TO: All Heads of Ministries, Bureaus, Offices
and Agencies, Government-Owned and Controlled
Corporations, and Other Government Instrumentalities       The Managing Director, National Computer Center       All Others Concerned
WHEREAS, there is a need to establish a rational framework for the acquisition and utilization of electronic data processing (EDP) facilities to prevent the undue proliferation and under-utilization of computers in the Government;

WHEREAS, Presidential Decree No. 1480 provides for the development of a National Computer Development Program for the optimum operations of all government computer installations, as well as an integrated strategy for overall development of the country's computer industry;

WHEREAS, pending the formulation of the Program, it is necessary to regulate the acquisition of computer equipment and facilities to avert dissipation of resources;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby order and direct the following:

1. All Government procurement for computer equipment and services whether on a lease-rental arrangement or purchase basis and irrespective of fund sources shall be approved by the Office of the President upon recommendation of the National Computer Center. Memorandum Order No. 352, 1973 is hereby repealed.
   
   Before new EDP equipment or services are acquired, existing government EDP resources should be given priority and should be fully utilized in meeting government needs for EDP equipment and services.
   
   
2. As a general rule, public bidding shall be strictly observed in the procurement and acquisition of EDP equipment.
3. No new procurement of computer equipment by any government agency, government—owned or controlled corporation, including local governments, shall be approved pending the formulation of a Computer Development Program of the Government, except:

   a)	where a public bidding has been conducted for the acquisition of the computer equipment prior to the promulgation of this Letter of Instructions;
   b)	where there is an existing contract for the delivery and installation of computer equipment;
   c)	where the ministry, agency or corporation needs cannot be met by existing installations and/or service bureaus of the private sector; and
   d)	where deferment of such acquisition would jeopardize the operations of the ministry or agency concerned.

The National Computer Center shall promulgate the necessary guidelines for the effective and efficient implementation of this Letter of Instructions.

This Letter of Instructions shall take effect immediately.

Done in the City of Manila, this 16th day of October, in the year of Our Lord, nineteen hundred and seventy-eight.