GOVERNMENT PROCUREMENT REFORM ACT

REPUBLIC ACT NO. 9184

An act providing for the modernization, standardization and regulation of the procurement activities of the government and for other purposes.

WHAT IS PROCUREMENT?  

Procurement refers to the acquisition of Goods, Consulting Services, and the

contracting for Infrastructure Projects by the Procuring Entity. (Article I, Sec. 5

(n), R.A. 9184)  

Procurement means the acquisition by any means of goods, construction or

services.

1. Transparency2. Equal Opportunity(through

standardization)3. Streamlined Process4. Accountability5. Public Monitoring

Governing Principles of Procurement

Coverage:Goods:

ItemsSuppliesMaterialsneeded in

Transaction of public businessPursuit of any government undertaking, project or

activity

Still considered as goods:Services that are not consulting services

General Support Services(e.g. Janitorial, Security, Repair and Maintenance

Services)Related or Analogous Services(e.g. Lease of Office Space)Materials and supplies needed for such services

General Rule (section 10, RA 9184):Competitive Bidding

1. Method of procurement 2. Open to participation by any interested party 3.Consists of the following processes:

advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract,

4. Specific requirements and mechanics of which shall be defined in the IRR to be promulgated under this Act

What is Competitive Bidding?[Section 5 (e), RA 9184]

The General Processes of Competitive Bidding:

AdvertisementPre-bid conference

Eligibility screening of prospective biddersReceipt and opening of bids

Evaluation of bidsPost-qualificationAward of contract

Head of Procuring Entity forbidden as Chairperson or

member of BAC

BAC Composition:

BAC Composition: (for Agencies, GOCCs,

SUCs, GFIs,etc.)Regular Members:1. Chairman- at least third ranking

permanent official of procuring entity2. Member- procurement/legal/

administrative expertise and at least fifth ranking permanent official

3. Member- finance expertise and at least fifth ranking permanent official

BAC Composition:Provisional Members:

1. Member- technical expertise in relevant to the procurement

2. Member- end user unit

One (1) representative each From the regular offices under the office

of the local chief executive (e.g., Office of the Administrator, Budget Office, Legal Office, General Services, Engineering Service)

To be appointed by the local chief executive

BAC Composition: (for LGUs)

BAC Composition:Observers: Two (2)1. At least one (1) shall come from a duly

recognized private group in a sector or discipline relevant to the procurement at hand

2. The other from a non-governmental organization (NGO)

COA Representative

BAC Composition:

No. of Members:At least Five (5) but not more than

Seven (7)

COA Representative & Observers (non-members)

honoraria to the BAC members in an amount not to exceed twenty-five

percent (25%) of their respective basic monthly salary subject to availability of

funds (Section 15)

from a pool of technical, financial and/or legal experts assist in the procurement process particularly in the eligibility screening, evaluation of bids and postqualification

Technical Working Group

Prepared by procuring entity Following the standard forms and

manuals prescribed by the GPPB(Government Procurement Policy

Board)

Bid Documents Preparation:

Standardized Bidding Procedures for Goods

Pre-ProcurementConf. 2-wk advertisement Pre-Bid

Conference

Opening ofEligibility Env. &Eligibility Check

Opening ofTech. Env. &Prel. Exam.

Opening ofFinancial Env.

Submission ofEligibility Req. & Bid

Bid Evaluation& Ranking Postqualification Award of

Contract

Invitation to Bid

1. Publication2. Website3. Posting

Twice:1. Minimum 6 days maximum 14 days in

between publication2. Newspaper of general nationwide

circulation3. Newspaper published at least 2 years

prior to advertisement

Publication:

Posting @ Website

1. Website of the procuring entity2. Website of the service provider of the

procuring entity, if available3. Maximum period of 14 days

1. Conspicuous place2. Reserved for the purpose3. Certified by the BAC Secretariat of the procuring entity

Posting at premises

BAC determines if each prospective bidder is eligible to participate

By examining the completeness of each prospective bidder’s eligibility requirements

Using a non-discretionary “pass/fail” criteria

Eligibility Check:

Eligibility Documents:

Class “A” DocumentsClass “B” Documents

What are these Class “A” Documents?

Legal Documents:1. DTI/SEC registration documents, as

applicable2. Mayor’s Permit/Municipal Licenses3. “Non-blacklisting” statements4. TIN5. Other appropriate Licenses/Permits

What are these Class “A” Documents?

Technical Documents:Statement of the prospective bidder of all its ongoing and completed government and private contracts within the relevant period, including contracts awarded but not yet started, if any

What are these Class “A” Documents?

Financial Documents:1. Audited financial statements, stamped

“received” by the BIR or its duly accredited and authorized institutions, for the immediately preceding calendar year, showing, among others, the prospective bidder’s total and current assets and liabilities

What are these Class “B” Documents?

1. Valid joint venture agreement, in case of a joint venture

2. Letter authorizing the BAC or its duly authorized representative/s to verify any or all of the documents submitted for the eligibility check

Procedure:

1. Late bids shall not be accepted2. Opening of Technical Envelopes3. Counter-checking compliance of

Technical Envelope with requirements4. Opening of Financial Envelope5. Counter-checking compliance of

Financial Envelope with requirements

6. Bid Evaluation7. Ranking8. Lowest Calculated Bid

Bids above the ABC are automatically disqualifiedNo Floor PricesIf failed Technical Envelope, cannot open the Financial EnvelopeBid shall include all taxes

Note:

Post-QualificationTo determine whether the

bidder concerned complies with and is responsive to all the requirements and conditions for eligibility, the bidding of the contract, as specified in the bidding documents

Post-Qualification

BAC shall verify, validate and ascertain all statements made and documents submitted by the bidder with the Lowest Calculated Bid/Highest Rated Bid.

Post-QualificationPeriod:

Within seven (7) calendar days from determination of the Lowest Calculated Bid

In exceptional cases, the seven (7) calendar day period may be extended by the GPPB (Government Procurement Policy Board)

Result:

Lowest Calculated Bid becomes

“Lowest Calculated and Responsive Bid”

Recommendation of the Award to the Head of the Procuring Entity

Action of Head on Recommendation:

1. Approve2. Disapprove

Action of Head on Recommendation:

Disapproval based only on valid, reasonable and justifiable grounds to be expressed in writing, copy furnished the BAC. (Bids and Awards Committee)

Republic Act No. 9184

If approval:Head issues the Notice of Award

BAC notifies the losing bidders of the decision

Contract Preparation and Signing

Time Period:

Ten (10) days from receipt of Notice of Award by Winning Bidder

1. No Bids are received2. No bid qualifies as the Lowest

Calculated Responsive Bid or Highest Rated Responsive Bid

3. Refusal of winning bidder to accept the award of contract

Failure of Bidding:

Alternative Modes of Procurement

Limited Source Bidding Direct Contracting

Repeat OrderShopping

Negotiated Procurement

Alternative Modes of ProcurementLimited Source Bidding or Selective Bidding

A method of procurement of goods and consulting services, that involves direct invitation to bid by the concerned procuring entity from a set of pre-selected suppliers or consultants with known experience and proven capability on the requirements of the particular contract

Alternative Modes of ProcurementLimited Source Bidding or Selective

Bidding

Procurement of highly specialized types of goods and consulting servicesProcurement of major plant components to maintain uniform quality and performance of the plant as a whole

Alternative Modes of ProcurementDirect Contracting or Single Source

Procurement

Applies only to procurement of goodsDoes not require elaborate bidding documentsSupplier is simply asked for a price quotation or a pro-forma invoice with the conditions of saleOffer may be accepted immediately or after some negotiations

Alternative Modes of ProcurementDirect Contracting or Single Source

Procurement

1. Proprietary items2. Critical plant components from a specific

manufacturer3. Sold by an exclusive dealer or

manufacturer with no suitable substitute

Alternative Modes of ProcurementRepeat Order

Need to replenish goods Procured under a contract previously awarded through Competitive Bidding

Alternative Modes of ProcurementRepeat Order

1. Same contract prices2. Not a result of splitting3. Within six (6) months from the date of the

Notice to Proceed of the original contract4. Not to exceed twenty-five percent (25%) of

the quantity of each item in the original contract

Alternative Modes of Procurement

Shopping

Submission of price quotations Readily available off-the-shelf goods or ordinary/regular equipment Procured directly from suppliers of known qualifications

Alternative Modes of Procurement

Shopping1. Unforeseen contingency requiring

immediate purchase but not to exceed P50,000.00

2. Ordinary or regular office supplies and equipment not available in the Procurement Service not to exceed P250,000.00

Alternative Modes of Procurement

Negotiated Procurement

Directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant Conditions in law and IRR are exclusive