MEMORANDUM CIRCULAR NO. 79 - CLARIFYING THE PROVISIONS OF SECTIONS 5 AND 7 OF EXECUTIVE ORDER NO. 164 VIS-A-VIS THE AMENDED IMPLEMENTING RULES AND REGULATIONS (IRR) OF P.D. 1594 ON THE AWARD OF CONTRACTS THROUGH NEGOTIATION AND PRIVATE SECTOR REPRESENTATION IN THE PRE-QUALIFICATION, BIDS AND AWARDS COMMITTEE (PBAC)

It is hereby clarified that with regard to the Award of Contracts Through Negotiations and private sector representation in the PBAC, the provisions of Sec. 5.c and 7.e, respectively, of Executive Order No. 164 which are as follows:

1. Sec. 5.c. — Negotiated Contracts

"Where the construction project covered by the contract is adjacent or contiguous to an ongoing project and it could be economically prosecuted by the same contractor, in which case, direct negotiation may be undertaken with the said contractor at the same unit prices and contract conditions, less mobilization costs, provided that he has no negative slippage and has demonstrated a satisfactory performance. Otherwise, the contract shall be awarded through public bidding."

a) Philippine Institute of Civil Engineers
b) Philippine Constructors Association
c) National Confederation of Contractors Association
of the Philippines, Inc.
d) Philippine Institute of Certified Public Accountants
shall govern over similar provisions in the Amended IRR of P.D. 1594.

Since 19.07.98.