Memorandum Circular No. 704




MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES [ Memorandum Circular No. 704, February 20, 1974 ] AUTHORIZING THE CHIEF OF STAFF, AFP TO ENTER INTO NEGOTIATED CONTRACTS WITH AUTHORIZED MANUFACTURERS, SUPPLIES AND/OR EXCLUSIVE DEALS OF CRITICAL MATERIALS AND SUPPLIES, ARCHITECTURAL AND ENGINEERING SERVICES AND OTHER SERVICES FOR PURPOSES OF STOCKPILING AND ENSURING THE AVAILABILITY OF THESE MATERIALS AND SERVICES, AS EXCEPTIONS TO EXECUTIVE ORDER NO. 298, S-1940, AS AMENDED; AND EXECUTIVE ORDER NO. 201, S-1949, AS AMENDED; AND THE SECRETARY OF NATIONAL DEFENSE TO APPROVE SUCH CONTRACTS AS AN EXCEPTION TO EXECUTIVE ORDER NO. 323, S-1971. WHEREAS, there is a national and international trend toward rising costs of critical, materials and supplies, architectural and engineering services, and other services being utilized for development projects; WHEREAS, the energy shortage shows indications of continuing to adversely affect the costs and supply of critical materials and supplies in the foreseeable future; WHEREAS, in the face of the foregoing circumstances, there is urgent need for an operational system and procedure within the Armed Forces of the Philippines to ensure the availability of these materials, supplies and services in sufficient quantities and required specifications in the interest of national security and development; WHEREFORE, the Chief of Staff, AFP, is hereby authorized to enter into negotiated contracts with authorized manufacturers, suppliers and/or exclusive dealers of critical materials and supplies, architectural and engineering services and other services, and to pay in advance in the form of an open guarantee deposit for said items as exceptions to the provisions of Executive Order No. 298, series of 1940, as amended; and Executive Order No. 201, series of 1949, as amended; provided, that (1) such items meet all required specifications and the acquisitions of same shall be paid from project funds already released and made available for construction and other development projects; (2) a certification be attached for each procurement specifying the projects for which the items are intended; (3) the procurement shall be done only for purposes of stockpiling and/or meeting urgent requirements of projects that have been authorized for which funds have been released; and (4) monthly reports hereon shall be submitted to this Office.⚖ - ℒαɯρhi৷ Further, the Secretary of National Defense is hereby authorized to approve all such contracts for materials, supplies and services as an exemption to the provision of Executive Order No. 323, series of 1971. This Circular shall take effect immediately. By authority of the President: (SGD.) ALEJANDRO MELCHOR Executive Secretary Manila, February 20, 1974 The Lawphil Project - Arellano Law Foundation