GOVERNMENT

PROCUREMENT
101

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 MODULE OBJECTIVES
At the end of this module, participants shall be able to:
DEFINE government procurement, its policies, principles, and
concepts;
EXPLAIN the salient features and changes brought by the
enactment of the Government Procurement Law;
IDENTIFY the points for emphasis depending on the profile of
prospective trainees;
CATEGORIZE different procurement modalities and learn its key
procedures, and requirements;
DETERMINE answers and solutions to common errors and issues
in government procurement; and
APPLY the principles and concepts of strategic government
procurement in day-to-day operations.
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
HISTORY OF THE GPRA

SALIENT FEATURES OF THE GPRA

PROCUREMENT ORGANIZATION

3
 PHILIPPINE GOVERNMENT
PROCUREMENT LAWS:
THEN AND NOW

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 5

ENACTMENT OF GPRA

Executive
Orders
Administrative
Issuances

Memorandum
Circulars

Implementing
Rules and
Regulations
 6

WHAT CHANGED?

CHALLENGES BEFORE SOLUTIONS BROUGHT

GPRA BY GPRA

Confusion caused by Enactment of the GPRA

fragmented legal system

Inconsistent policies, Creation of the GPPB

rules, and regulations
due to lack of standards
Use of Philippine
Government Electronic
Lack of transparency
Procurement System
Lack of check and Participation of Civil
balance Society
 7

COUNTRY ASSESSMENT

The Philippines Country Public Procurement System Assessment using 2018

MAPS methodology was initiated at the request of the Government of the
Philippines (GoP), through its procurement regulatory body, the Government
Procurement Policy Board and its Technical Support Office (GPPB-TSO)
under the Department of Budget and Management. The assessment was
jointly conducted by GPPB-TSO, the World Bank (the Bank), and the Asian
Development Bank (ADB).

This report provides the results of the assessment of the Philippine Public
Procurement System using the Methodology for Assessing Procurement
Systems (MAPS) and its various steps, including the validation process. This
Assessment Report identifies key findings, lays out the strengths of the
procurement system and the challenges, and provides a set of
recommendations to address those challenges and help decide the
government to prioritize public procurement reforms.
 SALIENT FEATURES OF THE
GOVERNMENT PROCUREMENT
REFORM ACT

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 9

GOVERNING PRINCIPLES
1 3 5 STREAMLINED

PUBLIC MONITORING COMPETITIVENESS PROCESS

2 4
ACCOUNTABILITY TRANSPARENCY
 10

TRANSPARENCY REQUIREMENTS

All PEs are reminded of the transparency

and accountability requirements under RA
No. 9184 and its 2016 IRR, the General
Appropriations Act (GAA), Resolutions
issued by the Government Procurement
Policy Board (GPPB) and other relevant
laws, rules and regulations.

GPPB Circular No. 01-2021

10
 11

TRANSPARENCY MEASURES
 12

TRANSPARENCY MEASURES
PHILGEPS PREMISES WEBSITE OTHERS
 13

TRANSPARENCY MEASURES
PHILGEPS PREMISES WEBSITE
 14

SCOPE AND COVERAGE

National Government State Universities and

Agencies Colleges

Government Owned
or Controlled
Corporations

Government Financial Local Government

Institutions Units
 15

SCOPE AND COVERAGE

 KNOWLEDGE
CHECK

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Direct financial or material
assistance in the form of
goods is not considered a
procurement activity under
R.A. 9184.

a. True
b. False

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Direct financial or material
assistance in the form of
goods is not considered a
procurement activity under
R.A. 9184.

a. True
b. False

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Disposal of assets through
public bidding falls under
R.A. 9184.

a. True
b. False

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Disposal of assets through
public bidding falls under
R.A. 9184.

a. True
b. False

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 21

WHAT IS PROCUREMENT?

Refers to the acquisition of goods, consulting services

and the contracting for infrastructure projects by the
Procuring Entity (PE).
 22

STANDARD MODEL OF PROCUREMENT

 23

STANDARD MODEL OF PROCUREMENT

 24

DELAYS IN GOVERNMENT PROCUREMENT

 25

PHILIPPINE PROCUREMENT PARADIGM

 26

STRATEGIC PUBLIC PROCUREMENT

ADMINISTRATIVE
STRATEGIC FUNCTION
Involves the use of public procurement to achieve secondary
(complimentary) policy objectives, i.e.:
– sustainable green growth
– the development of small and medium sized enterprises
– innovation
– standards for responsible business conduct or
– broader industrial or social policy objectives
Source: OECD
 27

GOODS AND SERVICES

All items, supplies, materials and general support services,
except Consulting Services and Infrastructure Projects, which
may be needed in the transaction of :
 28

INFRASTRUCTURE PROJECTS
construction, improvement,
rehabilitation, demolition,
repair, restoration or
maintenance of:
 29

CONSULTING SERVICES

Refer to services for infrastructure projects and other types of projects or

activities requiring adequate external technical and professional expertise that
are beyond the capability of the government to undertake:
 KNOWLEDGE
CHECK

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Creation of simple logo
designs is an example of:

a. Infrastructure Projects
b. Consulting Services
c. Goods and Services

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Creation of simple logo
designs is an example of:

a. Infrastructure Projects
b. Consulting Services
c. Goods and
Services

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 33

OTHER KEY CONCEPTS

Professional
Procurement
Officials

Penal and Civil

Liabilities
 34

PROCUREMENT METHODS
 35

PROCUREMENT METHODS

Highly Exceptional
Cases

To promote Economy
and Efficiency

Justified by conditions

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 PROCUREMENT
ORGANIZATION

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 37

GOVERNMENT PROCUREMENT POLICY BOARD (GPPB)

Composed of the following:

▪ Chairperson: Secretary of Department of Budget

and Management
▪ Alternate Chairperson: Director-General of the
National Economic and Development Authority
▪ Thirteen (13) Regular Members
▪ Invited Resource Persons (audit, anti-corruption
agencies)
 38

FUNCTIONS OF GPPB
 39

FUNCTIONS OF GPPB-TSO
 40

WEBSITE
 41

PROCUREMENT ACTORS

End-User
 WHAT’S YOUR
ROLE?

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 43

HEAD OF PROCURING ENTITY (HOPE)

NGAs

GOCCs, GFIs,
SUCs LGUs
Head of the
Agency
Governing
Board Local Chief
Executive
 44

HEAD OF PROCURING ENTITY (HOPE)

Establishes Ensures
BAC and professionalization
of the BAC, its Approves the
designates Annual
Secretariat and
its members TWG Members Procurement
Plan (APP)

Approves or
Disapproves
Resolves
the Contract
of Award Protest
 45

OFFICER-IN-CHARGE AS HOPE

Reservation
Approve or disapprove
the recommendation of
the BAC
Conflict of
Interest
NPM 102-2014
 KNOWLEDGE
CHECK

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Dr. Lopez is member of the Bureau of
Water’s BAC. The BAC Resolution he
signed for the awarding of catering
services for xyz event was routed to the
HoPE for signature. The following day, the
HoPE designated him as OIC due to his
official travel. The said BAC Resolution
was pending for signature. Can Dr. Lopez
sign it?

a. Yes
b. No

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Dr. Lopez is member of the Bureau of
Water’s BAC. The BAC Resolution he
signed for the awarding of catering
services for xyz event was routed to the
HoPE for signature. The following day, the
HoPE designated him as OIC due to his
official travel. The said BAC Resolution
was pending for signature. Can Dr. Lopez
sign it?

a. Yes
b. No

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 49

BIDS AND AWARDS COMMITTEE (BAC)

HoPE must Separate

create a single BACs may be
BAC created
 50

BIDS AND AWARDS COMMITTEE (BAC)

Head of the Procuring Entity

Approving Official of procurement contracts

Internal Auditors

Local Treasurers and Assistant Local

Treasurers

Chief Accountant or Head of the

Provincial/City/ Municipal Accounting Office
and staff
 51

MEMBERSHIP AND COMPOSITION FOR NGAS, GOCCS, GFIS AND SUCS

REGULAR

Officer with
Technical Expertise
Legal or
Chairperson Finance Provisional Member End-User
Administrative areas
Representative
 52

MEMBERSHIP AND COMPOSITION FOR LGUs

For Provinces, Cities

For Barangays
and Municipalities

5-7 regular
Representative from the members of the
regular offices under the End-User Sangguniang
Office of the Local Chief Representative Barangay
Executive except Punong
Barangay
 53

ALTERNATE BAC MEMBERS

Presence in BAC meetings is considered for

purposes of quorum and shall be entitled to
the proportionate honoraria.

The relationship of the principal and the

alternate is of co-equal nature, rather than
hierarchical.

Accountability shall be limited to their

respective acts and decisions.

The same term as the original members

 54

FUNCTIONS AND RESPONSIBILITIES OF THE BAC

Recommend award
Recommend
of contract to the
approval and/or Conduct bidding
HoPE or his/her duly
revision of the APP process
authorized
and other reports
representative

Recommend to the
Conduct periodic
HoPE or his/her duly
assessment of the Creation of
authorized
procurement Technical Working
representative the
process and Group (TWG)
imposition of
procedures
sanctions
 55

BAC SECRETARIAT

HoPE may create a procurement unit to

act as BAC Secretariat

Head shall be at least 5th or 3rd Ranking

Permanent Employee or if not
available, permanent employee of lower rank
There is no minimum or maximum number of
members of the BAC Secretariat
 56

FUNCTIONS AND RESPONSIBILITIES OF BAC SECRETARIAT

Provide administrative support to the BAC and
1 TWG Advertise/post bidding opportunities, including
Bidding Documents, and notices of awards 6
Organize BAC and the TWG meetings and
2 conferences
Assist in managing procurement process 7
Prepare Minutes of Meetings and Resolutions
3 of the BAC

Monitor procurement activities and milestones 8

Take custody of procurement of procurement
4 records
Consolidate PPMPs and prepare the APP 9
Manage the sale and distribution of Bidding
5 Documents
Act as central channel of communications 10
 57

TECHNICAL WORKING GROUP

Legal Experts Review of the Technical Specifications, Scope of

Work, and Terms of Reference
Technical Experts Financial Experts

Shortlisting of Consultants and Eligibility

screening

Review of Bidding Documents

Evaluation of Bids and Evaluation of Bids

 58

END-USERS

Strategic role – the brain behind

the procurement project

Prepare actual Plan, prepare,

requirements of the finalize, revise
procurement project PPMPs
 59

OBSERVERS

Prepare and
Submit
Observation
Report Notify PE of
Conflict of Eligibility Pre-bid
Interest
Checking Shortlisting Conference
Simplified Posting and Electronic
Submission of Proc Reports?

Preliminary
Post-
Non- Examination Bid Evaluation
Private
Government Qualification
Organization of Bids
Commission
on Audit
 60

OBSERVERS

Post-
Minutes of
Abstract of Qualification
BAC
Bids Summary
Meeting
Report

APP and Opened

PPMP Proposals

Subject to signing of Confidentiality Agreement

 61

ONLINE ACCESS TO OBSERVERS

1
Online monitoring for
observers using the mPhilGEPS

2
PEs to provide online access to
observers for monitoring all stages of
procurement using the mPhilGEPS

3 PEs to inform the GPPB-TSO via

email (observers@gppb.gov.ph) if
online access cannot be provided

GPPB Circular No. 01-2021

 62

GUIDELINES ON THE GRANT OF HONORARIA

Bids and Awards Committee

Technical Working Group

(TWG)

BAC Secretariat (Ad Hoc)

The amount granted does not exceed
twenty-five percent (25%) of their
respective basic monthly salary
 63

GUIDELINES ON THE GRANT OF HONORARIA

DBM Budget Circular No. 2004-5A, dated 07 October 2005, as amended by DBM
Budget Circular No. 2007-3, dated 29 November 2007:

Only for successfully completed procurement projects

Limited to procurement that involves:

Competitive Bidding

Limited Source Bidding

Negotiated Procurement – Two Failed Bidding

Negotiated Procurement under Section 53(b) following the
procedures under Section 54.2(b)
 64

FUNDING SOURCE
Proceeds from sale of bid documents

Proceeds from forfeiture of Bid Security

Fees charged from copies of minutes of bid openings,

BAC resolutions, and other documents
Fees from contractor/ supplier registry

Protest Fees

Savings of PEs

Collections from SUCCESSFULLY completed procurement projects, limited to activities prior to

the awarding of contracts to winning bidders
 65

FUNDING SOURCE

HONORARIA

OVERTIME PAY
 66

LEGAL INDEMNIFICATION PACKAGE

WHAT is INDEMNIFICATION?
This refers to the assistance or remuneration given to the members of the BAC
and/or the BAC Support Staff for any loss, damage, or injury caused to them by
reason of the lawful performance of their duty.

General Conditions

1 FREE LEGAL
ASSISTANCE
2 LIABILITY
INSURANCE
3 MEDICAL
ASSISTANCE

FREE LEGAL ASSISTANCE
Indemnified by PE
Engaged the services of a
private lawyer or external
counsel
Have not been adjudged as
guilty of gross negligence,
misconduct, or grave abuse
of discretion
67
Legal Assistance shall cover actual cost
and fees with maximum PhP 5,000.00
per appearance
Shall not cover any action or suit initiated
in personal capacity; and initiated by the
Government against the concerned BAC
member or staff
BAC MEMBER OR
Entitled to actual, moral and exemplary
damages SUPPORT STAFF
 68

LIABILITY INSURANCE

The procuring entity shall have the responsibility to procure and maintain adequate liability
insurance for and in behalf of its BAC members or BAC Support Staff.
The liability insurance policy shall cover only those liabilities asserted against the public official
and incurred by him in his capacity as such BAC members or BAC Support Staff as the case
may be.
The insurer shall pay for the loss arising from the claim or suit made against the BAC members
or BAC Support Staff during the policy period wherein they serve in such capacity.
 69

LIABILITY INSURANCE

For purposes of this issuance, the term “loss” shall include judgments, expenses for settlement
or compromise, as well as all reasonable fees and other expenses incurred by such persons in
connection with any administrative, civil, or criminal action, suit or proceeding to which they may
be or have been made a party by reason of the lawful performance of their official functions and
duties in such capacity.
Provided further, that, such BAC members or BAC Support Staff shall not be adjudged in such
action or proceeding to be guilty of gross negligence, misconduct, or grave abuse of discretion or
guilty of any other complaint or charges.
 70

LIABILITY INSURANCE

In the event of settlement or compromise, indemnification shall be confined only to matters

covered by the settlement, and to which the procuring entity had been advised by counsel that
the person to be indemnified have not committed gross negligence, misconduct, or grave abuse
of discretion in the performance of their duties and functions.

The procurement of liability insurance shall be subject to the setting of schedule of premium by
the GPPB.
 71

MEDICAL ASSISTANCE

Medical assistance shall be provided to BAC members and BAC Support Staff for
Injuries/disabilities incurred in the lawful performance of their official functions and duties.
The claimant(s) shall be entitled to indemnification for any injury or disability resulting from the
performance of their official functions as defined by law and without any contributory negligence
on their part.
The claimant or his/her relatives must notify the head of the procuring entity within seven (7)
calendar days from the occurrence of the injury or disability.
 72

MEDICAL ASSISTANCE

The medical assistance herein provided shall consist of indemnification for medicines, laboratory
and hospitalization expenses, provided that the amount claimed shall not exceed the actual
amount incurred, substantiated by receipts and other supporting documents.
Indemnification shall only be made upon presentation of the proof of payment in connection with
the injury or disability suffered.
The medical assistance granted herein shall be granted to the claimant as a matter of right and
subject to the conditions mandated by law.
 OPEN FORUM

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Contact

THANK YOU! Unit 2504 Raffles Corporate Center, F. Ortigas Road,

Ortigas Center, Pasig City, Philippines 1605
TeleFax: (632)7900-6741 to 44
Email address: training@gppb.gov.ph