To: Undersecretaries
Assistant Secretaries
Bureau Directors
Directors of Services, Centers and Heads of Units
Regional Directors
Schools Division / City Superintendents
All Others Concerned

1. For the information and guidance of all concerned, enclosed is a copy of the Government Procurement Policy Board (GPPB) Circular No. 02-2008 dated August 2008, “Clarification on the Role of the Special Allotment Release Order (SARO) in the Procurement Process”.
2. Hereunder are clarifications on the role of SARO in procurement as mentioned in Section 4.0 of said Circular, to wit:
   1. In accordance with Section 7 of Republic Act (RA) No. 9184, procurement may commence as long as such activity is included in the APP of the procuring entity concerned. Prior issuance of the SARO is not a pre-condition to the advertisement and/or posting of the invitation to apply for eligibility and to bid, in case of public bidding, or the posting of the notice of procurement, in the case of the alternative methods of procurement; and
   2. Issuance of the SARO is, however, required before issuance of the notice of award by the procuring entity. At this point, the SARO must be in place to ensure that the certification on availability of funds, required under Section 40, Chapter 5, Book VI of Executive Order No. 292, shall be properly issued by the chief accountant of the procuring entity before any disbursement is incurred.
3. Immediate dissemination of and compliance with this Order is directed.

Encl.: As stated
Reference: None
Allotment: 1—(D.O. 50-97)

To be indicated in the Perpetual Index under the following subjects:
BIDS
POLICY
PROCUREMENT

DO_s2009_09