Memorandum Order No. 175

MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Memorandum Order No. 175, May 23, 1988 ]

PROVIDING GUIDELINES FOR THE IMPLEMENTATION OF LOCAL GOVERNMENT PROJECTS FUNDED FROM NATIONAL GOVERNMENT FUNDS AND FOR OTHER PURPOSES

WHEREAS, it is the policy of the government to expedite project implementation through decentralization and administrative delegation;

WHEREAS, as a consequence of said policy, local government units were authorized to participate in implementing the national infrastructure program and provided with greater authority to approve contracts to implement projects falling within their respective jurisdiction;

WHEREAS, to ensure that contracts to implement projects shall be entered into at the most economical and advantageous terms and implemented efficiently in accordance with specifications and timetable of completion;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Creation of the Prequalification, Bids and Awards Committee. — There is hereby established in each province and municipality a Prequalification, Bids and Awards Committee which shall be responsible for the conduct of prequalification of contractors, biddings, evaluation of bids and recommending awards of contracts. The Prequalification, Bids and Awards Committee for each municipality shall be composed of the following:

a. Mayor Chairman

b. Three (3) Members of the Sangguniang Bayan to be designated by the Mayor Members

c. Three (3) Representatives from non-government civic organizations Members

d. One (1) Representative from the Philippine Institute of Certified Public Accountants or any practicing Certified Public Accountant from the private sector Member

The Office of the Municipal Planning and Development Coordinator shall serve as the technical Secretariat of the PBAC.

The Prequalification, Bids and Awards Committee of each province shall be composed of the following:

a. Governor Chairman

b. Three (3) Members of the Sangguniang Panlalawigan to be designated by the Governor Members

c. Three (3) Representatives from non-government civic organizations Members

d. One (1) Representative from the Philippine Institute of Certified Public Accountants or any practicing Certified Public Accountant from the private sector Member

The Office of the Provincial Planning and Development Coordinator shall serve as the technical Secretariat of the PBAC.

A Department of Public Works and Highways and a Commission on Audit Representatives shall, in all cases, be invited as witnesses in the bidding, bid evaluation and award stages. The opening of bids shall be in the presence of the provincial or municipal auditor or his duly authorized representative who shall identify and secure the copies of the bids and certify the abstract of the bidding.

The representatives from the non-government civic organizations and the representative from the Philippine Institute of Certified Public Accountants or any practicing certified public accountant from the private sector shall be selected by the Department of Local Government, the Department of Public Works and Highways and the Department of Budget and Management.

Section 2. Creation of a Project Monitoring Committee. — There is hereby established in each province and municipality a Project Monitoring Committee.

The chairman of the Municipal Project Monitoring Committee shall be the Budget Officer of the Municipality concerned while the Chairman of the Provincial Project Monitoring Committee shall be the Budget Officer of the Province concerned.1aшphi1

The Members of both the Provincial and the Municipal Project Monitoring Committees shall be as follows:

(a) A representative of the Commission on Audit;

(b) The President of the Parents-Teachers Association or the duly authorized representative of the PTA Presidents to be selected in accordance with the provisions of this Section;

(c) A representative of the Department of Local Government at the Municipal Level; and

(d) A member of a civic and/or religious organization located in the Province, in case of provinces and, located in the Municipality concerned, in case of municipalities.

In cases where there are several Presidents of Parents-Teachers Associations in the Municipality or Province, said PTA Presidents shall select and designate from among themselves, their duly authorized representative in the Project Monitoring Committee.

The Provincial and Municipal Budget Officers shall organize their respective Project Monitoring Committees in coordination with the Regional Director of the Department of Budget and Management.

The Project Monitoring Committees shall monitor the implementation of projects and submit their report to the Secretary of Budget and Management, copy furnished the Chairman, Commission on Audit and the Secretary of Local Government. The Secretary of Budget and Management shall determine the data and information requirements to be indicated in the Monitoring report.

Section 3. Publication of Call for Bids. — The call for bids shall be given the widest publicity possible, providing, by mail or otherwise, any known prospective participant in the locality, with copies of the call and by posting copies of the same continuously for a period of two (2) weeks in at least three (3) conspicuous locations in the municipal hall of the local government unit involved.

In addition to the above modes of publicity, the Notice of the bidding may be published for three times within a week in a newspaper of general circulation in the locality by the Prequalification, Bids and Awards Committee in order to obtain the lowest responsible and complying bid.

Section 4. Billboards. — The Chairman of the Prequalification, Bids and Awards Committees and the Chairman of the Project Monitoring Committees are hereby directed to post in a Billboard the name of the Project, the total project cost and the amount released for the Project, the starting and expected dates of completion as well as the name of the Contractor.

A Billboard containing the above information shall be placed on the project site as well as the entrance of the Municipal Building, entrance to the Public Market and at the entrance of the church where most people congregate. The Billboard shall be placed in the aforementioned locations immediately upon award of the Contract and should be maintained up to the date of completion of the Project and acceptance by the local government units concerned.

Section 5. Honorarium. — The Chairman and members of the Prequalification, Bids and Awards Committee and the Project Monitoring Committee shall be entitled to honorarium at rates to be determined by the Secretary of Budget and Management pursuant to the provisions of Letter of Instructions No. 565.

Section 6. Transitory Provisions. — Upon approval of this Memorandum Order, all local projects funded from National Government funds which are not yet awarded in accordance with existing rules and regulations shall be transferred to the Prequalification, Bids and Awards Committee created under this Order. Said transfer shall be accomplished and reflected in the manner and official form to be prescribed for the purpose.

Section 7. Implementing Rules and Regulations. — The Secretary of Budget and Management jointly with the Secretary of Finance shall promulgate rules and regulations to effectively implement the provisions of this Memorandum Order.

Section 8. Repealing Clause. — All administrative issuances, rules and regulations which are inconsistent with the provisions of this Memorandum Order are hereby repealed or modified accordingly.

Section 9. Effectivity. — This Order shall take effect immediately.

Manila, May 23, 1988

(Sgd.) CORAZON C. AQUINO

By the President:

(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary

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