of the exceptions from public bidding.

For government contracts involving at least 500 million, the head must issue a certification under oath that the contract falls within exceptions from public bidding.

The head must also state that the contract is being entered into in faithful compliance with the law and is advantageous to the government.

“Except for government contracts required by 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 of procurement,” the order read.