RA 9184 “Government Procurement Reform Act”

Section 3 Governing Principles on Government Reform

(a) Transparency (c) Streamlined Procurement
(e) Public Monitoring
(b) Competitiveness (d) System of Accountability

Section 5 Definition of Terms

(e). Competitive Bidding – Advertisement, Pre-Bid Conference, Eligibility Screening of
Prospective Bidders, Receipt and Opening of Bids, Evaluation of Bid,
Post Qualification, Award of Contract

(g) Goods – Equipment; Trucking, Hauling (non-personal); Materials, Supplies,

Furniture; Janitorial, Security (contractual services)

(j) Head of Procuring Entity (HOPE)

- National Government Agency: Head/authorized official
- GOCC: Governing Board/ authorized official
- LGU: Local Chief Executive

Section 7 Procurement Planning and Budget Linkage

- All procurement within Approved Budget; no procurement without Annual Procurement Plan

Section 10 Competitive Bidding – for all procurement

Section 11 BAC Composition

- 5-7 Members chaired by at least 3rd ranking permanent official (other than head)
- Fixed 1 year term, renewable by HOPE (legal/admin rep, finance rep (both 5th ranking))

Section 12 Functions - (See Sec. 5), recommend Alternative Methods

Section 13 Observers – 1 COA rep, 1 private sector rep, and 1 NGO rep duly SEC registered

Section 24 Shortlisting for Consulting Services – for bidders

Section 25 Submission and Receipts of Bids

- technical/financial envelopes submitted simultaneously

Section 26 Modification and Withdrawal of Bids – modify before deadline, if withdrawn no

longer allowed to submit for same contract

Section 27 Bid Security – guarantee that bidder will enter into contract after Notice of Award
Section 30 Preliminary Examination of Bids – “Pass/fail” criteria. Financial component only
opened after technical passes

Section 32 Bid for Procurement of Goods and Infra Projects – preliminary exam passers will
be ranked financially, lowest referred to as “Lowest Calculated Bid”

Section 33 Bid Evaluation of Shortlisted bidders for Consulting Services

- Numerical ranks for criteria such as experience, performance, etc. = “Highest Rated Bid”
- HRB negotiation/clarification on financial proposal, terms of reference, etc.
- If negotiation fails, next ranking bidder. Ceiling is amount in financial envelope/ABC

Section 34 Post-Qualification
- verification/validation if requirements/conditions met in Bidding docs
- If passed, Lowest Calculated Bid = “Lowest Calculated Responsive Bid”;
- Highest Rated Bid = “Highest Rated Responsive Bid”
- If failed, becomes “post-disqualified”. Then next LCB/HBR becomes LCRB/HRRB

Section 35 Failure of Bidding – if:

(a) No bids received
(b) None qualifies for Lowest/Highest Responsive Bid
Rebidding same process. If 2nd Failed bidding, may resort to Negotiated Procurement
(sec. 53)
(c) when bidder with Lowest/Highest Rated refuses to accept

Section 36 Single Calculated/Rated and Responsive Bid Submission – considered if

(a) Only one bidder submits Letter of Intent, applies for eligibility check, passes, then bids
(b) More than one bidder but only one passes eligibility
(c) If more pass eligibility, but only one bids

Section 37 Notice and Execution of Award

- 15 days after Lowest/Highest Responsive bid, issue Notice of Award
- 10 days after Notice of Award, bidder enters contract – 20 days for approval (30 for GOCCs)
- 7 days after approval of contract, Notice to Proceed

Section 38 Procurement Process shall not exceed 3 months

Section 39 Performance Security – before signing of contract

Section 40 Disqualified if unable to enter contract or post Performance Security.
Postqualification for next ranked bidder

Section 46 Lease Contracts – for equipment, subject to same bidding process

Section 48 Alternative Methods – by approval of HOPE /rep, if justified

(a) Limited Source Bidding/Selective Bidding – direct invitation to pre-selected
suppliers/consultants
(b) Direct Contracting/Single Source Procurement – supplier asked to submit price quotation
or pro-forma invoice with conditions of sale – may be accepted or negotiated with
(c) Repeat Order – direct procurement of goods from previous winning bidder of competitive
bidding
(d) Shopping – request for submission of price quotations for off-the-shelf goods or
ordinary/regular equipment from suppliers of known qualification
(e) Negotiated Procurement – extraordinary circumstances (sec. 53) or Failed Bidding –
negotiates contract with supplier, contractor or consultant

Section 49 Limited Source/Selective Bidding – only if:

(a) Highly specialized goods/consulting obtainable from limited sources
(b) Major plant components to maintain uniform quality

Section 50 Direct Contracting – only if:

(a) Proprietary goods/source – copyright, patent, trade secrets
(b) Critical components from specific supplier
(c) Exclusive dealer/manufacturer

Section 51 Repeat Order – if in Annual Procurement Plan

(a) Same/lower price; (b) no splitting of requisitions/purchase orders;
(c) Valid only 6 months after Notice to Proceed from last order
(d) Not >25% quantity of original contract

Section 52 Shopping
(a) Unforeseen contingency <Php50,000
(b) Ordinary office supplies/equipment not available from Procurement Service, <Php250,000,
not Split contracts, 3 price quotations/suppliers
Section 53 Negotiated Procurement – (a) After 2 Failed Biddings (sec. 35)
(b). necessary immediate action (emergencies, calamities)
(c) Take-over of contracts if for necessary immediate action (emergencies, calamities)
(d) Contract contiguous/adjacent to on-going infra project resulting fromcompetitive
bidding. Covers consultancy contracts
(e) Purchases of Goods from other Government Agencies (like DBM Procurement Service)

Section 55 Protests on BAC Decisions – letter, protest fee (1% of ABC)

Section 63 Government Procurement Policy Board (GPPB)

Section 64 Membership
- DBM Sec (Chair); NEDA Director-General (Alt Chair)
- Private Sector Rep (Presidential Appointment)
- DPWH, DOF, DTI, DOH, DND, DepEd, DILG, DOST, DOTC, DOE Secretaries/reps