COMMISSION ON AUDIT MEMORANDUM NO. 88-576 October 27, 1988
TO
: All Directors, Assistant Directors, Supervising Auditors, Corporate Auditors,
Provincial, City and Municipal Auditors, Auditors of National Government
Agencies, and Others Concerned.
SUBJECT : Memorandum Circular No. 79 of the Office of the President dated October 12,
1988, relative to the award of contracts through negotiation.
For the information and guidance of all concerned, Memorandum Circular No. 79 dated
October 12, 1988, of the Office of the President is quoted in full hereunder:
"MEMORANDUM CIRCULAR NO. 79
CLARIFYING THE PROVISIONS OF SECTIONS 5 AND 7 OF EXECUTIVE
ORDER NO. 164 VIS-A-VIS THE AMENDED IMPLEMENTING RULES AND
REGULATIONS (IRR) OF P.D. 1594 ON THE AWARD OF CONTRACTS
THROUGH NEGOTIATION AND PRIVATE SECTOR REPRESENTATION IN
THE PRE-QUALIFICATION, BIDS AND AWARDS COMMITTEE (PBAC).
"It is hereby clarified that with regard to the Award of Contracts Through
Negotiations and private sector representation in the PBAC, the provisions of
Section 5.c and 7.e, respectively, of Executive Order No. 164 which are as
follows:
"1.
Section 5.c.
- Negotiated Contracts.
"Where the construction project covered by the contract is
adjacent or contiguous to an ongoing project and it could be
economically prosecuted by the same contractor, in which case,
direct negotiation may be undertaken with the said contractor at
the same unit prices and contract conditions, less mobilization
costs, provided that he has no negative slippage and has
demonstrated a satisfactory performance. Otherwise, the contract
shall be awarded through public bidding.
"2.
Section 7.e.
- Private Sector Representative.
"A representative from at least one of the following
organizations who shall be a non-voting member:
a)
b)
c)
d)
Philippines Institute of Civil Engineers
Philippine Constructors Association
National Confederation of Contractors Association of the
Philippines, Inc.
Philippine Institute of Certified Public Accountants
shall govern over similar provisions in the Amended IRR of P.D. 1594.
"Please be guided accordingly.
"By Authority of the President:
(SGD.) CATALINO MACARAIG, JR.
Executive Secretary"
In view hereof, all auditors are enjoined to observe strictly the provisions of the aforequoted Memorandum Circular in the audit of construction contracts covered by the amended
IRR of P.D. 1594.
By Authority of the Chairman:
(SGD.) ALBERTO P. CRUZ
Commissioner
Officer-in-Charge