Executive Order No. 18 s. 2017

Executive Order No. 18 Series of 2017 was signed by Pres. Rodrigo Duterte through Executive Secretary Salvador Medialdea on April 7, 2017 which repealed Executive Order No. 235 Series of 2003, in effect streamlining the rules and procedures of defense contracts among others.

This new E.O. is in response to the bureaucratic impediments and unnecessary delays in the procurement of defense projects as a result of E.O. No. 235 s. 2003 which limited the authority of the Secretary of National Defense to delegate approvals of procurement contracts and which established a single Bids and Awards Committee for the Armed Forces of the Philippines.

Since the issuance of E.O. No. 235 S. 2003 the Department of National Defense, the Armed Forces of the Philippines, and its civilian bureaus and agencies have identified and operationalized other reform measures to promote transparency, impartiality and accountability in procurement transactions.

As such, the Pres. Duterte repealed E.O. No. 235 s. 2003 and thereby mandates the Secretary of Defense to identify and institutionalize measures that will effectively monitor the operations of the separate Bids and Awards Committees which may be created pursuant to R.A. No. 9184 or the Government Procurement Reform Act of 2003, to ensure and promote transparency, impartiality and accountability in procurement transactions.

In this regard, all defense procurement contracts, including those presently being processed and/or reviewed, shall hereafter be reviewed and/or processed in accordance with R.A. No. 9184 and E.O. No. 423 s. 2005 as amended by E.O. No. 645 s. 2007.

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Author: Atty. James Biron
Atty. James S. Biron is a corporate lawyer specializing in foreign investments, trade, mergers and acquisitions, planning and financing of projects and capital raising. Clients served include real estate, construction, energy, information technology, agriculture, education, medical and casino gaming companies.

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