Procedure for the procurement of consulting service - DOH

DOH CUSTOMIZED PROCUREMENT MANUAL VOLUME 4 2010
Section 38 of RA 9184 and Section 38.2 of the revised IRR are designed to remove this
cause for delay. These provisions mandate that if further approval of a higher authority
within the Procuring Entity (other than the President of the Philippines) is required, and that
authority does not take any action on the contract within the prescribed period, the contract
concerned is deemed approved.
Only contracts that are duly signed by the appropriate signatory are covered by this rule.
An unsigned contract is a mere piece of paper and cannot be the basis of a government
liability.
Procurement transactions require approval from appropriate authorities recognized under
RA 9184 and its revised IRR. Until countered by any recent issuance regarding the matter,
Administrative Order 2006-0034 (Reference A) remains the source that pinpoints
accountabilities, clarifies the roles and responsibilities, and delineates the power to
recommend and approve transactions between officials and key personnel in various DOH
transactions including procurement.
However, recently DOH issued Administrative Order 2006-0034-A (Reference B) last 17
December 2009, “Delegation of Authorities for Certain Transactions in the Offices under
the Department of Health,” which amended AO 2006-0034 on the delegation of authorities
for procurement in the central office.
3.7 Rules governing the review and approval of government contracts
Executive Order (E.O.) 423, s. 2005, as amended by E.O. 645, s. 2007, prescribes the
rules and regulations on the review and approval of government contracts. Essentially,
E.O. 423 provides that, except for government contracts required by law to be acted upon
and/or approved by the President, the HOPE shall have full authority to give final approval
and/or enter into all government contracts of his respective government agency, awarded
through public bidding, regardless of amount. Provided, that the HOPE certifies under oath
that the contract has been entered into in faithful compliance with all applicable laws and
regulations. The HOPE may also delegate in writing this full authority to give final approval
and/or enter into government contracts awarded through public bidding as circumstances
may warrant (i.e. to decentralization of procurement in a government agency), subject to
such limitations as he may impose. For procurement undertaken through any of the
alternative methods allowed by law, where the government contract involves an amount
less than Five Hundred Million Pesos (PhP 500,000,000.00), except where action or
approval of the President is required, the HOPE shall have full authority to give final
approval and/or enter into such contract, provided that the Department Secretary
concerned certifies under oath that the contract has been entered into in faithful
compliance with all applicable laws and regulations. S/he may delegate in writing this
authority, as circumstances may warrant (i.e. to decentralize procurement), subject to such
limitations as he may impose.
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