Administrative Order No. 81, January 17, 1964

REVOKING ADMINISTRATIVE ORDER NO. 290 DATED FEBRUARY 3, 1959, REQUIRING CERTAIN CONTRACTS OF GOVERNMENT OFFICES AND AGENCIES TO BE SUBMITTED TO THE AUDITOR GENERAL FOR REVIEW

In view of the delay occasioned by the prior review by the General Auditing Office of government contracts involving P10,000 or more, which has given rise to complaints and at times prejudice to the service where speedy action was necessary, and as the preaudit system of government transactions has already been withdrawn by the Auditor General and only those covered by Administrative Order No. 290, remain subject to preaudit, I, DIOSDADO MACAPAGAL, President of the Philippines, pursuant to the powers vested in me by law and upon the recommendation of the Auditor General, do hereby revoke Administrative Order No. 290 dated February 3, 1959. However, the following procedures and requirements shall henceforth be observed by the different offices and agencies:

1. The officers concerned shall anticipate the need or service requirements of their offices three (3) months in advance, if possible.

2. As a general rule and except in permissible cases, all contracts shall be entered into only through public bidding.

3. Bidders must first be prequalified before being issued invitations to bid forms and other bidding documents.

4. The advertisement to bid shall contain all the required and exact specifications and conditions to avoid controversies which often delay the award and shall be given the widest publicity possible by publication in one or two daily newspapers of general circulation in the Philippines, by posting copies at the main entrance of the requisitioning office and other conspicuous places in the locality and by furnishing copies thereof to all known prospective bidders in the Philippines.

5. Bids shall be opened by a Committee on Awards to be created for the purpose at the time and place set in the invitation to bid in the presence of attending bidders, or their authorized representatives, and a representative of the Auditor General. The date of opening shall not be less than ten (10) days from the date of first publication, if the goods are to be supplied from local stock, or twenty (20) days, if they are to be imported.

6. The Committee on Awards shall make its recommendation within three (3) days from the opening of the bids.

7. The contract shall not be entered into without a certificate showing that funds are available for the purpose.

8. It is prohibited for any person to give, or promise to give, any money or gift to secure a government contract, which shall contain a provision that the private contractor warrants that he has not given or promised to give any money or gift to any official or employee to secure the contract and that any violation of said warranty shall be a sufficient ground for the Government to revoke or cancel the contract.

9. Copy of the perfected contract with certified copies of the award, abstract of bids, deliberations of the Award Committee, the bids submitted, notices and all other pertinent papers shall be furnished to the Auditor General.

Done in the City of Manila, this 17th day of January, in the year of Our Lord, nineteen hundred and sixty-four.

(Sgd.) DIOSDADO MACAPAGAL

President of the Philippines

By the President:

(Sgd.) JUAN S. CANCIO

Acting Assistant Executive Secretary