DND forms body to review contracts with attached agencies

MANILA, Philippines - The Department of National Defense (DND) has formed a committee that would review and terminate the contracts entered into by its attached agencies and the military.

The creation of the Contract Termination Review Committee (CTRC) is contained in DND Department Circular No. 2 issued last Jan. 26.

The committee will be tasked to deliberate on contracts for termination amounting to at least P50 million then make recommendations to the head of the unit that seeks to buy equipment or avail of the services covered by the contract.

A DND official who requested anonymity admitted that some projects have been delayed and that the CTRC was intended to address the problems.

“The CTRC will help prevent possible abuses by contractors. This will prevent them from shortchanging the government,” the source said.

The same source said that the committee would also prevent suppliers from seeking to amend contracts after they have been signed.

DND Undersecretary for Finance, Munitions, Installations and Materiel Fernando Manalo will serve as chairman of the committee. Assistant Secretary for Acquisition, Installations and Logistics Patrick Velez will be the committee’s vice chairman.

Other members of the CTRC are DND Assistant Secretary for Comptrollership Ernesto Boac and DND Legal Service chief Cherrie Belmonte-Lim. – Alexis Romero

The Armed Forces deputy chief of staff, the administrators of the Office of Civil Defense and Philippine Veterans Affairs Office, the directors of the Government Arsenal and Veterans Memorial Medical Center, and the president of the National Defense College of the Philippines will serve as provisional members.

DND spokesman Peter Galvez said the committee would determine whether contractors are responsible for the problems that can affect the implementation of projects.

The unit supervising the implementation of the contract will prepare a report of acts that may lead to the termination of the contract. The report will have to be verified within seven days.

Government rules state that a contract may be terminated if, among others, the supplier fails to deliver the goods within the period specified in the contract and does not perform other obligations stated in the agreement.

Another ground for termination is the failure to execute the work in accordance with the contract.

The report will then be submitted to the head of the entity that seeks to procure goods or services covered by the contract. The CTRC will then convene to discuss the report verified by the head of the procuring entity.

The head of the procuring entity will then inform the supplier or contractor about the decision of the CTRC.

The supplier or contractor will be given seven days to explain why the contract should not be terminated. The CTRC will then review the explanation of the supplier before coming up with a decision.