Supply and Property Management

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RULES AND REGULATIONS

ON SUPPLYAND PROPERTY
MANAGEMENT IN THE
LOCAL GOVERNMENTS
RepublieoI :ie Fhiiippines

COMMISSION $N AUDTT
QuezonCity
October20, l9
COMMISSIONON AUDTTCIRCULARNO 92-386
To
Local Chief Executives,General Servic

Offi c er s , Loc al T r eas ur er s , Budg
Membe
Officers, Acsouniattis,Sarrggr.rnian
pai
Aucii
Muni
ci
tors,
B arang
Frovinciai,Cityanci
OffEcialsand,411
OthersConcerned.
SIjBJECT
PRESCRIBINGRULES AND REGUL,

TIONS ON SUPPLY AND PROPERT
MANAGEMENT IN TFM LOCAL GOVER]
MENTS.
Pursuantto the provisionsof Section383, Title \

Book II, of RepublicAct No. 7160, otherwiseknown
the Local GovernmentCode of 1991, the herein set
rules and regulationson supply and property manag
ment in local governmentunits are herebypromulgate
Theserulesand regulationsshalltakeeffectimmed
ately.
idf,. Dorrirnco
Chairman
TABLE OF CONTE}.ITS
Page
TITLE I. GENERAL PROVISIONS

Rule l- Title and Definitbns
Section
Section
Section
Section
1.
2.
3"
4.
Authority
Title
Applicability
Definitions of Abbreviations and Terms
1
I
1
Rule 2. Standardieation of Supply and Property

Section
TITLE II.
5.
Procurement of Supplies or
Property Certified by the
Product
Bureau
of
Standards
ACQUISITION OF SUPPLIES OR
PROPERTY
Rule 3. Procurement Plans ond Progroms

Section
Section
Section
Se"i.,i,rtt
Section
6.
7.
8.
:t.
10.
S/ction
11.
Section
L2.
Section
13.
Section
14.
Section
Section
15.
16.
Coverage
Annual Procurement Plan..
Annual Procurement Program .
n
_ _ ! _ - _ _ _
r ut urru.DtS
n _ _ _ - : - l
vu vc r crr
10
l0
l l
l t
L _ -
uJ
Approved Procurement
Prograrn
Prohibition Against Conversion of Cash Into
Supplies
Supplementary Procurement Plan
Supplementary Procurement Program
Amendatory Procurement.
Plan .
Arnendatory Procurement
Program
Provision for Contingency...
Procurement
Separate
Plans and Frograms for
Supplies or Property,
ll
1l
1l
I t
I I
T2
1 '
T2
T A B L EO P C O N T E N T S
TABLE OF CONTENTS
It
Page
Non-Expendable S.rpplies,
Non-Personal
S e r v i c e s ,a n d I U a t e r i a l s
for
Infrastructure
Project
Pagr
Section
34.
Section
Section
35.
36.
Section
37.
12
Rule 4. Requisttion of Supplies or Property

Section
Section
Section
Sect'ion
1 7 . R e q u i r e m e n to f R e q u i s i t i o n
18. Officers Authorized to
Draw Requisitions
f 9 . A p p r o v a lo f R e q u i s i t i o n s . . .
20. Certification by the Local
Rrrrlopt
Seciion
Section
2\.
22.
Section
23.
/,+
, r:
- -
DecLl(Jlt
Section
25
Section
26.
OFfinpr
r :
a o
13
r3
Accnrrnf-
ant, and Treasurer ......

Forms to be [ised
Number of Copies and
Their Distribution.-.-.....
Statement of Deliverv
Period
O , - - ' c ,
l3
l4
l5
Property
Filing of Requisitionsin
Advance
Prohibition Against Splitt i n g o f R e q u i s i t i o n s. . - . . .
15
15
27.
Section
28.
Section
Section
Seclion
29.
30.
31.
Public Bidding as the

Primary Mode of Procurement
Other Modes of Procurement ..
Procurement Organization.
The Committee on Awards.
Composition
of
the
/v rv ^r r-t*t :t t+t +
^^
LLEG
SecLion
32.
Section
33.
^v r^r
Section
Section
Section
Section
A,.,--,1-
f rwatuJ...
Prohibition of National
Offrcial From Sitting as
Member of the Committee on Awards
Attendance in Proceedings.
Section
Section
Section
1 7
Section
Section
Rule 5. General Policies on Procurement

Section
Section
Section
Section
t .
opeclucaLron or Duppries C)r
Section
16
16
16
r7
Section
38. Call for Bids..

3 9 . B i d d e r ' sB o n d .
40. Sanctions fbr Refusal to
Accept Awards
4 1 . Publicationof Call for Bids.
42. Roster of Bidders
4 3 . Duties of Bidders
4 4 . D e c l a r a t i o n o f B u s i n es s
In Lerests
45. Quotations
46. Quotations not in Official
Form .
47. Quotations in Philippine
Currency
48. Quotations are By Itern ...
49. Brand New Items Presumed
50. Ample Time to Evaluate
the Tender
51. Statement of the Period
Within Which the Offer
:- rr^^l
15 \ruuu
Section
17
Section
Section
17
18
on Awards
Decision on Award
An Excerpt of the Proceedings in the Committee
on Awards Shall Form
Part of bhe Supporting
Papers
ProceedingsOpen to Public
ri
lt
ft
lf
Rule 6. Procurement Thru Public Bidding
l l
ta
14
Quorum in the Committee
52. Submission of Samples,

Reports of Analyses,
Catalogs, Literature,
a n d S k e t c h e s. . . . . . . . . . . . . . .
53. Identification of Samples...
54. Bids on Brand-Names
Other Than Those Specified........
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2:
TABLE OF CONTENTS
T A B T , EO F C O N T U N T S
Page
Page
S e c t i on
R e s p o n s i b i i i t Yf o r P a t e n t
23
56
fringement
Submission and AccePtance
of Bids
57. First f'ailure of Public
Bidding
58. Second Failure of ['ublic
Bidding
59. \'/ithdrawal of Bids
23
.^.1/nr
Sectron
Section
Section
S e ct i o n
l i e c i - r or r
JUC
Ll0l I
S e c t io n
S e c t io n
Section
S e ct i o n
Section
C
irtlti.
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s rJ v
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/rn
uu
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u r.
L),.^+^^namo-f
r vJLPvrrurr
62.
63
64.
65.
66.
St'rcli orr
67.
Section
S e ct , i c n
Section
68.
69
7O
Srction
Section
S e ct i o n
Section
7l.
72.
73.
14.
" S e c toi n
75.
Sectic'n
Section
76.
77.
Ill
^{'P;,1.
r/r(rJ
v,
nf
78.
7g.
8il.
81.
R e d u c t i o no f Q u a n t i t Y " " "

S u b s t i t u t i o n o f S u P P l i e s' '
Frice Attustment
C o r n p e t i t i o nB e t w e e nL o c a l
and Foreign Froducts . '
Section
Section
Section
82
83
84
23
24
24
,)A
LA
a"
Section
C!^-.:^^
DCL UlUll
Section
Section
o<
La)
t1
26
26
2i
27
27
27
27
2B
28
28
2?)
29
29
29
85.
30
30
3l
When to Make an Emer6Crrvy
,A
25
Canvass and A'*ard

L i m i t a t i o n so f P r o c u r e m e n t
l anvass...
t h r u P e r s o n aC
P r o c ur e m e n t
Duty
of
Officers on Purchases
t h r u P e r s o n a lC a n v a s s . . .
Rule 8. Emergency Purchases
()A
fv) n e n i n r t
H--__-_o
of Bids Prohibited
Abstract oi iricis
U i d s S u b m i t t e d[ , a t r :
U n s i g n e dB i d s '
N o n - C o m P l Y i n gB i d s
C o n s i d e r a t i o no f D e f e c t i v e
Biris
r \ c c e P t a n c eo f I l i d s a n c i
Awards
R e i c a s eo f B r d d e rs l l o n d '
Division of Awzrrd
Notification of AccePLance
of Biris
A w a r d o f C o n t r a c t. . .. . . . "
P r o t e s tA g a i n s l a n A w a r d "
Forfeiture of Protesl FJond"
Issuance of Purchase
Orders or Contract .. "W h o m a Y R e c e i v eP u r c h a s e
O r d e r o r C o n t r a c t .". " '
PerforrnanceBond
Extension of Time to
h^li.'or
ucltr9r
Section
Sectiorr
Secbion
Section
Rule 7. Procurementthru PersonalCanuass
55
Section
Section
Section
Section
Section
QA
9V.
?t
D,,-^L-^^
r ur rrr4Jc
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^t
o-^.;.;".;
6""
"J
Purchases,
Mandatory Requisites oi
8'l
E m e r g e n c yP u r c h a s e s. . .
8 8 . C a n v a s s o f P r i c es i n t h e
Locality of at Least
Three Suppliers in
Emergency Purchase
89. Authority tc Decide and
Award on Emergency
Purchases.
R
e
p o r to f t l t i l i z a t i o n . .... .. . .
90.
9 1 . C o n f ir m a t o r y R e p o r t o n
Emergency Purchase
92. Depositoryof Confirmatory
Reports
93. Sanction for Non-Compliance
32
32
33
33
33
3+
35
35
Rule 9.. Negotioted Purchase

Section
94.
Section
95.
Section
96.
Section
97"
When to Make a Negotiated Purchase....

When Public bidding is
Deemed a Failure
Canvass of Prices for
Negotiated Purchase
Personto Conduct Canvass
of Prices in Negotiated
Purchase
35
AA
36
36
TABLE OF CONTENTS
Page
Abstract of Canvass for
Negotiated Purchase
Section 99. Authority to Decide and
Award on Negotiated
..
Purchase
o
n
R
e
p
o
r
t
C
o
n
f
i
r
m
a
t
o
r
y
1
0
0
.
Section
Purchase"""
Negotiated
S e c t i o n 1 0 1 . R e P e a tO r d e r s '
.Seclion
98.
36
Rule 13. Other Mdes of Prxurement

Section
109.
37
37
38
Agents or
ule 11. Procurement from Exclusiue Philippine
Distributors
Section 105. When Procurement fronr
Exclusive PhiliPPine
Agents or Distributors
39
May be Made
Section 106. Authority to Decide and
Award in Procurement
from Exclusive PhiliPpine Agents or Distribu39
tors.....
39
40
vtl
page
Section I10.
ile 10- Direct Purchsse from Duly l-icensed Monufacturer

Section 102- W-hen Direct Purchase irom
Duly Licensed Manufac38
turer be Made
i
n
Section 103. Canvass of Prices
Procurement from DulY
38
Licensed Manufacturer"'
and
Decide
lo
Section L04' Authorit.v
Award in Procurement
from DulY Licen sed
39
M a n u f a c t u r e r- ' .
.ule 12. Procurement from Gouernment Entities

S e c t i o n 1 0 ?' P u r c h a s es f r o m O t h e r
FhiliPPine Government
Entities.
through Foreign
Purchase
108.
Section
G o v e r n m e n tE n t i t i e s
TABLE OF CONTENTS
vl
Procurement Authorized by
S p e c i a lL a w . . .
Suppletory Character of
these Rules and Regulations .
40
40
TITLE III. DELIVERY AND INSPECTION OF SUPPLIES

OR PROPERTY
l(ule 14. DeILUery
40
S e c t i o n 1 1 1 . Packing
C^-r:^-
uclulvll
1
19
L LL.
E l ^ . ^ ^ - " ; hJ ir lv; t+ " r . v J

^!LoPvrr
in
frqca
nf
Damage, Spoilage- or
Loss
S e c t i o n 1 1 3 . T i m e a n d P l a c eo f D e l i v e r y .
Rule 15.Inspection and A c c o m p l i s h n t e n t o f
Reports
40
4I
Inspection
S e c t i o n 1 1 4 . I n s p e c t i o no f P u r c h a s e s . . .
Section 115. Submissionand Approval
of Inspection Reports ...
S
u
rprise and Selective
Section 116.
Irrspeetionsby the I.ocal
Auditors
4l
42
12
Rule 16. Articles Subject to Test

Section II7.
Section 118.
Sectron lr9.
Section 120.
Section 121.
Section I22.
Sectron 123.
Drugs, Chemicals and

Medicines
Paper and Paper Products'.
G.i. Sheets, Pipes, Reinforced Steel Bars and
Other Alloys
Cerealsand Animal Feeds..
Textile, Flags and Flag
Canvass,
Materials,
G a u g e ,B a n d a g e s ,e t c . . . .
Leather
and
Leather
Goods
Soapand SoapProducts...
42
43
43
46
46
47
47
L24. Paint and Paint Materials..

L25. Wires, Telephones,Electric
Steel Cables, etc.
Goods
126.
Canned
Section
Section I27. Inks and Adhesives
Section 128. Lubricating Oil, Fuel Oil,
G r e a s e ,e t c .. . .
Section 129. Asphalt and Asphaltum
Products
Section
Section
Page
47
48
48
48
48
49
R u l e 1 ? .T e s t i n g o n d E u a l u a t i o n o f A n a l y s i s R e p o r t s
Certiiicates
Section
130. Authorized Laboratones ...
Q^^]:ûc!Llvtl
1 Q 1
1u a,
Annanlonno
r \!!!l ,U ar r we
I32.
Deliveries
Waiver of Test
Section
o-d
ur r s
Rpipnfinn
^.!J!- '- rv' _
49
n. - f'
50
51
Rule 18.Sampling of Articles Subject to Test

Section 133
Section 134.
Section
Section
135.
136.
Section 137.
Section 138.
P r o c e d u r e si n t h e S a m p l i n g
of Articles Subject to
Test
S a m p l e s , S k e t c h e s ,B l u e prints, etc. ..
Penalties
Withdrawal of Rejected
f)eliveries.
Storage Charges
Un claimed RejectedGoods..
51
53
53
F A
d5
54
54
TITLE IV, UTILIZATION AND ACCOUNTING

Rule 19.Utilization of Supplics or Property
Section
Qoalinn
Section
139.
1An
l.i 1.
Responsibility for Wasteful

Use of Supplies or
Property
Direct Responsibility for
Supplies or Property
Transfer of ExcessProperty
Rule 20. Accountability for Supplies or Property

Section 142. P r i m a r y a n d S e c o n d a r y
for
Accountability
S u p l i e s o r P r o p e r t y . . .. . .
Section 143. Transfer of Accountability..

Section 144. Designation of Supply
Officer
Section 145. Responsibility and Duty
of a Person ImmediatelY
..
..... .
Accountable
Section 146. Duty of a Person Primarily
. . . . ..
Accountable
Section 147. Accountabilityand Responsibility on Buildings
and Other PhYsical
Structures
Section 148. R e s p o n s i b i l i t y f o r R e a l
Estate
Section 149. M e a s u r e o f L i a b i l i t y o f
Persons Accountable Tor
Supplies or Property ...
Security
of
Section 150. L i a b i l i t y
Asency
Section 151. Notice of Loss and Application for Relief.
Section 152. Additional Information in
Certain Cases
Section 153. Credit for Loss
the
Section 154. R e s p o n s i b i l i t v o f
COA
of
Directors
Regional Offices and the
or
Provincial, Crty
Municipal Auditors on
Relief
for
Request
Submitted to the Com--:--:-llllssloll
54
54
55
55
tx
TABLE OF CONTENTS
viii
TABLE OF CONTENTS
Section
Section
155.
156.
Section
157.
Section
Section
158.
159.
utl
A,-.1 :;
nuuru
Page
55
56
56
56
56
57
57
57
58
60
62
f^rvr
Resolution
Central Record
InventorY of
Annual
SupPlies or ProPertY
Role of the Auditor in
Physical InventorY
Receiptsof Issuances ......
Running and Test lnventorY
62
63
63
64
64
65
T A B L EO F C O N ' T E N ' | S
TABLE OF CONTENTS
xi
Page
Sectron f 60.
Section
TIfT-EV.
1 61 .
I n v e nt o r y i n C a s e s o f
C h a n g e of Accountable
Offrcers
Property Clearances
65
65
D I S P O S A L OF SUPPLIES OR PROPERTY
Section
Section
Section
Section
Section
175.
176.
I77.
178.
179.
Hrrfe 2| 'jeneral PolicY on Disposal

1 6 2 - When Supplies or ProPertY
s h a l l b e D i s p o s e do f . . . . . .
1
6
3
R
e
sponsibility for the
Sect.ion
Disposal of Supplies or
Property
Section
c -.^!:^r)gULlUrl
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Section
r AK
D.'hlin
A,'nfinn
ac.
Mode
Primary
Disposal
Methods
166. Oth er
Disposal
66
66
Section
180. When Neeotiated Sale Mav

be Done
Section 181. Negotiated Sale Subject to
COA Approval
Section 182. Who Undertakes the Sale..
Section 183. Who Approves the Negotiated Sale
Section 184. Transfer of Proper{y With
fv u ^D -! r
of
Ruie 23. Soie ihru Pubiic Auttion

Section 177. Invitation to Bid
Section 172. Publication of the Invitation to Bid ......
Section 173. Bortd Requirement..-Section 174. Refusal to AccePt the
Award'Price....
r! v^
rv \u+r L
^rsr
/v 1v ^v ,g ,r^ - -
70
tv
70
70
rt-
ment Offices
70
Rule 25. Transfer Without Cost to other Gouernment Offices
of
16?. Disposal Procedures

168. Forms to be Used
the
of
169. Responsibility
or
Provincial, City
Municipal Auditor on
Disposable ProPertY
170. Appraisal of ProPerty
by the Committee on
Awards
69
Rule 24. Sale thru Negotiatinn
fhp
66
Rule 22. RePorting of Disposable Supplies or Property

Section
Section
Section
Page
69
69
69
69
Seetion
rh^
of
Real
Disposal
Property, Buildings and
Other Physical Structures .
og!
65
Withdrawal of Bids
Opening of Bids
Evaluation of Bids.
Basis of Award
When Bids or Offers
are Lower than the
Appraised Value
66
67
185. Transfer and Appraisal of

Unserviceableor Propeity iio Longer iieeded...
Section 186. Who shall Approve the
Transfer
Section
70
Rule 26. Condemnotion
67
Section
Section
57
187. W h a t P r o p e r t y s h a l l b e
Condemned
188. W h o S h a l l D e c i d e o n
Codemnation....
7l
7l
Rule 27. Other Modes of Disposol
68
68
69
69
Section 189. Donations to Charitable,

Scientific,Educational or
C u l t u r a l A s s o c i a t i o n. . . . .
Section 190. Other Modes of Disposal
A u t h o r i z e db v L a w . . . . . .
71
72
TAI] I,I.I 0 F' (IONTF]N'|S
xll
APPENDICES
Page
Rule 28 P4vrnent and [)eluterY
Sectron fgl.
Section f92.
Section 193.
PaYment
Sales lnvoice
l)eliverY.
/)--....
72
72
72
Rule 29 l)ropping of Accounts

Section
Section
TiTi,F, Vi
D-,t^
llulg
?n
uv.
194
195
R e l u r n o f R e P o r l s . . - - . ..
Dropping of Book Value
72
t,1
MiSCELi,Ai.iEOLIS PROVISIO}{.SA|.ID
^ NI'f
r'IOMT'
A rr!II/I]\
i\l_rtvlll\ lJ r l\fal I v D
A.fi"..ilnno'.rrc
I\IQ'FDI
I/-'TII/1I\IQ
I r\/rru
lr\L) r rlu\'
Prrrrtrqiirnc
SecLion 196. Lease bf Spac"sfor Publrc

Use....
Section 19?. Disposal of Real Property
and Improvements
L
e
ase of Ciovernment
1
9
8
.
Section
Other
to
Spaces
Entities..:....,..
S e c l i o n f 9 9 . L e a s eo f E q u i p m e n t. . .. " " .
Section 200 Discounting of Rental
Rates
S e c t i o n 2 O l . l ) i s p o s a lo f f ' t r e a r m s . ' . .
Section 202. Properties Imported Free of
Duties and Taxes
. Seclion 203. Transitory Provisions
/,-)
74
74
I J
77
i-
t l
78
Rule 3 L Administratiue Instructions

an
Establishment
of
Archival System
S e c t i o n 2 A 5 . I s s u a n c eo f G u i d e l i n e s. . .. - .
S e c t i o n 2 A 6 . S e p a r a b i l i t ya n d R e p e a l i n g
Clause
Section 207. EffectivitY
,Seci-ion 04
78
79
79
79
APPENDIX
"A"
"8"
"C"
"D"
"8"
"F"
"G"
"H"
"I"
",t"
"K"
xlll
LGLI/GEN.
FORM NO,
I
Annual Procurement Plan

Procurement Program
Amendatory Procurement Plan...
Amendatory Procurement Program......
Requisition and Issue Voucher
Purchase Request
Purchase Order
Report of Utilization
Property Issue Slip
Memoranclum Receipt ....-.Semi-Annual Rejort of Suppliel
01
o2
03
04
45(A)
05
06
o7
08
09
u'u!:::::..........
::iln:ililihi:
"N" Propert-v Return Slip

"O" Inventory, Inspection and Appraisal of
IJnserviceableProperty......
"P" Report of Waste Materials
Sales Invoiee for SupplieVProperty......
10
30-A
11
L2
l7-A
61-A
13
RULES AND REGUIII,TIONS ON

SUPPLY AND PRGE}ER.TYMANAGEMENT
TITLE I _ GENERAL PROVISIONS
Rule l. Titte and Definitione
Secrtox l. Authonty.-Pursuant to Section 388 of
Republic Act No. 7160, other:wise known as the Local
Government Code of 199i, these rules and regulations
providing for an improved system of procurement, care,
utilization, custody, and disposal of supplies and
property in the local governments are hereby prescribed.
Snc. 2. Title.-The-se n-rles and regrrlations shr!! be
known as: Rules and Regulations on Supply and
Property Managemeni,in the Locai Governments.
Spc. 3. Applicabilrty.-These ruies and regulations
shall apply to ail provinces, sub-provinces, cities,
municipalities and barangays. These shall also apply
to the Arrtonornc't-rsRegion in Muslim Mindanao, the
Cordillera Administrative Region and the Metropolitan
Manila Authority until such time that a separate set of
rules and regulations on the subject is prescribed for
these regional governments and the Metropolitan Manila
Authority.
Spc. a. Definitiow of Abbreuiations and Terms -- For
purposes of these rules and regulations, the following
abbreviations and terms are hereby defined:
'Annual
Frocurement PIan' refers to the itemized
list, prepared by the head of the department or offrce
showing the kind, estimated quantity, esti'raated cost,
description of supplies or property together with the
balance on hand, if any, required by the department or
office for the ensuing fiscal year.
'Annual
Procurement Pragram" refers to the itemized list prepared by the local chief exircutive showing
&he kind, estimated quantity, estimated cost, descrip-
Suprlr
Genen,tL Pcovtstc;i{s
rxo Pn<rPenrYMexeceunrtr
tion of supplies together with the balance on hand, if

any, required by the local government for the ensuing
fiscal year. The annual procurement program shall
essentially be based on the annual procurement plan.
'Amendatoryt Prrcurement Plan- is the itemized list
prepared by the head of the department or olfice
showing the required supplies in a fiscal year in lieu of
those deleted, cancelled or substituted in the approved
annual procurement plan. The amendatory procurement plan shall be supported bv a written justification.
'Amendatory Pru:urement Program" refers to the
itemized list prepared by the general services officer or
local treasurer, as the case may be, for the approval of
the local chief executive showing the required supplies
in a fiscal year in lieu of those deleted, cancelled or
^--L-4:t--3^.1
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program. The amendatory procurement program

shall be supported by amendatory procurement plan'
'Appraised Value'refers to the estimated value of
disposable property after inspection taking into
acccunt, its ccnditicn, usebili+-yand other faetors
'Autaril,' is the decision of the Committee on Awards
as"to who among the suppliers shall get the order or
contract.
-Beyond Economical Repair'refers to the condition
of the supplies rshen the cost of repairing beeornes
prohibitive and disadvantageous to the government or
when the cost to repair an item is over sixty per cent
$O%) of the acquisition cost'Bidder's
Bond' is a bond in cash, certified or
cashier's check or surety required of bidders before
they can participatc in any competitive bidding, to
guarantee in good faith the submission of their tenders
and acceptance of all the terms and conditions thereof.
"Bonq-Fide Bidder" is 3 res;stered merchant

licensedas manufacturer,producer, regular dealer or
service establishment with reput,ableestatrlishment
for at least three (3) months prior to the public bidding
he intends to participate in
'Cant)ass,
Sealed"is one wherein an offer is received
by the authorized oflicial in a sealed envelope or the
like.
oCare"
refers to the proper use and maintenance of
supplies or property; the act of giving atLention,
interest and safety to supplies or property.
"Condemnation"is the act of destroying valueless
supplies or property by burning, pounding, throwing
beyond recovery,or the like.
"Custody' refers to the actual or constructive
possessionor control of supplies or property.
"DefectiueBid" is a bid which complies with the
advertised descriptionsand specificationsbut not with
the terms and conditions in the rnvitation to bid.
'Department
or Office"'is a principal sub-division of
a local government unit defined in RA No. ?160 and
nationai offrcesauthorrzedto recerveaugmentation of
their supply requirement from the local government
unit concerned.
qDisposableProperty"
is a property reported for
disposition by a department or office.
of)icnaonl'
u.lrlrvovo
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allena-
tion of, or giving up of supplies or property.

nEconomically
Repairable" refers to that condition of
ec rut |n]^' pl i r^ros D
vr
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uc
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l-epalreo
or
rehabilitated at a reasonablecost or that in which the

cost of repair or rehabilitation would not exceedsixty
per cent (60Vo)of tbe acquisitioncost of the item to b!
repaired/r'ehabilitated. Changes in monetary rates
should be consideredin the computation bf cost.
GsxeRALPnovtsioNs
.SuePLYANo PnoPnRfYMnnecnvnNr
event or occurrence
"EmergenCy' refers to any
for suppliesor_propertyhas.become
"u"a
^^-=+:.--qllv rrrgertt or absolutely indispensable and
dangerto' or loss of' 'fe or
;lfit;";;;;";ln'minent
*h;;;;
ii"
property"Enornttty of Order" refers to that circunstance

property to be delivered
*f,"."in the supplies or
proportion
the normal requirement or is out of
"*.""d
to the usual volume of orders'
needed'?
"Equipmenl' refers to all articles
"-:tl:::
tT:^:'l"j:
individual or orga-nizatron..*lttn-9o :u.t-
lne Lerrrr rerurD r,u

identity when used or apphed'
printers,
compuiers,
adding machines,
*--.*,.iturs.
'!
tJJ ye
items'
u"hi.l"r, weapons and other similar
needed by
"Excess Property" is a property no longer
a department or an offrce'
sn,--^6)^hlo s,,.n/ip-so refer
DAPVtLvuuev
vwIJI've"
to articies which are
fuel' forage'
eonsumed in use, such as ammunition'
or repair parts as are
;;;;", medicines, and such spare
articles and which
;";e ; repair or complete other
process'
in
the
lose their identity
ii"t"tv
nQon.eralBond" is a cornbination of bidder's bond
may be in cash' certrtred or
urrJu performance which
cashier's check'
"Habltua|Delinquenf,'referstoacontractor/supplier
with the terms and
*ho-iails to abide by or comply (2)
or more times
of his contract for two
;""dirit;t
(1) Year'
wi'r,hina Pericd of one
addition made to
"Improuement" refets to a valuable
condition amounting
property of an amelioration in its
to enhance.its
intended
repairs
t^ rn^rc tnan mere
new ol turtber
adopt-it'for
to
or
;;hI;-, t""uty or utility
pnrposes.
'Immediate Accountability" refers to the accountaor having cu'stodvof
bility of a perso"-in fottussion of
supplies or ProPertY'
"Inuentory' is an itemized list of supplies or

property on hand containing designation or description
of each specific article with its valuation.
"Issue Slip" is the document used as evidencein the
tranefer of non-consumable supplies or property from
the general services officer, municipal or Harangay
treasurer, as the case may be, to a department head
for issuance to the end-user.
"ITB" refers to the Invitation to Bid.
"Locality", whenever'used in these rules and regulations, refers to the territorial jurisdiction of the
province of which the city or municipality is a compo-^-l
- . 6 , +v .
llcllu
Pal
F
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+9 rLl 9^
I \ . i f o + -v ^P v^r^. wl i f
^tûvr
o^
Mqnilq
Arpa
it
include all cities and municipalities wfthin

Metropolitan Marrrla Area.
shall
the
"Loutest Complying and Reasonable Bid" refers to

the proposal of one who offers the lowest price, meets
all the technical specifications and requirements of the
supplies or property desired and, as a dealer in the
line of supplies involved, maintains a regular
establishment, and has complied consistently with
previous commitments.
"Minor or Ordinary Repoir" means repair merely to
keep a building or equipment in fit condition or use
without increasing its capacity or otherwise adding to
its normal value as an asset.
"Major or Extraordinary Repair'refers to alteration,
addition, partition, extension, and other constrirction
or installation which materially increasesthe value or
extend the useful life of the structure or equipment.
nNesotiatetlPurchase' refers to the procurement of
-
- o - - - - - - -
supplies without public bidding undertaken for the

purpose.
"Negotiated Sale' refers to a sale without public
bidding undertaken for the purpose.
SL:pi'Ly axn PRopenty M.uiacciliE:;"1
'Non-contplying
Bid.' is a bid which does not comply

with the advertised deseriptions and specifications.
"Non-Erpendable Supplies or Proptrty' or "Nonconsumable Supplies or Properly" refer to articles
which are not consumed in use and which ordinarily
retain tlieir original identity during the period of use,
s u c h a s w e a p o n s , v e h i c l e s ,m a c h i n e s ,t o o l s , a n d i n s t r u ments.
"Non-Personal Seruices' includes, but not linri-ted
to, repairing, cleaning, recl-ecola_t.ino
g r, . r e n t a l o f
personal propert-v and furni.shing of nece-ssar.vrepair
parts or other supplies as part of the services
-^_t^__^l
per rur rueu.
"Obsolete Property" is a property which has iost iLs

e f f i c i e n c _ ye i t h e r d u e t o t e c h n o l o g i c a i a d v a n c e m e n t .
c h a n g e o f p r o c e d u r e ,r e o r g a n i z a t i o no f a c l e p a r t r n e n [o r
office. or completion of a project
"Offer" is a proposal invoiving one or more items in
tender.
a
"Ouerrun" is an excess over the quantity ordered
"Performance Bond" is a bond in cash, certified or
c a s h i e r ' s c h e c k o r s r l r e t y , r e q u r r e c io f ' * - r n n r n gb r d d e r s
to guarantee perfoimance of an ord;r or contract.
"Personal Canuass" r'efers to a mode of procurement
allowed as an exception to public bidding whereby
designated canvassers request price quotations from
at least Lhree (3) responsible suppliers in the locality.
"PR' refers to pulchase request use in the requisition of supplies or property not to be carried in stock.
^Procurementn refer.q
tn the acqrusition of supplies
or property, including non-personal services, by
written order or contract through bidding or negotiation or by transfer under existing laws or regulations.
"Prirrtar'1 Accountability' refers to the accountability
of the head oi a department or offrce fc,r supplies or
GeNeneL PRovtslorqs
property transferred to his department or office for

ieeuance to the end-user.
'Property
Responsibility" refers to the obligation of
an individual for the proper custody, care and
safekeeping of property entrusted to his possession or
under his supervision.
'Protest"
refers to the objection to a contemplated or
actual award.
'Protest
Bond" is a bond in cash, certified or
cashier's check, or surety required of protestants
against awar<is.
"Pubiic Auction" is synonymous to pubiic bidciing as
applied to sale of disposable supplies or property.
"Purchase" refers to the act of procuring
acquiring supplies or property for a price.
or
"Purchase Order" is a contract between the local

governrnent and the suppliers or dealers for the
delivery of supplies at a stipulated amount ani
includes, among others, quantity, period and mode of
delivery, unit and total price per item, and mode of
payment.
"Real Property' or "Real Estate" refers to land and
buildings and other improvements which are more or
less of permanent structure and substantially
adhering to the land with the intent of permanent
annexation.
aD^^^-t
:,.
,
\-)^-D
f
rrcpcuL /\rt(L(t
rs
a- rurm
oIr negot,laleopurcnase
whereby a local goirernment unit buys from the same
supplier, the same items at the sarne terms and
conditions as the original purchase within three (3)
months therefrom.
'R[V"
mezrnsRequisition and Issue Voucher use in
the requisition of supplies or property carried in stock.
"Running and Test Inuentoryr"is an inventory of
property made upon order of the local chief u"""rrtir,"
GexeR L PnovrsroNs
Suppt.v ern PRoperrv Mnlinceul;xr
at any time to ascertain the correctnessof the property

records of the unit.
'specification' refers to technical description of
supplies or property being requisitioned or ordered,
which should be clear and complete, including if
necessary, the specific uses therefor and how acceptability thereof can be deterrnined.
'splitting" means division or breaking up of requisition or order into separate requisitions or orders, of
^-^ll^slfld.llct
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rhrir-SLror v- r
o"f
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qnd/
hnritioc
'standard"
refers to a gauge '.,trhich has been

established by authority, custom or colnmon acceptance as proper and adequate for a given purpose.
-suitable
Substitute- refers to that kind of article
which rvou-ld serve substantially the same purpose or
produce substantiaiiy the same resuits as the branri,
type, or make of article originally desired or requisitioned.
'supplemental
Procurement Plan or Procurement
is the itemized
Program"
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list showing the required

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amendatory procurement plan or program.

''supplier- is a person, firm or manufacturer who
furnishes or sells the supplies or property needed or
required by a local government unit. It is synonymous
to dealer, bidder, offerer, seller or contractor.
includes everything, except
"Supplies' or'Properfy"
real property, which may be needed in the transaction
of public business or in the pursuit of any undertaking, projec-t-, or aetivit-v, whether in the nature of
for
stationery, materials
equipment, furniture,
constructior. qFi personal, property of any sort,
including non-personal or codtractual services such as
the repair and maintenance of equipment and furniture, as well aa trucking, hauling, janitorial, security,
and related service*.
'Surplus
Property'is a property no longer needed by

a local government unit.
'Tender'
is synonymous with proposal, bid or the
quotation for supplies or property offered.
'Terms
and Conditions" refer to other requirements
not affecting the technical specifications and requirements of the supplies or property desired such as
bonding, terms of delivery and payment, and related
preferences.
'Tolerance"
is the specified allowance for error in
weighing, measuring, etc., or variation from the
standard or given dimer,sion,weight or the like.
oUnderrun"
refers to the deficiency in fhe quantity
ordered.
'Unseruiceable
Property" is a property that is not
o p e r a t i o n a i . [ t m a y b e e c o n o m i c a i l yr e p a i r a b l e o r
beyond economicalrepair.
"Utilization" refers to the act of employing,enjoying,
applying, converting supplies or property for the
llrrpose for which the same are acquired.
'Winning
Bidders' are bidders who have received
awards of contract or orders,
Rule 2. Standardization
Supplies or Property
of
Snc. 5. Prxurement of Supplies or Property Certified

by the Bureou of Product Standards.-To ensure
maximum and efficient utilization of government
nesources,LGUs shall limit their purchases of supplies
or property from Bureau of Product *Standards (BPS)
certified products in accordancewith the Joint Memorandrrrn f,i1sular, dated October 1, 1987, issued by the
Department of Budget and Management, Depar[ment of
Trade and Industry and the Commis.sion on Audit.
Acqulsttlox or Suppl-lesoR pnopnnrr-
S uppr,y e,r'n PRoperrv MeNrcnuFiMT
For this purpose, it shall be the duty of the general

services officer, municipal or barangay treasurer, as the
casemay be, Lo maintain and make referenceto an updated list of PS Quality Mark Licensees and list of
importers with Import Commodity Clearancewhenever
procurement of supplies or property is to be made.
f l o w e v e r , t h e a p p l i c a t i o no f t h i s R u l e m a y n o t b e
mandatcr-v to procurement of supplies or property under
extreme necessityreferredto in the SecondParagraphof
S e c t i o n8 8 , R u l e 8 , h e r e o f .
TITLE
II -
ACQUISITION OF SUPPLIES
OR PROPERTY
Rule 3. Procurement Plans and

Programs
Title shall cover acquisitions
-Snc.6. Coueroge-.-Thi-s
of supplies or property intended for the following:
a. operation of the local governments;
b. prosecution of infrastructure projects by administration solely funded from local funds;
c. prosecutronby admrnrstratronof natronai fundeci
infrastructure pro3'ects;
d. prosecution by administration of foreign assisted
infrastructure projects; and
e. prosecution by administration of infrastructure
projects funded from local donation.
Where the release of funds for Sub-Paragraphs(d) and
(e) is accompanied by specificinstructions, said instruetions ma;, be followed insofar as the-v do not direetl.v
contravene existing iaws. These rules and regulations
shall have suppieiory effect in these cases.
Snc. 7. Annual Procurement Plan.-At such time as
may be prescribed by the local chief executive, heads of
departrnente or offices shall eubmit to the general
1i
services offrcer or local treasurer, as the case may be,

procurement plan of their supply requirements foi
the
ensuing fiscal year.
Snc. 8. Annual procurement program._On or before
the fifteenth day of July of each year, the general
services offrcer or the local treasurer, as the case Lay be,
shall prepare for the approvarof the rocal chief
"*".rltiuu
an annual procurement program for the ensuing
fiscal
year which shall contain an itemized quantity of
sirpplies
or propert5l needed for the entire fisrcrl .-,.o, .^*-t^.-
aescriftion thereofa-sto kind, 0"";;;;^#;#;;f -
,:i:
estimated cost, and the balance on hand. The-total

estimated cost of the annuai procurement program shall
not exceed the total appropriations authorized for
the
acquisition of supplies or property.
Snc. 9. PurchasesCouered,By Approued procurement
^---*
n
ID -tuEturrl._DxcepL
ln case ol emergency purchases or
where urgent and indispensable needs could
not have
been reasonably anticipated, no purchase of supplies
or
property shall be made unless included i.,
o. .or,"red by,
an approved procurement program.
e-^
1n
v&i..
rv.
'r'.'
- f
rn -rut.LurLterL
agatnst
Lonuersrcn
ol Cosh Into
supplies'-The conversionof excesscash into supplies

is
prohibited except tc the extent of the kind and
irrantity
specified in the approved procurementplan.
S""._ 7I. Supptementary procurement plan._At any
..
time durir_rgthe fiscal year, heads of department_s
or
offices may prepare and submit to the general services
officer or local treasurer, as the case may be, for
the
approval of the local chief executive a supplementary
procuremeni pian to cover suppiy or property
requireof his department or office not otherwise inciuded
T"1t
in the annual procurement plan.
S-t" 12. Supplementary procurement program._
-_
Within a reasonabletime upon receipt of the ,rrpll"-"n_
AceulsrtroNor Suppr,rsgon Pnopsnry
Suppr,vrNn PnopenrvMrxecauErs
t2
Rule ,1. Requieitiorr of Suppliee

or Pnoperty
tary procurement plan, the general services oflicer or

local treasurer, as the case may be, ahall prepare for the
approval of the local chief executive a supplementary
procurement program based on the supplementary
procurement plan.
Spc. 17. Requir"ementof Requisitiont-No order for

suppliee or qroperty ehall be placed by the local general
eervices officer, municipal treasurer or baiangay
treasurer, as the case may be, for any depart-rrrt o,
office of the local government except upot written
requisition as herein provided. Except in the case of
emergency purchase, no requisition shall be given due
course unless the supplies or property deiired are
inciu<ierior iisteri in the annual piocurement program or
amendatory procurement program.
SBc. 13. Amendatory Prrcurement Plan-At any time

during the fiscal year, the head of department or office
may prepare and submig to the general services officer or
local treasurer, as the case may be, for the approval of
the local chief executive an amendatory procurement
plan for supply or property requirement of his department or office in lieu of those deleted, cancelled or
substituted in the approved procurement plan. Amendatory procurement plan shall be supported by a written
justification.
Snc. 1.8.Officers Authorized to Drout Requisitions.Rcquisitions shall be drawn by the head olthe department or olfice needing the supplies or property who shall
certify as to their necessity-for official-use and shall
specify the project or activity where the supplies or
Sc. 14. Amendatory Prrurement Prograrn.-Within a

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Snc. 15. Prouision for Contingency.-ln the preparation of annual'procuremerit plan, a maximum of fift,een
per cent o5%) of the estimated requirements may be
provided for contingency and miscellaneous items. This
shall take care of the requirements which could not be
onliainolorl
s..4e-lre9w
ar
rloG-anl
ittrino
fho
nranorofinn
ir^nrh'+r,
yL vlter
Prv!qs-
ment plan from a head of the department or offrce, the

general services offrcer or local treasurer, as the case
may be, shall prepare for the approval of the local chief
executive an amendatory procurement program for the
department or oflice concerned.
nf fha
nlqn
Ser. 16. Separate Prrcurement Plans and Progroms for

Supplies or Property, Non-Erpendoble Supplies, NonPersond! Services, and Mdterials far Infrcstructure
procurf,ent plans and programg
Project.-Separate
ghall be prepared for supplies or property for the operation of a department or office, non-expendable suppliee,
non-personal services, and cuppliea or property intended
for infrastructure project.
13
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Src. 19. Approual of Requisillons.-Approval of the

requisition by the head of the department or office
concerned who has administrative control of the approp_riation against which the proposed expendituie is
chargeable is deemed suflibient,'except requisition for
supplies to be carried in stock which shail 6e approved
by the local chief executive concerned: proaidca, tn"t
such supplies are listed or included in the annual
procurembnt plan and the maximum quantity thereof
doeg 4ot.exceed the estimated eonsu-piiotr colespondproitded
lrg to a programmed three-month plriod.
furtlwr, That nothing herein contained shall be corrstrued
as auth-orizing the purchase of furniture and equipment
ror stock purposeg.
Purchases_
bv
baransev.s
_J
innlrrdino
t-hnsp nrrflrn-i-oJ
essrrvrr&gu
under Section 391, Paragraph (a), Sul-paragraph lB, of

RA No. ?160, shall be made only upon duly approred
requisition.
_ The punong barangay shall approve the requisition in
the care of barengaye.
Supply aro Pnopumy Mnru,rceueur
I4
Sp:c. 20. Certificotion by the Local Budget Officer,

Accountant, and Treasurer.-Every requisition must be
accompaniedby a Requestfor Obligationand Allotment
(ROA) showing the certificafion of the local budget
officer, the local accountant, and the local treasurer that
an appropriation thereof exists, that the estimated
amount of such expenditure has been obligated, and thnt
funds are available for the purpose, respectiveiy.
In the case of barangays, every requisition must be
accompanied by a request for obligation and allotment
sho.+ing the certificaf,ion of the following:
a. the chairman of appropriationscommittee of the
s a n g g u n i a n g b a r a n g a , v- [ a 1 4 n a p p r o p r i a t i o n
therefor exists:
b. the city or municipal accountantthat the amount
has been obligated; and
c. the baraneay treasr_rrerthat. funds are avai!able.
Snc. 21. Forms to be Used.-Requisitions shall be
accomplished in the forms as follbws:
a. for supplies carried in stock - Requisition and
Issue Voucher [General Form 45(A) as amended
1,.I4!ol^
tJ
JhJ,
-l
-AtLrI
b. for supplies not carried in stock - Purchase

Request (LGU Form No. 05).
Sec. 22. Number of Copies and Their Distribution.-RIVs and PRs shall be prepared in not less than three (3)
copies t.o bredistribr-rtcd a,. fo!!ows:
a . the original copy to be attached as supporting
paper to the voucher prepared to effect the payvnpnf
nf
tha
orrnnlioc
ov
nrnnorfrr v J
nrna"-^,1.
Prv9qrgu,
b . a copy to the local general services officer, municipal treasurer or barangay treasurer, as the
case may be; and
c. a copy to the requisitioning department or o,ffice.
AcgulsnloN or Suppr-lesoR pnorsmy
t5
Sec. 23. Statement of Deliuery period._The

requiaitioner ehall state with definiteness and certainty
the period of delivery desired so as not to leave doubt
when the supplies are needed. Statements of delivery
period such as 'immediate delivery", .as soon
as
p o s s i b l e " , o t h e r w o r d s a n d p h r p s e s -h a v i n g s i m i l a r
imports or without stating a particular pe.ioJ shalr be
understood to mean seven (?) calendar days after
receipt by the supplier or contractor of the
furchase
order or contract.
- Sec. 24. Speciiicatton of Supplies or property._The
description an<i specification of inu supplies'or jroperty
called for in the requisition shall inclr:de onlv the
technical specifrcationswhich wilr fill a"J
tt
n e e d s o f t h e r e q u i s i t i o n e r . A l l m e a s u r e""ii"iv
"
ments and
weights shall be stated in metric system except those
lupplies or property which can better be describ.d i^ tt
English s5rstem.
"
The general services officer, municipal or barangay
treasurer, as the case may be, shall be responsible
for
the correctness and accuracy of the specifications
or
technical descriptions of supplies or property
to be
purchased, whatever is the mode of proc,r.ement fn
avoid delays that could arise from any ambiguity.
Snc. 25, Filing of Requisitionsin Aduance._Heads
of
departments or offices shalr file their requisitions
in
advance to allow procurement thereof tirough
the
normal process.
Src.
26. prohibition
Against Sptitting
of
Requisitions.-Except in case of requisitions of
srfiphes
or property through emergency purchases, ."qrri"iiio.ru
fOr
item-s
nppdorl
far
oo
L
q ê1r r,
^ri^r^qu<rrtEr
----^
fuusL
L
te
consolldated_
There is deemed to be
when it is resorted
to in order to evade the"fhtti.,g
required approval of higher
authorities or circumvent control measures provided
for
in these rules and regulations. The follo*i"g-".u
illustrations of splitting:
Suprly exo Pnornnw Menrcnnmn
16
AoetnsmoN or Suprt.reson pn<rsarrr
a. non-consolidation of requisition for one (l) or

more items needed at or about the same time by
the requisitioner; and
b. issuance of two (2) or more purchase orders based
on two (2) or more requisitions for items needed
at about the same time by different requisitioners.
Rule 5. General Policies on Procurement
e-^
usu.
on
3,.
ID 'U, L
UlL; L^ L
D;)):-DLlLaLtfrE
-^
Vn
tL^
Lrac
D-.'----f rarrSuly
p) tt u^ u) ê
^.c
vl
Procuremezt.-Excep+" as c+.,her.*iseprovided herein,

acquisition of supplies or property by local government
units.shaii be through competitive public bidding.
Snc. 28. Other Modes of Procurement.-Local
government units rnay make procurement of their supply
or property requirements without public bidding
t-hrough any of +-hefo!!o.*ing modes applicable in the
circurnstances, as provided hereunder:
a. personal canvass of responsible merchants;
b. emergency purchase;
c. negotiated purchase;
d. direct purchase from manufacturers or exclusive
distributors; and
e. purchase from other government entities.
It shall be the responsibility of the general services
offrcer, municipal or barangay treasurer, as the case may
be, i.o reconmnd io the Qs"t'niite on Awardsii,ocai
Chief Executive upon whom approving authority has
been vestd by RA No. 7160 the nodes of procurement
provided for in this section to be adopted in each
particular case.
SEc. 29. Procurernent Organization.-ln every province
and city, the oflice of the general services offics shall
exercise the function of acquiring lbr the province or city
all its supply or property requirornents. The nnnierpal
I7
treasurerand
barangay treagurer shall exercise said
function for the municipal 6nd barangay government,
respectively- The offices of the general sl..'ices officer,
municipal treasurer or barangay t ersrrer, as the case
ma{'ber shall provide the recisia.y secretariat services
to the cormrnittce on Awards constiiuted in their respective government- with the concurrence of the majority of
the nembers of the committee on Awards, the loJal chief
erecutive ehall designate a secretary to the committee
who shall, among others, keep records of the minutes
and other proceedings of the Committee.
Snn
aO
tTho
r,ec
vf av ^r r^.^r t; .t L. ^. .-c c
ûra
A-..--r-
mr
rllefe
r
rr
Snall
r
De
fn
gvery local government unit a Committee on Awards.

Except as provi<ied herein, or in case of pro",rr.-er,t
through eqergency purchase, or when the authorir"tior,
is specifically vested by law to another body, the Committee on Awards shall exercise exclusivejurisdiction
to
decide the winning bids and questions of awards on
r.I ucur erl'en_r,ano orgposal, ot_::p!!"s
I
l .
or p ro pert-y.
on Award.s._
_- Sr9. BI. Compsition of the Coiiitiri
The committee on Awards shalr be composedof the local
chief executive as chairmen, the locar treasurer, the locar
accountant, the local budget offieer, the local general
servicas officer (io eese of nro.-,inrj!. r-.,1 ^:a:^-\
headof office ;";;;;;;

;;;;il;;;J'fi;"#
or supplies are"; being procured, as members.
r .!
tn
a
head of offrce or department would sit in a duar capacity,
"asu
or when the requisitioning office is a natiorral glrrern_
ment agency located in the l-ocdl government ri_rritand
which supply or property, requirement is authorized b;r
law to be augmented by said local government unit,
member of the sanggunian elected from among its
members shall sit as a member.
The Cornvnittee on Awards at the barangay level shall
be,the cangguniang barangaySec. 32. Prohihition of Nationat Official From Sitting
es Menl.bert'of the Committee on Aiaard,r._U.,a".-rro
circumstance shall an officiat of trre nationar government
git as a member of the Committee
on Award"s
l8
Suppuy e-'voPnopenrv MrlecexEru
Acqursrtlor.r or Suprups on Pnoppnrr
Snc. 33- Attendonce in Prwedi4gs.-Every

member of
the Committee on Awards shall be present in rll
proceedings of the Committee unless prevented from
doing so by sickness or other unavoidable circumstsnce,
in which case he may authorize in writing a
representative to attend in his behalf. Representatives
of the members of the Committee may deliberate on the
bids for and in behalf of the Committee members.
However, the Committee members shall personally
decide on the bids and/or questions of awards and shall
sign the Committee decisions.
Qnn
vsv.
QA
ur.
1)trn.rtm
s.r.
ysv'
in
...
lho
L..s
f\^-^:tt^^
vvtt,LrftavLcc
ûta
A...--)^
r\utu,
[rJ.-t
tT\--^
wu-
Thirds (%31of the members of the Committee on Awards

shall constitute a quonrm to do business; Prourded,That
the head of the department or o{fice for whose use the
supplies are to be procured is among those present;
Prouided further, That in case the requisitioning office is
a national government agency located in the local
government unit and which supply requirement is
authorized by law to be augmented by the local government concerned, the sanggunian merhber authorized in
this Rule to sit as a member of the Committee on Awards
is present.
Snc. 35. Decision on Autard.-T'he decision ol' the
Committee on a particular bid or question of awards
shall be concurred in by at least majority of the members
present and constituting a quorum.
The members who voted in favor shall sign the
decision of the Committee. The members who voted
against may explain their objection in writing and the
same shall form an integrel part of the supporting
papers to the clain.
Sec. 36- An Ercerpt oi the Proceedings in the
Committee on Auards Sholl Form Part of the Supporting
Papers.-The Secretary of the Committee shall prepare,
certify and atJach to the decision of the Qs'rrrnitteg qn
Awardg an ercerpt of the proceedings during which gaid
decision was rendered-
19
SEc. 3?. ProceedingsOpen to Public.-T\e proceedinga

of the Committee on Awards shall at all times be open to
the public and any decision shail be duly recorded and
postcd at a prominent place in the provincial capitol or
the crty or municipal or barangay hall. The Secretary to
ihe Committee on Awards shall certify to the effect that
the requirements of this section have been complied with.
Rule 6. Procurement
Ttrru Public Bidding
Snc. 38. Call for Bids--When procurement is to be

made by provinces or cities, the oflice of the provincial or
city general services o{hcer shail call bids for open public
competition. When procurement is to be- made by
municipalities and barangays, the office of the municipal
treasurer or barangay treasurer, respectively, shall call
bids for public competition.
The call for bids shall show the complete descriptions
and technical specifications of the required supplies or
property and shall ernbody all terms and conditions of
participation and award, terms of delivery and payment,
and all other terms affecting the transaction.
in aii caiis ior bi<is,the rrght to waive any defect in the
tender as well as the right to accept the bid most advantageous to the government shall be reservedSnc. 39. Bidd.er's Bond.-A bidder's bond shall be frxed
at five per cent (5%) of the total amount of the tender or
offer but shall not exceed twenty thousand pesos
/sn
^^^
^^\
(rzu,truu.uuj
per uro proposal.
Sec. 40- Sanctions for Refusol to AcceptAuord.-A
winning bidder who refuses to accept the award without
juetifiable raon shall forfeit his bidder's bond and shaii
be barred from participating in future biddings.
Src. 4I. Publiation of Catl far Bids.-The call for bids
'hqll bG grven the wi&et publicity
possible, sending by
nail or -ottrerwise, tnX known prospective particip"rrl, io
tle locality, of copies of the call and by posting copies of
Acetnsttlolr or Stlppueson PnornHry
Suppt-v aNtl PRoPERTYMmrrcEuex'r
the same in at least three (3) publicly accessibleand

conspicuous places in the provincial capitol or city,
municipal, or barangay hall, as the case may be' The
general services offtcer, municipal or barangay treasurer,
us the case may be, shall certify to the effect that the
requirements of this section have been complied with'
In addition, thb notice of the bidding mav likewise be
:n
published in a newspape.^f general circula''ic-- the
ierritorial jurisdiction of the tocai government u'rii
concernedwhen the provincial or city general servicesofficer or the municipal or barangay treasurer, as ihe case
may be, deems it necessarytaking into considerat'ioni'he
-.ignificance of the amount involved in order to obtain the
lowest responsible and complying bidUnless otherwise directed by the Committee on
(10)
Awards, publication shall be made at least ten
calendar days prior to the opening of bids'
Suc. 42. Rosterof Bidders.-It shall be the dutv of the
general services o{ficer or local treasurer, as the case
tay be, to maintain a list of bona-fide bidders in the
locality, indexed and cross-indexedby supplies categories.
A bona-fide bidder shall have the following minimum
qualifications:
a. duly licensed for the business engagedin;
b. has established place of business for at least
three (3) months prior to the public bidding he
intends to ParticiPate; and
c. not otherwise disqualifred under RA No' 3019' as
amended, or barred by proper government agencies from dealing with the government'
Snc. 43. Duties of Bidders--Bidders must carefully
stutlv
''1"' ^- -.:-^,--.--.r'
u-rrlt>
arttl -t'""'tiLivtrs
ativertised
rn the call lor bids. In case of doubt, they may ask for
clarifrcation so as to preclude erroneous benders' Every
21
bidder is chargeablewith the knowledgeof ali terms and

conditionsof the call for bid and assumesall risks attendant thereto.
Bidders shall accomplishbid forms in as many copies
as may be required in the call for bids, preferably typewritten, and identical in all respects. All blank spaces
shall be frlled properly and fully. Phrases like "See
Attached Documents" and others of similar purpose
shall not be considered,unless the same are intended
only to identify the sourceof information for veriFrcation
purposes. Erasures or alteration therein shall be
initialed by the person signing the bid.
Bids shall be signed by a responsible officer of the
companyor frrm authorized for the purpose whose name
and designation must be clearly indicated in the bid.
Spc. 44. Declaration of Business Interests.-All bids
must be accompanieriby statement deciaring under oath
all the businessestablishmentsor interest in the localiry
of the bidders. The statement shall include, among
others, the business name, business address and the
nature of the business.
Sac- 45- Quoiuiiorcs.-Price
quolaliuiis
urusl be ceri,ain
and definite in amount. Bids with conditions which

would tend to make the quoted price uncertain, like
"subject io increase or decrease of the present rate of
exchange' or others of similar imports, incorporated in
the tender or ofl'er shall not be considered.
For a better appreciation of a bid offer, the brand narne
and country of origin or manufacturer of the supplies or
property should be staied.
Snc. 46. Quotations not in Official F'orrn.-Quotations,
although not in official form, may be acceptedand the
bidder thereof,br submitting his tender, thereupon binds
himself to abidr. by the terms and conditions of the call
for bids as adve-',ised.
Suppt Y ,wu PRonenrYMrrN*cnuer*r
Acqrnsnror or Suppuruson Pnopsnn
Snc. 4? Quotations in Philippine Currc+uy--Unless

otherwise called for in the call for bids, all quotations
must be in Philippine Currency, inclusive of all government taxes, fees, imposts, or duties, if any, and all
incidental expenses. The contractors shall certify that if
they secure a waiver for, or refund of, all or any portion
of such taxes,.fees. etc., the refund shall be paid back to
the local government concerned.
Sec. 48. Quotations are By ltem.-Unless the call
specifrcally provides for quotation by lot or set, when
-| g^v-r oE
*9 lr rr qor n
nno
ilom
r.e
nqlled
for
_-_,
o
rrnt.nt.ion.s
a-----
are
tn
he
trea+*edindividually, and a bidder shall be eompelled to

accept the award of such items as may be awarded to
him.
Snc. 49. Brond New ltems Presumed.-Unless otherwise specified in the call for bids, all quotations shall be
for brand new fresh commercial stock supplies or
rranarlu
vPEr
P!
uJ
Sr.c. 5O.Ample Tine to Eualuate the Tender--Tenders

with conC.tûrr which tends to delimit the time of the
governmei.- :o consider and acceptor reject the proposal,
'subject to prior sale'; 'subject to confirmation by
like
our sunplier" and others of similar import shall be disregarded.
Suc. 5'1. Statemeryt of the Period Within Which the
Offer is Good.--The Bidders shall state the period during
which their offer is god, which in no case shall be'less
than sixty (60) calendar days. Tenders which state a
shorter period or fail to .state any period at all shall be
understoodas having a period <ifsixty (60) calendar days.
Snc. 52. Submis.sdonof Somples, Reports of Analyses,
antnlops Iiterature. nnd Shetches.-Unlessa bidder has
quoted exactly as per o{ficial sample, specifrcation,brand
or quality of supplies called for, he may be required to
submit a sample of his bid; Provided, That nothing
herein shall be conetrued ae prohibiting the Committee
on Awards to require the bidder to present samples,
23
reports of analyses, catalogs, literature, or sketches as rt

may deem necessary under the circumstances.
Snc. 53. Identification of Somples.-Samples submitted when required shall be properly identified- Reference to a sample previously submitted shall not be
considered unless the bidder was recently awarded a
contract for the supply of the same. Reference to
catalogs and the like shall be definite by namd, number,
model, page of catalog,edition ,etc.
Q&nvn.
u
1A
ur.
pDL;u) n^
ûtl
-j lr----,
D--Dr urtu-tyufrleg
A,r
lJ|ngr
6,
I ndn
I nose
Specified..-Whenever r.efer"eneeio a manuiaciurer's

brand-name is indicated in the call for bids, it shall be
intended to be descriptive, not restrictive, and shall be
understood to merely indicate to prospective biirders that
brand-names other than those specified, if of equal
quality, may be considered,regardless of whether or not
a statement to that effectis made in the tender, provided
that the bidder shall give full description of his offer
accompaniedwith catalog,literature, and,/orsample. An
offer guaranteeing to deliver an "equal" or "equivalent'
without acceptableproof shall not be considered.
S n c . 5 5 . R e s n o n s i b i l i t yf o r P a t e n t n n d / n r C o o y r i s h t
Infringement.-A bidder
be held solely .";;;"iii;
"t"tt
for all claims of infringement
of patents and copyrights
in connection with any contract awarded to him bv
reason of his tender in the bidding.
Sec. 56. SubmissionAnd Acceptanceof Bid,s.-On or
before the +"imcand date of opei^.ingof bicis, tridders shaii
submit their bids in sealed envelopes with the office of
the general services officer in case of provinces and
cities, or in the offices of the municipai treasurer or
barangay treasurer in the case of municipalities or
barangays,respectively.Said officesshall stamp thereon
the time and date of receipt.
Snc. 5?. First Failure of Public Bidding.-If no bid or
only one (1) qualified bid is received on or before the
24
Supplv eNn PnopaRTv M.rNrceunNt
Acgurslrlow or Supeues oR Pnopnnry
25
scheciuled date of opening of bids, the Committee on

Awards may schedule another bidding following the same
proceciurcs herein prescribed.
Sec. 64. Unsigned Bids.-Bids submitted which are

not signed shall be totally disregarded and declared as
"No Bid'
there is
Snc. 58. Second Failure of Public Bidding.-If
the
Committee
for
second
time,
bidding
the
of
a failure
on Awards may recommend the procurement through
negotiated purchase in accordance with these nrles arrd
Ssc. 65. Non-Complying Bids.-Bids submitted which

do not conform to the specifications and descriptions of
the suppliesor property are non-complyingbids and shall
be rejected. In no case shall failure to meet the specifications or technical requirements of the supplies or
property desired be waived.
regulations.
Ssc 59. Withdrau,al of Bid.s.-A bidder may be
alle.r,ecl t.o withdraw hi.s tender or offer before the
opening;of the bids. FIis bid shall be returned to him unopened.
SsG. 60. Opening of Bids.-All bids subrnitted shall be
opened at the time, date and piace set in the call for bids
by the Committee on Arvards. Opening of bids shall only
be made in the presence of the provincial, city or municipal ar-r<litor or his duly authorized representative who
shall initial and secure copies of the bids. Ridders or
their representatives ma-v u'itness the proceedings.
\ V h e n t h e d a t e o f o p e n i n g o f b i d s i s d e c l a r e da h o l i d a y ,
it is unrlerstood thaL the bids shall be opened on the
u'orking day following, at the same place and time
Sec. 61 Postponententoi Opening of Bids Proiti'
b i t e d . - T h e o p e n i n g o f b i d s s h a l l n o t b e p o s t p o n e du n l e s s
there are compelling reasons or causes that justify the
postponemenb as may be determined by the CommitLee
on Awards, which shall notify the prospective bidders
accordingl-v.
Src. 62. Abstract of Bids.-Offers submitted by the
bidders shall be abstracted which shall be certihed as to
their correctness and authenticity by the Committee on
Awards and the provincial, city or municipal auditor or
t,heir duly aut).'nzed representatives.
Scc. 63. Bids Submitted Late.-Bids submitted after
the time and date of opening of bids shall not be
accepted.
Snc. 66. Consideration of DefectiueBids.-I)efeetive

bids defined in Section 4 herein may be considered for
the purpose of determining whether it would be advisable to hold a rebidding or to waive the defects. The
guidelines outlined hereunder shall be obseryed.
Whenever the price in a defective bid is lower than
that, in a non-defecrivebid by at least ten (I\Vo) per cent,
the bidder whc offered the non-defectivebid shall be
asked to reduce his price to that of the defective bid. If
he consents, the award shall be made to him at the
reduced price.
If the bidder offering the non-defective bid refuses to
reduce his offer to that of the drifective bid, rebidding
may be advertrseciwrthrn iorty-eight (48) hours.
If the Committe- on Awards believesthat rebidding is
impractical, the defects may be waived and the award
shall be made in favor of the defectivebid.
If the defect cannot be waived to meet the needs and
requiremenr-sof the requisitioner, or if t,here is conclusive evidence showing that the defective bid was
submitted to prejudice the non-defective bid, the award
shall be rnade in favor of the latter without reduction in
price.
Snc.-67. Acceptonceof Bids and Awards.-Awards in
the procurement of supplies or property shall be given to
the lowest complying and responsiblebid which meets all
the termg and conditisns of the contract or undertaking.
Acqurslrrolr or Suppues on pHopEnry
Suppr,v rNo PnopenrY Mrxlcsunln
lhe following factors, among others, shall be considered

n nnaking the award:
a. conformity with the specificationsin the ITB;
b . price quoted, considering the Flag Material Law
(CA 138), as amended,wheneverapplicable, and
other laws and policies pertinent to procurement;
c . when time is of the essence,the bidder who offers
to deliver within the period stipulated in the invitation to bid shall be arvarded the contract,
--^--:l^l
pluvrucu
L:-L^lltSItGr
rL^+
LlldL
+L^Lrrqlr
rL^
Lllc
+L^
Llrg
--:-^:lD
PIrLg
l^.,,^-+
^ - i ^l o9 !
rv wtDv
Pr
-^+
lfvu
.^-^}ll
urrrcqevrrqvrJ
.'
v^ f^froe- ro ' Iv. u r
all things being equal, the bidder who offers to

supply the whole quantity shall be preferred in
order to obtain uniformity in quality, tensible
strength, color shade, etc.; and
e . reliability of bidder as a supplier or contractor.
Snc. 68. Release of Bidder's Bond.-Immediately upon

he declaration of award to the lowest bid or the rejection
f all bids offered, bidder's bonds of .the unsuccessful
,idders shall be released. The return shall be indicated
onspicuously on the tender to be signed by the bidders
ck-nowledgrngthe rqttrrn of the hond On the other handh e b i d d e r ' s b o n d o f t h e s u c c e s s f u lb i d d e r s h a l l b e
,roperly receipted and the same may be released only
rpon his entering into contrac{ and filing of a necessary
erformance bond.
Sec. 69. Diuision of Award.-Division of award may be
eade only in either of the following instances:
a. in case of tie offers and.the supplies are divisible,
the award may be divided equally as far as pracdeatrle unless the interest of the service demands
that it should be given to only one dealer; or
b. in case the lowest bidder offers to supply a
limitd or partial quantity only, in which event
the balance nay be awarded to other acceptable
bidders in the order of advantage of their offer.
Snc. 70. Notification of Acceptance of Bids.-The

bidder or bidders who offer the most advantageous
tenders to the government shall be notified o1 the
acceptanceof their bids. The lo.singbidders shall likewise
be notified accordingly.
Soc" 71. Award of Contracr.-Awards of contracts for
the supply requirements of the government shall be
made by the Committee on Awards.
Snc" 72. Protest Against an Award -A losing bidder
may frle a protest with.the Committeeon Awards again.3f.
its award or decision within ten (10) da_ysfrom the date
the winner was announced. The protest shall be in
wrifino
hqca.l
n
v rnr
i'ctifi-kl^
J uow.rrovre
-*^,,-I^
5,r vurruo
^-l
dttu
^-:
dLcull-lpallrgu
with a protest bond, either in cash, certified o; .."hi".'"

check, or surety bond, in an amount equivalent to ten
OO%) per cent of the total value of his tender. Within
seven(7) daf's from receipt of the protest,the Committee
^vrr
4 , , , ^ - l ^( r 5
nwdr
^L^lr
stli1'tl
----lÎ ejtuel
^
a
. .
ruf-rcrslon.
Sec. 73. Forfeiture of Protest Bond.-"lhe protest bond

posbedby a protesting bidder shall be forfeited in favor
of the government should the protest be found to be filed
only to prejudice the awardee.
Snc. 74. Issuanceof Purchase Orders or Contract.Immediately after the cornmittee shall have decided the
winning bids, a purchase/letterorder or contract shall
be issued to winning bidders. The following shall clearly
appear in every purchase/letter order or contract a.side
from the other requirements prescribed by existing laws
o-J
orru
-^-,.1^+:^-^.
r 95 Utd r/r(rlfo.
a. office to which the account shall be charged and

the requisition nunber;
b. name and address of the supplier or contractor:
c. offrce to which the delivery shall be made;
d. complete descriptions and specifications of the
supplies or property and all other inforrnation
Suppr-v exn Pnopenty Mex,rcemuur
i8
and data needed to enable the supplier, COA;

inspector (if applicable), and others concerned to
determine the nature and quality of the jt"-s
purchased;
e. provisions for penalty in case of late or nondelivery;
f. qrrantity and unit price;
g. period of delivery;
:
h. shipping terms and conditions and other cotlditions of delivery;
i. date of effectivity and termination of the contract: and

j
conditions regarding importation, if any.
The date when the purchase/letter order was received

y the supplier or contractor shall be indicated clearly.
S n c . 7 5 . W h o m a y R e c e i u eP u r c h a s e O r d e r o r
lontroct.-The purchase order or contract shall be
eleased only to, and signed for by, the duly authorized
epresentative of the awardee after posting the performnce bond.
Sec. ?6. Performance Bond.-Performance bond shall
e frxed at ten per cent OO%) of the value of the contract
r purchase order. However, in case of importation and
he same is to be financed by.the government, performnce bond may be increased to twenty per cent QO%)
epending on the reliability and integrity of the awardee.
A purchase order or contract involving tn thousand
esos (P10,000.00) or less need not be covered by
erformance bondSec. 77. Extension of Time to Deliuer.-Request for
xtension of time io deliver beyond the period stipulated
r the purchase order or contract shall not trc granted
rcept in the following cases:
a. force majeur+.
Aceulsnrox or Supplres oR pnopeRry
29
b. when failure to make delivery is due to an act or

order of the government; or
c. otherjustifiable reasonsbeyondthe confrol of the
contractor or supplier.
Provided, That the request for extension of delivery
time is made before the term has expired and recommended by the Committee on Awards and approved by
the local chief executive
Suc. 78. Reduction of euantity._Amendment by
reduciion oi the quantrty called for in the purchase order
or contract, may be aiiowe<i provided the supplier,s
request is based on -iustifiable rea.sonrs
and the r.earriei_
tioning department or office , offe.s
d;
r e q u e s t f o r a m e n d m e n t s h a l l b e a".p p r"U:""It;;:
dved by the
Committee on Awards.
Sec. 79. Substitu,tionof Supplies._Amendment by
subsiitui,ion c t suppiies or proplrty calred for under the
purchase order or contract may be approved by
the
cornmittee on Award if the interest of the^governmlnt
is
not prejudiced and the items offered as substitute
are of
equal or better in quality and the contract price is
not
increased by reason of the substituhion.
Sec. 80. Price Adjustment.-The contract price may
be
adusted in cases, when at any time during the
effecti_
vity
ôf the contract, the government shJuta i-poru,
modify or abolish any tax, custom duties, li"ersel
l__
posts, fee, or other similar charges,or enact, amend
or
repeal any law or decree. which worrld directly affectlhc
purchase order br contract, subject to the appio,ral
oi if,"
_ Snc. 81. Competition Between Local and, Forcion
Products.-When there is a cornpetition bet*ee"
ioc'ai
and,a product coming frtm a foreign couniry,
l::gTt
preterence should
to the philippine product
-be given
unless
philippine
p.odoct
-th9 Rrice of the
price of the fqreign product by more than^nn"""
"*"."d"-ih"
f f SZf
per cent.
30
Aceutslrloru or Suppuus oR pnopeRry
Supplv nxu Pnopenf,y M..ri\^cEMl:l.tr
Rule 7. Pnocurement Thnough Pereonal

Canvase
Sec. 82. Canuass and Atuard -Upon approval of the
Committee on Awards, procurement of supplies or
propert-y may be effected after personal canvass of at
least three (3) rcsponsiblesuppliers in the locality by a
committee of three (3) cornposedof the local general
servicesofficer,'or the municipal or barangaytreasurer,
as the casemay be, the local accountant,and the head of
oifice or tieparimenl florwhose use the suppiies are being
.-'
IJr()cureu.
'TiL^
I f rc
^ ^ ^ . , - - -q N
ro I I I
^f
ur
--:^^pr rLrD
^r
(rt,
+L^
Lrrc
L^------ual attEay
t^-^^r
reyel
^L ^rt
sllall
Llrc
conducted by a committee of three (3) composed of the

barangay treasurer and two Ql members of the
sangguniang baranga.vto be designated by the punong
barangay.
Abstract of the canvasSshall be prepared by the office
of the general serviccs officer, municipal or barangay
treasurer, as the case may be, and authenticated by the
canvassers.
The award shall be decided by the Committee on
Awards.
Sec. 83. Limitations of Procurement thru Personal
Canuass--Purchases through personal canvassshall not
exceed.the amounts specihed hereunder for all items in
any one (l) month for all departments or offices
combined in the local government unit concerned.
l. Provinces, cities, and municipalities
the Metropolitan Manila Area:
I
-.r
fircr
r.rou
o^'l
qrtu
-^^^-J
-gLvlrq
^9 rlq---o-
û t-r -g
L . ' - , 1 * ^ , 19 q
ttgrrul
within
fifl.'
rtrgt
thousand pesos (P150,000.00);

1.2 third and fourth class - one hundred thousand pesos (?1OO,O00.O0);
and
1.3 frft,h and sixth class - fifty thousand pesos

(?50,000.00).
3l
2. municipalities outside Metroporitan Manila

Area:
2.1 first class
sixty thousand pesos
(P60,000.00);
2.2 secondand third class _ forty thousand pesos
(P40,000.00);
2.3 fourth class and below _ twenty thousand
peso.s(p20,000.00).
3. barangays in cities and in Metropolitan Manila
Area - ten thousand pesos(p10,0b0.0o);and
4. all other barangays _ five thousand Deso.s
(P5,000.00).
The governments of the Metropolitan Manila
Author_
ity, the AutonornousRegionin Muslim Mindanao
and the
Cordillera Administrative Region shall, for the Durnosc
of these rules and regulations, fall under tt u .at"go.y
oi
a first class province.
The phrase 'all items in any one month'means
that
the total purchases thru personal canvass of
,il tt u
departments or offices in the local eovernmpnt
unit
concerned shall not exceed the limitations prescribed
herein.
Sec. 84. Duty of the prrcurement Officerson purchases
thru Personal Conua.ss.-It shall be the duty
of the
general services officer, municipal
o
r
b
a
r
arrguy
+-^^----t
urr.r,Drrrer,
as Ene
case'may be, to ensure that procurement of supplies thru personal canvass shall
noi exceed
the limitations prescribed in section g3 hereof.
For this
purpose, they shall keep and maintain
complete recorcis
of all purchase orders effected thru personal
canvass.
Every purchase through personal canvass shall
bear the
certification of said officials to the effect that the
current
purchase under consideration has not
exceeded the
prescribed ceilings.
32
rNo Pnoperry Mr,Nrrcnuerr

St-rppr-y
Aceulstrlolv or Sun'l.r R.soR?ncllnlrry
Rule 8. Emergency Purchases
Sec. 88. Canuassof prices in the Lxality of at

Least
Three Suppliers in Emergency purchase._Canvass
of
prices shall be conductedof at least three (3)
suppliers in
the locality to secure the lowest price obtainable
at the
time of the purchase.
Snc. 85. When to Mahe an Emergency Purchase.-In

case of emergency where the need for the supplies is
exceptionally urgent or absolutelyindispensableand only
to prevent imminent and real danger to, or loss of, life or
property, local government units may, through the local
chief executive concerned,make emergencypurchasesor
placerepair orders, regardlessof amount, without public
bidding.
Q-^
UDL-
OC
ou.
:^;.-.:^^^
uLrrL..uLLr)tt:r
^C
ul
f,t---
E trtet tgrlcy
rurcngsgs._
Deliveries under emergencv purchases or repair orders

shall be made within ten (10) days after placementof
the same. The supplies procured must be utilized or
availed of within fifteen (15) days from the date of
delivery or availability.
Siic. 87. fufandatory Requisiies oi Emergency Purchases.-Under no circumstance may emergeney purchase be resorted to unless all the following conditions
are met:
a. the need for the supplies or repair is exceptiong.!!,-'rrgent or abs+!ute!i-:ndispensable and cnly
to prevent imminent and real danger to, or loss
ef, life or property;
b. there is no material time to procure the supplies
through public bidding;
c. appropriations therefor exist;
d. the estimatcd amount has been obligated;
e. funds for the purpose are available;
f
fvl r. r-u
--i^^l,r.veo
^f
vr
+L^
Lrrc
-,,^*t:.-DuyprtE:!
3^
tu
l-^
rJg
^-^^,--^l
pt t LuI v(l
^-^
dt t
rL^
Ltrc
lowest obtainable in the market at the time of

the purchase; and
g. the supplies to be purchased are not available
from any of the store rooms of the local government concerned
33
Under extreme necessity when it becomesimpracticable for the general seivices officer, -ori.iiui
o.
barangay treasurer, as the case may be, or thei-r
drly
authorized representatives,to conduct canvass p.i.",
J
in the
localitv,
t.he canvas,.q n.at-, l-^ -^r^
,,,.lL:-
4!=
mediate
;;i::, ;:T:j' -l]i' #
"i.i"ii."* r,*; il;tr,;;;;;H
";;;#
cialor employel
i*irhij,H;;'ii
! r r s D u p p r r e r sc a n"""J-g
v a s s e or n t h e s a r d v i c i n i b y
h ^
^ . ,
^ -
l :
^ - ^
are less than

three (3), purchase of the supplies may
still be made
from the most advantageous offer and
the obtaining
conditions shall be fulry disclosed and indicated
in the
abstract of canvass; prouid.ed.,
further, That the quantity
procureci shaii be sulf rcient to rnect t,he
emergen.y onJ in
no case shall the total amount exceed Ten
Thousand
(P10,0O0.00) pesos in case of provinces,
cities and mu_
nicipalities and One Thousand (pl,000.00) pesos
in the
case of barangays. If the canvass of prices
can not be
made in the official canvass form at the time of nrrrche"o
it shall be the duty of the official or employ""
*ho .rrud"
the purchase to make a report of and certifv
to the
canvass in the ollicial canvass form, attachini
thereto
the unbfficial canvass form.
Snc. 89. Authority to Decid,eand. Award on Emergency
Purchases.-The authorit-v to rlecide an<! arryai
emergency purchases is vested in the local chief
"*
execu_
tive upon recommendation of the general
services
officer, the municipal or barangay treasurer,
as the case
'h-.,
UTqJ
L^
L'8.
Sr.:c.90. Report of IJtilization.-Immediately after the

supplies
property procured through
_orpurchasehad
" - " thr"ee
. g " r , . (3)
y
beenconsumedbut not latci than
days upon the expiration of the fifteen (15)
Jays
prescribedin these rggulations, the head of
thu ."q.,lsi-
34
S i l t ' t ' t . v , \ \ t t l ) l t ( ) l ' H l t T tM

' nr-,rr;t:Mt:rT
AceuslrroN or Supplres oR PRopeRry
tioning departnrent or officc shirll subrnit a Report of

fltilization (l,GU Fornr No. 07) ldrlrosstd to tht krcal
c h i e f t ' x e c r r t . i v et h r u t h e g e n e r a l s e r v i c e s o f f i c e r ,
municipal or lrarangiry trt'a.surer, as thc case may be,
containing. iirnong others, tht' following
that the same could not be done through the

regular course without involving danger to, or
loss of, life or property;
f- a certification of the provincial or city general
services officer or the municipal or barangay
treasurer, as the case may be, to the effect that
the price paid or contracted for was the lowest at
the time of procurement;
a. date rvhen the strpplies or property were

d t ' l i v c ' r e da n d f u l l y u t i l i z c d ; a n d
b. exact location or address where supplies or
propert.v r.r'crcdelivered.
g. a certification of the local budget officer ns to the

existence of appropriations for the purpose, the
local accountant as to the obligation of the
amount involved, arrd ihe local Lreasurer as Lo
the availability of funds; and
The report mu-st tre supported bv RIVs signed for by

t h e a u t h o r i z e d r e p r t ' . s e n t a t i v e so f i n t e n d e d b e n e f i c i a r v
grrll)nq
The auditor conccrned shall immediaLely be furnished

u'ith a cop,v of said report for his guidance in audit.
The Report of Utilization for purchases of supplies
,,^lûrrucr
+L^
Lrrc
Q^^^^J
ucLvrru
D^-^--^^L
r dt d6r (tptt
^t
uI
Q^^r:^\fEt-Llutl
oo
oo
^L ^tl
sllall
L ue
prg_
pared b.v the official or employee rvho made the emergency purchase dul.v noted by his immediate superior and
t h e d e p a r t m c n t h e a d c o n c e r n e dc o n t a i n i n g , i n a d d i t i o n t o
the above-enumerated information, the date, time, place
and particulars of the emergenc),
St:r'. 91. Confirntotory Report on Entergency Purchase.
-Immediately
after Lhe emergency purchase is made,
the head of the requisitioning department or office shall
draw a regular requisition to cover the same which shall
contain by attachment the following:
a. compiet ciescriptions oi the suppires or property
acquired or the work done or to be performed;
35
h. the abstract of canvass.

Sec. 92. Depository
^ - : - : - - l
ufrEr[ar
copy
- a
r l
of Confirmatory
or LIle approveo
Reports.-The
uonlrrmatory
Keport,
together with all the attachments, shall be filed with the

disbursement voucher prepared for payment of the items
procured. All members of the Committee on Awards
shall also be furnished with a copy.
.Snr: q3
l<rnction for Non-Ccmplicnce. Withcut
prejudice to criminal prosecution under applicable iaws,
the local chief executive, the head of the department, or
the chief of office making the procurement shall be
administratively liable for any violation of, or noncompliance with, any of the rules and regulations
pertaining to emergency purchases which shall be a
ground for suspension or dismissal from the service
pursuant to Sectioir 36g of RA No. 2160.
b. by ',vhom furnished or executed;

c. the unit price and the Lotal contract price;
d. the date of placing the order and the date and
tirqe of delivery or execution;
e. a brief and concise explanation of the circumstances why procurement wa6 of such urgency
Rule g. Negotiated purchase

Snc. 94. When to Mahe a Negotiated Purcho.se.-In
caaes where public biddings have failed for two (2)
consecutive times .and no suppliers or dealers have
qualified to participate or win in t,he biddings, the
Acqtnsltrou oF SuppltEs on pnopenry
SL lrt.r' ,rNtr Puot'uKrY M^NA(;UMENT
Jb
Comnrittt't' on Ar,r'ardsshall attest to this fact and rnay

r e c o n r n r ( ' r r dt o t h e l o c a l c h i e f c x e c u t i v e , t h r o u g h t h e
gent'rirl scrvict-s offict'r, municipal or barangay treasurer,
irs the cirsr. mil-v be, that the procurcment be made by negoLrate(i purch,t"e rcgardle-ssof amount; Prouided, howr-\'r-r, rlrirr thr' supplit's or property to be procured are
covered bv the irnnual proctlrement program and shall be
delivered r*'ithin .seven(7) calendar days after plaeement
of the order; and [)rovided furthcr, that thc contract covering tht' negt:iirrtt'd ptrrchirse shall be approved by the
. q a , n g g t r ni r r n c o r l c t . f I r t ' ( 1 .
Sur:. [i.1 ii'.rit'rri'uhiic iiiciding is Deenrccia Faiiure.F o r t i l t p r . u ' p o s t ' so f t l t t ' s e r u l c s a r n d r c g r r l a t i o n s , p u b l i c

r r i d d i n g i . . d c t ' r l t , c it o l t r r v e f i r i l e d u n d e r a n y o f t h e f o l l o w lt g
c : l ' r ,t l : l t r l i l I ) ( ' r ' :
ir
i'
rr ht,ir ncr (rr onlv one tiualified bid is received on

or bef'orc t lrc .scheduled date of the opening of the
Awards. The abstract shall, among others, serve as the

basis for negotiation. The original of the abstract shall
betattached to the contract to be entered into by the local
chief executive for the purpose.
Spc. 99. Authority to Decid.e ond. Award on
Negotiated Purchase.-The authority to decide and
award on negotiated purchases is'vested in the local chief
executive upon the recommendation of the Committee on
Awards.
Sc. 100. Confrmatory Report on Negotiatedpurchase.
-Immediately aft,er the negotiated purchase,
the local
chief executive concernedshall draw a regular requisi_
f.ion
f n
cnvor
fel r' o
^L
o qo r- ror e
o
,,,t ;^L
w rrrLrr
^L^ll
Jrtdrr
^^-r^:LUtlLarIt
L-uy
|
aLLtrcn_
ment, among others, the following:

a. complete description of the supplies acquired or
the work done or to be performed;
l.:1..
{,iLt5. trr
tu.
r'.ir,'n aii rht' bids submitted are defective and./or

( ) n - c o m p l . v i n gb i d s o r n o t r e s p o n s i v e t o t h e
1 r , r m s ,c o n d i t i o n s a n d s p e c i f i c a t i o n so f t h e t e n d e r
c. date of placing the order and the daLe and time

of delivery or execution;
(ir)ctlment.1.
.':
37
:rtl
r\
L {t,tf
(I)}
r
trl
n-: ^-..
t t LL(t
t-Jtrt
l7----,i-r-J
!rc5traauLcu
ft..--L-^| 4iLrruJT--
(lirnvass of I'rices of at least three (3) suppliers or

t l e : r i e r . sr n t h e l o c a l i t - v s h a l l b e c o n d u c t e d t o o b t a i n t h e
l l o r , r ' e v e r ,u n d e r c i r c u m s t a n c e s w h e n i t
l r ) \ r ' e - sot r i c e
l r c c o m t : - . ' r m p r i r c t i c a b l et o c o n d u c t c a n v a s s o f p r i c e s ,
r , u r c h a . - i uo f . s u p p l r c s o r p r o p e r t y m a y s t i l l b e m a d e
'.lilough negotialion provided that thg Committee on
\
.\'.r'arci.;shall attest to thls fact.
St.r;. 97. Person to Conduct Canuass of Prices in
,\'egotLcttedPurchase.-The Committee on-Awards or its
. !u l v a ' . tr - h o r i z c ' J r e p r e s e n t a t i v e s s h a l l c o n d u c t i h e
canvas.sof pric,.s in purchases through negotiation.
Sr:r. 98. Abstract o[ Canuass for Negottoted Purchase.
-Quotations submitted by the various suppliers shall be
abstracted and certified as to its correctness and
authenticrty by the members of the Committee on
tuJ
- . , .wrrulfl
. , L ^ - , r .-rur
'--1,^.^r
rllsrle(l
^, r
ur gxecuf,go;
d. the unit price and the total contract price;

e. a certification of the nrovincia! or city gener:l
services officer or the municipal or barangay
treasurer, as the case may be, to the effect that
the price paicl or contractedfor was the lowest ar
the time of procurement;
f. a certification of the local budget officer as to
existenceof ennrnn,.i:rtioncf,.rrthe purpose;
g. a certification ofthe local accountant to the effect
that the estimated amount covering the purchase
has
hpen
nhlisqfpd'
h. a certifrcation of the local treasurer to the effect

that su{ficient funds to cover the purchase are
available; and
i. the abstract of canvass.
Aceutstrloru or SLrppLles oR PRolutrry
Sut'nt.v ^Nn PRoPI:RTvM,rNnr;epu:rur
38
T h e r e q u i s i t i o n w h i c h s h a l l b e a c c o m p l i s h e do n a n
R I V s h i r l l b e p r o c e s s e cal n d a p p r o v e d i n a c c o r d a n c e w i t h
r h-c,, r,rl,,s ;1nd rlgrrlatitln.s.
the need for addrSr:t' l()1. Repr'ot Ordtrs.-When

tional qtr:rntitv of the same items coveredbv a previous
purchase rtrises.the local chit'f executive trpon recommendation of the gt-neral services offrcer, municipal or
barangas treltsttrt'r,:ts the case may be, may place an
orrlt'r f,rr srrid itt'rrtsfrtrnr tht' sanrc supplier or dealer,
p r o v i d t ' t l a l l t h t - f o l l o u i r r g c o n d i t t o n sa r e m e t :
a . t h , - .o r i g r n a l p u r c h a s e w a s m a d e t h r o u g h p u b l i c
bidding:
b. the qurntit-r' does not exceed one hunclreci per
c e r r t { l O O ' , )i o f t h e o r i g i n a l p u r c h a s e ;
39
property, canvassof prices should be made of the known

manufacturers within the locality to obtain the most
advantageous priceSec. 104. Authority to Decide and Award in procurement from Duly LicensedManufacturer.-The award for
the procurement of supplies or property from duly
licensed manufacturer shall be made by the Committee
on Awards in accordancewith the proceduresprescribed
in these rules and regulations.
Rule Il. Proc-.iiirri-rtfr-orrr Exclusive
fI r }r' ri lr:r^r }- ':p- ^r r r s
^ -rar l^, J
nA6r, E
(^r-l
n:^3-:r---r^-^
lrlsl,t
r|-rl.lL(rt s.
the prices of said items have not gone down in

t h t ' n t r r r - k e lb 1 - m o r t ' t h a n t e n p e r c e n t ( 1 0 ? i ) ;
Spc. 105. When Prrrcurement fr-om Exclusiue Phitippine

Agents or Distributors may be Made.-Procurement
of
supplies or property of foreign origin may preferably be
made directly from the exclusive or reputable Philippine
distributors or agents subject to the following conditions:
the order is nrade rvithin three (3) months from

the datc of the original purchase order; and
a- the Philippine distributor has no subdealers

selling at lower prices; and
e. the same terms and conditions in the original

ourchase are obtained.
b- no suitable substitutes of substantially

qo{ity are available at lower prices.
D-^...'-t-J.m!
I t uu3lteLL,
r rraL
!.t-
cel LrrlcaLIOII
,t
L() Lne
eIIgct
the same
t,nat,
f,ng
Rule 10. Direct Purchase from DulY

Licensed Manufacturer
distributor has no sgbdealers selling at lower price is

secured from the principal and/or exclusive distributor.
Stt;. 102. When Direct Purchase from Du'ly Licensed

Manufacrurerntay be Made'-Procurement of suppliesor
p r o p e r t yo f P h i l i p p i n e m a n u f a c l u r eo r o r i g i n m a y b e
m a d ed i r e c t l yf r o m d u l y l i c e n s e dm a n u f a c t u r e r s ; P r o '
uided.,That the manufactuler is able to present proof
showing that it is a duly lic\nsed manufacturer of the
desireci prociuct and ihere is no dealer or distributor
offering the same items at lower prices-
Snc. lO6. Authority to Decide and Award in Procurement from Exclusiue Philippine Agents or Distributors.The award for the procurement of supplies or property
irom exciusive Philippine agents or distributors shall be
made by the Committee on Awards.
Snc. 103. Canuassof Pricesin Procurement from Duly

Licensed Manufacturer.-In case there are two (2) or
more-known manufacturers of the required supplies or
Rule 12. Procurement from Goverrrment

Entities
Snc. 107. Purchosesfrom Other Phitippine Gouernment
Entities.--eovernment entities that are possible sources
40
S t' pt,t.v .qx rr Pno t'F-'rtv M.,rNnr; l:lt t:Nt
of supplies or property ma-y be requested to fill the

needs of local governments. Proctrrement procedures
p r e s c r i b e d f o r t h t ' . s t ' l l o \ ' ( l r n n r e n te n t i l i e s s h a l l b e
observed
S u t ' l O 8 P t t r c h n s t sT h r o u g h F o r e i g n( ' ] o u t r n m e n t E n
i i l l e . s- I ' r o c u r e m e n t o f s u p p l i e s m r t y b e m a d e b y l o c a l
governnrrrnl unit-s from agencies o[ foreign governments
with u'hich the Philippine maintains diplomatic
r e l u t i o n s [ ) l ' ( ) c u r r ' n r o n ut n d e r t h i s m o d e s h a l l b e m a d e
o n l . r 't r p o n p r i o r a u t h o r i t - y f r o m t h e O f f i c e o f t h e P r e s i d e n t o f t . h e P h i l i o p i n e s a n d i r r a . : ' o r d a n c ew i t h e x i s t i n s
importalion law. rules and regulations.
Det.lvr:RyrtNo lNspecrroN
Snc. 173. Time and ?lace of Deliuery._Unless otherwise provided in the purchase order or contract, deliveries shall be made within seven (?) calenda. day" ,rpon
receipt of the order and during office hours at the pt."
stipulated.
Rule 15. Inspection and Accomplishment of
Inspection Reports
S*:. 774. Inspection of purchases.-Inspection and
veriiicaiion oi purchasesshaii be done u""o.dirrg to these
_--l^^_
I t.rres-
ir. rirrcriases made by the iocai government units

must be inspected and verified by their author_
ized inspector for conformity with specifications
in the order. However, the chief of the inspection
service authorized by the local chief executive,
4
Rule 13. Other Modes r'i Procurement

S r : i - i 0 9 P r o c r t r e n r e n lA u t h o r i z e d b y S p e c t a l L o u . I ' r o c r r r e n ' r e not t h e r t i r a n t h o s e d e f i n e d i n t h e s e r u l e s a n d
r e g u l i r t i o n s b r r t a r - r t h o r i z e db y s p e c i a ! ! a w s h a l l b e
g o v e r n e d b . " '. s a r dS p e c i a l [ a w .
AND INSPECTION
OF SUPPI,IES OR PROPERTY
Rule 14. Delivery
S e c . i i i . P u c k i n g- i \ i i s u p p i i e ss h a i i b e a d e q u a t e i y
c o n t a i n e d ,p a c k e d , c r a t e d , c a s e d ,b u n d l e d ,w r a p p e d , o r
s e a i e d ,a s t h e c a s e m a y b e , i n a c c o r d a n c ew i t h t h e
p u r c h a s eo r d e r o r c o n t r a c t , t o s a f e g u a r dt h e m f r o m
damage,spoilage, and,./orloss.
Snc. 1 12. Responsibilityin caseof Damage,Spoilage or
-Responsibility in case of damage,spoilageor loss
Lo.s.s
shall be governed by the existing laws on the matter
unles.sthe purchase order or contractprovidesotherwise.
."ai"^
wqrvs
-^l^
rr
+L^
u r r c :r -r.r^b- p^ ê.u: ^L-t o . u
,r
Or pUfCnaSgS
Ol
lnslg_
nificant value, provided he is fully convinced that

the delivery in question is in accordance with the
specifications of the order. The waiver of inspec_
tion must be stamped on the.original copiei of
the order and invoice.
b
DELTYERY
D,,-^L^^^^
m
L \oLr 'r J
S i . t ' 1 l 0 S u p p l e t o r t ' C h a r a c t e r o f t h e s eR u l e s a n d
R e g u l a t t o n . s- T h e s e r e g u l a t i o n s s h a l l b e a p p l i e d t o f i l l i n
i-,,ii deficiency of a Special Law authorizing a mt,de of
procurement other than those defined herein.
TI'TLE III _
4l
Evidence of inspection of deliveries of supplieS or

property of insignificant value must be sho*, by
notation on the original copies of the order and
invoice, thus:
Inspected by:
(Name and Signature)
Date:
All items to be inspected shall be accepted firsr
by the general services officer, municipal or
barangay treasurer, as the
-ay'b".
"use
d. Report of inspection of all consumablesshall be
submittted to the provincial, city or municipal
' asnt:t:ttt:x.r
S t ' r ' r ' t . r ' , r s t t P t r t l t ' t : t r r tM
42
l)rt,l vurty n-rvl.rIruspr:cr.r<xv
ar.rditor, as the cilse mil-y bc, rvithin twenty four

(24) hours.
Sr:t'. 115. Submis.sion and Approua! of Inspection Re'
propertv inspectors of the local government
porfs.-The
units shall promptly submit reports of all inspections
finished during the dav to their supt'rvisors for evaluation and approv?I. The approved inspection report and
other docrtnrt'ntspertaining to the inspection shall form
parL of the strpporting papt'rs of the disbursement
voucht-r covering the pa1'ment of the purchi-rses.
S r : r ' . 1 1 6 . S u r p r i s e o n d S e / e c l i t ' eI n s p e c t i o n s b y t h e
Local Audttors.-The provincial, city or municipal
r-,
auortor
,t ,: - ----^^^-.^4:.,^^
IelJrlclrLdllYCJ
ol'Lnerr
^L.,ll
Dlldlr
^^^lrrnl
!urruq!v
o
q
..'-;-i-^
oqrPrrrL
and selective inspections of deliveries soon after their

acceptance b;- the local government units.
Rule
I6- A-rticles Sulrjcct to Tcst
S i < ; . J . 1 7 .D r u g s , C h e n t i c a l s a n t l t I . e d i c i n e s - - U t m o s t
c a r e a n d c a u t i o n s h a l l b e e x e r c i s e da t a l l t i m e s i n t h e
inspection of the following items:
a
b.
preparations
medicines and pharmaccutical
- the analyses must conform to their formulas;
drugs, chemieals including disinfectants ih"i. analyses must -conform to the USP, NF,
B I I F , o r B F D r e q u i r e m e n t . s ;a n d
c. insecticidcs, fungicides, etc. - the qualit.v of

t h e s e i t e m s s h a i i b e c i e L e r m i n e ct ih r o u g h i a b o r a trlrv analysis.
Quantity <lfsamples rcquired:
tablets
ointments.
liquids.
solids
capsules
30 tablets
100 grams
100 cc.
50 grarns
5 capsules
43
The samples to be sent to tsF.D for the necessary

test
shall be taken at randor.r and shalr be placed in
a
free-contamination container. The same shail
be
properly sealed with a strip of onion skin paper
beanng
the signature or initial of the dealer, requisitioner
ancl
inspector. The order, invoice and requisition numbers
arrd the descriptions of the items shail be indicated
on
the container.
Suc, 1L8. Paper and paper prod.ucts._papers
are
manufactured from materials like wood, pulp, bagasse,
etc., in comhina-tlon with chemicals to make difler.e^t
kinds of paper These articles differ in tcxtui"e, fii,ish,
and thickness, Their specifications vary in accordance
-*'ith the inLenrieci
purposes.
The usual specificaticns of paper ar.e substance
number or gram quality, size, coloi, finish, rag
or silk
content, bursting strength, thickness anrl othei
speciai
features, like water markings.
A representative sample fr.m five (5) different rearns
of- the delivery shall be taken for test and anal.y"o
if
additional specifications other than color, sizL
and
substance are required, like bursLing strength, thickness,
density, rag or silk content.
Snc. 119. G.l. Sheets, pipes, Reinforcing Steel Bar.s,
and Other Alloys.-When
testing of samples is to be
performed, the informations hereunder are
significant:
a. G.I. sheets - This item covers galvaniTed iron
sheets, zine copted, classified into two (2) types
according to the_purpose-. Type A is used for
permanent construction (more than five years)
and Type B is used for non-permanent construc_
fvirnvn. r
l'loo\ruoo
lLûrrdtr
c--^
ltvt:
---^-^\
ygars,r.
The wbight of a zinc coating (ordered coating) shall

conform to the requirements prescribed in the tables,
below, provided, that in no
shall ordered coating
"""" per
weight be less than 1.25 ounces
square foot.
Suppr.v AND PRoPERTvMeNrceuerqr
Dnlrvnny AND lNspEcrroN
Ordered Coating nnd Minimum Coating Test Limits,

Ounces Per Sounre Foot
the Bureau of Research and Standards (BRS) of the

Department of Public Works and Highways (DPWH).
44
Minimum
Coating
By Diagonal
Triple
Spot Test
Order Coating
Weight or Nominal
Coating Valrrc
Appcaring
on thc Shcrt
.) 1i
Minimum
Coating
By Single
35
lo
rl5
65
2.50
22s
2.O0
I
a
Noe.
Nos.
Nos.
Nos.
I'Jos.
Nos.
Nos.
l . i J
.oo
l5
90
1.50
I.JJ
For the purposes of determining the uniformity of a

given lot, three (3) tests shall be made. The whole lot
shall be rejected if these three (3) tests fail.
Practical Limitr
Galvenized
Sheet Gauge
.00
.trO
60
.40
.ti0
b. G.L Pipes - These items are manufactured in

accordancewith ASTM specifications.A Iength of
one (1) piece of sample shall be submitted in accordance with the usual sampling requirements.
Notably, both ITDI and BRS have the necessari/
facilities that ean be availecl_of in te.stins these
rrticles.
8 to 24
8 to 26
8 to 28
l l to 28
l4
1 6 to 30
1 8 to 30
Table of Zinc Coating Tolerances
S pcci fi cd
Zinc
Coatir:g
A v cr a g c
T r i pl e
Spor Tcst
275
250
2.20
2 10
I 95
L7.5
/.a
r .)1,
1.50
1.25
IlZs
I.05
.{ny One
Triple
Spoi, Tesi
Ave-or lJ
Spccimcns
.{r'crage
of Min.
Spoi. Tesi.
Any One
Minimum
Spot Test
'2.OO
l (;O
l 40
1.20
loo
0.85
.20
.75
55
.30
lo
.!i0
30
80
60
35
t)
95
Br:fore it i.s coated u'ith ztnc, a steel sheet is referred

to as basc mctal The ba.semetal for the sheets shall be
made from acid be.ssemcror basic-open hearth proce.ss.
'Tl.-
Lo.o
molol
^f
^l-;^
I/r<rrrr
.L.,-+.
(rrrLuuo
oLoll
rt!.(rr.
ho
ohlo
to
ctanrl
while being bent cold through 180 degrees flat on itstlf

without fracture.
/a^^l:-\JUdLrllS
l-^..+
UCIrL
a.,â
LUJL
C.ltrl
^1.,:Prclrlr
^1,^-.r..^..^:-,.^Drr(j(.:L DPglrqlsrlor
2
u
tuû
45
rA
i n c h e si n w i d t h . s h a l l b e a b l e t o s t a n d w h i l e b e i n g b e n t
cold chrough 180 degreeswithout flaking of the coatinB
on the specimens. The tests shall be performed in
accordance with the procedures adopted by the
Industrial Technolog.vDevelopmentInstitute (ITDI) and
c. Reinforcing steel bars - Reinforcing bars of

various sizes, forms and lengths aie manufactured in accordancewith ASTM and ASSHO
specifications.
Samplesto be tested and analyzedshall be sent to the
BRS.
The following methods of sampling shall be followed:
A sample of at least one (1) meter'shall be cut from
everv tnn (1O) of t.he dcliveries
Tn addition tn the usual
sampling requirements, the requestfor [est must contain

these informations, namely: number of tons constituting
the delivery, name of dealer or contractor,length of bars,
and the name of the inspector present during the
sampling.
d,. Conerete blochs, wall baards, aslesios roofing materials - The ITDI and BRS require
samples of at least five (5) pieces for concrete
blocks anrt one (1) sheet for wall boards and
roofing materials.
e. Alloys - The assay of these materials shall be
made using the facilities of ITDI and the Metal
Industry Researchand DevelopmentCorporation
(MIRDC). The request for analysis shall state
46
Suppr,v nNo PnopnrrY MlN,rcl:Mr:xr
Dur,lveHyrrxu INspr:crrolt
the kind of analysis desired. A portion of at least

two (2) inches cut from the delivery and properly
identified shall be sent to ITDI and MIRDC for
the necessary test.
Ssc. 120. Cereals and Anintal Feeds.- The guidelines,
below, shall be availed of if testing of ccreals and animal
feeds is necessary.
a. rice and corn - the classification, verification
and evaluation of deliveries of rice and corn shall
L ^
ue
- ^ . J ^
tilaue
^ r
d[
r L ^
Lilc
l - L ^ - - r -
- ' -
rauuritLuf lcs
( )ar aLln e
rtureau
oI
(BAI) Con-rposiûe
Ai'iii,al Ii^,d-,-is'ur.v
sarrrples of at
Ieast tu'ent.v (20) grams shall be submitted in
sealed and propt'rly labelled containers.
b . a n i m a l f e e d s - t h e p r o c e d u r e sf o r f e c d s a n a l y s i s
f o r m u l a t e d b _ vt h e B A I s h a l l b e o b s e r v e d i n
testing anirnal feeds. Copra and fish meals have
Lheir own specific anaivses and the.same shaii
be tested to delermine conforrnity with specificatrons.
Samples of animal feeds may be analyzed either at
ITDI or BAI.
A sample of at leasr 250 grams shall be submitted A
small quantity of feeds from every sack of the delivery
will be sufficient sample. The samples are mixed
Lhoroughly and divided into fhree (3) equal parts. They
are then placed into clean glass containers to insure
against contamination. A strip of onion skin paper
bear-irrgihe signaiure or init,iai oi the inspector, requisir
bioner and dealer, together with the nurrrber, requisition
and invoice numbers, shall be pasted on each container.
mL^
^^--:-:r'
,
r rr
rrrtr -reqrusrLtoner
ano f,ne rnspector
Snall eacn feLarn a
bottle of samples for their ready reference. A bottle of

same samples shall be forwarded to the laboraLorv
performing the best.
Ssc. l2l. Textile, Flags and Flog Materials, Canuass,
1auge, Bandages, etc.-The testing of samples shall be
47
done in the laboratories named opposite each group

of
items:
a. textiles, including canvass, tracing
cloth,
etc.-A yard shall be sufficient as satple
for
testing and analysis purposes_Notably,
both
ITDI and the phil. Textile Relear.t, trr"titrt"
(PTRI) have the necessaryfacilities
thal car, be
availed of in testing these articles.
b. Flags and flag materials _ Although flags
and
'uhei-rmanufaciurers
are being ."g-,rLt"d Bv tfr"
govei-nmenû,
prior approvai of the philippine
Heraldry Committee must be secured .ug"lii"e
<iesign, color, materials, etc. Neverthele-ss, the
actual testing and evaluation of these ,.ji.I""
shall be done by ITDI and PTRI. One (t)lflag
or
a piece from each item subject to test .r,rr"i
b"
submitted as sample.
c. Gauze, bandages, absorbent cotton
Although categorizedas hospital supplie", gr.r"",
bandages and absorbent cotton are .ru""ifi".d
Textiles. Thus, the qualities of these articlls ""
are
covered by USplspecifi.cations. A roll of j"rr",
h_andagqor eott+n sha!! be siibniii.,c.i tu iTh-ior
the necessary test.
Sec. 122. I*ather and, Leather Gnds._The
following
quantities of samples of leather
and reathe, gooar-"t ult
be sent to the tTDl for tt ,,".u""ary test:
"
a. finished product (raw materials) ... I
square foot
b. finished product
I piece of each item
requiring test
Snc. 12J. Socp and Soap prod,ucts.__Samples
oFsoao
ano soap products shall be sent to ITDI for
the necessary
test.
.A cake or pint, in case of liquid soap, *ifi
rample.
"ui"" ""
Sec. 124. Paint and, point Materials._The following
quantities of samples of paint and paint
materialt shall
be sent to ITDI for the
t!"t,
"*""*ry
{8
v MrrxrrceMur.lr
Suppr,y nNo PRopeRT
Del.rvEty ruvtr Irusrucr.lot,t
a. ready-mixed paints, enamel lacquers and other

fluid paints ....... I gallon or at least I quart;
b. paint paste, powder water paints and dry
pigments ...... I keg or at least 5 lbs; and
c. drying oils, efc. ....... I
gallon.
gallon
or at
different types of engines. The following quantities of

samples shall be submitted to ITDI for the necessary
analyses:
least l/2
Ssc. 725. Wires, Telephones, Electric Steel Cables,

are manufactured from steel, copper, silver,
a/c.-Wires
etc The specifications of these articles vary in accordance with the specific requirements of the intended
purposes; hence, requests for test must be based on such
specification.sThe facilities of the ITDI or MIRDC shall be availed of
if the desired test includes a series of requirements. A
sample of at least thirty (30) feet shail be necessary.
49
a. lubricating oils
1 liter
b. grease
1 pound
c. fuel orl
1 gallon
Src. 129. Aspholt and Asphoitunt products.-_'lhe

following quantities of sampies of asphalt and asphaitum
. r .
- - * ^ l - - ^ r ^
^ L - l l
r
I
r
,
pr{ruuuLs nflarl
oe suDmr[,[,eo t,o _uttD lor testlng
mi^^
'r'rG
+Lî-
^^-f^-*:l-,
urrsrr L
u'rur r'rLy
---:aL
aL-
to deter_
'r
wrLrr Lrre specrllca[rons
prescrttied
bv DPWH:
a. rock asphalt
b. asphaltum emulsion
,drum
I gallon
Ssc. \26. Csnned Gaiod.s,.-samples of canned goods

shall be submitted to BFD for the necessary analysis.
Rule 17. Testing and Evalua,tion of

Analysis Reports Certificates
Sec. 127. Inhs and Adhesiues.-Inks include stamping,

stencil, writing, etc. Adhesives include mucilages, office
paste, etc. The following quantities of samples of these
articles shall be submitted to the ITDI for analvsis and
certifications:
Sl:c. 130. Authorizetl Laboratorie.s.-For ready reference, enumerated hereunder are laLroratoriesauthorized
to perform tests and analyses whenever required and
practicable to determine coilformity wifh snerifica_tiols:
a. writing ink ...

b.'stamping ink
7/2 Pint;
...... 112 pint and one
nqw
stamping
pad;
c . m i m e o g r a p h i n k . . . . . . . . . " . . . .. . f l b . a n d o n e r e a m
of mimeograph
paper long size;
d . mucilages, office paste, etc... . L/2 Ib.
Sec. 128. Lubricating Oil, Fuel Oil, Grease, efc.-The

quality of lubricating oils is standardized under SAE
(Society of American Engineers) requirements. SAE-30,
40, 50, etc., are the classificationsof lubricating oils for
a. Research and Development Center, AFp

ordnance and chemicals
quarter master
special projects
b. Bureau of Food and Drug
food
drugs and medicines
cosrnetics
Bureau of Research and Standards, DPIVII
construction materials
d . Industrial Technology Development Institufc
office supplies
industrial products
Supt't.v ntltr Ptopr:xrv M.rNrccuuxr
50
Dcr,rvt:nynNn lNspncrrox
e. l\letals lndustry Research and Development

Center
metal products
Rurezru of Sorls and Water Management
fertilizers
-_ lJurt'au of Animal IndustrY
IJ
animal feeds
velennary
prouucLs
r.r'oodand wood Products

Text.ile
Research
totally rejected and replacement thereof shall be

demanded; and
d. supplies or property whose quantity is short by
volume, weight, actual count, etc., shall be subject to reduction in contract price at an amount
equivalent to the shortage, provided said deliver_
ies are acceptable to the local government unit.
Damaged items which are not disclosed or incorrectly
marked as -srreh-sha!! also be subjected r-c correspondrng
reduction in priee
h. Forest I\{anagement Bureau, DENR
i. Philippine
(PTRI)
5l
Institute
[extiles.
or
Unless the contrary is stipulated in the contract
analysis
test'and
p.r..hu"" order, all charges and fees on
procuring
if d"li,r".ies shall be for the account of the
local governments.
Ssc. 13! Acceptntrecand' Re-iectionof Deliueries'-The
ihe
resuits of the tests of the samples shall determine
propor
supplies
the
on
taken
appropriate actions to be
eitv deliuered in accordance with the following:
be in
a. supplies or property tested and found to
shall
specifications
u..o.du.t." with the required
u ^ d^L^L^c P^l-L +
^,1.
ut
uc
b. supplies or property whose quality analysis
per cent
sho*" a deficiency of less than ten OO"/o)
--^-.
L^
^^-^^+^J ^-^-idpd t.hev shall serve the
aLLtPwut
ug
Illay
p,.ron"" for which they were purchased' the deiect is minor and the contract price is reduced
according to the deficiencYnoted;
shows a
c . supplies or property whose analysis
shall be
above
or
d"ii.i".,.y of ien QT'i") per cent
Snc. 132. Waiuer of Test.-The authorized in-spector

may waive the test and analysis of deliveries subject to
test under any of the following conditions:
a. when the specifications of the order can be
determined. or calculated without actual testing;
b. when the specifications of the supplies or
property of the current purchase are similar with
those of the prior purchase which had already
been tested by authorized testing.agency, provided that the curqent and previous purchases
are liom the same supplier. The previous ldboratory report shall be valid for six (G) months from
date of test; and
c. government products, provided that same are
delivered to the local governmen-ts in their original containefs. sealed and properly labelled without any indication of tampering or an attempt to
unseal the containers.
Rule
18. Sampling
of Articles
Subject
to Test
Sec. 133. Procedures in the Sampling of Articles

Subject to Test.-To insure prompt and speedy sampling
of articles subject to test, the following procedures shall
be observed:
52
DElrveny lNo lNspccrroru
S t ' l ' t ' r . v , r r u t r P l t o ! , ! - - t t l vM a r y n " t t " t t * "
the property inspector. Said certificate, together

with the official bid sample, shall be delivered
immediately to the authorities concerned by the
properfy inspector, himself. This requirement
shall also apply where the bid sample has been
forwarded direct to the requisitioner. In either
case, diligent care shall be observedto insure
that the official bid sample will not be tampered
or substituted.
lmmediately upon completion of inspection of

deliveries suhject fo test, the property inspector
shall accomplish the Certificate of Sampling at
the back of the inspection report. The general
services officer or local treasurer, as the case may
be, shall request the presence of the dealer or.
his authorized representative during the
sampling
If the dealer fails to be present, the
property inspector shall forward the inspection
report to the general services officer or local
treasurer, as the case may be, with a notation to
this effect.
The property inspector shall take custody of all

offrcial samples s,:bmitted with the bids. If rhe
official bid sample is sub,ieet.
to analysis,the same
shall be sent to any of the laboratoriesmentioned
b . The property inspector may proceed with the
;r -r r
sampling if authorized by the dealer, but no

voucher covering 80 percent of the purchase
value of the articles subject to test shall be released unless accompanied by a certificate signed
by the deaier or his authorized representative
waiving his right to be present in the sampling.
The duplicate cop.y of the certificate of waiver
secured from the dealer shall be sent to the provincial/city or municipal auditor, as the case may
be, for his information and guidance.
d Where the delivery is subject to analysis and the

sample is to be taken therefrom, the dealer or his
authorized representative shall also sign the certificate. Where the dealer waives his right to be
present in Lhe sampling of a particular delivery
or of all his deliveries subject to analysis, he shall
prepare a written sf,alemeni to this effeci to be
attached to the report of inspection. The
property inspector shall not submit any sample
for analysis withoub a properly accomplished
certificate bf sampling.
e . Where the official sample submitted with the bid
is attached to the buyer's order, letter order, etc.,

a certificate to that effect shall be secured and
signed by Lhe dealer or his representative and by
53
vQs^r iL+r :u^r -r
|on
rrrv
L^-^^f
tlcl trul
---:rL:
wlLIllll
?
LwcnLy_lour
'^..
\24)
hours from receipt of the same by the property

inspector. If analysis is not necessary,he shall
comparethe actual deliverieswith said samples.
No request for inspection of delivery shal be
va ^n ^| .eoe- r* - ui ^q^rJu s u
.,-l^^^
urrrEss
aL^
l^^l^-r,rru (tcatel
L--
IIas
suLrmIt,[eo
enough bid samples of the articles delivered.

g. All official bid samples placed in containers shall
be properly labeled. They must be sealed with
strips of onion skin paper bearing the signature
of the buyer and property inspector and securely
pasted along with all t.he orifices of the
containers.
Sec. 134. Somples, Sketches,Blueprints, etc.-All
samples, sketches, blueprints, etc., attached to the order
shall be submitted by the contractor to the office of the
general services officer, municipal treasurer or barangay
ireasurer, as the case may be.
Sec. 135. Penalties.-For failure of the contractor to
make delivery when due, the following penalties shall be
:---^^-l-
rIIrpuseu.
a. a liquidated damage in the amount of one-tenth

(1,/10) of one per cent (|Vo) of the total value of
the contract shall be deducted for each dav of
delay; or
St;i'r't,v nln Pttort:trrv M,rx,lct:vr:xr
b. a liquidated dam:rge in the amount of one-tenth

( 1 / 1 0 ) o f o n e p e r c e n t ( 1 o / o )o f t h e t o t a l v a l u e o f
the undelivered portion shall be deducted for
each da-y of delav, if the contract has been
partiallY frlled.
Snc. 136. Withdrauol of Reiected Deliuerie.s.-Delivered goods r*'hich are rejected due to non-conformity with
s p e c i f i c a t i o n s o r d u e t o o t h e r j u s t i f i a b l e r e a s o n ss h a l l b e
u'ithdrawn by the contractor from the governmentwarehouse or premises within seven (7) working days after
',he date of receipt bv t.he contractor of a "Notice of
Rejected Goods"
Sr.:c.137 Stora1e Charges.-A storage charge of fifteen
per cent osw per month of the value of the rejected
goods shall be collected from the contractor after the
1.p"" of seven (7) working days from the dale of receipt
Uy ttte contractor of the Notice of Rejected Goods'
Spc. 138. Llnciatmeri Rejecteci Gooci.s--Rejecied goods
which remain unclaimed for a period of three (3)months
shall be disposed of by the local governmenl in a tnost
advantageous manner to defray storage cosLs
n
IIIl-D
n'
iY
f rnrr
f z a , T f' irit' L^ iI
aJt'L;.ttrza
ANtrt
A(\r-r|lrNTIN(]
Rule 19. Utilization of SuPPlies

or Property
Sec. 139. Responsibitityfor Wasteful Useof Supplies or
property -It shall be the direct responsibility of every
locat ct ier executiveto prevent or minimize wastefuluses
of supplies or property requisitionedby eachdepartment
o. ofii.". The iocal chief executiveshall developoperating stanciarristo guard against t'he improper or wasieful
,r""e of supplies or p.op"rty. These standards shall be
approved ty the local sanggunian concerned'
Src. 140. Direct Responsibility fo' Supplies or
Property.-The person in actual physical possessionof
Unlrannox nun Accoutuxc
supplies or property or entrusted with its custody and

eontrol shall be responsible for its proper ,r""
.u..
"rrd
and shall exercise the diligen"u of a
lood father of a
family in the utilization and safekeeping thereof.
Sec. 141- Tyansfer of Excessproperty._It shall be the
duty of every head of the department or oflice to turn
over to the general services offioer or municipal or
barangay treasurer, as the case may be, excessproperty
for reiesuance to other departments or offices.
Ruie ZO. Accountabitity for Supplies
or Property
Sr:c. 142. Primary and Secondary Accountability
for
Supplies or Properly.-Every head of depa'rtmeit'or
office of a local government unit shall be primarily
accountable for all supplies or property assigned or
issued to his department or office. The persono, p-r.or*
entrusted with the possessionor custody of supplies or
property under the pr irnarj accountability of the head.of
a department or office shall be immediately accountable
to said officer. The head of a department or office mav
require the person in possessionor having custody ani
ccntro! therccf under him i,okeep s.r"l, ."..r..i" and make
reports as may be necessaryfor his own information and
protection.
Suc. 143. Transfer of Accountability.-Transfer of non_
consumable supplies or property from the general
services olficer, municipal or barangay treasurer, as the
- ^ - - ^ - r r
- - - '
J
,
casB
ur.ry Lrrc,
tu arly qeparf,menD or ollrce lor rerssue to
the end-user shall be coveredby a property Issue Slip

(LCU Form No. 08) to be preparedin such number of
copies as are necessaryshowing the complete deseriptions of the supplies or property and the acquisition cost.
Each Property Issue Slip must bear certificates effecting
the transfer to be signed by the general servicesofficer,
municipal or barapgay treasurer, as the case may be,
and head of the department or offrce.
U'rftlz.rrtoN e.vn Accouxrr Nc
Sut,pt,v n^'tt PnttpElttv Mmlncr:u t:Nt
)b
Transfer of non-consumable supplies or property from

the head of the department or office to the end-user shall
tl .r or tnt nr r*( nr rr c\ rdv rh v M e m o r a n d u m R e c e i r r t s( l , G t l F o r m N o ' 0 9 ) .
T h r - g e n e r a l s e r v t c e so f f i c e r , m u n i c i p a l o r b a r a n g a y L r e a s r.r."., r,-*the case may be. shall be furnished with a copy
of said l\lemorandum ReceiPts.
St:c. 144. Designation of Supply Officer'-The local
chref executive may designate a supply officer in each
ciepartmerrt or office upon the recommendation of the
head of the department or officeconcerned' The supply
of
ofi-icei.sliall be immediaLely accounta.bleto the head
rL l, -l t ^c ur r^v ,( .l l. - , . rLm
on+
rrrLrru
^'
nffine fnr srrnnlies or DroDertv
placed
u n d e r h r s a c t u a l c u s t o d - va n d c o n t r o l '
use
and
Care
. !r
OI f,ne saIIle
I ^L ^'ll ^-.^-î -o '1.'a rlili<ypnec

illlLl sltdrr c st Llre
he
in the utilization and safekeeping Lhereof' Further'
same
of the
shall keep a complete and updated record
to the
semi-annually
thereof
and shall render u., n..or't"t
head of departmenl or office concerned'
1 tr
JF'u'
r'*L)-
r \ . r - . t^J rt . . LD L^ t- , \' '^\ '^t e
uuLJ
L'
D-in,nrilv
these propertiesand shall submit an inventory report

to
the provincial, city or municipal auditor o., or'before the
15th day of Januar-v each year showing, among others,
the condition of said properties.
Sec. 148 Responsibilityfor Real Estafe._Every local
chief executiveshall be immediatery responsible ior
the
proper and effectiveuse and managementof real
estate
owned or titled in the name of the local government unit.
He shall ensure that all real estate ..odu. his responsi_
biiity are registered,under the Torens Title System and
safeguard--dfrom squat.uei-.s,
uniawfui occupanis or the
!ike.
"-;1;""
for suppti* o,elnpni i,
;., Ia i,i',- oId
. ::l;i' $'j :
h a v i n g c u s t o d y o r c o n t r o l o f s u p p"l i e "
i.operty is
Sr:c
S s c I 4 5 R e s p o n s i b i l i t ya n d D u t v o f a P e r s o n l m m e d i
possesately AccottntabLe.-The person in actual physical
c
o
n
t'rol of
o
r
sion of' or entrusted with fhe custody
proper
supplies or property shall be responsible for the
Arcottn.l.ahle
-It
or offrrce
shall be the'duty of every head of a department
pr-operty
or
lo keep a complete record of all supplies
semiLhereof
accounts
his
under his charge ancl render
provincial
the
thru
u""""ff "ge.reral
t to thJ local chief executive
the municipal or
or city -b^r^.rg"yservices officer; or to
thru the barangay treasuror' a'q the
p'.rlorlg
15 of each
case may be, on or before July 31 and January
of the report'
y1".. fn" auditor shall be furnished a copy
on Build'
Si:r: 14? Accountability and Responsibility
other
and
fngs anri rtther Physical Structures'-Buildings
and
physical sf.uct,o.Js shall be under the accountability
general services
.esponsibllity of the provincial or city
the case
barangay'as
offiler, municipal mayor or punong
of
record
updated
may be I{e shall keep a separate and
D/
1-49. Messurc
of
Linhilit^.t nf D-*.^--
A-,-,^..--.,.-t
immediately accountable therefor and shall be liable for

its money value in case of illegal, improper or unauthor_
izerf use or misappiication bhereof-,b-y himself or
any
other person for whose acts he may be responsible, and
he also shall be liable for alr loss, damage, or deterioration occa-qionedby negligence in the keeping or use
of
such property. The burden of proof that due diligence
and care in the utilization and safekeenin' therc4i -,o.
observed, rests cn i,he accountable officer.
Unless he registered his objection in writing, an
accountable person shall not be relieved from liability ty
reason of his having acted under the direction of u .,-,p"rior officer in using supplies or property with which he is
- ^L-ql ,, l/ -r L .
!^t}^.q- r- E
rFL^ ^ft:^^r rrc urrlccl
-l.
urr ecLrllg
any
lllegal,
Unauthof_
ized or improper u.seof supplies or property shall first be

required to answer therefor.
Sec. i50. Liabiiity oi Security Agency.-In ca_seof loss,
damage, or deterioration of government supplies or prop_
ert.y arising from. or attributable to, negligur.* in
security, the head of the security agency shall be held
liable therefor.
Suprrv ,rNu PnopsRTYMnNnceuexr
Sec. l5l. Notice of loss and Applicotion for Relief.tren loss of government supplies or property odcurs, it
rall be the dut,v of the offrcer immediately accountable
rerefor or having custody thereof to immediately notify
multaneously the offrce or department head and the
rovincial, city or municipal auditor concerned. The
'fice
or department head shall immediately coirduct a
:eliminarv investigation of the loss and refer the matter
r the proper governrnent investigation agency. The
:ovincial, ciby or municipal auditor shall conduct a
:parate inquiry of the reported loss while the clues are
.ill fresh to determ.rne that the aiieged ioss or other
rsuaity ha<i reaiiy occurred. An oificer or empioyee who
rils to cornply with these requirements shall not be
:lieved of liability or allowed credit for any of such loss
r the settlement of his accounts.
The request for relief shall be filed with the provincial,
ty or municipal auditor by the accounlable officer
ithin the statutory period oi thirty (30) days or oi such
In
rnger period as may be allowed by the'auditor.
eneral, the request shall be accompanied by the
rllowing documents:
a. the basic notice of loss showing the exact date of
fihng and receipt in f-he cf!-rct cf t-he auditor
concerned or the COA;
of the accountable officer containing a
statement of facts and circumstances of the loss;
b . affidavit
affidavits of two (2) disinterested persons cognizant of the facts and circumstances of the loss;
report of the office or department head, proper government investigating
agency and the auditor on the facts and circumstances surrouneiing the ioss;
d. frnal investigation
e . a list and description including book value, date

of acquisition, property number, account classification, condition of the property, and other additional relevant information of the properties lost
Urluznrtor lNo Accourtrlxr:
59
duly certifigd by the general services officer, mu_

nicipal or barangay treasurer, as the case may
be;
latest inventory and inspection report preceding
the loss and inventory report ol properties re_
maining after the loss, duly witnessed by the
provincial, city or municipal.auditor concerned;
g. comment and/or recomrnendationof the local
chief executive concernedon the request;
h, er-act or accur-af-eainount of governmen.u cash or

trook- velue of the
for reliefi-;;J'"
nronpr"t.-'
r'rvvvrur'
qrrhiarr
D
u w J c L U ^f
u r +!.^
urrc reguesf,
i. Memorandum Receipt,if any, covering the

properties subject of the request.
-The request for relief shall be coursed through the
office or department head concernedand gener*
officer',municipai or barangaytreasurer, as the case
"!r.,rit".
may
be, for their comment and recommendation.
In case of bulk lossesof supplies or property pertain_
ing to more than one (1) oflcq or departm"rrt, th"'."quest
for relief shall be made by'the local gitne."t
officer or local treasurer concerned Tilp .i:^rrocr
"".iri.u"
chqtl
als-obe acco-mpaniedby the latest inventory ."p"r,
O*_
ceding the loss and
-the inventory report lf p.op"riiu"
remaining after the loss, duly witnessed by the p-"i"_
cial, city or municipal auditor concerned.
The -same officials shall request rerief for rosses
occurring in transit.
In all cases,the request shall be endorsedby the local
chief executive together with his recommendations, to
the provincial, city or municipal auditor
In caseof delay in the filing of the aforesaid notice and
request, satisfactory explanation or the reason(s) for such
delay should be submitted, after which the reasons/e*planation- given should be verified or confirmed by the
provincial, city or municipal auditor concerned.
60
-Supt'r-y lttltr
U'nt,tznrrow nlID AccoLrNTrxc
If the occurrence of the loss has also been reported to

o t h e r p o l i c e a g e n c i e s ,l i k e t h e N . B . I . , C ' 1 . S . ,e t c . , t h e f i n a l
investigation report thereon should be submitted-
3. force majeure (earthquake, typhoon, etc.) *

3.1. detailed lisUinventory of iost
government propertieg or lost
as those propertie's retrieved
lamity, duly verified by the
cerned; and
Information in Certain Cose.s.SBc. 152. Additional

ln cases where the loss of government property is due
to fire, theft, robbery/hold up, force majeure, (earrhq u a k e , t . y p h o o n s ,e t c . ) o r d e a t h o f l a r g e c a t t l e a n d o t h e r
Iivestock,the request for relief shall be accompanied by
the docurnents hereunder enumerated in addition to
those required under Section 151.
u^ -r c^ -x. i^l -c! L tL: r- t^ r r e !LL t l e :l r- r- c: l t- u e l l L1 I n a p p e n
1 1. the final report of the local Police/Fire

Ûl
Qj^+:^\)Ldlrvrr
^vrr
+} urrL
i1-r^îuz^l uo vn rf ^ v t
2.2. detailecl list of government properties iost

or d,estroyed as well' as those properties
retrieved Lft"t the robbery incident disclosing the brook value of each i'em or exact
amounl of government money/cash involved, duly certified by the auditor concerned; and
2.3. authenticated picture(s) taken relative to
the incident.
Eng
death of large cattle and other livestock -
1.2. list or inventory of burned or destroyed

properties as well as those properties
retrieved after the fire, stating therein the
acquisition cost/book value of each item,
d u l y v e r i f i e d b y t h e p r o v - i n c i a l ,c i t y o r
municiPal auditor concerned;
I.4- fire insurance policy, if any' coverrng

subject ProPertY.
2. theft'or robberY/hold-uP police report on the theft or
the final
2I
robberY case;
ano
areas or places aflected Lhereby.
'
1.3. authenticated picture(s) showing the site/

office or government properties razed by the
frre; and
or destroyed
cash, as well
after the caauditor con-
3.2. certification of the proper officlal of the local

PAGASA or other similar government
agency on the actual occurrence of the
caiarni'uyspeciiying iherein the approximate
1. Iire n-^-!-^-t
LlllgllL
uCUdl
61
4.I. certificate of death of large cattle issued by

proper official and duly verified by the
auditor concerned; and
4.2. autops-vreport, if any, of the proper veterinarian.
If the property is insured, information as to whether
or not the local governnrent unit concerned has already
been paid the nroccedsof the said in.qrrranecnnliq,w5lal!
be disclo.sed. Irr the affirmative, evidence to this effect
should be submiL"ed. If the property has not been
insured, reasons to this effect shall be submitted.
In cases of theft or robbery including those with force
upon things (destruction of paillocks, doors, window
:^l^--^:^^
Jd,ruuslvD,
^r^ \
cLL.,r,
:-f--*â:-rtllut lrtaLlull
as
LU
r
rt
wllgLtlgI-
.oI'
t
IruL
rl
LIlg
pre1nilgnjof the local government unit concerned are

manncd by security guards shall be subrnitted. In the
affirmative,'the respective sworn statements or affidavils of the guards respecting i.he incident shall be
obtained and submitted.
A certified copy pf the contract of securiuy/services
entered into by and bbtween the local government unit
and the security agency shall also be submitted.
b2
Si t'i,i I
rrii
Ptt<tt't.tn'\' IU^\,\(;|iLtf;\'t.
If the secrrriL.vguardts) is found to be negligent in the

premist's, information shall be revealed on whether or
not appropriate action has bt-en instit.utt'd to enforce the
civil liabilit.y of the securit.vguard antVor securit.y agency
COnCOrnt'd.
In cases of theft or robbery/hold-up of government

cash/funcis lo be deposited with or rvithdrawn from a
depositor-r'bairk or other local government unit, informalion as to q'hether or not the accountable officer was
escorted bv a policeman or securit.r'guard .shotrldalso he
s u b m i t t e d - I n t h e n e g a t i v e , e x p l a n a r . i o nt o t h i s e f f e c t
should be submitted.
S r : c . I 5 3 . C r e c i r tl o r L o s s . - C r e d i t l b r I o s s e s i n v o l v i n g
i e - s s1 f i s n f i f t . r ' t h o u s a n d p e s o s ( ? 5 0 , 0 0 0 . 0 0 ) s h a l l b e
allou'ed b.v ihe COA director or provincial, city or
municipal auditor in'accordance with the authority
issued b1' the Chairrnan, Commission on Audit. Those
i n v o l v r n g ? 5 0 , 0 0 0 . 0 0 o r m o r e a n d t h o . s en o t f a l l i n g u ' i t h i n
c h e a t r t h o r i t - t 'o f t h e r e g i o n a l d i r e c t o r a n d p r o v i n c i a i , c i t y
o r m u n i c i p a l a u d i t o r ' su n d e r e x i s t i n g C O A r e g u l a L i o n .o
sn
Lhe matter shall ivith the reconrmendation of the
auditor and regional director concerned, be forwarded to
t h e C h a i r m a n . C o m n r i s s i o no n A u d i t l b r h i s a o o r o o r i a t e
acLion.
Credit for.losses shall be returned through the local
chief executive to the local accountant who shall on
account thereof, drop the lost properties from the books
of accounts thru journal voucher attaching thereto fhe
credit granted together with all supporting documents.
The local accountant shall furnish the general services
o f f i c e r , m u n i c i p a l o r b a r a n g a y t r e a s u r e r , a s t h e c a s em a y
be, and the accountableofficer concerneda copy of the
: ^ , . - - ^ t . , ^v .t r,t ^l LLt l ^c t,
tuul
tldl
Srlr;. 154. Resp,tttsibility of the Directors of COA Regional Offices and the Prouincial, City or Municipal
Auditors on Request {or Rel[ef Subruitted to the Commisson on Audit for Resolution.-In order to ensure or facilitate the evaluation and resolution of application for relief
U Tl t . l z n T t o N , r x nA c c o u N ' n p c
b.J
from accountability, the coA Directors concerned

and./or
the provincial, city or municipal auditor, shall first
ascer_
tain that the information required under
Section l5l,
and Section lS2 whenever applicable, are-duly
.o_pfiua
with; and shall forward the same to the
Commission on
Audit with the following:
a. comment and,/or recommendation of
the COA
Director/OlC and provincial, city oi municipal
auditor, as the case may be, on ihe propriety
of
the request, logether with a full sfatement of
material facts; and
b. a categorical determination by the.
auditor
concerneci on fhe absence of fault or negligence
on the part of the accountable officer in
the
handling, safekeeping, etc. of the funds
and
properties under his custody as evidenced
by a
recital of the precautionary/security measure.s
ariopted to protect or safeguard them.
The comment and./or recommend.ationof the
direcLor
and/c,r provinciavdistrict auditor copcernedon
the deter_
mination by the unit auditor on the absence
of fault or
n e g l i g e n c e o n t h e p a r t o f t h e _ a p p l i c a n ts h a l l
also be
subnit,ttcd
Sl:r:. 755. Central Record._The provincial
0r crty
general scrvices officer, municipal or barangay
t."us._,.".,
as the case may be, shall mainiain a central record
of all
s u p p l i e s o r p r o p e r t y o f t h e l o c a lg o v e r n m e n t . C o m p u t e r i zation df ;-ecordsshall, as much as practicable,
be availed
of.
Sx;. 156. Annual [nuentory o1"Supplies or property._
l'he local chief executive shall ."q,ri." u., u^r,uui
physi_
c a l i r r v e n i o r y o i a i i s u p p i i e _ so r p r o p e r t y
of Lhe local
government unit as of December 31
of each year, to be
conducted by office or department by a committe"
of
three (3) consisting of the representative of the
ro.ui.ir"r
executive as chairman and the general services
ofn.".,
municipal or barangay treasurer, as the
case _uy b",
64
SuPr'lv rrNo PRopeRry MrrNacRut:N'r
Utlr.rzn, lou nNn AccouNrrxc
and the supply accountableofficer of the departrnent or

cffice concerned,as members. The inventory report shall
b e s u b m i t t e d t o t h e l o c a i c h i e f e x e c u t r v ea n d c o p y
f u r n i s h e d t h e p r o v - i n c i a l ,c i t y o r m u n i c i p a l a u d i t o r
:oncerned.
Sec. 157. Role of the Auditor In PhysicalInuentory.lhe provincial, city or municipal auditor or his duly
ruthorized representative shall witness the inventory
.aking referred to in Section 156.
C r ^ . Jr,(,
1 E o
Irrtr
n
:
IleCeIpLS
t ,
OJ MSUUTLC(5,-I\Ll
l t t .
- I-sSUilIlCeS
- l , l l
tillaIr
L ,
Ue
frqncfor
nf
-^--o*ô-.lohlo
"rr^^lioc
nr
nr.!nartlr
from one supply officer to arrother supply officer

s h a l l Le c o v e r e d b y I n v o i c e R e c e i p t ( G e n e r a l
Form 30-A, as amended);
b . transfer of non-expendable supplies or property

from general services o{frcer, municipal or barangay treasurer, as the case may be, to the head of
the department or office shall be covered by
Property Issue Slip (LGU Form No. 08);
transfer of non-expendable supplies or property
.
ll ulll
llgau
uI
rl
Lrru uePdr
-r
LlllcllL
ur
,f!:--
ulllLc
r-
rL
L(, Lrlc
-l
cll(l-
user shall be covered by Memorandum Receiprs

(LGU Form No. 09);
d. the transfer of expendable supplies or property
from the general services officer, municipal or
barangay treasurer, as the case inay be, to the
requisitioning departmeni or oifice shaii be covcred by Requisition and Issue Voucher (General
Form 45-A. as amended); and
e.
,
r
{..rarl$Itir
.- â
oI
copy cf Ceneral t'orm'No. J0-A, LGU Form Nos. 09 and

î.
P'
Issue Slip and Mernorandum Receipt shall be
"urty
renewed every three (3) -years.
Sec. 159. Running anci l-est Inuentory.-Aside from the
annual inventory, the local chief executive shall order a
running and test inventory of property under his
accountability at any time for the purpose of ascertaining
r,li:' cr';rrecbness of the supplies or property records
Discrepancies or lcsses that, nia;v be rii-sciosed thereby
qhqll
;roperly receipied as foliow-s:
^----^-J.-L.l^.-..,^;li^^
-\r-lPpirEr
cxl.rellLldurE
-,-,1-^n^-+r,
v1
Pr trysr
uJ
f-^rr vrrr
head of the Cepartrtent or supply officer to the

end-user shall be receipted using Recapituiation
form (LCIU F-orm No lL)
The general .services o{ficei, ln*,nicipal or barangay
breasurer, as the case may be, shall be furnished wit^l. a
65
i--o.liofol.,
vk v^
r- ^s-pû-r+ ^ LJ s u
r^
uu
+L^
LrrE
--^--:-^:^r
pr uvlllclir.I,
-:a
crLy
or
munrcipal auditor for appropriate action in accordance

with these reguiations.
SBc. 160. Inuentory in Cases of Change of'Accountable
Qff!:e;'s.--In cases of change of accountable supply
officers, an inventory of existing supplies or property
shall be taken .joinrly by the out-going and incon-,ing
''r-cor,rnlablesupply officers
to be witnessed by the provincral, city or municipal auditor concerned or his duly
authorized representative. Transfer of property shall be
effected thru Invoice Receipts for Property.
Snc. 1til. Property Clearances.-When an emDlovee
- r e i i . e dr.s
,
transferred to another government office,
resigned, dismissed or separated from the service, he
shall be required to secure property clearance. The local
chief executive shall prescribe the form and procedure for
property clearance.
TITLE V _ DISPOSAL OF SUPPLIES

OR PROPERTY
Ruie 21. Generai Policy on Disposal
Sec. 162. When Suppliesor Property shall be Disposed.
of. When supplies or property of any local government
unit have becomeunserviceablefor any cause or are no
longer needed,the same shall be disposedof in accor-.
66
fJtspos,rr.or Surli.ri;s oH PH<irErtTy
Surt'ly rrr.itrl)Hopnnty MeNnt;uMnN.n
dance with the procedures prescribed in these rules and

r e g u la t r o n s .
Suc. 163. Responsibility frtr the Disposal of Supplie.sor
Proppr7.1'.-The provinciai or city general
officer
"e.uic*"
or municipal or barangay lreasurer, as the
casemay be,
s h a l l b e r e s p o n s i b l e f o r d i s p o s a lo f s u p p l i e s o r p r o p c i t y o f
the local gcvernment
Suc. 164. Responsibility for the Dispo.saiof ReaI property, Buildings ond Other Physical Structures._The local
chief executive or punong barangay, a-" the case may be,
shall be responsible for the disposal of real properry,
uurrLtrrrBsarru uLrrer pn-ysrcalsf,ructures.
L - - : l J : _ - -
^ - l
- r l
Sec. 165. Public Auction as the primary Mode of Disnncnl
. - - Qvr *r rnr n, 1l ivi ur o
D
r -r^v-p^c- r+ . , ! J /
-,.L:^L
tvlltLrl
L^-,,
tlavc
L
uecorne
unserviceable or no longer needed shall be sold, when_

ever applicable, at public aucLion, subject to applicable
ru-les and regulations.
Sec. 166. Other Methods of Disposal.-For justifiable
reasons, disposable supplies and properl,y may also be
disposed of in the foilowing manner:
a. sale thru negotiation;
b. transfer
without cosl to orher offices or
department or other government agencies: and
c. by destruction.
Rule
Ct-^
1cr',
22. Reporting of Disposable

or Property.
n.'-----,
|J!,u. au t. ulspusul
D----.,-
rr.
rrrl
:euures.-vynen
Supplies
,t
rr
f,ne supprlgs
or
property of a local government unit have become

unserviceablefrom any cause, or are no longer needed,
the officer immediately accountabletherefor shall return
the same to the head of the department or office who
shall cancel the correspondingMemorandum Receipt. If
no longer needed in the department, f,he head oi the
deparbment or office shall reburn the same to the general
b /
services officer, municipal or barangay treasurer, as the

case may be, with Lhe use of Property Return Si;p (LGU
Form No. 12). The general services officer, municipal or
baranga_ytreasurer. as the ca.semaJvbe, _shall thr,.rugh
t h e l o c a l c h i e f e x . e c u L i v e f, i l e a n a p p l i c a t i o n f o r r t s
d i s p o - s a lw i b h t h e p r o v i n c i a l , c i l y o r m u n i c i p a l a u d i t o r
who shall conduct an inspectronand determination
whether the subject property is with or without value.
Sr:c. 168. Forms to be Used -The following forms shall
be used in the reporting of disposable supplies or
property:
a^ .
f - - , , ^ ' ^ r ^ * - .
rrrvsrruur yr
l - ^ - ^ - ! r
rrrl)ptjcLlUn
ane
l\ppfaf
Saf
(Lrenefal
F o r m t . t o . l l - n , a s a m e n d e d )s h a i i b e u s e c iw h e n ever the supplies or property to be disposedare:

(l) suppiies in sl,ock accounts for consumption of
the iocal government unit or for sale; (2) equip_
ment; (3) building and other physical structures;
and
b. Repor+"of Was*"elvlaleriais (Ge:,eral Form i.io. 6iA , a s a m e n d e d ) s h a l l b e u _ s e df o r d i s p o s a b l e
supplies or property not covered in Sub-para_
graph (a) of this sectioh.
Suc. 769. Responsibili.ty of the Prouincial, City or
Municipal Auditor on Disoosahlc Pronprly
The
provincial, city or municipal auditor shall inspect Lhe
supplies or properLy to be disposed of to determine
whether the same are with value or without value. He
shall indicate his findings on the Inventory, Inspection
and Appraisal form and shall forward same to the
Committee on Awards with his recommendation. If the
supplies or property are found to be valuable, he shall
recommend its sale thru public auction; otherwise, he
shall recommend its destruction in his presence.
Snc. 170. Appraisol of Property by the Cammittee On
Awards.-Upon receipt of the Inventory, Inspection and
Appraisal form, the Ccmmittee on ArvarCs shall appraise
the supplies or pro[erty recommended by the provincial,
irii
St i'i'i i. rrir
Itlrrl,t ttty
lrl
Nfl,\..i.\(;l;11i;)iT
c r t . \ ' ( ) r ' . r u . i c i [ ) i l l a u d r t ( ' r t o b e d i s p o s e do f w h i c h

i r p p r . i . s i r ls h i r l l b e c o n s i d e r c r la s t h e l l o o r p r i c e i n t h e
p u b l i c r r r r c t r o ^t o L l ec o n d u c t e d f o r t h e p . r p o s e u n d e r t . h c ,
supt,rvisronof said Conrrrrittt'e
Ilule
23. Sale thru
l)ublic
Auction.
Sr.t- l7l
Int,ttrtl rtyt ttt Bi d -T he Conrrnittee orr
Au'ards shall isstrt: the lnvitatiLrn to llrd (l.l.B) whrch
shall contain, among others, the followrng
a . d a t e u f r s s u r r n c;e
b
l o c r i ' r r o no i i i r t ' s u p p i i e s o r p r o p e r L - v ;
c . t l u i t r r L r ' . .aur' r t i a r i t ' t l u t r i e c i e s c r i p t i o n o f t h e s u p p i r e s

or propertv;
d
s t i i t e n t e l t l o f . r ' t , s t ' r , , ' a t i o no r c i p l i o n o n l h e p a r L o f

tiie local govenment unit tc) accept or reject arr.v
-t ). L- ,a,Ll lL lr-r :r r( ^r - (^1- r, .r .ul + ^ - , . - . : - . ^ ^ - - - r ^ - - - - - r r - r
LU vvdlvc aIt.y ruI tllal uglgcLs
l11 LIle
bid; and
e. clear-instruclions on how the bids are Lo be
a c c o m p l i . s h e da n d s u b m i t t e d .
SF:c. I72. Publication of the Inuitation to Bicl--The
invitation to bid shall be given the widest publicit-y bv
sending copies to known and regular bidders in the
locaiity and by posting notices of the public bidding in at
least three (3) acce.ssibleand conspicuou.splaces in the
Iocaiit-v rncluding the bulletin board provided for the
purpose, barangay halls, and market places. If the
acquisition cost of the supplies or property to be dispo.sed
of exceerlsone hundred thousand pesos (Pl00,000.00) in
the ca-qeof provinces and cities, and fifty thousand pesos
(P50,000.00) in the case oi municipaiitres, notices shalt
be published at least two (2) times within reasonable
period in a newspaper of general r:ircuiation in the
localit-y.
S u l ' r ' u y , r N n P H c l p g r r r yM n N n r ; t : v c x r
Rule 24. Sale thru
Negotiation.
Sr:c. 180. When Negotiated Sale may be Done.-When

public arrction i-simpracticable, negotiated sale may be
r t ' s o r t e t lt o a t s u c h p r i c e a s d e L e r m i n e db y t h e C o r . , o r i L t e e
on Au'ards.
Sr:r: 181. Negotiated Sale Subject to COA Approual.When the acquisition or transfer cost of supplies or
propert-r.exceeds fift.v thousand pesos (P50,000.00) in the
c a s e o f ' p r o v i n c e s a n d c i t i e s , a n d t r v e n t y - f i r , et h o u s a n d
pesos (I'25,000.00) in the case of municipalities and
b a r a n g a v ' s .t h e s a l e t h n r n e g o t i a t i o n s h a l l b e s u b j e c t t o
t h e a p p r o v a l o f t h e C o m m i s s i o n o n A u d i t o r i t - - sd u l y
aut horized representative.
Sr:c. 182. Who LTndertalzesthe Sale.-The Committee
on Awards shall undertake the negotiat.edsale.
Src. 183. Who Approues the Negotiated So/e.-The
Committee on Awards shall approve the sale.
Snc. 184. Transfer of Property with Co.ststo other
Gouernnrcnt Offices.-Transfer of property rvith costs to
other government offices is considered as negotiated sale.
Accordingly, the provisions of these reguiations pertaining to negotiated sale shall apply.
Rule 25. Transfer Without Cost to other

Governnrent Offices.
Sr:c. 185. Transfer and Appraisal of Unseruiceobleor
Propertyno Longer Needed.-Property which has become
u n s e r v i c e a b l eo r n o l o n g e r n e e d e db y a n y l o c a l g o v e r n ment unit may be transferred without cost to another
government office, agency, subdivision, or instrumentali]"
rvJ
^+
av
^^
atL
^---î-^l
aPPt qlDsu
.'^1.'^+i^var ualrvrr
' l a l a - - i nr o
r ur rl r e u
u9wr
h
v J"
leLr 'ro9
l^^^l
rv9ar
Snc. 186. Who shall Approue the Transfei.-Transfer
without cost of supplies or property from local govern-
69
Drsposnr, or Suplurrx ofi Pttot't:Irrv
Snc. 173. Bond Requiremenr.-Bid tenders or. offers

must be accompanied by bidder's bond in cash or
cashier's check in an amount equivalent to at least ten
per cent 0O7o) of the bid.
Dtspos,rr-ep Suppr-lRsoR Pnor,!:ttrl
ment unit to any other government agency shall be

approved as follows:
a. transfer between local government
the
sanggunian representing the transferor and the
local chief executive representing the transferee
shall approve the transfer; and
Scc. 1?4. Refusal to Accept the Award Prlce.-In case

of unjustifiable refusal or failure of the winning bidder to
accept the award price within five (5) days from the
receipt of the official notice of the award, the bidder's
bond posted shall be forfeited in favor of the local govern-
b. transfer between iocal government and national

government - the sanggunian shall approve for
the local government and the head of the department or office of the national government .shal!
approve for the department or office of the national government concerned.
mant
Sec. 175. Withdrawai oi Bicis.-A bidcier may be

a-llowed to withdraw his tender or offer before the
opening of the bids. His bid shall be returned fo him unopened.
Suc. l?6. OpenLn.gof Bids.-The Committee on Awards
s h a l l o p e n a l l b i r i s r e c e i v e da f t h e f i m e , d a L c a n d p i a c e
set in the I'lti. Bidders or their authorized representative may witness the proceedings;Prouided, Thai no bids
shall be opened rviLhout the presence of the provincial,
city or municipal auditor or his duly authorized
representative who shall id6ntify the bids submifted'
-'l'he Commrttee on
Sr:r-:1
, 77 Et,c:luation ot' Bids
Au'ards shall, within three (3) working days from the
date of the opening of the bids, decide the awarcl and
noti{y the awardee.
Srir;,178. Basis of Award.--Award shail be given to the
L:-L^^+
IllSrrLou
-,.-^l'i-o
v\/rtry!J
hiddr-r
nrr,vided the
offer
is not
iess
The devolution of property referred to under Title One,

Book I, of R.A. No. ?160, is not within the context of this
Section.
Rule 26. Condemnation
Suc. 187. What Froperty shall be Condemned.Valueless property shall be condernned either by
burning, pounding, throwing beyond recovery, and the
'the
like. It shall be the duty of
general services officer,
- . - - : ^ : - ^ l
ururrrLryal
. - ' - ^. )
:.t-t,,^
v rtLuc.-
\vI v/ Lr tÊ-r r
+
l'o
vrru
hv ri ur el c
recpivod
nrp
lo"ver
than the appraised value or when there are no bidders'

rebidding shall be conducted. If rebiddirrg is inrpracticable, the Committee on Awards may cause the disposal
of the property by sale through negot,iat.ionin accc'r'iiarrce
w'ith these regulaLions.
L ^ - - - - - ,
udrdrtBdy
r , - - - - - - .
LrcdsLtrcr,
ds
r l
LItc
casg
lllay
og,
L()
Soc. 188. Who shall Decide on Condemnation.-The

local chief executive shall authorize the condemnation
u p o n t h e r e c o m n r e n d a t i o no f t h e p r o v i n c i a l , c i t y o r
municipal auditor.
Rule 27. Othet Modes of Disposal
Sec. 179. When Bids or Offers are Lower than the

r
^ -
vt
ensure compliance with the requirement of this section.
than the appraised value of the property being sold'
l\pprQL$eu
7l
e^^
u&u.
I oo
roJ.
ft^-^ri^-^
urttLLLLLUtLt
.^
LU
f\L--:.-Lt^
rrtLUr aLuuLe,
ct-.'^-.-'r-'
acLyILlLJ Lc,
Educational or Cultural Association.-In exceptional

casesand for meritorious reasons,disposablegovernment
property may be donated to charitable, scientific,
educational and cultural associationswith the approval
of the sanggunian concerned.
72
Dtsposnr, or Supt'Llt)s on pnopnlny
St-rppty ,rNn Pnopenrr M.,rxnccurxr
Sec. 190. Other Mod,es of Disposal Authorized By

Laut.-Disposable
supplies or propertv i.r' local
government may be disposed of in such other manner as
may be authorized and prescribed by competent authority and/or as may be provided by law.
Rule 28. Payment
Ir)
I95.
.-1,."
\ropping of Book Value._Aftnr disposal, the
oool<value of
the supplies or property shall be dropped
from the book of accountsin aciordance
with
accounting and auditing rules and regulations. "*iJtir,g
TITLE VI - MISCELT.ANEOUS PROVISIONS
AND ADMINISTRATryE
TNSTRTICTIONS
and Delivery
Rule 80. Misc.ellaneousprovisions.

S n c . 1 _ 9 l .P a y m e n t . - U p o n r e c e i p t o f t h e n o t i c e o f
awarql, the awarel-eeshall pa,v to t-he local treasurer the
amor-urt of the award for which an official reeeir-rtshall be
issued.
Snc. 196
alolrha.l
Sec. 192. Sales Int'oice.-A Sales Invoice (LGU Form

No. l3) listing the items to be sold shall be approved by
the local chief executive and signed by the buyer. The
buyer shall acknowledge receipt of the items by signing
in t,he saies invoice.
Snc. 193. Deliuerr.-The delivery shall be made to the
awardee or his authorized representative after the
invoice price is fully paid as evidenced by an official
receipt. The delivery shall be effected by the general
'uriasur-r, iS
services oificer or mutricipai u, l-rararrgay
the case may be.
Rule
29. Dropping
of Accounts
Sec. i 91. Return of Reports.-After the disposal of the

supplies or property, the office ol' the general servrces
officer or municipal or barangay treasurer, as the case
may be, shall return the properly accomplished
r
- -1---lnvgnLofyr
f-^-^^+:^lIIDPcLLrurt
--l
arru
A---^;ool
Al/yrqroq'
f^.-
^.
fho
Ronnri
of Waste Materials duly acted upon together with a copy

of the Official Receipt (if disposal is for value received)to
t-he local a.ccountantconcerned informing him that the
property iisted may now be dropped from the book of
accounts of the department or office concerned.
l.ee-*e of Snnrptt fnr ptt!,t;- rr..-
^ = -:!
of anoffice
o.'*iJ,iil i;;
"#",-,lit"',,.1;l-'";ii:'ir:::
sealed.
b.id"p"."
or
;;ffi
i ;1; ii: j" ;:
q v . ^ r r v u r r s r c r r r . ""got?"i;;;i
l ire conLract. ol lease .ol burldlngs
h^-^:-
mL^
and
srounds
_fo.rthis purpose shall be in writing and sf,all be
approved- by the sanggunian concerned. buch
co.rract
shaji run fo.r a per:od of one (1) year coincident
with the
ouoget perlori, but may be subject to renr:wal
at the
option of +.he loca.l gover-nmen,t,. The terms
anci
:onditions of the contract of lease for this pr..pn""
:xplicitly include the following:
"trutt
a. obligation to pay taxes due on the property
rented shail remairi with the ow.ner durir,g rhe
term of the contract;
b. repairs oi the buildrngs, rncluding perroCic

repainting, shall be at the expens" oi ti* prop_
erty owner, however, minor repairs thereof .:.,rci,
as changing of light bulbs, repairs of leak.s .i:r,i
the like, shall be at the expenseof the lcr:;i
government unit, proviOed thaL the total lu)!r.1
,.1.;;
i n e a c h c a s e c i o e sn o t e x c e e d L w , r t l i o l r s a r r . :
(?2,000.00) pesos;and
c. neeessary partitioning to make thc propert-v fit.
for-the pur=pose
shaii be unciertaken b-vthe owner
at his own expense. However, if the exigsnC! Ji
the service so demands, necessary partit.ioning
cost,may be advanced by the local government ti
be deducted from the rental immediately riue and
demandable.
14
5 ( : t ' t ' t . \ ' r r t r l r R o t ' t ; t t r yM n x , r r : t : v t : r r
Mis<; gt.t,est:<lt,.s Pnovr l;irl.:.;
Nothrng containerl herein shall be construed us authorrzrng p('rlnanent improvement or majcr repair on
l^.-.-^.l
t r d . \ ( L t
,ri-^r\^rt.,
l , r v t r ( r L v
S r : , ' 1 1 ) 7 D i . s p o s a l o f R e a l P r o p t r t y a n d I n t p r o u e,
l r i c r i l s - f i e a l t . s t i - r t t 'i r n d t ] r c i r i m p r o v t ' m t ' n t s o u ' n e d b y
t h e l o c i rI g o v r ' r n m e n t . u n i t s m a y b e s o l d t o o t h e r
go\-t'rnrnr.ntor private entit.v under sealed bids or by
n e g o t u r t i o n r f s t a l e c l b i d h L r sf a i l e d a s d e f i n e d h e r e i n a t
a p r i c t ' t o b e d e t e r n r i n e d b , v t h e C l o m r n i t t . e eo n A r v a r d s .
T h r c o n t r r t c [ o f c o n v r ' \ ' a n c es h a l l b e t : x e c t r t e db v t h e l o c a l
chiei
c:it'ctii ii'i'
^^^^.-,--..,1
L L , l l l L r r r ( \ l
ir -r t
in
^^^^-,1
li,,h;ili' oi
tiie
,-^^...,,:+L
+L^
( l L L ( r l L l ( t l t ! ( :
! a l L l l
U l l C
l o c . i l g o i . i - i ^ r n - r rn ' L i i n i L
f^-.-.^l:r;^-
l t r l l l l < l l l L I C D
-^^..:-^l
l E q U l l C U
L-.,
U - y
I a * - o n t h e m r r t t e r a n d s h r r l l b e a p p r o v e c lb y t h e l o c a l
'l'he
sangglrnian.
d i s p o s a l s h a l l a l s o b e s r . r i r j e ctto t . h ea p p r o \ - a l o f t h e C o m n r i . s s i o n0 n A u d i t l e g a r d l e s s o f t h e
value of the propcrtr to be disposed
flxpenses relative to the registration ancl transfer of
û r, r, ' ,l .l L. , - r. LJ lir,r .P
fr r, - !,r.r -r r
+
h.LrrL
1,,^-l
r\JLar
- ^ . ' , , - - 6r r^r nr rrc r l u
Svrar
r^
uv
r ].^
urrg
,v,( ._,l ^l u, c1c . , , . - L . , l l

L)lloll
be borne bv tire r.endee.

Sl:r.:.I98 Lease of Gouernntent Spaces to Othe.r
lancls, buildings or other physical
Entttres -ldle
structure-s of the local governments may be leased to
other government or prir.ateentity thru ;ealed bids or by
n e g o t . i a t i o ni f . s e a i e r lb i d . sh a v e f a i l e d a s c l e f i n e d h e r e i n
The contract of lease rvhich includes the following shall
b e e x e c u t e d i n a c c o r d a n c ew i t h t h e f o r m a l i t i e . sr e q u i r e d
b-v law'.
a
the lesseeshall be required Lodeposit an amount

equivalent to two (2) months rental or Thirty
thousand (fi)0,000.00) pesos whichever is higher
t.o answer for damages resulting from improper
use ofthe leased property and an advance one (1)
month rental:
b. the lessee shall promptly pay the monthly bili'ings for facilities like electric, water and telephone during the period of the lease,.and shall be
held answerable in case of disconnection of said
facilities due to his failure to pay the bills;
c. the lessee shall surrender Lhe burlding/-Face

upon expiration of the lease contr.actand rr,sl;iincl
f o r d a n ' r a g e . sw h i c h t h e i o c a i g o v c r n m e n . , i i n i t .
may suffer for his failure to surrender the .siir"ntl.
d. the lessee shail comply farthfully with Lhe r,ernrs
and conditiuns of the agreernent;
r:. in tire event the building/space is deserted by the
ler;see before the expiration of the lease r,i.ithout
justifiabie cause, the local government unit shail
rlrserve the righl Lo enter and relef the sarne and
r t t ' r i v t ' i h e r e r r t a l s c o r r e s p o n d i n gt o t h e , - r n e x _
pircd period of the lease; and
f. the local government unit shall reserve the rrghl
to terminate the lcase contr-actfor fanlure or rc,
lusal of the lesseefo pay the rentals agreeri upon
during the period stipuiated in che lease contracl,
or for violation of the conditions of the contracr
by the lessee.
The guidelines promulgated by the governmerlt :agenc-.,.
, ' o n c e r n e d o n t . h e r e a s o n a b l r n r s so f r t ' n L a l r t r t e o i
building-" and other struc[ure may be availecl nf b-v the
(}rmrrittee on A'*'ards in deteimining Lhe rental r:rLes to
L e a p p r o . . e r ib . v s a n g g u n i a n
Stn. 199. Lease of Equipmenl.-Idle equipment cif the
local governments ma-v be leased to other governmenL or
private entity thru sealed bids cr by negotiation if sealeC
bids have failed as defined herein. The contr:rct of lease
which includes the follo*'ing shall be executed in accorciance with the fbrmalities reqr,rired by Iaw:
a. the lease shall be on fully nraintained basis
without fuel and operator;
b. a lease contract longer than one (1) month shail
be supported by a surety bond to guarantee the
replacement cos[ of the properly in case oi loss,
cost of repair that are not due to normal wear
and tear, replacement cost of missing parts, tools,
S L r p p t . ye x t r P n o r r : n r y M A N A c E M E N T
?6
l V I i s t ; rl r , A r * n ( ); s! p H r ; v i s i i ; r l ;
attachments and accessories originally issued

with the property;
the rental must be pard tn advance or the lessee
shall put up a domestic letter of credit to guarantee the payment of the rental for the period of
lease,
the mobilization cosl from the lessor's yard to
project .site and the demobilization cost from
project site to the lessor's yard shall be borne by
the lessee;
, r
f,ne
t^^-^^
re55ue
^L^ll
5Ilarr
L^
uc
l:^Lt^
lldurg
f^rut
^^-^^*-^+:^LUruPcrlDaLrvtr
^-.1
arru
lawsuits, if any, arising from injury or darnage

caused to any person or propert.y by reason of the
use of the equipment during the period of the
iease;
f . a d a i l y b a s i s I e a s e s h a l l c o r r e s p o n dt o e i g h t ( 8 )
nours
use
r
allu
,,
aIl-y
usage
:lll
^-.-,^-^ ^C ^:-Ll
/O\
urLcbb ul (-16,rrL \o.,
l r r r r r F ss h a l l b e c o n s i d e r e d c l v e r tni r e a n d c o r r e spondrng additional rental shall be charged;

g
a monthly basis lease shiill be understood to

c o r r e s p o n dt o o n e h u n d r e d s i x t y ( 1 6 0 ) h o u r s u s e
p e r r n o n t h - ;a n t l
h. a .proporlionalerentai shall be coilecfed on Lhe

acLual operating hours in excessof the one
hundred sixt.v (160) ref'erred to above rt-'gardless
o f r v h e t h e r t h e p r o p e r t - yi s i n u s e o r n o t .
'f
Prot,rded, hat the renLal rate to be determined by the
Commitlet: on Awards and approved by sanggunian shall
r n n o c A : i r , ' b eb e l c r wt h e d a i l y r a t e s p r e s c r i b e db y a p r o p e r
g o v e r n n r e n t a g e n c Y ,i f a n Y 'l'hr
i i h r a s c " r ' c n L a l C a y " r e l e r s t o a c o n L ni u o u s c i g h t

(B) hours woik;ble period wiLhin a day of twenty-four
r
lz4 ) nours,
^-,^1..1:^- .-^^^l+i-^
exuluLlrltl; llludrLrrrrs.
The foregoing provi.sionsnotwithstanding, no contract

oi lease shall be entered into unless the general services
o f f i c e r , m u n i r : i p a lo r b a r a n g a yt r e a s u r e r , a s t h e c : t . s om a y
be, shall certif-y that the property to be lea.sed is not
necded ior any purpo.seLry any department. or office oi
the local governmentduring the duration of the lea.st,.
S r t : . 2 0 0 D i s c o u n t i n g o f R e n t a L R a t e s . - T h e r a b e . so f
r e n h l m a y b e r e d u c e da s t h e e f f i c i e n c yo f l h e e q u i p m e n t
o r m a c h i n e r y s u b j e c t o f a l e a s e c o n t r a c t b e c o m e sl e s s t _ , r
on account of age or obsolescence;
Prol tded'fhat no such
r e d u c t i o n s h a l l b e a l l o w e dd u r i n g l h e f i r s t t h r e e ( 3 ) - y e a r s
from the date of acquisilion of the propert-v. I,rot,icled
further, 'firat the maximum di.scount shall not excet_-rl
t.went-y-fivcper cent ('25,'/t,)
oi the property's irormal rental
r : r t e i n t r c c o r d a n c ew i t h t h e f o l l o w i n s . s c h e d u l e
Agc l3used on
Date of
A c q u i s i ti o n
i
a
.,^.- -.
f C.lr)
^ll
UlLl
5 veirr'.*olci
6 .r'e:rrsold
7 yeitrs old
(]rarvler-
l)neumatic-Mounteri
Units
I\{ounLed
U nrts
a a:t
r, /O
J"1
IAn/L
1l$ i.
15'ic
25ti
L t )
t ,
/ (
(.
P r t t t ' i t i t < ! f i r m I h , ; ' f h i r t n t ' w i v r e i r a i r i I r L i r , . . eprrl- o p t . r t r

r . h a i i i r t : r ' i . i s s t f i e (ui n o c i t l r t , c r r t t ' g o r o
y l l l v t , i S ) \ ' ( ' i t r - s( ) t ( l
i t t t r l . s l l t l l h l r v e l t r l i . ; t ' l r r t nut r t r o f ' t t ' l i 1 r t , rr.t ' n t i l ( ) ' r r f i r r
t l r t ' [ l r s t v c a r , f i f i t ' t ' n p t ' r c e n t .( 1 5 ' , i ) f o r t h c s e c r l n r i \ ' ( . i u ,
'l'he
r t n c i t , r v t ' r r t r ' - f i v cp c l c e n t ( ) 5 ( ' r i L h c : r ' c t r f ' t c r - .
riitt, of'
r t d L r c t i o n i n r e n t l r l s h a l l b e d t ' t e r r n r r r e ' c il r . " t h e
C o n r n r i t t . t ' e ro r r A r v i t r t l s u n r i a p p r o v e t l l r v s l r n g g r r n i ; r n r l '
1u 1r r. L^
(. -r .F, l..,
.,f
\,r
rl-,.
t.rrl
, - . - , , , - . , , . + , ,, , , L , ^ l nrrlLlr
l/ttrPLr!v
l-^^
llq$
, . ^ + ,( .. ,r -r ,(Jr .t ,_-1. .5. (. ,. r' -l (. -. . - rlUU

(lll\
rchabiliLartron i-snrort: than seven (?).verrrs old.

St:t:. 201.
D i s p o s a l o f F i . r e o l ' / / 1 . \ . -I ) i . s p o * ; r l o f
f i r e a r r n s i r n t l e x p l o - * i v e u . ' e a p o n , qs h a l l b r ' , s , - r l ) j e cttr i l h c
npprovai of the [)irector Gernerai,Phiiippinc Natronrrl
I'oIicc
S l : t ' 2 O 2 . I ' ' r o t r t u ' i i t s I r t t p i t r t e d F ' r , , t o f ' [ ) r t t i t s r tt t < l
Ih.r'r's. l,ocal Covcrrrnrtnl. rrruts shtill Itc t'xernpt fj'trnl
L h e p a v r n c n t . o f r l u t i e s { r n d t . a x ts l b r t . h r i r r r i t o r t t r t i o n o f
7,$
Sr rrr -r' .lx lr Prtot,urrryM..rx.,rr;

t:y r:s.r
irt'irr'-r'cqtrrpnrent or nrachineries which shall be used [or

t h t ' c u r i s t r u c t i o n ,i m p r o v e m e n t , r e p a i r , a n d m a i n t e n a n c e
r',f rr-,;irls.l-,r-idgesand other infrastructure projects, as
st'll rrs gitrtrage trtrcks, fire trucks, and oLher similar
t'quipnrcnt' I'rot,ided, howeuer, That such equipment or
machint'ries shall not be disposed of, either by public
auction or negotiated sale as hereinabove provided,
within five (5) years from the importation thereof. In
case the machincry or equipment is sold within the
fir't'-.r'ear period, the purchasers or rccipients shall be
considert'd the iml-rslters thercof. anrl shall be liable for
dtities and taxes comptrted on thc book value of such
importntion.
S r . r ' 2 O : 1 . T r a n s i t o r y P r o u i s i o r t s- A l l
supplies or
p r o p e r t . vi s s u e d o r a s s i g n e d t o t h e d i f f c r c n t d e p a r t m e n t s
or office of the local government units shall be dc.enred
ipso facto transfcrred to the per.son primaril-y
a c c o u n t n b l e a n d t h a t t h e p e r s o n i n p o s . s e s s i o no f o r
having custod.v of said supplies or property shall become
immediatel_v accountable therefor upon the effectivity of
Republic Act No. 7160. It shall be the duty of the
general servicesofficer, municipal or barangay treastirer,
as the case may be, to effecl said transfer in Lhe manner
prêscribedherein.
Rule 3f . Administrative
Instructions.
Scc. 204. Establtshment of an Archiual Sysfenr.Immediatbly upon the effectivity of these regulations,
every iocai government unit shaii provicie ior the
establishment of an archival system to ensure the safety
and protection of all government property, public
document,s or reeord-s -such as records of trirths,
marriages, property inventory report, land assessments,
land ownershrp, tax payments, tax accounts, and
business permits, and such other records or documents of
public interest in the various departments and offices of
the provincial, city or municipal goyernment concerned.
M t s r : r ; t , t , , r s r : o t ; sp p g y l 1 ; 1 1 ; 5 1 ;
79
Snc. 205. Issuance of Guid.eljne.s.-The Iocal chief

executive may issue guidelines as may be deemeC
necessary for the proper and effective implementation of
these regulations
S n < : "2 0 6 . S e p a r a b i l i t y a n d R e p e a l i n g C l a u s e . _ A . y
provision of these rules and regulatio's rvhich
shall be
declared illegal by a court of competentjuriscriction shall
not affect the other provisions he.eof.
Joint Department Ordcr No. l-?5, ciatedAugust 19,
I975, is ,ieerned supersecied.
All other Circulars, Memoranda anil regulat.ions
ineoneictonf
nr
ri -r r !^v^r^r tr 'rtr:!^Ll
,w, ,r:u| Lr r . L ^
Ltlc pI uvlsrolls
n ,r
oI . Lnese
rules and regulations are hereby ."p.il.d, rnociifiecl anclr

or amended accordingly insofar as applicab[e Lo local
governments.
S r : r : .2 0 7 . E f f e c t i t i t t y . * - T h e s e r u l e s
shall take effect immediatelv.
LGAO
GSO/KNI/N CAfi-LL
anrl resulirtion.s
LGU torm Nc
-A
APPNOIX
Cl
o: . dal
Govafnmnt
PR(rcUNCreTT PN(}GRAI
t{.,'|
Uni
I P|an controt t'to -_
d Lcd Gov.mrsil
Progr.rn Codrol
P t a n n t d
APPENOTX'8'
PLAII
AXXTJAL PFOCUNCIIXI
fiaru
LGU Farn 15. Oa
Unl
Anoun,
l{o-: =--
l"r._d_p.os
A m o u n l
F.errhr
tbg-tilrrofir
Tdd
I Oil.
Sub.r{r.d:
D I S T R I B U T I O N
D I S I R I E U T I O N
lf,n
No.
Oaacrixbn
Ur*|
C06l Quantlt
Toid
Cost
lsl OrrarE
lnd Oufi3
)TY
)T\
3.d Ouans
It|r Ouarlet
)TY
T o t a l r
'
Tn;s 's lo celtily

t.6
lhal rhe abo
y':n
ptcurlnnl
is h rqdano
Ollrc
wilh lho obicliv6
ol
Tha b b errrt !|a h. -o[

ril |h. Oirri6
a n .o.trc.
REtrmdrd
Girrd
Prcpa.sd by
tff
".a
ot O+-rtt
"ttvOtti*)
bt:
S.wi!
preinn
Fcoml
ol 'la LGU:
AFmd
OllbjrLocJ
T'.r
ur.t
by:
(Locrl ChlC Ercuriv)
LGll Form 15. 04
.D.
APPENOTX
APProrx rc'
fU Form l{o 03
AIEIIOATOfiY PROCUR,IE|JTPROGRAI
ATEXOATORY PROCURIIIEXT PL TI
Nm
am ot Lo! Govornmnt Und
of Local Gcrcrnarnt Unit:

Arbndatory tlo.:____
A. ltems lo tr
A. alsms lo b. SubstitrrtedRoptaed
SubstitutcdReplacsd
I Procurofibnt AlrEdy
Toral I
Ettaod
tiîl1-
Jrjstilicalions
lTnlrl
;-luuanr'rylc.--
T o I a I s >----
8. ltems Rocommondd
This rs to c.rtrly
ol this Olficc.
thal th.
abov.
lor Procur.monl'in
ern rdafory
B. llems Recommerdd lor Procuremenl in Lnu of tho Abow
Lbu ol lho ADow
plan 6 h :rcordarEo
rilh
lh. obpctiws
This is to cnily lhal lha aboye arEndatdy

ra In accofdanco wilh the obioclivG of lhis LGU:
Goflral Srvbos Ollicor/Local Treasuror
(Locd Chiof Exocutivcl
LGti Fam t\b. 05
APPETDTX'F
Fqm ttb. a5(A)

Am EslE
REollilltt
YolrctlEF
(Ificcrtl-ocd Trsttr*
O: Gquel Stt*t
Dft DeprtrPntttOffce lhd
Roqoit i ti o n
I CERTIFIED lhet the above

lor official
at.e aoersarY
rsfdler
r.e nd rill be rr*.ed solelY lor to
Frsrs ttre f*P-tttiry-
Head
D+anssilrOffice
APPaovEo
I al
(ihlcf
FrmrtinE
APPENDIX'F'
PURCTIASE
REOUEST
No. _
Date
TO. C:enerd Services Otficef/Local Trsasurer.
FffiM:
DepartmenVCffice Head (Requisitioner)
period ol Delivery:
Eletvrry/Shignent b: ---
I t s u l n c e
I c60ity that the need for fte above supplies is exceptionally urlent or absolutely indispensable to prevent imrlinent
and real danger to, or loss of, life or proprty.
Name. Designation
& Signaturo
Filled by:
Pacld by:
Shappodto:
Bi[ ol Ladng No.:
Oato ot Shipment:
CERTIFIEDCORRECT:
C'eneralServicesO{fice/Treasurer
I further certify trat he baid supplies are necessary for

official use in connection with the.following activity(s):
-G'
APPENDIX
LGU Form No 06
LGU Form No 07
OROER
PURCHASE
A P P E N D I X. H '
REPORTOF UTILIZATION
Date: ---
FurchaseOrder No
PurchaseRequestNo --
Name ol Local GovernmentUnat

'Reqrisitoning Olfice/Department
Date.
lame of Local Governmenl Unit
Name and Designationol End-User
O Suopher/Dealer/Contraclor
PR/RlV No
Exact AddresVLocationWhere SupptiesWere Delivered
.ddress
Name and Complete Addressof Supplier/Dealer:
De partmer.VOlfice Where DeliverY

rs to be l"lade.----
DeliveryPeriod
Delivery
Other Terms
Utilization
Description
of
Articles
B o n d P o s t e d
vudr
AddressAmounl
Item
No
OTY
Unit
Nalure
Total
Cos!
__i__
Total
Recommending AP2roval
General Services Officer/LocalTreasurer
becrglal
6-^--.,^:^-
.[
y l(J tt ru rdr rvvsr ndr |
CERTIFICATION-
I Conlraclor/0ea
lerlSuPPlier
|
I B"-----------=---|
AuthonredReP,esentative
|
I H E R E E YC F R T | F Yr h i s_
day
ot -,
l9_,
the accuracy
a n d c o r r e c t n e s so f l h e a b o v er e p o r t .
.. >
I received today, -,
19_, PurchasOrder and held
A P P R O V E D- :
|
myselfboundby lhe lerrr6 and
l-ce! Che!Erecut've
-._j stipuiatronsol lh conlracl and
I other rpplicablelaws.
(Note In case of Negotiated Purcfrase p,-'.su- |
ant to Section 369 (a) of RA No. 716O' ttis I
portion must be accomPlished).
Sanggunian Resolution No .-CertrliedCorrect. .-
uate
Unil
Gost
Total
LJuanflty IAmounl
Particulars
Unat
Price
A R T I C L E S
rartrf
B a l a n c e
DeparlmenVOfliceHead
I
I
I
I
tHEREBYCERTIFy rhrs
day
of _
19_..
thar we had
verified and lound corrct the
above report.
General Services Offrce/Local

Treasurer
APPROVED
Local Chief Executive
APPENDIX'I'
LGU Form No O8
LGU Form No. Oo
rEronrr|nr
PROPERW FST'E SLIP
APPENTIIX'f
iccBrT FoRstt-EIpaIoAaLEmL
n|.EIPEI|DATOTd}
Nrrr
SUPPIJESfl
gl Locrl Gorerrvnent Unit:
?ROPERW
NoEode_
Dab: _
Name of Local GovernmentUnit

I hereby ecknowledged b haw rec'sivtd this _
)ty
DescrrDlron
Data
Ptoptty
of
Purchas Nu.nbe,
Clarsrfrcalron
Number
I H E R E E Y C E R T I F Y rhat I
of __
1 9_
I C E R T I F Y thal
RCEIVEDihrs _
t9
I S S U E DT O
dey
have
of
_.
Remarts0ther lnformation(il any):
from
(Nart
-lrrere
Oftice Head) the follnring sugpliyproporty whn:tr will be use'd h

(Office or Deprrtment) ard br rytrir*t lam immetlaFly
eccountable.
TRAAISFERE
TRANSFE ROR
have thrs _oay
Toral
ValL
Unrt
Valu
Dea,gnalbf,)
End-User (Person in actual poseession of the property)
t lsrgnn'cnl
Name(Tyguwritte,:)
iollreo+.nEol
&ecy)
ab?ve'lrsled
ine
lo(
{OtlEdOea
atttcles
nmnl /Agncy)
!he tterns/arl,cles descnbed

aDoYc
Oltict/
G.natd SaPicLcal Tra.turl
day ol _,
N:nr.
Srgnalur a Dosignation
ol Rceivtrg Ollicot
Designation/Position
-GU Form l'lo 10
APPENDIX'K'
S E M I - A N N U A LR E P O R I O F S U P P L I E SI S S U E O
A s o f J u n e 3 O / D e c e m b e3r t , t 9 _
t a m e o f L o c a l G o v e r n m e nU
t ntt
A P P E N D I'XL '
Gen FormNo.3O-A
INVOICERECEIPTFOR P R O P E R T Y
LocalGovernmentUnil
Fund
otv
O U A N T I T Y
0.sip!o
Dato
ol
Pu.chts
Ptc4f,nl
No.
ClaSilition
No.
Unit I Toral
Value I vatue
To1a1..........
INVOICE
This is to certily that
i have ihis_cjay oi_.
1 9 _ t r a n s l e r r e o
RECEIPT
This is to certify that
ihave this_Cay ot--.
19_ receivedfrom:_-
(Name & Designation)

l h e a b o v e - l i s t e ds u p p l i e s
property.
the above-listedsuppliesor
property.
i H E R E B Y C E R T i F Yi h i s - c l a yo i _
accuracy and correctnessol the loregorng report.
Head oi DepartmenVOffice
InvoicingAccountableOfficer
(Name & Designation)
Receiving AccountableOfficer
This is to certify that I have recommended the foregoing

lransler of suppliesor property.
This-is to certify tfrat I have approved the foi'egoingtransler

of supplies or property.
Local Chief Executive

Transfer Witnessed by
(Provincial/City/Municipal
Auditor)
LGU Form 15
APPEM)IX T
tI
APPEf{t}tx -N-
LGU Fam No. 12
RACAPITU|.AnOT
PRC'?CRTYRFIURITSUP
Local C-vrnrnerrl
Unrl
Departmen!Ofk-
ttlrrt ol t@d Golgrrmenl Urit

Purpose:( fXryoef ( pepei ( )UrrrOb
Sht No.
Date
$dr
( pdrer:
Descriptron ol the llern:
Unitol lssue
laan
t{o.
U n r l
oty
Tdd
bau.d To: (l{.n:

EnpbyrGn4t,|dl
Silnature ot tpbtEnd UsJ
Cd
TO TA L .....-,-..-....--->
CERIIFICATION
I HR8Y CERTIFY that torgoingrs3uatroemade on thrs -ol
19 _
att truc and correcl
day
I HRE8Y CERTTFYthal I
ha| rhis_ <by ol _
_, 19
NC T UHNEU
O.DJ|mnt/Oftb.
tO:
I HEREEY CERTIFY thai

have his -._ day ot _.
RECEryED irom
|b.d
General Servlces Officetocd

Trgasurer
tg
lSan lctn
APPE'TaOTX
!'
! t{
No
nwEraTonv, s{sPEcrrcr{ Axo lPPRlrSlL

At ot __Nam
ol Lcrl
I
Cten
rt{sEnvrcEABLE PioPnTY
!t -
APPNDIX'P.
Form l{o. 61-A
FEPTORT
OF WASTEIATERIALS
U^t
Govfr,mst
N
tr
Narne ol Local Cowmmont Unat:

R
Oops.tmenUOtlloo
Plece of Storagc:
D T E P O S T I T O N
PrqpJtf
flunto.
Orl.
Acgu rad
Description
I
I
I
i
I
I
t
|
t
t cennrv
lh.t
p.og.rt} E I ord
noroby rcqucg lor
uwi
,*"r*
ard
iJ",.
"or "r
_
(C"*r.,
SoeE6
rh. .borciEr ol $FdtE

I
| CERTIFY lh'l I htY' in,nsto.y rnd lhcr.br. | |
thc'. rR3pftton whbn | | 3p'clo< 'rch r^d ov'ry 'rlpl'
r.rs
ThF rffd ls
I onurnarat.d n thE ropon My ln4
r'. rt
I r'9t rnd ts'mddioos
l
OtlrxrLqi
_
Trcrs.Dal
I XEREBY CER-ilFY thal I rEw agomrd

n lhE rag)rl
lrpgl!/pfop.tt
rhorn
I FURTHER CERTIFY $.r |h. drlpositpn
lq th nte.cat ol tla g@mreil.
I CERTIFY
rhrl rh.
rpPrrrasd vabrur
rnt
I
l
lb.
lprovrocr.ycrty/iAJnEpat udiql
honh
Ordat
.ooJ.sl
rq Insp.clu
E n ny pdgere^t
ol thc
ErcautrYa}
f o t a l
,rpdl
raa mr.b
bt th. Cdtrmilton Artrda
UNdE' i3 RGG
No _
lrrin
(Copy .tlrched)
to lh. b6t
CERTIFIO
CORRECT
Gord
(Sc.trrt
Coatrmni
(Lol Ch{
pP
plrar/propa,lt
lldb-t:__
Arr.lrl
to tha
0
Lcrl
Local Chi.l Er.clthr
StntOdic../
Tnrulr
A Eb?IEI
vcn!trtvAlt
^ YF
vr
tNorEU
I tLrN
This is to cortifyf|at I'traw this _day

ot
. l9_,
inspected the aboro{ietad supglies/propertyand lound the same
b be (widr or wathoutvalu)_.
l-.afi|rqtlqtlqq!
Au(frr,
CERT|FICATFOF DTSPOSAL
th.l 6. eboue-listed 8upplbgpropefiy
APPENDIX'O'
LGU Form ||{o. 13
SALES IIIIYo|CEFOR SUPPUES/PROPERTY

Name ol Local GovsrnrnentUnat:
SokCto (l,lame t Addess): _
Location ol Assel: -
APPROVED:
Local Chief Execu$ve
Buyor (Namo end S[naturc)
C E R T I FC A T I O N
I H E R E B YC E R T I F Y
rn8r tne anictes shown tn
lhe column 'OUANTITY
RECEIVED BY
THE
BUYER' were defiveredlo
lhe Buyer this _
day ef
t9_.
_.
General SorvicesrlocalTrcasuror
I H E R E B YC E R T I F Y
oay
Inal I nav9 lnrs_
of_, 19_ ACCEPTEO
tho erticls shcwn in the
.OUANTITYRECEIVEDgY
THE BUYER'
BUyER (Nanreand Signatura)
I HEREBYCERTIFYthat I havewitnessedthe delivery

to the Buyorwhoee neme and signatureappoarherein the
articlos shown in the colurnn'OUANTITYRECEIVEDBY
THE BUYER'
erovincialrCiry/MunicipC
Audiro,

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il|fl|ffi

*il I| lf lllIll'ilLik^a^ttE r H f\-n--geffiffi4"*rfAEil

f l il lll l lll lllr';mmfiHlflh#{-Jru@

RULES AND REGULATIONS

RepublieoI :ie Fhiiippines

Local Chief Executives,General Servic

PRESCRIBINGRULES AND REGUL,

Pursuantto the provisionsof Section383, Title \

TITLE I. GENERAL PROVISIONS

Rule 2. Standardieation of Supply and Property

Rule 3. Procurement Plans ond Progroms

Rule 4. Requisttion of Supplies or Property

ant, and Treasurer ......

Public Bidding as the

Rule 5. General Policies on Procurement

opeclucaLron or Duppries C)r

38. Call for Bids..

Rule 6. Procurement Thru Public Bidding

Quorum in the Committee

52. Submission of Samples,

R e d u c t i o no f Q u a n t i t Y " " "

When to Make an Emer6Crrvy

Canvass and A'*ard

Rule 8. Emergency Purchases

Rule 7. Procurementthru PersonalCanuass

Rule 9.. Negotioted Purchase

When to Make a Negotiated Purchase....

Rule 13. Other Mdes of Prxurement

ile 10- Direct Purchsse from Duly l-icensed Monufacturer

.ule 12. Procurement from Gouernment Entities

TITLE III. DELIVERY AND INSPECTION OF SUPPLIES

E l ^ . ^ ^ - " ; hJ ir lv; t+ " r . v J

Rule 16. Articles Subject to Test

Drugs, Chemicals and

L24. Paint and Paint Materials..

130. Authorized Laboratones ...

^.!J!- '- rv' _

Rule 18.Sampling of Articles Subject to Test

TITLE IV, UTILIZATION AND ACCOUNTING

Responsibility for Wasteful

Rule 20. Accountability for Supplies or Property

Section 143. Transfer of Accountability..

Hrrfe 2| 'jeneral PolicY on Disposal

180. When Neeotiated Sale Mav

Ruie 23. Soie ihru Pubiic Auttion

Rule 25. Transfer Without Cost to other Gouernment Offices

16?. Disposal Procedures

Rule 24. Sale thru Negotiatinn

Rule 22. RePorting of Disposable Supplies or Property

185. Transfer and Appraisal of

Rule 26. Condemnotion

Rule 27. Other Modes of Disposol

Section 189. Donations to Charitable,

TAI] I,I.I 0 F' (IONTF]N'|S

Rule 29 l)ropping of Accounts

SecLion 196. Lease bf Spac"sfor Publrc

Rule 3 L Administratiue Instructions

Annual Procurement Plan

"N" Propert-v Return Slip

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