To: Regional Secretary, ARMM
Regional Directors
Schools Division /City Superintendents
All Others Concerned

1. The Department of Education (DepEd) has entered into a Memorandum of Agreement (MOA) with the Philippine Amusement and Gaming Corporation (PAGCOR) for the construction of various school buildings nationwide. Under this Agreement, the PAGCOR shall provide funds which shall be utilized for the construction of classrooms in priority areas as determined by both DepEd and PAGCOR.
2. To ensure effective implementation of these projects, the following guidelines are hereby issued:
   a. To come up with the Final List of Priority Recipient Schools, the PAGCOR and the Physical Facilities and Schools Engineering Division (PFSED) shall identify the preliminary list of recipient schools based on the result of the Instructional Room Analysis of the Basic Education Information System (BEIS). After the preliminary list is prepared, the PFSED and the concerned Division Offices (DOs) will assess each school identified thereat based on the actual needs. After which, a final list of the schools to be included in the PAGCOR-assisted school building project is prepared.
   b. The school building designs and the priority list as approved by both DepEd and PAGCOR shall be used in this project.
   c. The following provisions of DepEd Order No. 94, s. 2011 entitled “Guidelines on the Implementation of the Basic Educational Facilities Funds (BEFF)” shall be adopted in the implementation of this project:
   • 1) In the assessment of proposed recipient schools, proper site adaptation of the standard detailed engineering designs shall be considered. For the proposed multi-storey buildings (three-storey and above), the conduct of soil investigation shall be judiciously followed;
   • 2) The division-based canvass of materials (recommended and reviewed by PFSED) shall be applied in coming up with the unit cost of a school building;
   • 3) The mode of implementation of the projects is by contract, and it shall strictly follow the Revised Implementing Rules and Regulations (IRR) of the Republic Act (RA) No. 9184 entitled “An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for Other Purposes.”The following implementing units shall undertake the contract implementation based on the respective contract threshold:
     

     Implementing Unit	Contract Threshold
     a) Schools with Fiscal Management Autonomy and existing Bids and Awards Committee (BAC)	up to PhP5M worth of projects per contract whether single or clustered
     b) Division Offices	up to PhP15M worth of projects per contract whether single or clustered
     c) Regional Offices	more than PhP15M and up to PhP20M worth of projects per contract whether single or clustered
     d) Central Office	more than PhP20M worth of projects per contract whether single or clustered

   • 4) The implementation of the Constructor’s Performance Evaluation System (CPES) as stipulated in DepEd Order No. 114, s. 2010 entitled “Addendum to DepEd Order No. 14, s. 2008 (Implementation of Constructor’s Performance Evaluation System-Implementing Group)” shall be exercised in the implementation of the projects under this program; and
   • 5) In line with social accountability and transparency, the involvement of the Civil Society Groups (CSGs) shall be encouraged in the monitoring of procurement and implementation processes.
3. The Central Office (CO) Accounting Division shall issue the Certificate of Availability of Funds (CAF) for all projects which will serve as the basis for procurement. However, the corresponding funding check shall be issued in the following manner:
   • a. 90% of the Total Contract Amount – upon contract award; and
   • b. 10% of the Total Contract Amount – upon 100% project completion and liquidation of the 90% previous releases made.
4. For more information, interested employees, teachers and officials may contact:
   The Physical Facilities and Schools Engineering Division (PFSED)
   Office of Planning Service (OPS)
   DepEd Central Office
   4th Floor, Bonifacio Building, DepEd Complex
   Meralco Avenue, Pasig City
   Telephone Nos.: (02) 633-7263; (02) 638-7110
5. Immediate dissemination of and strict compliance with this Order is directed.

References:
DepEd Order: (Nos. 94, s. 2011 and 114, s. 2010)

To be indicated in the Perpetual Index under the following subjects:
FUNDS
POLICY
PROGRAMS
PROJECTS
SCHOOL BUILDINGS

DO_s2012_29