1. In order to simplify, systematize and make more efficient the system and procedure of procurement in the Office of the President, the following revised guidelines are hereby prescribed:
a. All Requisition and Issue Vouchers (RIV) must be initiated and signed by the heads of divisions;
b. After the preparation and signing by the division chief of an RIV the same will be delivered to the Chief, Finance Division for’ request of obligation of allotment (ROA);
c. From the Finance Division, the RIV goes to the Executive Secretary or his duly authorized representative for approval;
d. Upon the approval of the RIV by the Executive Secretary or his duly authorized representative the papers will be sent to the Chief, Accounting Division for obligation of funds;
e. From the office of the Chief, Accounting Division, the RIV shall be transmitted immediately to the Chief, Procurement and Supply Section, who shall initiate immediate procurement process subject to the following conditions and limitations:
aa. procurements which involve amounts of less than ₱100 may be done on a “cash and carry basis” to be supported by a Memo of canvass to be signed by the Chief, Procurement and Supply Section.
This Memo of canvass (by telephone or open market canvass) shall indicate the name of the supplier, the amount quoted as price for the item(s) being purchased and the name, of the representative of the supplier who made the quotation, or, the direct purchase may be made on the basis of government price list approved by the Bureau of Supply Coordination.
A direct purchase may be authorized even if the amount involved is ₱100 but less than ₱500 upon approval of the emergency purchase by the Executive Secretary or his duly authorized representative, subject to the provisions of Executive Order Nos. 298 and 302, both series of 1940.
bb. Purchase of ₱500 but not more than ₱1,000 shall be done on the basis of sealed bids or on government price list as approved by the Bureau of Supply Coordination.
In cases aa and bb open market canvass offers from at least 5 reputable suppliers will be sufficient basis for making of awards.
cc. Procurement which involve ₱1,000 but less, than ₱10,000 may also be done by sealed, bid offers from at least 5 reputable dealers subject to the approval of the Executive Secretary or his representative.
f. After the canvass has been completed, the Chief, Property and Supply Division, will then prepare the purchase order attaching the memorandum of open market canvass or the approved abstract of sealed bids for submission to the Chief of the Finance Division for his approval where the amount involved is not more than ₱1,000.
If the amount involved is ₱1,000 or more but less than ₱10,000 then, the purchase order will have to be submitted to the Executive Secretary or his authorized representative for approval.
g. Upon approval of the purchase order all the procurement papers will be returned to the Chief, Procurement and Property Section, who will then serve the purchase order to the winning bidder or supplier.
h. Upon delivery of the item(s) called for in the purchase order, the Chief, Procurement and Property Section, will cause the same, to be inspected by a representative of the Auditor and the requisitioner or his representative after which the same shall be credited as stock in the property section.
i. Upon receipt of the item(s) called for by the RIV by the Property Unit, the same shall be delivered to the end-user who will then sign the Memorandum Receipt for non-expendable items.
j. Upon delivery, inspection and acceptance of the procured supplies, materials or equipment, the Chief, Procurement and Property Section, will prepare the vouchers of payment which will be transmitted immediately to the Chief, Accounting Division, through the Finance Division. The Chief, Finance Division will approve vouchers involving amounts of less than ₱1,000 If the amount of the claim is ₱1,000 and more the Financial Assistant will approve the voucher.
k. Every effort shall, be exerted by the Accounting Division to have payments for such claims effected immediately upon receipt of the vouchers from the Procurement and Property Section, provided that all supporting papers are complete.
2. For an efficient and effective implementation of this revised system and procedure the Chief, Procurement and Property Section, is hereby authorized to get a cash advance of ₱5, 000 in order to facilitate direct or emergency purchases as approved, subject to the usual accounting and auditing rules and regulations; provided, that liquidation is made, monthly or as often as necessary.
3. Procurement of supplies and, materials and other needs of the President of the Philippines and the Executive Secretary shall be treated as special cases.
4. The Chief, Procurement and Property Section is hereby authorized to procure for stock purposes office supplies which are commonly used, such as typewriter ribbons, pencils, paper clips, and other similar items in such quantities which are disposable within a three-month period, subject to availability of funds.
5. This Office Memorandum shall take effect immediately and shall be observed by all divisions and major working units, except the Palace household and the Press Office.1aшphi1
6. For the information, guidance and compliance of all concerned.
