OFFICE OF THE CHAIRMAN OF THE EXECUTIVE
COMMISSION

MALACAÑAN PALACE

BY THE CHAIRMAN OF THE EXECUTIVE COMMISSION

EXECUTIVE ORDER NO. 88

REQUIRING THAT ALL CONTRACTS FOR PUBLIC SERVICE OR THE SUPPLY OF ARTICLES, MATERIALS OR EQUIPMENT NEEDED FOR PUBLIC USE BE MADE THRU PUBLIC BIDDING.

Pursuant to the authority conferred upon me as Head of the Central Administrative Organization by Order No. 1 in connection with Order No. 3 of the Commander-in-Chief of the Imperial Jan Forces in the Philippines and to the provisions of existing law, and upon the recommendation of the Executive Commission, it is hereby ordered that—

1. In all cases where any bureau, office, brand subdivision, agency or instrumentality of the Central Administrative Organs and Judicial Courts including provinces, cities, municipalities and government-owned or controlled corporations have to enter into a contract or renew one actually in force in connection with any public service or the supply of articles, materials or equipment needed for public use, said contract shall not be executed or renewed without previous advertisement calling for bids in which case the award, if at all, should invariably be made in favor of the lowest responsible bidder. For very extraordinary reasons, however, such as on the occasion of an emergency involving the loss of, or damage to, life and/or property, this requirement may be waived, but only after the Commissioner of the Department concerned and the Auditor General and Director of the Budget have been consulted and the approval of the Chairman of the Executive Commission has been secured beforehand.

2. In calling for bids, special care should lie taken that the advertisement herein required shall contain the nature, kind and full particulars concerning the public service desired, and the necessary specifications to the last possible detail as to the quantity, quality, workmanship, color, make, design, source, dimensions, strength, weight, etc. of the articles, materials or equipment desired, showing them by illustrations or samples for the information and guidance of prospective bidders.

3. The advertisement calling for bids should indicate the date and exact time when the bids received shall be opened and considered. Absolutely no bids shall be accepted after the time limit fixed in the advertisement shall have expired. The opening of such bids should be made in the presence of a representative of the Auditor General and Director of the Budget, who is hereby authorized to secure and identify such papers and samples of the articles, materials, or equipment submitted by the bidders, and in general supervise the proper conduct of the public bidding. This authority, however, shall not be understood as empowering him to make the award of the contract in favor of the successful bidder nor shall he at any time form a part of the committee on award.

4. The advertisement herein required should be given the greatest possible publicity by printing the same in the Official Gazette or in a local newspaper having a wide circulation for not less than six days or by posting it for a like period in at least four public places in the community where the contract shall be executed or enforced. In addition, copies of such advertisement should be mailed to parties likely to be interested therein in order to invite the necessary competition, and thus be able to obtain the most satisfactory bid.

5. The lowest responsible bidder shall be understood to be the party who, besides offering the lowest price among the bidders, is deemed sufficiently reliable, financially and otherwise, to meet his obligations under the contract. All things being equal, the lowest bid should be preferred. Where there is any doubt as to whether the lowest bidder is responsible or not, or in case for any reason his bid is not favored, the matter should be submitted to the Chairman of the Executive Commission, thru the proper Department Head and the Auditor General and Director of the Budget, for final decision. Before making such reference, however, an opportunity should be given the bidder concerned to present his side of the case.

6. All existing laws, rules and regulations in conflict with this Executive Order are hereby revoked.

Done in the City of Manila, Philippines, this 9th day of September, 1942.

(Sgd.) JORGE B. VARGAS
Chairman of the Executive Commission

APPROVED by the Director General of the Military Administration on September 11, 1942.

Source: Office of the Solicitor General Library