Section 11Sec./Art. 11

Negotiated Contracts. - No project in this Act shall be implemented by negotiated contract except in any of the following cases: (a) when there is an emergency arising from natural calamities or where immediate action is necessary to prevent imminent loss of life and/or property or to comply with government commitments; (b) when there is a failure to award a contract after competitive public bidding for a valid cause; (c) upon the termination or rescission of contract; (d) when the projects are contiguous or adjacent to an ongoing project with no negative slippage and with satisfactory progress which may be economically implemented by the same contractor at no additional mobilization cost, using the same set of equipment, organization and other resources, based on the same unit prices, subject to escalation in accordance with existing laws and regulations; (e) when the project is to be implemented in areas with critical peace and order problems as certified by the Local Peace and Order Council; or (f) as expressly authorized by the President of the Philippines when national interest so requires.

For projects to be implemented by the Department of Public Works and Highways, the authority to negotiate and approve contracts shall be obtained from the Secretary of Public Works and Highways if the project cost is One hundred million pesos (P100,000,000) or less, or from the President, upon the recommendation of the Secretary of Public Works and Highways, if the project cost is more than One hundred million pesos (P100,000,000).

For projects to be implemented by the local government units, the authority to negotiate and approve contracts shall be obtained by them from the Secretary of the Interior and Local Government if the project cost is One hundred million pesos (P100,000,000) or less, or from the President, upon the recommendation of the Secretary of the Interior and Local Government, if the cost is more than One hundred million pesos (P100,000,000).