AMENDING EXECUTIVE ORDER NO. 302, SERIES OF 1996, ENTITLED “PROVIDING POLICIES, GUIDELINES, RULES AND REGULATIONS FOR THE PROCUREMENT OF GOODS/SUPPLIES BY THE NATIONAL GOVERNMEN…

WHEREAS, the amendments to Executive Order
(EO) No. 302, series of 1996, are based on the basic principles of:
shifting emphasis from pre-qualification to eligibility check, and
strengthening post-qualification; changing the criterion for award from
lowest evaluated responsive bid to lowest calculated responsive bid; and
use of available budget a the ceiling in evaluating bid price;

WHEREAS,
the Prequalification, Bids and Awards Committee shall be replaced by
the Bids and Awards Committee to de-emphasize prequalification in favor
of postqualification;

WHEREAS, the function of the
Procurement Policy Board created under EO No. 359, series of 1989, shall
be extended to formulate and promulgate the amendments to the
implementing rules and regulations of this Executive Order.

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:

SECTION 1. Section 1 of EO No. 302, series of 1996, as amended by EO No. 201, series of 2000, is hereby amended to read as follows:

“SECTION 1.
A set of rules and regulations covering contracts for the procurement
of goods and supplies for both project-related and normal/regular
operation and maintenance activities of the National Government
including Government-Owned and Controlled Corporations (GOCCs) be
adopted for the following purposes:

1. To
   purchase goods of acceptable quality at fair and reasonable prices from
   qualified and capable suppliers/manufacturers/distributors, with on
   time delivery and satisfactory compliance of all contract terms and
   conditions;

2. To assure fair and equitable treatment of suppliers/manufacturers/distributors, including arrangements for prompt payments;
3. To accomplish procurement through open competitive bidding in the interest of economy and efficiency;
4. To adopt procurement procedures that utilize information technology; and
5. To maintain and collect data for refinement of procurement policies and procedures based on experiences gained.”

“SECTION 2.
Level of approving authority for contracts involving the procurement of
goods/supplies for project-related and normal/regular operations and
maintenance activities of all agencies of the National Government
including GOCCs, shall be prescribed under the pertinent provisions of
EO Nos. 301 and 380 dated 26 July 1987 and 27 November 1989,
respectively.”

“SECTION 4.
The Prequalification, Bid and Award Committee shall be replaced by the
Bid and Award Committee which shall be responsible for the conduct of
bidding in each and every agency, subdivision and instrumentality of the
National Government….”

“SECTION 5. The primary functions of the Committee shall be to:

1. Determine the eligibility of prospective bidders;
2. Conduct bidding;
3. Evaluate bidding results; and
4. Recommend award of contract.”

“SECTION 6.
The Procurement Policy Board created under EO No. 359, series of 1989,
composed of the Secretary of budget and Management as Chairman and, as
members, the Secretaries of Finance, Trade and Industry, Health,
National Defense, Public Works and Highways, Education, Culture and
Sports and a representative from the Philippine Institute of Certified
Public Accountants shall, subject to the approval of the President,
formulate and promulgate the rules and regulations to implement the
amendments to EO No. 302, series of 1996, and EO No. 201, series of
2000, and any other executive orders or amendments that pertain to the
procurement of goods/supplies by the national government.”

DONE in the City of Manila, this 5th day of July in the year of Our Lord, Two Thousand.

By the President:

(Sgd.) RONALDO B. ZAMORA
Executive Secretary