September 28, 2007

GPPB RESOLUTION NO. 21-07

APPROVAL OF THE CUSTOMIZED PROCUREMENT MANUALS OF THE DEPARTMENT OF NATIONAL DEFENSE

WHEREAS, Section 6 of SHAcID

WHEREAS, the GPPB, in its meeting held last 14 June 2006, approved and adopted the Generic Procurement Manual (GPM) for use by all agencies effective January 2007;

WHEREAS, the Department of National Defense (DND) was selected as one of the nine (9) pilot agencies that will undertake the Pilot-testing and Customization of the Generic Procurement Manuals;

WHEREAS, the DND, through its consultant Atty. Karen Ong, prepared and submitted its Customized Procurement Manuals to the GPPB Technical Support Office (GPPB-TSO) last 9 June 2006;

WHEREAS, the GPPB-Inter-Agency Technical Working Group (IATWG) during its 9th Regular Meeting held last 14 September 2007 reviewed the draft DND Customized Procurement Manuals, as presented by the GPPB-TSO;

WHEREAS, in the same meeting, the members of the IATWG unanimously resolved to recommend the approval of the Customized Procurement Manuals of the DND, subject to the following revisions:

a) Amend the provisions on surety bond as one of the acceptable forms of bid and/or performance security to read as follows: "Surety bond callable upon demand issued by a reputable or acceptable surety or insurance company subject to any criteria imposed by the procuring entity concerned and prescribed in its bidding documents" (Vols. 2 & 4);

b) Amend the provisions on the period for the release of performance security stating therein that pursuant to Section 39.4 of the

c) Update basis for grant of honoraria [ CIcEHS

d) Transfer the following documents from Financial to Legal Documents under the Eligibility Envelope pursuant to GPPB Circular No. 2-2005,

1. Latest Income Tax Return filed through the EFPS;

2. Value-Added Tax or Percentage Tax Returns covering the previous six months filed through the EFPS; and

3. Tax Clearance issued by the Collection Enforcement Division of the Bureau of Internal Revenue attesting that the taxpayer has no outstanding Final Assessment Notice and/or delinquent account.

e) Incorporate the latest amendments on the provisions of the

1. GPPB Resolution No. 04-2006, dated 20 January 2006

Amendment of Sections 53 (h) and 54.2 (i) on small-value procurement (Vols. 2 & 4);

2. GPPB Resolution No. 07-2006, dated 20 January 2006

Amendment of Section 23.11.1.2 of the

3. GPPB Resolution No. 14-2006, dated 20 July 2006

Shortening of procurement timelines (Vols. 2 & 4);

4.

Amendment of Section 27.4 of the EIDTAa

5.

Amendment of Sections 23.6 and 24.7 of the

6.

Amendment of Section 53 (e) of the

7.

Amendment of Section 53 of the

8.

Amendment of Sections 23.3 and 24.13 of the

9.

Amendment of Section 53 of the

f) Include as an "Annex" in the appropriate volumes of the Customized Procurement Manuals of DND the following: AacSTE

1. GPPB Resolution No. 06-2003, dated 1 December 2003

Confirming that

2.

Guidelines for Payment on Foreign Currency under Section 61.1 of

3.

Guidelines in the Determination of Eligibility of Foreign Suppliers, Contractors and Consultants to Participate in Government Procurement Projects (Vols. 2 & 4);

4.

Guidelines on the Procurement of Water, Electricity, Telecommunications and Internet Service Providers (Vol. 2);

5. GPPB Resolution No. 20-2006, dated 6 December 2006

Amending GPPB Resolution No. 06-2003 which enumerates the Relevant Provisions of

6.

Revised

WHEREAS, the GPPB-TSO incorporated the foregoing revisions and forwarded the same to the DND for their review and comments last 25 September 2007; THESAD

WHEREAS, no comments were received from DND on or before the deadline set last 27 September 2007;

NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to approve, as WE hereby approve the Customized Procurement Manuals of the Department of National Defense for its adoption and official use.

This resolution shall take effect immediately.

APPROVED this 28th day of September 2007 at Pasig City, Philippines.