GENERAL OVERVIEW OF

RA 9184 AND ITS REVISED IRR &

PROCUREMENT
ORGANIZATIONS

1
 OUTLINE

I. General Overview of RA 9184 and its IRR

Historical Background
GPPB and its Functions
Key Features of RA 9184 and its IRR
Scope and Coverage
II. Definition of Terms
III. Principles of Public Procurement
IV. Procurement Methods and Procedures
V. Procurement Organizations

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 AMERICAN LAWS
ON PROCUREMENT
CONTRACTS

American Practice of
NO CONTRACT SHALL
Public Bidding was INVITATION BE ENTERED INTO
TO BID
introduced in the WITHOUT PUBLIC
Philippines on 1900 BIDDING
LOWEST
RESPONSIVE
BIDDER

PHILIPPINE PUBLIC
PROCUREMENT

4
 1917 NEDA
GUIDELINES ON
ADMINISTRATIVE
PROCUREMENT
CODE OF THE
OF CONSULTING
PHILIPPINES
SERVICES
N
PD 1 5 9 4 O N
MENT 62 O ENT
PROCURE 2
EO REM
WORKS
GOODS OF CIVIL OCU ODS
NG PR GO
LT I OF
N SU SER
VI C
CO ES
A
FR
IN

PE BEFORE THE
ENACTMENT OF GPRA

5
 ENACTMENT OF GPRA

Implementing
Rules and
Government Procurement Reform
Regulations
Act
10 January 2003

Executive Orders
Implementing Rules and
Regulations (IRR) Part A
8 October2003

Revised IRR of 2009

2 September 2009
Administrative
Issuances Revised IRR of 2016
28 October 2016

Memorandum
Circulars

Over 100 Procurement Rules and Regulations

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 PROCUREMENT REFORMS
PROBLEMS
• Confusion caused by
fragmented legal system
• Inconsistent policies, rules,
and regulations due to lack
of standards
• Lack of transparency
• Lack of check and balance
REFORMS
• Enactment of the Government
Procurement Reform Act
(GPRA)
• Creation of the Government
Procurement Policy Board
(GPPB)
• Use of PhilGEPS
(Philippine Government
Electronic Procurement
System)
• Participation of civil society
7
 KEY FEATURES OF GPRA

 Covers procurement of all government agencies

 General Rule is Public/Competitive Bidding
 Alternative Methods of Procurement allowed in highly
exceptional cases
 Use of the Approved Budget for the Contract (ABC) as
ceiling for the bid price
 Use of transparent, objective, and non-discretionary
criteria
 Increased transparency in the procurement process
 Professionalization of procurement officials
 Inclusion of Penal and Civil Liabilities
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GOVERNMENT PROCUREMENT
POLICY BOARD (GPPB)
 Composed of the following:
 Chairman: DBM Secretary
 Alternate Chairman: NEDA Director-
General
 11 Regular Members – Secretaries of
DPWH, DTI, DOH, DND, DepEd, DILG,
DOST, DOTC, DOE & DICT (Per RA
10844), or their duly authorized
representatives; Private Sector
Representative
 Invited Resource Persons (audit, anti-
corruption agencies)

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 GPPB FUNCTIONS

Capacity
Policy-Making Monitoring
Development
• Amend • Establish a • Ensure the proper
implementing rules implementation by
& regulations of sustainable
PEs of the Act, this
procurement law training IRR and all other
(quasi-legislative program
function) relevant rules and
• Prepare generic regulations on
procurement manual public procurement
and standard bidding • Review effectiveness
forms of procurement law

• Protect national interest in all matters affecting public procurement,

having due regard to the country’s regional and international obligations
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GPPB WEBSITE

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 PHILGEPS REGISTRATION

Sec. 8.5.2 All bidders shall upload and maintain in PhilGEPS a current
and updated file of the following Class “A” eligibility documents under
Sections 23.1(a) and 24.1(a):

a) Registration Certificate;
b) Mayor’s/Business Permit or its Equivalent Document;
c) Tax Clearance;
d) Philippine Contractors Accreditation Board (PCAB) license and
registration; and
e) Audited Financial Statements.

For foreign bidders participating in the procurement by a Philippine Foreign

Service Office or Post, they shall submit their eligibility documents under Sec.
23.1 of the 2016 IRR of RA 9184.
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 JSDF
SCOPE ANDPROJECT
COVERAGE

R.A. 9184 applies to all branches and/or instrumentalities

of the government:

1. National Government Agencies (NGAs)

2. State Universities and Colleges (SUCs)
3. Government Owned or Controlled Corporations
(GOCCs)
4. Government Financial Institutions (GFIs)
5. Local Government Units (LGUs)

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 SCOPE AND COVERAGE

 It shall apply to all procurement activities involving:

1. Goods and Services 

2. Infrastructure Projects
3. Consulting Services

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 SCOPE AND COVERAGE

Section 4, Revised IRR

 All fully domestically-funded procurement activities

 All foreign-funded procurement activities, unless

otherwise provided in a treaty or int’l/executive
agreement
Mandates adherence to RA 9184 or selection through
competitive bidding. Otherwise, negotiating panel shall
ensure that the reasons for the adoption of a different rule or
method of procurement are clearly reflected in the records of
discussion. (Sec. 4.3, 2016 IRR of RA 9184)
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 SCOPE AND COVERAGE

Section 4, Revised IRR

 As may be agreed upon by the GOP and IFI in their

treaty or int’l/executive agreement

• Projects funded from foreign grants

• Projects for International Competitive Bidding
• Consulting Services for National Competitive
Bidding

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 SCOPE AND COVERAGE

EXCEPT:
1. Procurement for goods, infrastructure projects, and consulting
services funded from Foreign Grants covered by R.A. 8182, as
amended by R.A. 8555, entitled “An Act Excluding Official
Development Assistance (ODA) from the Foreign Debt Limit in
order to Facilitate the Absorption and Optimize the Utilization of
ODA Resources, Amending for the Purpose Paragraph 1, Section 2
of Republic Act No. 4860, as amended”, unless the GOP and the
foreign grantor/foreign or international financing institution agree
otherwise;
2. Acquisition of real property which shall be governed by R.A.
8974, as amended by RA 10752 entitled “An Act to Facilitate the
Acquisition of Right-of-Way Site or Location for National
Government Infrastructure Projects and for Other Purposes,” and
other applicable laws;
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 SCOPE AND COVERAGE

3. Public-Private sector infrastructure or development

projects and other procurement covered by R.A. 6957,
as amended by R.A. 7718 (BOT Law), entitled “An Act
Authorizing the Financing, Construction, Operation and
Maintenance of Infrastructure Projects by the Private
Sector, and for Other Purposes,” as amended;

4. Disposal of government properties;

 Commission on Audit Circular No. 86-264
 DBM National Budget Circular No. 425

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 SCOPE AND COVERAGE

Enumerated activities that are not considered as procurement

undertakings under RA 9184 and its IRR:

1. Direct financial or material assistance to beneficiaries

2. Participation to scholarships, trainings, continuing
education, etc.
3. Lease of government property for private use
4. Job order workers
5. Joint Venture Agreements between Private Entities and
GOCCs or LGUs
6. Disposal of property and assets

Sec. 4.5, 2016 IRR of RA 9184

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DEFINITION OF TERMS

24
 What is PROCUREMENT?

Procurement refers to the acquisition of goods, consulting

services, and the contracting for infrastructure projects by
procuring entity.

(Sec. 5(aa), IRR, R.A. 9184)

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 GOODS
Refer to:
 All items, supplies and materials
 Including general support services
 Needed in the transaction of public businesses or in the
pursuit of any government undertaking, project or activity
 Whether in the nature of equipment, furniture, stationery,
materials or construction, personal property, including non-
personal or contractual services, such as:
1. repair and maintenance of equipment and furniture
2. trucking, hauling, janitorial and security and other related
and analogous services.

Except: Infrastructure projects and consulting services

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 INFRASTRUCTURE PROJECTS
Refer to:
 construction, improvement, demolition, rehabilitation, repair,
restoration or maintenance of civil works components of :
1. IT projects
2. irrigation
3. flood control and drainage
4. water supply
5. sanitation, sewerage and solid waste management
6. national buildings, hospital buildings, and other related
constructions projects of the Government.

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 CONSULTING SERVICES

Refer to services for Infrastructure Projects and other types of

projects or activities of the Government requiring adequate
external technical and professional expertise that are beyond
the capability and/or capacity of the Government to undertake
such as, but not limited to:

1. advisory and review services;

2. pre-investment or feasibility studies;
3. design;
4. construction supervision;
5. management and related services; and
6. other technical services or special studies.
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 MIXED PROCUREMENT

 In case of projects involving mixed procurements, the

nature of the procurement, shall be determined based
on the primary purpose of the contract.

 Determination shall be made by the procuring entity.

 In mixed procurements, the PE shall specify in the

Bidding Documents all requirement applicable to each
component of the project. In the preparation of Bidding
Documents, the PE shall ensure compliance with existing
laws, rules and regulations, especially those concerning
licenses and permits required for the project (Sec. 17.2, 2016
IRR of RA 9184)
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 DETERMINATION OF TYPE OF
PROCUREMENT

 PE is in the best position to determine the correct

classification of its procurement based on its identified
needs and the best way by which these needs may be
addressed, managed, and satisfied.

 It is the motivation or intention of the PE in pursuing

the project that will determine the primary purpose of a
project.
NPM 11-2013
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PRINCIPLES OF PUBLIC
PROCUREMENT

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 GOVERNING PRINCIPLES

P ublic Monitoring
 Awareness and vigilance

A ccountability
 Responsibility over actions/decisions (“Answerable”)

C ompetitiveness
 Equal opportunity to all eligible bidders

T ransparency
 Wider dissemination of bid opportunities

S treamlined Process
 Uniformly applicable to all government agencies
 Effective and efficient method

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PROCUREMENT METHODS
AND PROCEDURES

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 PROCUREMENT METHODS

All Procurement shall be done through competitive

bidding except as provided in R.A. 9184.

Resort to alternative methods shall be made:

 Only in highly exceptional cases

 To promote economy and efficiency

 Justified by conditions specified in R.A. 9184 and its

IRR
40
PROCUREMENT METHODS

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 BIDDING PROCESS FOR
GOODS & INFRA PROJECTS

Advertisement
Pre-
and/or Pre-Bid
Procurement
Conference Posting Conference

Opening of
Bid Opening of
Technical Proposal
Submission Financial Proposal
(incl. eligibility docs)

Contract
Bid Evaluation Post-qualification Award

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 BIDDING PROCESS FOR
CONSULTING SERVICES

Advertisement
Pre-
and/or Eligibility and
Procurement
Conference Posting Shortlisting

Opening of
Pre-Bid Bid Bids
Conference Submission (QBE or QCBE)

Post-qualification Contract
Bid Evaluation
Award
(QBE or QCBE)
Negotiation

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 PROCUREMENT
ORGANIZATIONS

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PROCUREMENT ORGANIZATIONS

 Head of the Procuring Entity (HOPE)

 Bids and Awards Committee (BAC)
 BAC Secretariat
 Technical Working Group (TWG)
 Observers

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HEAD OF PROCURING ENTITY (HOPE)

Refers to:
 Head of the agency or body, or his duly authorized
official, for NGAs and the constitutional commissions or
offices, and other branches of government;
 Governing Board or its duly authorized official, for
GOCCs, GFIs and SUCs; or
 Local Chief Executive, for LGUs

Note: In an agency, department, or office where the

procurement is decentralized, the head of each
decentralized unit shall be considered as the HoPE,
subject to the limitations and authority delegated by the
head of the agency, department, or office
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HEAD OF PROCURING ENTITY (HOPE)

FUNCTIONS AND RESPONSIBILITIES:

1. Establishes BAC and appoints its members
 Ensures that BAC members give their utmost priority
to duties
 Ensures professionalization of members of the
procurement organization

Within six (6) months upon designation, the BAC, its

Secretariat and TWG members should have satisfactorily
completed such training or program conducted,
authorized or accredited by the GPPB through its TSO.
(Sec. 16, 2016 IRR of RA 9184)

47
HEAD OF PROCURING ENTITY (HOPE)

2. Approves the Annual Procurement Plan (APP)

3. Approves/Disapproves the Contract Award
4. Resolves Protests

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BIDS AND AWARDS COMMITTEE (BAC)

As a general rule, HOPE must create a single BAC.

However, separate BACs may be created under any of the
following conditions:
1. The items to be procured are complex or specialized;
2. If the single BAC cannot reasonably manage the
procurement transactions as shown by delays beyond
the allowable limits; or
3. If the creation is required according to the nature of the
procurement.

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BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES:

 Recommends Procurement Method

 Creates a Technical Working Group (TWG)
 Conducts the bidding activities
 Resolves Requests for Reconsideration
 Recommends Imposition of Sanctions
 Invites Observers during all stages of the procurement
process
 Conducts due diligence review or verifications of the
qualifications of observers
 Prepares Procurement Monitoring Report

53
 BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES:

 Advertise and/or post the IB/REI

 Conduct pre-procurement and pre-bid conferences;
 Determine the eligibility of prospective bidders;
 Receive and open bids;
 Conduct the evaluation of bids;
 Undertake post-qualification proceedings;
 Recommend award of contracts to the HoPE or his duly
authorized representative;
 Recommend to the HoPE the use of Alternative Methods of
Procurement

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 BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES:

 Conduct any of the Alternative Methods of Procurement;

 Conduct periodic assessment of the procurement processes and
procedures
 Perform such other related functions as may be necessary

(Sec. 12.1, 2016 IRR of RA 9184)

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BIDS AND AWARDS COMMITTEE (BAC)

MEMBERSHIP AND QUALIFICATIONS:

 BAC members should occupy plantilla positions with

the procuring entity concerned.

 All members are regular members except the end-user

member who is considered as a provisional member.
The members, whether regular or provisional, are
equally entitled to participate and to vote during
deliberations.

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 BIDS AND AWARDS COMMITTEE (BAC)

COMPOSITION: 5 but not more than 7 MEMBERS

designated by the HOPE

1. Regular Members:
 Chairperson (3rd Ranking Permanent Official);
 Member representing the Legal or Administrative
areas (5th Ranking Permanent Personnel); or if not
available, an officer of the next lower rank;
 Member representing the Finance Area (5th Ranking
Permanent Personnel); or if not available, an officer
of the next lower rank;

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 BIDS AND AWARDS COMMITTEE (BAC)

COMPOSITION: 5 but not more than 7 MEMBERS

designated by the HOPE

2. Provisional Members
 Officer possessing Technical expertise relevant to the
procurement.
 End user unit Representative. In case of procurement
outsourcing, a representative from the Procuring Entity
may be designated as a provisional member

58
BIDS AND AWARDS COMMITTEE (BAC)

HOPE

2nd
3rd 3rd 3rd

4th

5th

6th

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 ALTERNATE BAC MEMBERS

 Same qualifications as their principals.

 Same term as the principal.
 Presence of alternate BAC members in BAC meetings
are considered for purposes of quorum.
 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.
 Shall be entitled to the proportionate honoraria for
attendance in meetings.

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BIDS AND AWARDS COMMITTEE (BAC)

TERMS OF MEMBERSHIP:

The BAC members shall be designated for a term of one

(1) year only, reckoned from the date of designation.
However, the HOPE may renew or terminate such
designation at his discretion.

Upon expiration of the terms of the current members, they

shall continue to exercise their functions until new BAC
members are designated.

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BIDS AND AWARDS COMMITTEE (BAC)

TERMS OF MEMBERSHIP:

In case of resignation, retirement, separation, transfer, re-

assignment, or removal of a BAC member, the HOPE shall
designate a replacement that has similar qualifications as
the official replaced. The replacement shall serve for the
unexpired term. In case of leave or suspension, the
replacement shall serve only for the duration of the leave
or suspension.

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 PROHIBITED BAC MEMBERS

1. Head of the Procuring Entity

2. Official who approves procurement contracts; 

3. Chief Accountant or Head of the

Provincial/City/Municipal Accounting Office and
his/her staff, unless the Accounting Department is the
end-user unit, in which case the Chief Accountant,
Head of the Accounting Department or his/her staff
may be designated as an end-user member. (COA
Circular Letter No. 2004 – 3)

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 BAC SECRETARIAT

 HOPE may create a new office or designate an existing

organic office to act as BAC Secretariat

In case of ad hoc BAC Secretariat, the HOPE shall assign

full-time support staff in its BAC Secretariat (Sec. 14.2)

 There is no minimum or maximum number of

members of the BAC Secretariat.

 Head of the BAC Secretariat must be at least a 5th or 3rd

ranking permanent employee or, if not available, a
permanent official of the next lower rank

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 BAC SECRETARIAT

FUNCTIONS:
 Provide administrative support to the BAC and TWG
 Organize BAC and TWG meetings and conferences
 Take custody of procurement documents and other
records
 Manage the sale and distribution of bidding documents
 Advertise/post bidding opportunities, including Bidding
Documents, and notices of awards
 Assist in managing the procurement process
 Monitor procurement activities and milestones
 Consolidate PPMPs
 Act as central channel of communications
 Prepare minutes of meetings and resolutions of the BAC
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TECHNICAL WORKING GROUP (TWG)

 Created by the BAC from a pool of legal, technical and

financial experts
- those experts outside the procuring entity concerned
may be included, i.e. government personnel and
officials and consultants from the private sector and
academe with proven expertise on the sourcing of
goods, works or consulting services. (GPPB
Resolution No. 07-2012, GPPB Circular No. 02-2012)
 BAC may create separate TWGs to handle different
procurements

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TECHNICAL WORKING GROUP (TWG)
FUNCTIONS:
Assist BAC in the following activities:
 Eligibility screening
 Bid evaluation
 Post-qualification
 Review of the Technical Specifications, Scope of Work, and
Terms of Reference
 Review of Bidding Documents
 Shortlisting of consultants
 Resolution of Request for Reconsideration
(Sec. 12.1, 2016 IRR of RA 9184)

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 OBSERVERS

 Observers represent the public, the taxpayers who are

interested in seeing to it that procurement laws are
observed and irregularities are averted.
 At least three (3) Observers shall be invited coming
from:
 COA
 Duly recognized private group in the sector or
discipline of the particular type of procurement
involved
 Non-Government Organization (NGO)

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 OBSERVERS

 In all stages of procurement process, During the 1)

eligibility checking, 2) shortlisting, 3) pre-bid
conference, 4) preliminary examination of bids, 5) bid
evaluation, and 6) post-qualification, the BAC must
invite, in writing, at least three (3) Observers, at least 3
cd 5cd before the date of the procurement stage/activity

77
 OBSERVERS

Observers shall be allowed access or be provided with the

following documents free of charge upon their request,
subject to signing of a confidentiality agreement:

1. Minutes of BAC meetings;

2. Abstract of Bids;
3. Post-qualification summary report;
4. APP and related PPMP; and
5. Opened proposals

In all instances, observers shall be required to enter into a

confidentiality agreement with the concerned Procuring Entity in
accordance with the form prescribed by the GPPB.
78
 OBSERVERS

RESPONSIBILITIES:
1. Prepare report (jointly or separately) indicating their
observations on the procurement activities
2. Submit report to the PE and furnish a copy to the GPPB
and the Office of the Ombudsman/Resident
Ombudsman.
3. Immediately inhibit and notify in writing the PE of any
actual or potential conflict of interest
If no report is submitted by the observer within seven (7)
calendar days after each procurement activity, then it is
presumed that the bidding activity conducted by the BAC
followed the correct procedure
79
 GRANT OF HONORARIA

 PE is authorized to grant honoraria to the members of

the BAC, the TWG, and the BAC Secretariat provided
the amount so granted does not exceed twenty-five
percent (25%) of their respective basic monthly salary,
subject to the following conditions:

• funds are available for the purpose; and

• the grant of honoraria conforms to the guidelines
promulgated by the DBM. (Section 15, IRR of
R.A. 9184)

80
 GUIDELINES ON THE GRANT
OF HONORARIA
 DBM Budget Circular No. 2004-5A, dated 7 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 – Competitive Bidding, LSB and Nego
Proc-Two Failed Bidding.
 Granted to Chair or Members of the BAC or the
TWG by the PE concerned.

81
 GUIDELINES ON THE GRANT
OF HONORARIA
 BAC Secretariat performing attendant functions in
addition to their regular duties and functions may be
paid honoraria at the same rate as the TWG Chair and
Members
 Those who are receiving honoraria shall no longer be
entitled to overtime pay for procurement-related
services rendered.
 Payment of overtime services may be allowed for the
administrative staff, (clerks, messengers and drivers
supporting the BAC, the TWG and the Secretariat), for
procurement activities rendered in excess of official
working hours.

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 FUNDING SOURCE
 Collections from successfully completed procurement
projects, limited to activities prior to the awarding of
contracts to winning bidders:

 proceeds from sale of bid documents;

 fees from contractor/supplier registry;
 fees charged for copies of minutes of bid openings,
BAC resolutions and other BAC documents;
 protest fees; and
 proceeds from bid security forfeiture

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 CEILING FOR HONORARIA

Maximum Honorarium rate

per procurement project

BAC Chair Php 3,000.00

BAC Members Php 2,500.00

BAC Secretariat Php 2,000.00

TWG Chair and Members

Members of the BAC Secretariat whose positions are in the Procurement

Unit of the agency shall not be entitled to honoraria although the payment of
overtime services may be allowed, subject to existing policy on the matter.

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 THANK YOU!!
Contact us at:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44
Email address: gppb@gppb.gov.ph

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