(2001) EO 40 Consolidating Government Procurement.pdf - MALACAÑANG Manila BY THE PRESIDENT OF THE PHILIPPINES Executive Order No 40 October 8 2001

(2001) EO 40 Consolidating Government Procurement.pdf -...

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MALACAÑANG Manila BY THE PRESIDENT OF THE PHILIPPINES Executive Order No. 40 October 8, 2001 CONSOLIDATING PROCUREMENT RULES AND PROCEDURES FOR ALL NATIONAL GOVERNMENT AGENCIES, GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS AND GOVERNMENT FINANCIAL INSTITUTIONS, AND REQUIRING THE USE OF THE GOVERNMENT ELECTRONIC PROCUREMENT SYSTEM WHEREAS, the government is committed to good governance; WHEREAS, the principles of good governance call for transparency, accountability, equity, efficiency and economy in the government procurement process, and the eradication of malpractices, particularly graft and corruption; WHEREAS, there is an urgent need to consolidate existing administrative orders, issuances, rules and regulations on the procurement of goods, civil works and consulting services and to develop a single set of rules that embodies a streamlined procurement process uniformly applicable to all government procurement; WHEREAS, it is imperative that the procurement process be made adaptable to, and utilize advances, in modern technology; WHEREAS, in the pursuit of good governance, the government shall adopt an electronic procurement process that will uniformly apply to all government procurement; and WHEREAS, to enhance transparency in government procurement, the government shall encourage the public to monitor the procurement process and the awarding of contracts with the end in view of guaranteeing that these contracts are awarded pursuant to law. NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order: GENERAL PROVISIONS Section 1. Scope and Application. This Executive Order shall apply to the procurement of: (a) goods, supplies, materials and related services; (b) civil works; and (c) consulting services, by all National Government agencies, including State Universities and Colleges (SUCs), Government-
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Owned or -Controlled Corporations (GOCCs) and Government Financial Institutions (GFIs), hereby referred to as "Agencies." This Executive Order shall cover the procurement process from the pre-procurement conference up to award of contract. Nothing in this Order shall negate any existing and future government commitments with respect to the bidding and award of contracts financed partly or wholly with funds from international financing institutions as well as from bilateral and other similar foreign sources. Section 2. Statement of Policy. It is the policy of the government that procurement shall be competitive and transparent and therefore shall be through public bidding, except as otherwise provided in this Executive Order. Section 3. General Guidelines. Government procurement shall be guided by the following reform principles: (a) Simplification of pre-qualification through the use of an eligibility check, and strengthening of post-qualification; (b) Use of the Lowest Calculated and Responsive Bid as the criterion of award in the case of procurement of goods, supplies, materials and related services; and civil works;
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