R.A.

9184
Overview
OUTLINE
Part I
GENERAL PROVISIONS (Sections 1 – 6)
Part II
a. PROCUREMENT PLANNING (Section 7)
b. PROCUREMENT BY ELECTRONIC
MEANS (Sections 8 - 9)
c. COMPETITIVE BIDDING (Section 10)
d. ALTERNATIVE MODES OF PROCUREMENT
(Section 48)
Part III
PROCUREMENT ORGANIZATION
(Section 11-16; 63-64)
PART I
GENERAL PROVISIONS
Section 1. Short Title and Purpose

“Government Procurement Reform Act”

An Act Providing for the Modernization,

Standardization and Regulation of the
Procurement Activities of the Government and for
Other Purposes

General Provisions
Early laws

United States Philippine Commission

introduced public bidding in procurement in
the country (1900)

• Act No. 22 – Chief Engineer of US Army

acted as the purchasing agent of
government

Part I: General Provisions

Early laws

• Act No. 74 (1901) – contracts for school supplies

thru invitation to bid; awarded to lowest
responsive bidder

• Act No. 82 (1901) – Provincial Governors and

Municipal Mayors enter into contracts for public
works and purchase of office supplies thru
competitive bidding.

General Provisions
Early laws

• Act No. 146 – created Bureau of Supply

(supplies, materials, equipment, etc.)

• EO 16 (1936) – no contract without public

bidding

General Provisions
Pre-Reform Legal Structures

• Civil Works – PD 1594 (1978)

• Goods – EO 302 (1996), EO 201 (2000), as

amended by EO 262 (2000)

• Consulting Services – NEDA guidelines (1998)

General Provisions
Pre-Reform Legal Structures

• Procurement by LGU’s – RA 7160 (1990)

• EO 40 (2001) – Consolidated procurement rules

and regulations for NGA’s, GOCC’s and GFI’s

General Provisions
 PD 1594 and its Administrative Memorandum
Executive Orders
IRR Issuances Circulars

Over 100 Procurement Rules and Regulations

Government Procurement Reform Act

10 January 2003
Implementing Rules and Regulations (IRR)
Part A
8 October 2003
Revised IRR
2 September 2009

General Provisions
 PROBLEMS REFORMS

Confusion caused by Enactment of the Government

fragmented legal system Procurement Reform (GPRA)

Inconsistent policies, rules and Creation of the Government

regulations due to lack of Procurement Policy Board
standards (GPPB)

Use of Philippines Government

Lack of transparency Electronic Procurement System
(PhilGEPS)

Lack of check and balance Participation of civil Society

General Provisions
Section 2. Declaration of Policy

“ … to promote the ideals of good

governance…”

General Provisions
Section 2. IRR

• “…to adhere to the principle of transparency,

accountability, equity, efficiency and economy…”
• “…procurement…shall be competitive and
transparent and shall therefore go through
public bidding…”

General Provisions
Transparency

• Procurement process, contract implementation

• Wide dissemination of bid opportunities,

participation of pertinent NGOs

General Provisions
Competitiveness

• Extending equal opportunity to enable

contracting parties to participate in public
bidding

General Provisions
Streamlined process, simplicity and adaptability
to advances in technology

• Uniform application to all government

procurement

• Ensure effective and efficient method

General Provisions
Accountability

• Public officials, private parties are – when

warranted – investigated and held liable

General Provisions
Public monitoring

• Guarantee that contract are –

• Awarded per RA 9184 and IRR
• Performed strictly per specifications

General Provisions
 P
Section 4. Scope & Application

X
General Provisions
 P
What’s covered? Who is the procurer?

Procurement Government
What’s procured? Where do funds come from?

Goods Local or foreign

Infrastructure projects
Consulting Services

General Provisions
 Acquisition
Goods
Consulting Service
&
Procurement Infrastructure Projects

Lease
Goods
&
Section 5. Definition of Terms Real estate

General Provisions
 Branches
Instrumentalities
Departments
Agencies
Government Offices
Bureaus
GOCC’s
LGU’s
GFI’s
SUC’s

General Provisions
 Items
Supplies
Materials
Gen. support services
Goods Needed in transaction
of public business or
pursuit of government
undertaking, project,
activity

General Provisions
 Construction
Improvement
Rehabilitation
Demolition
Infrastructure Repair
Restoration
Projects Maintenance
Construction projects of
government

General Provisions
 adequate external
Consulting technical professional
expertise beyond the
Services capability and/or
capacity of the
government

General Provisions
 Funding Local
Or
Foreign

Materials? CA 138
Aka
Flag Law

General Provisions
 Rules of preference:
Filipino First!
CA 138 Materials and supplies
aka Produced, made,
Flag Law manufactured in the
Philippines
Domestic entities

General Provisions
 Rule of preference only for goods

Section 43, IRR

Procurement of domestic and foreign goods
Section 23.5, IRR
Eligibility criteria (goods & infrastructure projects)
Section 24.3, IRR
Eligibility criteria (consulting Services)

General Provisions
 Treaties Treaties etc.
shall be observed

International Conflict between Treaties

etc. v. IRR? Treat etc.
Agreements prevails

Executive Procedures & guidelines?

IRR, unless
Agreements Treaty etc. expressly
provide otherwise

General Provisions
 X
RA 8182 RA 8974
as amended by RA 8555

RA 6957
as amended by RA 7718

General Provisions
Section 6. Standardization of Procurement
Processes and Forms

• to avoid confusion & ensure transparency

General Provisions
Section 6. Standardization of Procurement
Processes and Forms

• GPPB – development & approval of GPM’s,

PBD’s and other forms

• Mandatory upon all PE’s

General Provisions
Section 6. Standardization of Procurement
Processes and Forms

• Whenever necessary, modification may be

made subject to GPPB approval

General Provisions
PART II
a. PROCUREMENT PLANNING (Sec. 7)
b. PROCUREMENT BY ELECTRONIC MEANS (Sec. 8-9)
c. COMPETITIVE BIDDING (Sec. 10)
d. ALTERNATIVE METHODS (Sec. 48)
Section 7. Procurement Planning

• From PPMP’s to APP’s

• General rules

Procurement Planning
 PPMP
What is a PPMP Project Procurement
Management Plan

What is an APP APP

Annual Procurement Plan

Procurement Planning
 PE Prepares End-user units
proposed budget for prepares individual
next year PPMP’s

Procurement Planning
PPMP Information on whether
PAP’s will be contracted
out, implemented by
What shall this include? admin, or consigned
Type & objective of
contract
Extent/size of contract
scopes/packages

Procurement Planning
PPMP Procurement methods to
be adopted (indicate if
outscored)
What shall this include?
Time schedule for each
activity, contract
implementation
Estimated budget for
general components of
contract

Procurement Planning
 PE prepares End-user units
HoPE approves
proposed budget prepare individual
budget proposal
for next year PPMP’s

BAC Sec. reviews Budget Office

budget proposal, HoPE approves evaluates PPMP’s;
consolidates into budget proposal include in budget
proposed APP proposal

BAC Sec. finalizes

procurement HoPE approves APP
modes under APP

Procurement Planning
 When updated
Every six (6) mos. or as often
PPMP & APP as may be required by HoPE
Who updates
Can these be updated? End-user Sec
Who consolidates
BAC Sec
YES
Who approves
HoPE

Procurement Planning
General Rules

• All procurement must be w/in approved budget

• No procurement unless in accord w/ approved APP

• All Procurement must be meticulously &

judiciously planned

Procurement Planning
General Rules

• Only those considered “crucial” to efficient discharge of

governmental functions must be included in APP
 Required for day-to-day operations
 In pursuit of principal mandate

• Include provisions for foreseeable emergencies, based on

historical records

• ABC in APP/PPMP must be consistent w/ appropriations in

GAA

Procurement Planning
Section 8- Procurement by Electronic Means and the
Philippine Electronic Procurement System (PhilGEPS)
• Utilize information technology to promote transparency
and efficiency
• PhilGEPS (EO No. 322 s.2000 & EO No. 40, s. 2001) serve
as the primary and definitive source of information on
government procurement
• All Pes Shall utilize PhilGEPs for procurement of cmmon-
use supplies

Procurement by Electronic Means

Section 9 – Security, Integrity and Confidentiality
PhilGEPS important features
• Security – protection from unauthorized access
• Integrity – bids submitted through the system cannot be
altered
• Confidentiality – ensure the privacy of parties transacting
with it
• Audit trail – for ongoing transactions
• Performance Tracking – to monitor compliance with
delivery schedules and other performance indicators

Procurement by Electronic Means

Section 10 – Competitive Bidding

All procurement shall be done through competitive bidding

except Rule XVI- Alternative Methods of Procuremnt

Competitive Bidding
Section 48- Alternative Methods of Procurement
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

Alternative Methods of Procurement

 Method Goods Infra Cons

Competitive Bidding P P P
Limited Source Bidding P P
Direct Contracting P
Repeat Order P
Shopping P
Negotiated P P P
Procurement

Procurement Methods
PROCUREMENT
ORGANIZATION
 Bids and Awards Committee (BAC

BAC Secretariat

Observers

Procurement Organization
 One (1) BAC
in PE’s head Office
The BAC
BUT
How many per PE?
Separate BACs
Where number and complexity
of items to be procured so
warrant

Procurement Organization
The BAC

Who comprises? 5 – 7 members

HoPE designates

Procurement Organization
 NGAs, GOCCs, GFIs, SUCs:

The BAC Permanent

Chairman
Who comprises? *3rd ranking Permanent

2 Officers
*5th ranking permanent
*w/ knowledge, experience, expertise
*one (1) each from legal or admin,
and finance

Procurement Organization
 NGAs, GOCCs, GFIs, SUCs:

The BAC Provisional

Officer
Who comprises? *w/ technical experience
*w/ knowledge, experience,
expertise

Rep from end-user unit

*w/ knowledge, experience, expertise

Procurement Organization
 LGUs:

The BAC Representative

*one (1) each from regular
Who comprises? offices under Office of Local
Chief Exec

Rep from end-user unit

Procurement Organization
 X
HoPE
The BAC
Approving authority
Who comprises? of
Firm
Member of BAC

Procurement Organization
The BAC One (1) year
*from date of appointment
Term of Office?
*renewable

Procurement Organization
The BAC Advertises and/or posts
ITB/REI

Conducts pre-procurement
What are its functions? and pre-bid conferences

Determines eligibility of
prospective bidders

Procurement Organization
The BAC Receives bids
Conducts evaluation of bids
What are its functions? Undertakes post-
qualification proceedings

Procurement Organization
The BAC Resolves Motion for
Reconsiderations

Recommends award of
What are its functions? contracts to HoPE

Recommends imposition of
sanctions

Procurement Organization
The BAC Recommends use of
alternative methods of
procurement
What are its functions? Performs such other
functions, including
creation of TWG
Ensures that PE abides by
standards, prepare PMR

Procurement Organization
The BAC Quorum
Majority of total BAC
How many required for composition
quorum?
Chair/Vice Chair must be
present

How many required for Valid and binding act

valid & binding act of At least a majority of those
BAC present

Chair/Vice Chair votes in case of

tie

Procurement Organization
The Observers His/her organization must be
SEC – or CDA registered
What are the Knowledge, experience,
requirements? expertise in procurement or n
subject matter of contract
Absence of actual or potential
conflict of interest
Any other relevant criteria
*BAC determines this

Procurement Organization
The Observers Prepares report
(jointly/separately)
*assess extent of BAC’s
What are the compliance
*submit to HoPE; cc BAC chair
requirements?
Submit report to PE, cc GPPB &
Ombudsman
*no report = correct procedure
followed

Inhibit and notify in writing the

PE of actual//potential conflict of
interest

Procurement Organization
The BAC Secretariat HoPE may

How formed? Designate existing organic

office w/in PE
Create procurement units
to serve as BAC Secretariat

Procurement Organization
The BAC Secretariat In central offices:

Who heads the BAC *at least 5th ranking

Secretariat? permanent employee
*if not available, permanent
official of next lower rank

Procurement Organization
The BAC Secretariat In bureaus, regional
offices,
Who heads the BAC sub-regional/district
Secretariat? offices:
*at least 3rd ranking
permanent employee
*if not available, permanent
official of next lower rank

Procurement Organization
The BAC Secretariat Provides admin support to
BAC
What are its functions? Organizes and make all
necessary arrangements for
BAC meetings, conferences
Prepare minutes of BAC
meetings and resolutions

Procurement Organization
The BAC Secretariat Takes custody of
procurement doc and other
What are its functions? records
Manages sale and
distribution of Bidding
Documents

Advertises and/or post

bidding opportunities

Procurement Organization
The BAC Secretariat Assists in managing the
procurement process
What are its functions? Monitors procurement
activities and milestones for
proper reporting to relevant
agencies when required

Consolidates PPMP’s from

various units of PE, to make
them available for review

Procurement Organization
The BAC Secretariat Acts as central channel of
communications
What are its functions? *for BAC
with
*end users, PMO’s, other
units of line agency, other
government agencies,
provides of goods,
infrastructure projects, and
consulting services,
observers, general public

Procurement Organization
GOVERNMENT PROCUREMENT
POLICY BOARD (GPPB)
The GPPB
• Policy-Making
• Amend implementing rules and regulation
of procurement law (quasi-legislative
function)

• Prepare generic procurement manual and

standard bidding forms

GPPB
The GPPB
• Capacity Development
• Establish a sustainable training program

• Monitoring
• Assist procuring entities improve their
compliance
• Review effectiveness of procurement law

GPPB
THANK YOU