WHEREAS, the National Government is undertaking comprehensive reforms to modernize government procurement systems;

WHEREAS, these reforms are being pursued to ensure transparency in government transactions and enhance efficiency and effectiveness in the procurement of goods/supplies/materials, services and civil works;

WHEREAS, the National Government recognizes the use of the Internet as an effective medium to provide transparent access to government-wide procurement opportunities and decisions;

WHEREAS, the Department of Budget and Management (DBM), through the Procurement Service (PS), has initially established the first phase of an electronic procurement system (EPS) which features a Public Tender Board, a Suppliers ™ Registry and an Electronic Catalogue;

WHEREAS, the first phase of the EPS lays the foundation for the envisioned implementation of Internet-based government procurement transactions such as electronic and online bidding, ordering and payment transfers;

WHEREAS, the DBM-PS, by virtue of Letter of Instruction No. 755 and Executive Order Nos. 289 and 359, has the mandate to procure on behalf of all government agencies commonly-used goods, supplies and services;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order;

SECTION 1. All agencies of the National Government, its instrumentalities, including government-owned and/or -controlled corporations are directed to participate in the first phase of the EPS of the DBM-PS, to include specifically the following activities involving goods, supplies and materials:

a. Public Tender Board. All bid opportunities, notices and awards shall be advertised and posted in the Public Tender Board.

b. Suppliers ™ Registry. All qualified suppliers that wish to conduct business with the National Government Agencies shall be required to be accredited and registered in the electronic registry for reference and information of all agencies intending to procure goods, supplies or materials.

c. Electronic Catalogue. Goods, supplies and materials of EPS accredited and registered suppliers shall be listed and graphically displayed with detailed description/information through the Electronic Catalogue, which shall serve as virtual store.

SECTION 2. The Procurement Policy Board  shall hereinafter adopt policies and procedures to accelerate the EPS to its full-fledged implementation consistent with the objectives of the Republic Act No. 8792, the E-Commerce Act.

SECTION 3. The Procurement Policy Board shall modernize the organization, systems and processes in the DBM-PS to effectively complement and support the objectives of the EPS.

SECTION 4. All executive issuances, order and regulations or parts thereof inconsistent with this Executive Order are hereby repealed and/or modified accordingly.

SECTION 5. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 22nd day of November, in the year of Our Lord, Two Thousand.