RA 9184 : E-PROCUREMENT LAW

SALIENT POINTS
GMA SIGNED GOVERNMENT PROCUREMENT REFORM LAW TO FIGHT
GRAFT, PROMOTE TRANSPARENCY
"It will fight graft and corruption, improve operational efficiency, bolster transparency in
bidding procedures and encourage competition," said the President in signing the bill,
also known as the Government Procurement Reform Act.
The President said the new law conforms to the administrations three pillars of good
governance: a moral foundation to guide leadership at all levels, a philosophy of
transparency of government actions, and ethic of effective implementation throughout the
bureaucracy.
RA 9184 will help government procurement officers stick to the straight and narrow
path.
As a bonus, the Chief Executive pointed out, the money that can be saved by making
procurement more effective, efficient and less prone to corrupt practices, will reduce the
budget deficit.
"It will fight graft and corruption, improve operational efficiency, bolster transparency in
bidding procedures and encourage competition.
SALIENT POINTS
A shift from pre-qualification to simple eligibility screening and post-qualification.
Under conventional pre-qualification procedures, all required documents submitted
by a bidder are validated and checked for veracity. This can take seven months and
can provide opportunities for the procuring agency to purposely disqualify
prospective bidders not favored by the agency, thus creating conditions conducive to
corruption.
The new law mandates that "eligibility screening" using transparent criteria be used in
pre- qualifying prospective bidders. If the documents of the bidder with the lowest
calculated bid are all verified and validated, then he will automatically be declared the
winner.
A shift to "lowest calculated responsive bid" as the criterion for award.
Under the conventional process, pre-qualification is followed by a determination of
the bidder with lowest evaluated bid.

Under RA 9184, the basis for award will shift to the "lowest calculated responsive
bid," which is grounded on non-discretionary, objective criteria.
Removal of bracketing in evaluating bid prices, and the use of the approved budget
for the contract as the ceiling on bid prices.
Under the act, the approved budget for the contract will be used as the ceiling and
made public at the time the Invitation to Bid is published.
Standardization of the procurement process and forms.
Procurement by electronic means. There shall be a single and centralized portal for
government procurement to enhance transparency, accountability, equity, efficiency
and economy in government procurement.
Increased transparency of the procurement process.
Bids and Awards Committees (BACs) are to allow a representative each from a duly
recognized and relevant private sector association, chamber or association, and a nongovernment organization to participate as observers in all proceedings.
Professionalization of procurement officials.
Inclusion of penal clause and civil liability.
Providing procurement rules for local government units.