MANUAL on DISPOSAL OF GOVERNMENT PROPERTY ee eet cel can aredeelent ech enedamahantfeehamel vusel-anchaoel Se oe St a Se Fe ee ae Se Sa SA RE RSNepuble:ot the Philippines SYSTEMS AND PROCEDURES BUREAU Deparment of Budget and Management Malacanang, Manila January 28, 1992 THE HONORABLE SECRETARY Dapariment of Budgel and Management Malacanang, Manila Sir We are submitting herewith the tinal copy of the Manual om the Disposal of Government Proparty which tha Systems and Procadures Bureau prepared pursvant to Its mandate under Execulive Order No. 285, together with the National Budget Circular officiaily endorsing the use of tha Mani>l by ali concerned. The Manual is ant improved version ot a looseteaf material on disposal guidelines earlier developad by the Bureau for DB's. internal use In conmaction with disposal activities thal ihe Dearlment's Regional Offices and SPB ilself are underlaking but which some ether agencies have already been using aver in the absence of an official enelorsomemt. The Circular will provide tha necessary tnprimatur and, hopatully, widen the Manual's dissemination and utilization. Respectiully submitted: —y: RO E Az. FUNK _ fre, Maenagamant Specialist tf Manggament Spdalist Il Fgtecs otober*z Information Systoms Analyst lil? Rae. Ja- C20 one Oban. He VERZOS: uvdia 6. CHUA ALL AE BAe ct A metetiet: PN tet Bose erg ees ch Bec dentTO REPUBLIC OF THE,” A)MNVINES: DEPARTMEN'E OF BUDGET AND MANAGEMENT MATACATANE! gl UTA NATIONAL BUDGET CIRCULAR NO. January 281 1992 ALL HEADS OF DEPARIMENTS, BUREAUS, OFFICES AND AGENCIES OF JHE- NATIONAL GOVERNMENT; STATE UNIVERSITIES AND COLLEGES; GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS; AND ALL OTHERS CONCERNED SUBJECT : 9 MANUAL ON THE DISPOSAL OF GOVERNMENT PROPERTY 4.0: 2.0 3.0 4.0 5.0 With tho abolition of the. Supply Coordination Olfice (SCO) pursuant to Executive Order No. 285 dalod July 1967, the sunction of disposal of obsolete, forfeiied, abandonod and surplus supplies, mafarials and equ” ment has been transferred to tha different ime departments and agancies, subject .o the guidelines developed by the Systems and Procedures Bureau (SFB) ol the Depariment of Budget and Management (DBM) and existing laves. Pursuant to this directive, a Manual on the Disposal of Gaverninant Property is horaby issued to guide agoncies In thelr disposal underiakings. The Manual was prepared taking into conslduration existing faws and policies governing disposal, ita guidelines isstiad by tha dofunct Supply Coordination Ofifee and pertinent rules and reguittions of ihe Commission and Audit. Refinemonts and supplements ware intraducad by DEI fo anhance relevance and praciicality of the guidelines. This was done as a resull of ebservatians obtained from actual exposure of SPB slaff and DBM Regional offices fo disposal activities. As manuals are suppased to be dynemic, improvements on the guidelines may ba introduced from time to time as we ava abla to develop belter disposat methods. Agancias are ancouraged to prasani their suggestians or recommendations to DBM in this regard. Itis hoped that the Manualen the Disposal of Gavernmont Property wilt be helptul to all concerned, E>, hontai re.DE ee SN I Sf Pe Sra eS ee eo eo MANUAL on DISPOSAL OF GOVERNMENT PROPERTY oe AR LE OE SL TN: A a A A A A He. Hew A Se ee ae Re ee hee ee ee a AN Se ee eee a VVPART I moo 8 PART It TABLE OF CONTENTS: INTRODUCTION Background and Purpose Legal Bases Agancy Coverage Scope of Guidelines Definition of Terms DISPOSAL ACTIVITIES/PROCESSES, Creation of tha Disposal Committee LO Organization 2.0 Funelions 3.0 Secretariat Sarvices 4.0 Desiynation of DBM Rapressntative Determination of Disposable Property Submission of Disposal Documants 1.0 Inventory and inspection Repart 2.0 Hopor. of Wasta Materials 3.0 — tnvaice Peceipt of Property Inspection 1.0 Objective aPART It o 8 mo m Appraisal 1.0 Objgetive 28 Basis of Computatlon 3.0 Formulae 4.0 Definition of Farms (as used (rt the farmulae} 5.0 Sampo Computations Selting of Minknum Value Medes of Disposal $0 CandemnatiovDestruction of Propoity 2.0 Yransler of Property 3.0 Satter 4.0 Donation of Proparty $9 Sale of Proparly Dropping from (ha Books of Accounts GUIDELINES/PROCEBUHES IN THE SALE OF PROPERTY Prebiduing Requirements Who may Participate In Publle Bidding Accomplishniant and Submisstan of Bids Bid Bond Defective Bids Withdrawal of Bids a 10 16 19 9 20 20 a4 21M. N. ANNEXES Hagotiated Sale Awarding of Bids Payment Ciniming of Awerd Taxes, Customs Duties, Cosis ar Charges Année A - Inventoly and Inspection Report (General Form No. 17-A) Annex & - Adputl bt Waste Materlats (General Form No. 64-A} Annex G - involea Racelpl tor Property {Gonara} Form No. 30-Ay Annex D - Table of Estimetad Servica Uile Annex E - Annuat Average of US$ Guiding, Raie 22 22 23 23 24PART! INTRODUCTION Backcr cund and Purpose Property disposal Is the third and last phese in tha supply management cycle where the [st two plases consist of procurgmentand utliizatlon and mainienancs. Disposal occurs whon a piace of equipment ar properly can no fonger provide elficien! servics or, though still working, has been renderad useless due to obsolescence. Disposal proceedings should be Immediately (nitiated to avold further deletoration of the property and consequent depraciatlon In tts value. A systemat{c and tImely disposal will yleld benelits in terms of, among others, a higher appralsad value and by enabling storage areas available for other purposes. To factlitale the disposal of ihe increasing quantity of unserviceable equipment and propaity, the haads of {he various dapartmants/agencles have been autiorlzed to dispose o! such equipment anc property. Together with such authorization, @ uniform procedure vf government propally disposat ts pfesertbed. The manual alms to serve as a quide to agenclas by providing Informative and prascriptive melarials on tie Isgat provisions, responsibilities , procedures, condillans and requizamants corcgning disposal actions. Legal Bases Disposal activities are governed primarily by the (ollowing Issuances: 1.0 Executive Order No. 888, Serios of 1983 Executive Ordar No. 888 dated March 18, 1983 stipulales, among others: 1.1 the authorily of the Ministers (now Socretariss) and Heads of Ministries (now Depatimenis/Agencies) to dispose of thelr Jaspecilys unserviceable squipmon and disposable propelty: 1.2 the creation of a Disposal Commiltes in each department/agency to be composed of the representatives of the owning department/agency, the Bureau cf Supp’y Guardination and the Conmomccian on Andi2.0 the creation of Meytonal Digposal Committoas composed of the tapresantativos of {he ragianal offices of ine owning Hepatiinentiagancy, the Bureau of Supply Coordinallon, and the Commission on Audit; 1.4 the duties of the Disposal Commiliae and the Regional Disposal Comuilles; 1.5 the submission of disposat documents andthe modes of disposal Execulive Order No. 285, Series. of 1997 Execullve Order No. 255 dated July 25, '987, an the other land, provides, among others: at 2.2 23 tha abolition of tha General Services Adminislralion and the transter of (ts functions to apprepriata government agencles; iha mandate ol tha Systems snd Procedures Bureau of the Dapartment of Budget and Management (o develop guidetines retativa to disposal of government properly; Ihe reconsiltution ofthe Disposal Committaa which shalf now include the saprasentative of tha Department of Budget and Managamant in ten of the Supply Coordination Office . Agency Coverago The quidelinas prescribed in Wis manual shall apply to departments and agancias of the national government Including their respective sogionallield ofilces, stale universitias and colleges, and govamment-owned or controilad corpotailons. Scope of Guidallnes 4.0 2.0 The guidelings contained hereln shall refer to the disposal of government proparty which are unservicaable, obsolete, forleited, abandoned,.excess. Gr surplus to the needs of the govamimant, or junk or scrap materials. As.usedin this manual, government properly relors lo parsonal proparty suich as supplies, tiaterials and equipment purchased of owed, stocked and used by the goverment ii its operations. Disposal of tha following ptoperty ate likewise covered by these guidelines but shall be done In coordination wilh appropiate governmentat 2.2 23 Musoum materints acquired ant preserved solely for extilblilon; and anlique property and works of atl, which shall be referred lo the National Museurn for the datermination of its dispustttan anct appraisal of vaive; Documenis submilieJ for copydght, In coordinalion wilh the National Library; and Modats submitted in cannectlon wilh applications for patente, In coordination with tha Burean of Patenls, Trademarks and Technology Transfer. 3.0 Excluded trom Ihe coverage ol Ihis manual ave a4 32 Reai Properly, which shall be governed by the DBM.DENA- DPWH Joln| Circular No. 1 dated September 40, 1989. Disposal of real proporty shall bo done In coordination with (ie Department of Environment and Natural Resources Records, which shail be yovarnad by the DECS Department order No. 13-A daled February 3, 1968. Definition of Terms The following torns which ara used to reler lo disposable government property are defined, thie: 4.0 Abandoned Property - any personal property in ta possession of any government agency without & known owner. 2.0 Beyond Economical Aepair - when the cost of rapait and nialntenance becomes prohibitive and disadvnnlageous to the guvernment considering such faclors as: aA a2 2.3 24 2.5 malntanance expenses downline replacement cost of spare paris frequency of breakdown alternative modas such as sfenlal of equipment or outright replacement 3.0 Econontically Repaiiable - that which can be rehatilialed and malntalned at a cost eoanomical to the agency, considering tha live (6) Taclorg mentionsd tn ttem 2.0 above.As a 5.0 6.0 8.0 8.0: 10.0 Equipment- any propany, oler thant land, structures and fixed factlitles, having @ useful fife greater than eng year, the cost of which amounts to. 21,500 of nore (par COA Circular Mo. 88-2008) and which whan used dow auiler any materel oF substantial change or alteration (n size PSTN Excess Frogarty - that whleb Is beyond the. requirement of the owning. agency but may still ba naedad tr some other govamment agencies. Expendable Propeny - tat which may ba consumed, spent, ar used-up, Faifeltact Pronarty - hat witch is acquired by summery process or by «te Thilinntnas, Matatlals - aia expetivauis u. process of manufacture or construction including parts or remimanis hut destroyed or Jamayod! (xed aasets, Non-axpandable Propoity - \hat which cannot be consumed, spont or used-up, such as, equipment Obsolete Property - thal which has lost Its efficacy either dug to: ieehnelogica advencomesi., change el procedures. reorganization of ofllce, of completion of preject. SorapAunit - fragments of dlecardod. meterials that has no vatua excapt for iis basic materiat contents and whch cannot be repracessed and re- used In the cosratlons of other government proparty. Suppias - arp sxpandable commodiltes which are normally consumed within a year In canaectlon with governnient operalicns. Surplus Prope? ty - excess personal property no longer needed by the government. Unseryiceable Property - that which ig bayend repair and has ro more utilization potentlet,PART If DISPOSAL ACTIVITIES/PROCESSES A. Creation of ihe Disposat Committee 1.0 2.0 Organ ation The creattan Gf a Disposal Commiltes In gach depaitment and agency Is provided in &.0, 888. On the olher hand, E.O. 205 stipulated the reconstitution of the Disposal Cammiltes as ollows: Owning Department or Agony - Chairman Commission on Audit - Member Department of Budgal and Management : Mamber The Regional Disposal Commiliess era organized in the same manner, with representatives Irom the following Regional Olfice of Owning Dapl. Agency - Chairman DBM Roglonat Olfice Membor COA Regionat Office - Mamber Functions 2.1 Disposal CommilfeefRegional Disposal Conimitles The functions of the Disposal Comnuttees and the Regional Disposal Commillaes as provided In E.O. 886 are the following: a. Inspector authorize the dapariment’s/agancy's field offices fo inspect the unserviceable equipment ard property to varily justification tor disposal; b. Sel the final appraised value of all disposable property considering obsolescence, maikel demand, pliysical condilion and result of previous biddings for similar properly: c. Flaconumand to tha Head of the DepartmentAgancy for approval, the manner of disposal; d. — Conduel public biddings for the sale of disposable property on an "as is, where is" basis and to recommend rcorrasnoncinn award3.0 49 Recommendations of Disposal Commitigas In the regions and in agancigs atlached to cattatn Deparimants shall be subject to the final approval of the tlead of the Department concomnacd. 2.2 Chaitman and Members of tha Commitiag The Disposal Commiliee Chalrman calls the meoting of the Committae and initiates lhe activitias in the disposal process. In cases of contlicts or differencas among the Comimillae members especially regarding varying appraised values, the Chairman stall make the final dacision as lo which recommendation shall be subriitted to the Head of the DepartmenVAgency for approval The members are clothed wilt the authorily to make decistons in behalf of thelr raspective offices during the vatious commilise deliberations. Tha mombers are expected to Undertake inspection, appraisal and valuation activitlas as a group or tndividually, and pattelpata in the bidding and awarding aclivities Secretarial Services A Sacrefatial and technical stall to ba manned from existing personnel of the agency shail be formed to handie all the Committee's technical and adminislrative matlers as well as tlio salekesping and systematic filing of Cemmillas documents and records Designation of the DAM Representative The DBM representative to Ihe Disposal Comniiltea shail be daslgnatad by an authorized DBM official upon submission by the agency of a fetter requesiing such dasignation. Determination of Olsposable Property 2.0 3.0 Any or all of tha following conuitlons shall constitule disposable property: Proparty which can no longer be repaired or racondilionad; Property whose maintenance costcosts of repair more than oulweighs. the benefits and services that will be derived from iis continued use; Property that has become obsolete or outmoded because of changes In {achnology;5.0 Unused supplies, materials, and spare parts that were procuied in excess Of taquitemants; and 6.0 Unused suppliss and materials that has become dangerous to use because of loug sleraga or usa of which Is delarminad ta be hazardous. Supmission uv. vocuments Potlaining lo Disposable Property Accountable officials in possession of unserviceable properly shall subtnit to the Disposal Commiltea, through their lespective leads of offices, the following accomplished foims, as appropriate 1.0 fnventory and Inspection Heport (| & 1 Report, ollerwise known as General For No. 17-A). This form covers seni-expendable malarials and equipment and nun-expendable supplies and should be accompanied by any of the following as the case maybe: [See Annox A} 1.1 individual survey report, duly certified by the Supply Officer and Head of Agency; 1.2 List of missing spate parts, duly certilier” by the Supply Officer anu Head of Agency; 1.3 Stencils of chassis and engine numbers of motor vehicles; and 1.4 Current photographs in two (2) positions. 2.0 Report of Waste Matenals (QWM olharwise known as General Form No. 64-A}. This form cavers expendable materials, supplies, and consumabtes including spare pails, amply containers, remnants from destroyed of damaged fixed assets. [Seo Annex B] 3.0 Invoice-Receipt for Property (INP otharwise known as General Form No. 30-A). This forny covers gavernmant property transferred from another agancy which bas become unsorvicoable, and duly recommended for disposal by the head of the agency. [Seo Annex C] inspection 1.0 Objective. Inspection Is aimed at obtaining a first hand observation of {he physical and operational condition of (he properly and. thstr prarkelability or abillly lo attract prospective buyers. 2.0 Conduet of Ocular Inspection. Insneclon may be dione saparately byE. 24 22 23 Appralsal Verity stated serial numbor, motor nunibor, properly number, and ether specifications ecessary for. establishing cones idaniification of the properly. Delerming the physical condiliov/gensral appearance of the proparty rolative to: a. ihe equipment being operational, economically repairable or beyond economical repair; b ihe availabilily of spata paris and tha general obsolescence of the equipment; and ¢. tha quatily, degree and extent of malntenance and repair done on equipment. In cases where the equipment is declared to be junk, the totat estimated welght per lol should be detarniinad to form as basis of the appraised value. The cosl per unit of the property/supplies inspected will depend on the kind of material appraised. 1.0 Objective. The objective in computing the appraised value of the property for disposal is to sol the government's minimum selling price 50 that Ihe government shall receive fair compansaticn for the flanis sold. Ths Disposal Commitlee niembers, including the owning agency, shall gach prepare its appraisal report. 2.0 Basis of the Computation, After having conducted the ocular inspection and regardless of the mode of disposal fo ba undertaken, the appraised value shall be computed using as basis thé information/data appearing in the Invantery & Inspection Meport, Report of Waste Materials and invoice-Necaipl tor Properly The toltowlng basic variables are io be used - year af acquisition - cost of acquisition - replacement cost 3.0 Formulae. In the computation of the appraised value, any of the formulae as enumeralad below in varsions may be usad depending on theBt a2 3.3 version 1 lbis ls used for all types of properly where the acquisition cost. and year of acquigition are known, APPRAISED VALUE = RUY x CE x CKE x No, of Units vhare, RUv = (AE ~ SV) + sy Version 2 - this Ls used for all types of property where the acquisition cost and year of acquisitlon are unknown but the replacement cest can be astabtl shed. APPRAISED VALUE = RO ox CE x UF x Ho. of Units version 3 - this ts used for all types ef property where the acquisition cost ks unknown, but year vf acquisition and replacement cost can be established, APPRAISED VALUE = RC x AF x CF x No. of Units Legend: RUV - Ramaining Uselul Value CF - Condition Factor CFF - Currency Fluctuation Factor AC. - Acquisition Cost VV - Salvage Valua RA - Remaining Usetut Lite 1 - Estimated Servlea Lite AS - Actual Service AC - Raplacainent Cost UF - Usage Factor40 Definition of Tors (as used In tho formulag): at Ad 43 44 45 46 47 4.8 49 ACQUISITION COSI (AC), ralats to tha price or amount al which the propotly was putchased or acquired REPLACEMENT COSTS @XC}, refers fo the cutront markel price of a similar new equipmem,; or if tha equipment is no longer ov ule in the market due to product obsatascence, the markel jaico of a similar equipment which can functional'y replace tie item appraised CUNRENCY FLUCTUATION FACTOR (CFF), er P to § rata APPRAISAL YEAH over P to $ rata ACQUISITION YEAH, as usaclin Version 1, refers lo the U.S. Dollar relerence rate telalive to the Philippine Peso at the lime of appraisavacquisition. [See Annex D for Annual Average of US$ Guiding Rate} ESTIMATED SERVICE LIFE (L), as used in Version 1, refers lo the length of service life that may be expected from a pallicutar equipment assuming normal utilization. (See Annex “E" tor Table of Eslimated Service Life of Equipmont/’ sperly] ACTUAL SEAVICE (AS), is defined as the age of the ecuipmentiproperty from date of purchase, or the diflarance betwoon the year of disposal and the acquisition year. REMAINING USEFUL LIFE (R), as used in Version 1, rofers to ihe difference between the Eslimated Service Life (L) and the number of years of actual service (AS) of tha properly. {I the compuled [is less than zero, is assigned a valua of zero SALVAGE VALUE (SY), is equivalent! to len percent (10%) of the acquisition cost of the equipmeavproperty, PHYSICAL CONDITION (PC), refers to the condition of the property at tha tla of Inspection relative to such observable factors as orm, physical state, ganeral appearance, degree of dalerictation obsolescence, completeness of components, markelabilly of tha propeiy/components and other similar observable [actors CONDITION FACTOR (CF), as used in alt versions, rolers to the value, used for compulallonal putposes, corresponding tot ho Physical Condition of the equipmenyproperty.PHYSICAL CONDITION CE. VALUE EXCELLENT 0.80 VERY GOOD 0.70 Goon 0.60 SATISFACTORY 0.50 ADEQUATE 0.40 FAIR 0.30 POOR 0,20 VERY POOR 0.10 4.10 USAGE FACTOR (UF), as used in all versions, ratets to whether the equipmontproperly has been used of not at the time of disposal. if the property has not bean used, UF is assigned a conslant value of 0.90; otherwise, it is equal fo the values assigned lo the Condition Factor (CF). VALUES OF THE USAGE FACTOR: a) if UNUSED 0.90 b) if USED, and the physical candilion .s: PHYSICAL CONDITION UF VALUE EXCELLENE 0.80 VERY GOOU 0.70 GOOD 0.60 SATISFACTORY 0.50 ADEQUATE 0.40 FAIR 0.30 POOR 0.20 VERY POOR O10 4.41 AGE FACTOR {AF}, a5 usod le Version 3, _rators to the romaining: economic value of the property telalive t estimated useful life. {See Annex E for Table of Eslimaied Service Lite of Equipment/Propetty] The valua of the AGE FACTOR (AF) is delormined by avaliuating fired ihe Panreciatinn and rarkan ihn eerracnnneling50 —__._lf Dlg: 1 2 -1.00 3 -0.90 4 -0.80 B02 “0.60 7 -0.60 & 0.40 9 -0.90: 10 -0.20 AL -0.t0 12 130 14 Yeltig of AF ig: D = 0.50 0.900 Sample Computations 5.1 Version 1 APPRAISED VALUE = RUV K CF X RUV = (AC - SV) x CEF X No. of Units RAL + SY Given: Year of Acquisition: 1860, Year of Disposal: igat Acquisition Cost: P 50,000.00 Esilmated Sarvice Life: 20 years We. of Units: one (1) Physical Condillon: poor Step 1. Compute Remaining Useful Life (Fi) Re L- AS 20 - (1991 - 1960) 20-41 anStap 2. Step 3. Stop 4. Stap 5. Stop 6. Compute for tho Salvage Value (S\) SV = 10% x Acquisition Cost 0 10% x P 80,000.09 = P 5,800.00 Compute for the Aemaining Useful Value (AUY) AUY = (AC -SVE x + av = (50,000 - 5,000) x _0 + 5,000 20 u (45,000) x 0 + 5,000 = 5,000 Compute for the Currency Fluct ufon Factor (CFF) CFF = Peso to Dollar rate appraisal year Peso ta Dollar rale acquisition year Convert Physteal Condition to equivalent aumerteal value using CF Table OF value for POOR = 0.20 Computa far the Appraised Value APPRAISED VALUE « RUV XCF X CFF X No, of ualts = 5,000 x .20 x G.752 x t5.2 Version 2 APPRATSRD Laampie No Given: Step f. Step 2. Step 3. Example No. Glven: Step 1. VALUE = ROX CEM oUF x Me. of Unkbe 1 (Usage Factor = Used) Year of Acquisitian: unknown Acquisition Cost unknowe: Replacement Cost: P 50,080.00 No. of Unis: one (1 Physical Condition: fair Usage Factor asad Convert Physical Condition to equivalent nusericat value using CF Table CF vaiua fer FAIR = 0.30 Couvett observed Usage Facior io entiivatent numerical value using UF Table UF (used) value for FAIK = 0.30 Compute for the APPFAISED VALUE APPRAISED VALUE = AC x CF x UF x No. of units = P'50,006 X 0.30 X 0.30 X 1 =P 4,500" 2 (Usage Factor = Unused) Year of Acquisllian: unknown, Acquisillon Cast: unknown Replacament Cost: P 50,000.00 No. of units: one (1) Physical Condition: Very Good Usage Factor: Unused Convert Physicat Condiffon to equivalent numerical value using CF tableStep 2. UF far unusad property ts constant UF ~ 9.90 Step 3. Compute for the APPRAISED VALUE APPRAISED VALUE = AG X CF X UF X Naot units = P 60,000 x 0,70 x 0.90 x 1 = P:31,500.00 8.3 Version a REPRAISEO VALUE ROR AF * CF xX No, of vas | Given: Year of Acquisition: 1975 Yoar of Disposal: igot Acquisition Cosh: unknown Replacement Cost: P 60,009.60 Esitmated Service Lila: 20 years Wo. of units: ana (t} Physical Condition: Satistaclory Step 1. Convert Physical Condition fa equivalent suniseical vatue using CF Table CE value fur SATISFACTORY — 0.50 Stap 2. Caninute for the Depreciation (0) Dek - AS L4.0 Tho snininem value sot shall ba good only fer six manths, If the properly semains unsold aller six months, a reappraisal must be conducted, Modes o! Olsposal The Disposal Commitige shall ecommend te the head of the agency the proper made of disposal. Properly inay by dispysed in any of the fatiowtng modes, a8 appropriate and deamed most advantageous to the gavorimant 1.0 Condemnation/Qestruction of Property Valueless, utisalable or hazaidous proparly may bs cotidemmed and destroyed by pounding, burning, breaking, shradding, throwing or any olhet maltod by which tie propatty Is disposed bayond econemic fecovery. Destruction shal ba mada in tha prosance of the Disposal Coiniilles. 2.0 Transfer of Propeity Upon the iniliative ot the owning agency 6 upon submission of teqiest to the owning agancy, propatly recommandad for disposal may be transferred to another government agency. Transfer shail by done sither with or withoul cos. Cost in [his casa relers 10 payment based on Ihe appraised value of the property. In effecting the transfer of property. the Invvica Rocoipl for Ptopoity (IAP or Ganoral Form No. 30-A) must be prepsrad by the ownlng agency and Lransmitied logather with the property ta the recipient or requesting agency 3.0 Sarter Batler Is a modilied form of Transter of Property wherein aa agency transieis property to another government agency In exchangs for another pieca of property. The value of the properly being transterred may or may aol be oquivatent to thal being received, In olfecting battor of property, tha Invoice Flsceipt of Property (INP or General Form No. 30-A} shall be prepared by each patty and transmitted together will ihe proparly to the olber parly. 4.0 Donation of Properly Property recommended for disposal may be donated to charitable,5.0 Sala of Property 5.1 Public Bidding. As a yenaral rule, the disposal of yovormment property shall be through sala by public bidding. Public bidding sy bu done ftirough sealed public bidding or when circumstances wartant, by viva yore > a. Sealed Public Bidding. Sealed publie bidding Is charactorizod by the submission of sealad bids by pluspeclive buyers, whereby the time, date and place of opsning of bids Is indicated in the Invitatian to Bid; the evaluation of bid tenders by the Disposal Conmitloo; and the awarding 10 the highest complying bidder. The datailad precedutes in publle bidding arg described In PART {I b Viva Voce. Disposable proparty of Insignificant value or such natura that requires inunediaie disposal shali be sold through public atiction by viva yoce fo be condueted by the Disposal Connmilige. Other siluatlons/cases for viva voce are those invelving te disposal of waste malesials andor spare parts of Insignificam valu, 5.2 Nagoliated Sale. Negotiated sale is another mode of sale of pioperly which Is tesolted to as a consequence of tailed public bidding. (Dataits on this ara dasctibed in PART Ulf Dropping from the Books of Accounts Upon disposal of properly, the pertinent portions of the Inventory & Inspection Report, Fepnit of Waste Materials or invaice-Receipt for Property, whichever are applicable shat be accomplished. These reports shall be tho basis for dropping tho procarty (rom the bocks of accounts and for taking up the proceeds fiom safe of property.B PART Hl GUIDELINES/PROCEDURES IN THE SALE UF PHUt Prebldding Requitoments 1 Preparation of tha tnvilation to Bid (ITB). Tho 110 is preparad ty the owning # cacy andsigned by tie agency head or any authorized ulficial The [fy must contain the following a. The name of ihe owning agency. b. Sulficient descriptive information an the ilemsAots for bidding, such as: - location of the property to be disposed : quantily - name of items - spocilications, where necessary rom Oale, time and place of pre-bidding conte once, if necassaty: gd. Dale, tne and place of submission and opening of bids; 8 Information on bidding taquirammants such as accomplishment of tha bid tanclar, submission of bid bends, terns of payrnert and claims, among others. f Resarvalion ot option o the part of tip government tu accept or reject any or all bids. Publication of the (TB. Tho 118 must be published in a newspaper of general clrculation if tha cost of such publicalion does nol oxceet 50% of the value of the property, Qlhaniso, substitute publicalion may ba availed ol, by posting copies of he ITB in conspicuous public places in the alga where the propeily Is lecaled or whara tha bicding will bo conducted. Capins of tha ITB may also bo sent by mail cr personal dativary to praspantive bidders: Schedule of Nidding. Bluding shall ba scheduled on a dale nol less than soven (7) working days from dale of issuance/publication/posling of the Th. Who may Participate ln Public BlidingG Accomplishment and Submission of Bids in Preparation of the Bid Tender. ny qualified bidder shat accomplish tis Bld Fender, clearly indicating the following, among others: a The description of the iternsAols with the corresponding bid offer cluarly Indicated In figures and in words b The naine and signature of the bidder c The business or residence address of tho bidder d Ihe business license number or Residence Carlificata number of the bidder 8. Terms and conditions offered regarding bicidars bond, payment, delaull and delivery A bidder shall accomplish Ihe Bid Tender in af least throe (3) copios, pteferably typewiilten. Bld lenders should be properly signed and submilted lo the Chairman of the Disposal Cour ‘tee on or bafore the time scheduled for the epaning of the bids. ‘The envolope containing the bid tender should be soaled and addressed piopeily and corecily. 2.4. tf the Rents ate being sold by lots, bidders shall submit bid tenders for differant lots In separate envelopes. 2.2, ifthe tems ale veing sold by lols and ali lots where interested buyars may olfer a bid for each fot ot a single bid for aif lots, the bid tender shail be submilted in only one envelop Erasuros or Intadingations should be avoided or duly inilialed by the bidder. De Bid Bond \. Bid bond par Slem/ol, as the case may be, which shati accompany lhe bld tender or Is prasented at Ihe time of the opening of bids, shall bo reyuired from each bidder and shouid be at least 10% of the minimum bid pilca set by the government. Bld bonds should ba in te form of cash, manager's check, or cashier's check acquired from a reputable bank wilhin the area where bidding is to be held.H. Defective Bids Bids that are not In prescribod form (a g- UNsignad bids) and/or those nat accompanied or guaranteed by Lki bonds al the time of opaning bids ato considered deleciive bids. Duleclive bids ate automatically cisquatilied. However, exceptional cases may occur whate a detective bid may be favurably considered by the Disposal Conmittes. The dufoclive bid may then be rectified in tho prasence ol the bidders and members of the Disposal Committee. Withdrawal of Bids 1. Abldder may be allowad to wilhdiaw a bid tender before the tine of opemrg of the bids. His bid shai be returugd uRopened. 2. Afiar the opening of iia bids, no bidder shall be allowed to withdraw his offer untess the lotlowing conditions ara mot a There is a mistake in Ihe offer b. The mistake rsters to tha object or principal conditions of the proposal C The reason for such mistake must ba cenctusive and convincing. Opening of Bids All bids shall be opaned at ihe iime, Jale and place set in the invitation fo bid undar the direction of tha Disposal Canniflee and in the prasence of the COA Auditor. Bidders or their duly authorized representatives may witness the proceedings. ‘The bid tendar shall be signed by the maimbers of the Disposal Commlttes immediately alter it ts openod and announced in order to confirm compliance with the recuirements of the bidding. The bid tenders are filed for safekeeping by the Secretariat of the Disposaf Committee. The Abstract of Bids An Abstract of Bids in tiplicate shall be preparad during "ss bidding prone showlnin Hie nome of ihe owninn anency the dala lime and olaca ntThe purpose ol Ihe Abstract of Bids is (o show in malic sunynary forms the individual bidders, their bids aad bid bends per Henot, aod the confirmation of the Pispusal Commillyg, Fach montber otha Conmittes shalt ‘be provided wilh a cupy of (he Abstract of Bids. Unsuccessiul Bidding 1 the sale through pubtie biddiny is unsuceesslul, a rabidding shat be scheduled. Bidding may be deckwed unsuccesshil in any of the [ollowing cases: a. Thera is no bkiding participant b. Only one (1) bickler submittad a hid lander for each lot c. All bidders failed to comply wilh the terns and condilians prescribed in the Invitation to Big d. Complying biddors failed lo meet the eunimut bid price. in case ol failure of Ihe secoud bidding, the Div osal Commtitlea may dispose ol the proparty through negatiation. Negotlated Sale 9 case tho second public bidding fails, Ine property may be sold al a “privala or nagotialed sale. Megolialion wilkin eng (1) menlh from the date ol the second failed bidding shall be done with the bidders of the first and/or second failed bidding and olher prospective bidders (such as those who oblained bid forms bul did rot sutwnil bid lenders) al a price not lower than, 80% of the appraised valus. Uo neyetlation is done efter one (1) month, patticipants ta the negotiation shall Uy expanded ia include oiler potential buyers aside Iram those aboyomentiana:d I negotiation siit wake placa alter elx (6) months from dale of second Jalled bidding, the proputty should be reappralsed and sold at not fowor than 90% of reappraised value, Bid bonds shall ba requiiad ‘rom all participants in the negoliation. Awarding of BS 1, Award shall bo given to the highost complying bidder.Awarding of bide shored be dana fmcuediately ater tho opening of bids, (practicable, Bid bonds of tosing biddors shall be elurned immediately allet (he annouaceninal of the winniag bidder in cas@ of deferment of award, a (empouary receipt shall bo issued by the agency to acknowledge submission of bid tondars. Ones the Disposal Committees completes ils veliberations and dolermines the vain bidder, bid bones of losing bidders shail bu tlurned upon presentation of Ihe recaipt imurdialely alter awarding of tha winning bidder. Delorment of award shall nol exceed live woking days from dala of opening of bids L. Payment 1 Upon determination of the awardee, the bid Lond sl partial payment and the diflerence belwaen si olferad bid price shall be paid in the form of cash, easbiers check or inanagers chock of a tapatable bank within the atea where the bidding was hok) Full paymnt shall bo macy within five (5) working days from the dale ol lhe nolice of award. tall be considered as paymont and tie In case of failure of full payment within the p. eseribud peiiod, (he awardea may be penshzed Uitovgh cancotilion of tho awatd and forfeiture of the bid boned ia taver af ihe govenunecit M, Clakning of Award 1. Claims shall be male only by the awarles, afler the bid ptico is fully paid as avidenced by au olfisinl racaipt. tH shall be etlactect ia the presence of the ‘epeiling accourlable officer or his duly authorized represontalive and wilhmssed by tha Disposal Conmniliea the property cHlicer of tha owning agcney shall accomplish a latly-oul sheol as aviders.9 or sctual delivery, The fally-out sheet shall be signod by apthotizort ae ~ ee iticaland be buyer acknoydedging receipt of lhe ams Claims shal! be made enly duilag official government working hours. Claims shal ba made withia tae petiod fixed by le Disposal Commillee but nol mor than 30 days aller awarding. Failure on the part of the awarden to claim te pacpsrty within the stipulated period, ~>all have the oflect of canceliation of the award/contract. The awarde hail {hen be chargod storage [eas and olher incidental izes/costs or damagas, 1.0.,SR, ad LUOdGY NOLL92¢SNI RELOUT GF SALES OF PROPERTY. UNDER SECTIO SBD AUAINISCRATIYE CODE | Respret{ully returned 10 the fey aeeraving te eco of the praperty inspector om contained ah foregoing certificate. The prow ide from the sete should be Coken pas a credit t6frome 20¢a) tnrey, 1906) INVOICE-Ri RANSFER of properts: jrvot REPUBLIC OF SUT Murtirenns: PP FOR PROPERTY foe pees . ort INVOICE [gem that f have OE nee day nay ang tnveterd to ioscan property of 7 iiioaas ated are ita oe Die 3 lay ita 28 Heeb Rech’ ie ReCEWT Fconmry ar Theva iieinci Hated mrtietes, property ofAnnex "0" ‘TABLE OF ESTIMATED SETIVICE LIFE Quoted hereunder ara estimated service lives of equipmant and properly taken from a Untied States Treasury Department bulletin which may ba adopted under Phillppina vondilicns, AGRICULTURE Animels: Caitie, breeding or dairy 8 Goals, breeding 5 Hogs, breeding 6 Horse, breadthy or work 10 Barrels, clip 6 Binders: Com 12 Qrain 14 Boilers 20 Burner, olf : 18 Cables 8 Canals: Steal and concrete 50 Wood syphon 25 Carters: Feed 20 Hay 26 Carts: Bump and farm 6 Hand 5 Cleaners and graders 15 Crushers, com and cob 15 Cuillvators 15 Disiribulors, ferilizer 12 Drilla: . Graln 15 Wail 10 Engines: Qasollne 10 Diese! 15Furnacoa: Luaparetot, dry Heating Generators, gas Aovlylene Incubetors and breodarg Laboratny edtiloment MIRdn macunes Miva, corn, partatte. Mowers: Fann Lawn Orchard tools Flows Pumps: Bucket Cordtugal or rotary Phunges Ratiigsietoxs, slacitic Saws, croular Saddles Scales: Porable Truck of wagon Sheerg machines, hand and powor Shredders Sleds end slelghs ‘Grain, bieradcast Chie Sprayed Sprasdats, manure Taeks: Grahi-carereto Mela Woon Steal ‘Wood. Threshing mactitnas ‘Tractor ‘Trees and vines: Banana Grapetallt Lerion Olenga Pear 45 t8 15 15 16 16 15 66 +0 40 20 10 10 40. 40 AeWagons: Light 12 Trucking, heavy duly 10 Walghars 20 AUTOMOWILE IN ‘The average Iife of the machine varias ftom 15 fo 20 years and tools, dies, pattem, gic. generally have an average fife of from 3 lo 4 years. Most of the equipment used by automobile manufacturers of standard tmelel and good working design, and lterns for this class of equipment can be taken from the list pertaining to fabricaiors of metal and wood. ACGESSONIES The remarks applylng fo the automobile manufacturing industry apply also to a considerable extent 10 tho nianifacture of accessories. In generai, however, the machinery has an over-all compusite life of 16 years. REPAHT SHOPS The average composite hile of tuachlnery for auton ible repalt shops has been found to be approximalsly 18 yours. BAKERIES tn general, has besn found that the composite [He of 12 1/2 years applies to cake bakerles, 14 ysars to bread bakerles and 20 years to biscuit manutacturers. The tem tives applicable io the baking Indusiry are set forth {a the following tabulation, some adjustment belny neaded, depending upon the type of bakery In which the assets are used: Ballers, dough 15 Boaters: Light 10 Heavy 15 Bins, flour storage: Steal 33 Wood 26 Bollers and euxiliates: Bolfers 15 Denebare mel fuieaare 4hBrakas, dough. Bumers, gas ar oil Cake machine, opan saddls Cooling aquine: Cooler ar Aor Cree" sc3 cutting machine Cracking pooling machine Cracker mactines Cutter, wafer Culllag and panning machine Dividars, dough: Hand Power Droppers: Cake Coakla Dryers, special cookie Embossing macting, biscult t humidifiers. lelng Unit Ketllas, copper facksled: Chocalale matting Matshrallow Mixers: Cookle end cake three spindle Dough, fire barrel: High speed Low speed Molders: Dough Roll Ovens: Automatic traveling Rotary Stallonary Retinig machinerlas, chocolate, Rounding niachine dough Tanks: Galvanized fron Glasa, enameled lined Steet Tamperlng end measuring Wood Waler machines, automate Wrepping mactines 16 20 20 20 16 45 25 15 25. 20. 26 Wz 2 v7 15 25 20 15 15 26 25. 15 16 20 15BARBER SHOPS AND ORAUTY PAKORS Chairs: Barbar Babbing “"lling “appears, stocks Dryars, hat, electic: Maséage machines Mirrors Tablas, mantcure Vibratore Waving mashinas, permanent BGEWEHIES Bulldings: Mactinaty Bottling equlpimant Kags Canas and bollles BUILDING EQUIPME NIT Alt concitioning. Alt condlarin, systems Large, er 20 fons Madive , 5 la 46 tans Sirol, under 5 tontt Compresscts, retigenning Conlate, saler tak and coll or ef oll and tubo Drums, purge of auirge Fans Elljors, alr, sell-claaniny Gays Gelilag and register Window units Air duct nystem: Galvanized (ron duct work Duet {nsyletion Painting Heaters - beller, oll buried end tank Water basterc.opon or dosed type Insutallon: WO FeSore BO 20 13 10 20 + wy aT 20 uw i A 19 20 26Cork, cold pipes and Sanke Wool felt - y3iug Louries and sctaens: Frost afr, coppar Stee! Pumpe well Switchboard, eleciile panal Tower, cooling Valvas ralfat: Water regulating Clocks Clocks, welshman’s Compressore, afr and vacuum Electile clock systams: Clack, time Motors: and generators, Switch equipment, svttch parid Elevators: Freight Pansengst Fre equipment; fire e'arn syblame Heaters, gas Reailig systems Boture and furr ces Burner equiprant: Ges On Radiators Lighting eyateme. Milecellansous tacitiles: Aviniags. Dogs, fouvres, vantilallng Screans, window Venetian bilncts Plumbing: Faucets and: tlushing valves Beth lube. lavelortas, tofiel bowls: Pipes: fron, cold-water fron, hot water or steam Valvas, lrorr body, water or staan Roots 20 18 10 25 20 15 16 10 16 25 26 20Asvestes 25. Agphalt and tar (preparod) 15 Starters, etectile 20 Sv"vidward, slectdc 25 Tanks and vats, watge: Metals 25 Wood 15 Telephone squipiant, wiring and ‘xtures 20 Trangtomnecs: 25 Water conserving equipment: Cooling towers 10 Evaporating candenser to Walls 5 Walls and well pumps: 25 HOTELS The average Ife of the furniture fixiuias end equipment used tn thie Indu considered to be approximately 12 years while Hem lives are recognizec Blankets and spread 8 Condltloning systerns, alr 18 Decoralons, sundry . 5 Fire alarm: and fita pravantion aquipmant 20 Fixturea, light (portabés } a Fumfture: Dining roont 12 Quest room 12 Kitchen equipment 10 Retriperatlon systanis 1 Spring, matiresses and pillows 9 LAUNDRIES: The ganerai composite {ite applicable to faundry machinery ls 14 years, Machinery used by laundtles ts listed beiow: Aseembly wheo! 10 Blocking machines, hat 20 Blowers 15 Cleaning machines: Oty-cleaniag solvent 1S Ai 12 ug, Hand Irons:Electric 6 Gas 10 Scales, piottorn 20 Slareirses 14 Stretchera, curtaly 20 Washers: Brass: 42 Monel metal 15 Wood 8 MOTION PIOTURE Jn ganerel, the ves. appiicabls to the equipment of tbe motion picture Industry are ag follawa: Boxes, storage, ila 10 Cameras, motion pictura 19 Cases, camera-cenying. leather 8 Developing machines 10 Dimmers 4 Dryers 19 Fittere, photographie 40 Lghta, er 8 Measuring machines, fim 15 Perforatore, flim 15 Pollahars, film 10 Printing machines. 15 Profectors, motion picture 10 Reels: Film (reial) 5 Flin drying (red) 10 Revidndors, fc 10 Sereens, eotki 1a MOTOR AND OTHER VEHICLES Motor yehictes included [n this classification are ihosa by commercial enterprises other then publle utility and construciion. Uives coneldersd reaaonable are indicated below. Automobiles: Owner driven Passenger Saleaman Horse-drawn vehicles eonsMoloreycles Tractora Trallars | Trucks: (outside use} Blagiic Gra, tet! Ch iedium das, heavy Inside use = @oaes -eax OFFICE EQUIPMENT A composite Ife of evout 15 ysers. bas teen found applicable | oTice equipment. Whare the equipment 's sagragated Inia gaps, tha folowing lives are recogntied Adding machine 40 Addrogsing & mailing machine 16 Bling machina a Bindets toase leat 20 Blue orinting machine 15 Bookkaaplng machina 4a Calallalosa 10 Gabinets & fils 15 Call eysten ia Cases: Books 7 Dispiay 20 Chalre: Bantwood 5 Heavy 168 Cireck performiors w Check wtilers a Cleaners, elects vacuum 4 Clocks: . Tine {5 Thna stamping: 1G Wall 20 ‘Cookers, water 1@ Dask, “ot wood 2g Oicta'lon machine 8 Duplicating machine tg Fan eguipmen! and euxitlaries:A. washara & spray dahumlc Jar a Heating and coosing cons 10 Molor AC 16 Motar DO 12 Ale antag unit 19 eutnwatic canitok system 10. Efsotrle control oqulpmant 8 Elecitfe staring equipment a Fans, otactic 10 Filing cases 6 Folding and sealing mactine 10 Helmats, rasarve 6 Hospital equlprrent 15 Lamp dask & floor 10 Linofeum 8 Lockers 25 Lunch room squipmant 16 Mechanical equipment 8 Mirror 20 , Money machines 19 Numbering machines: 49 Photographie machine 28 Prnaumatic tub system 20. Rags, carpe! and mats 410 Ralrigeration equlpannt Ce otritugat ref-igeration machina 1 Reclpricaiiac *tigeretion machine ta Roeks and stand 1B Safes and vaults 50 Seale countor ar? mel 20 Seal counter & all 190 Setters 13 Shades window 10 Sign boards 10 Tables 15 Typewiltass: 10 Wardrobs 20 Waler coolers 10 POWER GENERATORS AND ELECTRICAL EQUIPMENT A compcstta life tor steam power and generating equioment Is ganarally around 29 {o 25 years. This alec applies fo electrical gensration through siaam processes. Fieciical squlement ceralning to general of fydroelectrte energy Usually fasts 3O toPRINTING Al) PUBLISHING The composite fla appficable to tha machinery of publishing companies and large Jobbere Is approximelaly 17 years. The general clagsitication Is ag follows: Palnt daparimant 20-25 Linetype departmant 17 Composing recom 12 Assembilng department 10 Photography departmant 10 Rotogravure depertmant 7 Type 6 ‘The estimated item lives are given In the following schedules: Addressing. and malilng machines 15 Binder machines 15 Blowers 16: Crating machines: Load and rule ib Slug 18 Conveyors: 20. Cranes 20 Cutters 20 Cyfindare, flatghing 20 Elevators, hydraultc 20 Moldars, curved piri 16 Presses: Hand 20 Power 25 Rolling machinas 18 Stichers 10 Typesetting machines. 20 PROFESSIONAL AND SCIENTIFIC Under thls heading will come Ilbrarles and equipment used In professional acttvittes. The Iife usually applied to profeselonal Ubrartes le 30: years, while the lite for sclantitic equipment used by dentist, doctors, efo. Is usually 10 years.RESTAURANTS, BATIEANS SQPA ECUNTAING Chaira Extractors, elsctrle, trult juice Kitehesa aquipoia nil Mixars, sacia light Refrigeration, new lye Serving bards Siverware Stadiizer and washing tanks: Tabigs Toasters, aisctric: Trays: Uma, coffe Walfia dna, elacti¢ gtptn assets Avtorwoblla tank, cars Closing machines, can Cutters, paper Glulag machine, box ar carton Fourdrles Molor: AC oe Plumbing Power Plant Power Transmission |Ina Pulverizena (carnent) Ralinoad tank cara Rlalingads; Ralls Ties, Sawmill Sev fig machines Stoaméhip treight: Gre at lakes Lunsbar tracks Ocaan golng Tanks Track (quearry) Walar toway, eooting 10 8 10 7 20 12 5 10 15 5 10 18 § 10 15 15 20 25 18 12 20 0 25 26 20 20 10 3a 20 20 22 tsAnnex “E" i OF Y Yoar Reto (5) before i960 2.00 1960 2.50 196 3.60 1982 3.2051 1963 3.8997 1964 3.9898 1965 3.9009 1966 a.eg54 $967 3.9152 1960 3.91568 1969 3.9491 i970 6.0246 1971 6.4317 1972 6.6748 1973 6.7562 1974 6.7878 1978 7.2470 1976 7.4402 4977 7.4492 1970. 7.378E 1979 7.9776 1980 759 1981 7.8995 ige2 8.5999 1983 14.0010 1984 18.09 1285 12.50 1986 20.50 1987 20.60 1969 24,70 1969 21.57 +990 22.98