DISPOSAL OF

GOVERNMENT
PROPERTIES
 COURSE OVERVIEW

Session 3: Appraisal of
Government Properties Session 2: Administrative, Civil
and Criminal Liabilities relative
to Disposal of Government
Properties

Session 1: Disposal of
Government
Properties
Session 1:
Disposal of Government Properties
SESSION OVERVIEW
SESSION 1: Disposal of Government Properties
 Key Concepts and Terms
 Disposal Activities/Properties
 Guidelines and Procedures on the Sale of
Properties

4
LEARNING OBJECTIVE
At the end of the session, the
participants will be able to
identify the rules and
regulations on the disposal of
government properties as
provided in COA-DBM JC No.
2024-1 dated January 30,
2024.
5
C OA - D BM J C N o . 2 0 24 - 1 d a te d J a n u ar y 3 0 , 2 0 24

KEY CONCEPTS AND TERMS

7
PURPOSES
PREREQUISITES
GUIDELINES Commencement RESPONSIBILITIES
Disposal of of disposal Accountable
government activities personnel
properties .

B D F
A C E
DISPOSAL PROCESS SUPPORT SAVINGS
Procedures and Sustainability Help maximize
methods goals savings
SCOPE AND COVERAGE
EXECUTIVE BRANCH OTHERS
 All departments and  The Legislature, Judiciary,
agencies under the Constitutional
Executive Branch, Commissions, and the
including the Regional and Office of the Ombudsman
Field Offices, SUCs, GCs are strongly encouraged to
and their subsidiaries, adopt the provision of the
LWDs and LGUs. revised Manual.

9
APPLICABILITY

If any provision of the Joint Circular (JC) and the

Revised Manual is declared void or unconstitutional;
the remaining provisions not affected thereby shall
continue to be in full force and effect.

10
11
APPLICABILITY
NBC No. 425 and the old Manual were EXPRESSLY
repealed.
The provisions of existing guidelines, rules, and
regulations issued by COA and the DBM that are
inconsistent with the JC and Revised Manual were
likewise amended, modified, and/or repealed
accordingly.

12
 ASSET LIFECYCLE

B D F
A C E
BE MINDFUL
Disposal proceedings shall be immediately initiated
to avid further deterioration of the properties and
consequent depreciation of their value

Government agencies must adhere to the

prerequisites prior to commencing their disposal
activities

Accountable officers must know their duties and

responsibilities, as well as the procedures and
methods for conducting disposal activities
LEGAL BASES
• GAA
• RA 6969
• RA 9003
• EO No. 285 dated July 25, 1987
• EO No. 309 dated March 8, 1986
• PD No. 1445
LEGAL BASES
• EO No. 888 dated March 18, 1983
• COA Circular 89-286
• COA Circular No. 2003-007
• COA Circular No. 2015-007
INCLUSIONS

• Government Properties
• Museum materials
• Documents submitted for copyright
• Models submitted in connection with applications for
patents

19
EXCLUSIONS
 Real Properties shall be governed by separate
guidelines
 Public records shall be governed by the guidelines
issued by the National Archives of the Philippines, as
mandated under RA No. 94702 dated May 21, 2007
 Imported properties consigned to the Government of
the Philippines (GOP) through government agencies,
e.g., as a result of foreign aid, when ownership has not
been transferred to the GOP
20
C OA - D B M J C N o . 2 0 24 - 1 d a te d J a n u a r y 3 0 , 2 0 24

DISPOSAL ACTIVITIES

21
 DISPOSAL ACTIVITIES

Disposal Properties for Documents of

Committee and disposal properties for
Secretariat disposal

Inspection of
properties for Appraisal Modes of
disposal Disposal
CONSTITUTION OF THE DISPOSAL COMMITTEE

CHAIRMAN MEMBERS
• Assistant Secretary 1. Administrative
• Director III Service/Division Head
• Department Manager or its equivalent
• Department Head 2. Property Section/Unit
Head
CONSTITUTION OF THE DISPOSAL COMMITTEE

24
CONSTITUTION OF THE DISPOSAL COMMITTEE

GOVERNMENT ENTITY APPROVING ENTITY

Department, RO and/or FO under Department Secretary
the Department
Attached agency, RO and/or FO Head of Agency or duly authorized
under the agency official
GC and SUC Governing Board or duly authorized
official
LGUs Local Chief Executive

25
DISPOSAL COMMITTEE
(Powers and Functions)
Ensure the speedy process of disposal of properties
• Continuing/carrying inventory costs of the government are
eliminated;
• Accountable employees are relived of unnecessary and/or
excess accountability; and
• Government officers are effectively decongested from
properties for disposal

26
DISPOSAL COMMITTEE
(Powers and Functions)
• Inspect, appraise, and undertake valuation activities
• Set the final appraised value
• Determine the appropriate mode of disposal
• Undertake the disposal proceedings
• Ensure exclusion of materials not intended for disposal
• Ensure extraction, proper storage, and security of
confidential data stored in ICT or electronic equipment
• Perform other related functions

27
 DISPOSAL COMMITTEE
(Rules of Procedures)
• Develop internal rules and
procedures
• Recommend the threshold
amount and/or parameters
• The Chairperson shall call the
Committee meetings

28
 DISPOSAL COMMITTEE
(Rules of Procedures)
• The Chairperson shall make the
final decision and the
recommendation
• The members are authorized to
make decisions on behalf of their
respective offices during the
Committee deliberations.

29
 DISPOSAL COMMITTEE
(Powers and Functions)
OFFICE APPROVING AUTHORITY
 National Government Agencies Department Secretary
 Central Office Head of the RO concerned
 RO and FO Head of the Agency
 Attached Agency
 Government Corporations Governing Board or its duly authorized
 Central Office official
 RO and FO Head of the RO concerned
SUCs Governing Board or duly authorized
official
LGUs Local Chief Executive
30
 DISPOSAL COMMITTEE SECRETARIAT
FROM PROPERTY DIVISION/ Asset management, i.e.,
SECTION/ UNIT, OR ITS Property Division/Section/Unit
EQUIVALENT or its equivalent.

Existing employees to
provide secretariat services
to the Disposal Committee.

31
DISPOSAL COMMITTEE SECRETARIAT FUNCTIONS

Provide technical Prepare the

and admin agenda for
support meetings

Organize and Prepare minutes

make all of meetings and
necessary resolutions
arrangements for
the meetings
DISPOSAL COMMITTEE SECRETARIAT FUNCTIONS

Receive and take Manage the sale

custody of and distribution
documents and of public auction
other records documents

Draft Advertise and/or

correspondences post disposal
and other opportunities
communications
DISPOSAL COMMITTEE SECRETARIAT FUNCTIONS

Assist in Act as the central

managing the channel of
disposal process communications

Monitor activities Perform other

and milestones related functions
for proper
reporting
What are the properties subject for disposal?
 PROPERTIES FOR DISPOSAL
• Beyond their useful life
• Can no longer be repaired or reconditioned
• Beyond economical repair
• Obsolete or outmoded items
• Unnecessary items
• No longer needed
• Unused items (dangerous/hazardous)
• Abandoned properties
• Issued items to retiring employee
36
 DOCUMENTS OF PROPERTIES SUBJECT
DISPOSAL

FOR DISPOSAL

The Property Division/ IIRUP

Section/Unit shall submit
the following documents to
the Disposal Committee: WMR

PTR
 CONDUCT OF OCULAR INSPECTION

• Aimed at obtaining a first-hand observation of the

physical and operational condition of the
properties and their marketability or ability to
attract prospective buyers.

• It is also aimed to supplement the theoretical

computations of the value of the properties to be
disposed of.
38
 APPRAISAL OF PROPERTIES SUBJECT
FOR DISPOSAL
PURPOSE
To set the minimum selling price so that the government
shall receive fair compensation for the items sold.

BASIS
Information/data appearing in the IIRUP, WMR, and PTR or
their equivalent documents (regardless of the mode of
disposal).

39
 MODES OF DISPOSAL

Transfer
Condemnation/
Destruction
Barter

Return to the
Donation Suppler/
Vendor
 MODES OF DISPOSAL

Public Auction
Sale to Negotiated
Government Sale

Direct
Sale of Junk
Negotiation
What are the new modes of disposal which were
not present in NBC 425?

45
 MODES OF DISPOSAL
Sale to
Return to the Government
Officials Direct
Suppler/
Negotiation
Vendor

Sale of Junk
CONDEMNATION/DESTRUCTION

 Valueless, unstable, or hazardous properties

 The condemnation/destruction of the properties
shall be made in the presence of a
representative/s of the Disposal Committee and
COA Auditor (as observer).

47
 DISPOSAL OF ICT, HOSPITAL AND
HAZARDOUS ITEMS

Department of
Department of Department of
Information and
Health Environment and
Communication
Natural Resources
Technology

Disposal of ICT Disposal of Hospital Disposal of Hazardous

Properties Properties Properties

48
TRANSFER TO OTHER GOVERNMENT AGENCIES

With cost (based on appraised value) or

Without Cost
 Accomplishment of Property Transfer
Report as evidence of the transfer

49
BARTER

A modified form of transfer of property to another

agency in exchange for another piece of property
without the use of money.
– Accomplishment of Property Transfer
Report as evidence of the barter (both
agencies)

50
DONATION OF PROPERTY

– Donation to foreign governments, local and

foreign non-charitable, scientific, educational or
cultural institutions/ associations in exceptional
and meritorious cases

51
RETURN TO THE SUPPLIER/VENDOR
• The agency may sell the property upon reaching
the end of its useful life to the
supplier/manufacturer at residual value.

• The Bid Documents, Purchase Order/Contract or

Terms of Reference shall include a provision on the
matter.

52
SALE TO GOVERNMENT OFFICIALS/
EMPLOYEES OF THE AGENCY
• At the end of its useful life and is already for disposal,
property may be sold at appraised value to the end-
user.
• Said end-user has the right of first refusal and only in
case that he/she refuses or fails to buy the property
could the same be sold to other employees.

53
SALE TO GOVERNMENT OFFICIALS/
EMPLOYEES OF THE AGENCY
• End-users who are retiring may be allowed to buy
properties even if they have not reached the end of
their useful life; provided, that they were issued to
them at least two and a half (2.5) years or 30
months prior to his/her retirement
• Provided, that the properties for disposal have
already reached half of their useful life

54
SALE TO GOVERNMENT OFFICIALS/
EMPLOYEES OF THE AGENCY
• If Member/head of the Disposal Committee or by the head
of the office/agency, the appraisal value of the item shall
be verified by the COA Audit Team

• Sale shall be through an auction within the agency, for

Common use properties, e.g., motor vehicles which are
intended for the transport of personnel and equipment

55
SALE TO GOVERNMENT OFFICIALS/
EMPLOYEES OF THE AGENCY

Conduct of public auction - In case there

is no winning bidder on the first attempt,
the disposal process would be
considered a failed auction.

56
SALE TO GOVERNMENT OFFICIALS/
EMPLOYEES OF THE AGENCY
• Where the assets for disposal are a small number of low-
valued items which are unlikely to attract public interest;
• Where the personal use of assets for disposal would
directly improve the performance of the employee in the
execution of his/her duties;
• In remote locations, where any other mode of disposal
would be difficult; or
• In case of retiring officials/employees per Item 6.2

57
PUBLIC AUCTION

The properties shall be sold on an

“as-is-where-is” basis

58
PUBLIC AUCTION

Public auction may be done through either of the

following:
a. Sealed Public
b. Viva Voce

Negotiated Sale - in case of two (2) failed public

auctions
59
IN CASE THE SECOND PUBLIC AUCTION FAILS

Within one (1) month from the date of

the second failed auction

If done after one (1) month from the

second failed auction

If done after six (6) months from the

date of the second failed auction
 SALE OF JUNK OR SCRAP AND/OR RECYCLING

This can be resorted to if the following conditions are met:

a. The cost of administration and maintenance of the
government properties is more than the salvage value;
and
b. The selling price for the junk/scrap is not lower than
the 10% salvage value of the properties.

61
 SALE OF JUNK OR SCRAP AND/OR RECYCLING

• Recycling, if the junk/scrap did not meet such

conditions, and is deemed to have little or no
commercial value beyond its basic material
content and is no longer functional

• The mandatory removal of usable parts prior to

disposal must be ensured by the Disposal
Committee.
62
 DIRECT NEGOTIATION
The agency may directly offer to a prospective buyer in the
following instances:
a. The market is limited and a single buyer who is willing to
pay the reserve price has been identified;
b. National security, public interest, legal or human rights
issues or environmental considerations are served by
selling to a particular company, group or individual;

63
 DIRECT NEGOTIATION
c. A potential buyer is a user of an asset at the time the
decision to dispose the asset is made, and it is
reasonable to give that person the first option to buy
the asset at a market rate;
d. An asset is located on a potential buyer's premises on a
hire or free use basis and it is reasonable to give that
person the first option to buy the asset at a market rate.
The head of the agency, upon recommendation of the Disposal Committee, shall
issue the specific guidelines on direct negotiation.

64
 The Property Officer shall
1 accomplish the IIRUP, WMR or

Derecognition of PTR

Unserviceable The IIRUP, WMR or PTR shall

be submitted to the Head of 2
Properties the Property Unit

The Head of the Property Unit

03 shall then report the same to
the Disposal Committee

The Disposal Committee shall

then issue a certification on the
matter and forwards it to the 04
Chief Accountant
 COA-DBM JC No. 2024-1 dated January 30, 2024

GUIDELINES AND PROCEDURES ON

THE SALE OF PROPERTIES

66
 PUBLIC AUCTION PROCEDURES

Pre-Auction Submission of Opening of

Requirements Auction Tender Tenders

Payment by Awarding of Abstract of

Winning Bidder Sale Bidding

Claiming of
Award
PARTICIPANTS IN PUBLIC AUCTION
Natural and juridical persons,
associations, partnerships or
corporations with legal capacity
and compliant with the
prescribed rules and regulations
may participate in the sale by
public auction.

68
PRE-AUCTION REQUIREMENTS
Preparation of Invitation to Bid (ITB)
The ITB shall contain the:
a. Name of Agency;
b. Description of the items/lots for auction,
c. Date, time and place of pre-auction conference, if
necessary;
d. Date, time and place of submission and opening of auctions;
e. Information on auction requirements; and
f. Reservation or option on the part of the government to
accept or reject any or all auctions.
69
PUBLICATION REQUIREMENTS
The ITB shall be posted:
a. in any conspicuous place in the premises of the owning
agency concerned for seven (7) calendar days;
b. at least three (3) conspicuous public places in the locality
where the properties may be sold; and
c. posted on the agency's website

The copies of the ITB may also be sent via mail or

electronic mail, or personal service to prospective bidders.

70
SUBMISSION OF AUCTION TENDER
At least three (3) copies, clearly indicating the
following:
a. Description of the items/lots with the
corresponding auction offer in words and figures;
b. Name and signature of the bidder;
c. Business or residence address of the bidder;
d. Proof of identification of the bidder; and
e. Terms and conditions offered regarding bidder's
bond, payment, default and delivery.
71
SUBMISSION OF AUCTION TENDER

Bids are automatically disqualified!

When auction tenders are not in the
prescribed form and/or not
accompanied by auction bonds at the
time of the opening of bids

72
AUCTION BOND
• At least 10% of the minimum auction price set by the
government
• If paid electronically, proof of cash payment for the
auction bond shall be allowed
• Auction bonds of non-winning bidders shall be
returned immediately after the announcement of the
winning bidder.

73
OPENING OF TENDERS
• shall be opened at the time, date, and place set in the
invitation to bid under the direction of the Disposal
Committee
• bidders or their duly authorized representatives may
witness the proceedings physically or through
videoconferencing or a similar platform
• the auction tender shall be signed by the members of the
Disposal Committee and announced to confirm compliance
with the auction’s requirements

74
ABSTRACT OF BIDDING
• shall be prepared in triplicate copies, indicating the name
of the agency, date, time, and place of auction, names of
bidders and their corresponding auction tender and auction
bond, and in case of disqualification of bidders, the reason
thereof.
• shall be signed by the members of the Disposal Committee.
• The Secretariat shall keep copies of the abstract of
auctions safe.

75
FAILURE OF PUBLIC AUCTION
Failure of public auction shall be declared under any
of the following cases:
a. No auctions were received; or
b. All bidders failed to comply with the terms and
conditions prescribed in the invitation to bid.

76
AWARDING OF SALE
• Award shall be given to
the highest complying
bidder.

• Public auction by viva

voce When two (2) or
more complying bidders
have identical offers.
77
AWARDING OF SALE
• In case of deferment of the award, the agency shall
issue a temporary receipt
• auction bonds of losing bidders shall be returned
immediately after the award to the winning bidder.
• Deferment of award shall not exceed five (5) working
days from the date of opening of tenders.

78
PAYMENT BY WINNING BIDDER
• The auction bond shall be
considered as partial payment

• The full payment for the purpose

shall be made within five (5)
working days from the date of the
notice of award.

79
CLAIMING OF AWARD
• Only after full payment of the auction price.

• In the presence of the Property Officer or duly

authorized representative and witnessed by the
Disposal Committee.

The period for the withdrawal of the sold

unserviceable property shall not exceed 30 calendar
days from the award.
80
CLAIMING OF AWARD
• Unjustified failure to withdraw the properties
within the fixed period set shall be grounds for the
forfeiture of the auction bond.

• If the properties remain unclaimed after the lapse

of the period to withdraw, ownership of the
properties shall automatically revert to the
government and may be disposed of in
accordance with these guidelines.
81
BLACKLISTING
Individuals/entities shall be blacklisted from
participating in the disposal activities within one (1)
to two (2) years upon inclusion in the blacklist, due
to:
a. Submission of falsified documents containing false
information;
b. Withdrawal of an auction tender;
c. Non-compliance by bidders
84
 A written complaint or motu proprio

Bidder Notification BLACKLISTING PROCEDURES

Submit a written answer within 10 days
Without prejudice to any
Notice of Decision action that the agency may
have against the erring
Submit MR within 15 days
bidder, e.g., forfeiture of
Resolution of the MR security, the following are
the procedures for
Protest within 15 days
blacklisting.
Resolution of Protest

Issuance of a Blacklisting Order

85
THANK
YOU