NPM No. 054-2016
Requesting Entity: Department of Budget and Management (DBM)
Issues Concern: Request of the Department of National Defense (DND) to Repeal Executive Order (EO) No. 235, s. 2003
The DND request pertains to the delegation of the signing/approval of contracts and the creation of separate Bids and Awards Committees (BACs) in the procurement activities of the DND
Creation of Separate BACs
Section 12 of Republic Act (RA) No. 9184 and its 2016 revised Implementing Rules and Regulations (IRR) enunciates the general policy of having a single BAC for each procuring entity. This notwithstanding, the same Section allows the Head of the Procuring Entity (HOPE) to create separate BACs where the number and complexity of the items to be procured shall so warrant, or establish similar committees for decentralized and lower level offices when deemed necessary; and
Delegation of Signing/ Approval of Contracts
In accordance with Sections 5(j), 12 and 37 of RA 9184, the Head of Agency may delegate the functions of the HOPE, such as the approval of the recommendation to award a contract and the signing of Notice of Award, among others. The decision, however, to delegate such functions lies solely on the sound discretion of the Head of the Agency taking into consideration the aspects of economy, efficiency and accountability, and the need to effectively implement plans and programs.