Overview of

Republic Act No. 9184

Government Procurement Reform Act

 Reform Measures
14 Executive 17 Administrative
Orders Issuances

7 Implementing over 100 procurement rules &

Rules and regulations 3 Memorandum
Regulations Circulars
EO 40 and IRR
(April 4, 2002):
Goods/Infra/
Consulting/EPS

R.A. 9184:
January 10, 2003
Goods, Infrastructure,
Consulting Services and G-EPS 2
Coverage: National Gov’t and
Local Gov’ts
 Basic Reforms

Problem: Reform Introduced

 Confusion caused by  Uniform applicability

fragmented legal of the law to both
system national government
agencies and local
government units

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 Basic Reforms

Problem: Reform Introduced

 Collusion and lack  Approved Budget

of transparency for the Contract
(ABC) as ceiling

 Delays, collusion,
and lack of  Simplification of
competition Pre-qualification
and stronger post-
qualification

 Abuse of discretion
 Use of objective 4
non-discretionary
criteria
 Basic Reforms

 Lack of
transparency  Use of
Electronic
Procurement

www.philgeps.net 5
 Basic Reforms

Problem: Reform Introduced:

 Lack of check and  Civil Society

balance Organization
(CSO) observance
of bidding process
and result
reporting
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 Basic Reforms
Problem: Reform Introduced:

 Unresolved  Clearly defined

procurement protest
cases/controversies mechanisms in
place

 Non-compliance
with the  Penal, civil , and
requirements of law administrative
sanctions available

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 Basic Reforms

Problem Reform Introduced

 Confusion brought by
inconsistent rules and  Formation of the
regulations GPPB as sole
procurement
 Lack of standards and authority
monitoring

 Outdated
procurement rules and 8
regulations
 GPPB Functions
 Policy-Making
 Amend implementing rules & regulations of
procurement law (quasi-legislative function)
 Prepare generic procurement manual and standard
bidding forms

 Capacity Development
 Establish a sustainable training program

 Monitoring
 Assist procuring entities improve their compliance
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 Review effectiveness of procurement law
Features of RA 9184 and its IRR
 Comprehensive Law - covers all government
purchases whether goods, infrastructure or
consulting services.
 Civilian Observer - serve as a watchdog of the
general public in government transactions.
 PhilGEPS - central portal that serves as the
primary and definitive source of information on
all government procurement
(www.philgeps.net)

 Bids and Awards Committee (BAC)

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 Scope and Coverage

Goods

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Infrastructure Projects
Consulting Services
 Scope and Coverage
 R.A. 9184 governs the procurement of:
 Goods (Supplies & General Support Services)
 Infrastructure Projects
 Consulting Services

 All domestically-funded procurement activities

 All foreign-funded procurement activities, unless

otherwise stated in the treaty or international or
executive agreement
 Abaya vs. Ebdane G.R. No. 167919 , February 14, 2007
 DBM-PS vs. Kolonwel TradingG.R. No. 17560, June 8, 2007

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 But procurement funded through foreign grants are
excluded
 Scope and Coverage
EXCEPT:

⨀ 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;

⨀ Acquisition of real property which shall be governed by R.A.

8974, 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
Cont.

⨀ Public-Private sector infrastructure or development projects

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

⨀ Disposal of government properties;

⨀ Leasing out of publicly-owned real property for private use;

⨀ Consignment; and,

⨀ Formation of Joint Venture Partnerships between

government corporations and private entities.

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 Application
 R.A. 9184 applies to all branches and/or
instrumentalities of the government:

 National Government Agencies (NGAs)

 State Universities and Colleges (SUCs)
 Government Owned or Controlled Corporations
(GOCCs)
 Government Financial Institutions (GFIs)
 Local Government Units (LGUs)

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 Governing Principles

Transparency Competition Streamlined System of Public

Process Accountabili Monitoring
Uniformly ty
•Wider • Equal applicable to all
dissemination opportunity to government • Awareness
of bid all eligible agencies
opportunities • Answerable and
bidders Vigilance
•Effective and
efficient
method

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What is
Procurement?
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Procurement is… the acquisition of goods,
works and services

Done by the
government to deliver
services to its • PUBLIC
constituents following
the law, rules and Procurement
procedures
established in the
country

Done by private
• PRIVATE
companies or Procurement
individuals

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Section 5 (aa) of the IRR of RA 9184
Refers to the acquisition of goods, consulting
services, and the contracting for infrastructure
projects by the procuring entity
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 Public Bidding

Alternative Methods
What is the
General Mode of

Procurement?
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 Public Bidding

 All Procurement shall be

done through
competitive bidding
except as provided in RA
9184

 Resort to Alternative
Method shall be made
only in highly
exceptional cases
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 PHILIPPINE PROCUREMENT
PARADIGM

HOPE Assess • Review studies • Post/Advertise Selection HOPE

• Consolidate into opportunity
APP • Open and
BAC BAC
• Decide evaluate bids
procurement • Post-qualify
BAC Sec method • Award and enter TWG
• Approve APP into contract
Budget • Determine BAC Sec
readiness

End User End User

• Cost-benefit • Oversee
analysis implementation
Identify • Feasibility study • Inspect and Implement
• Market study accept deliveries
• PPMP • Release payment

NEEDS SATISFACTION

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PROCUREMENT ORGANIZATION
 Head of the Procuring Entity (HOPE)

 Establish BAC and appoint its members

 Ensure BAC members give utmost priority to
assignments
 Ensure professionalization of procurement
organization

 Approve the Annual Procurement Plan (APP)

 Approve/Disapprove Contract Award

 Resolve Protests

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PROCUREMENT ORGANIZATION
 Bids and Awards Committee

 Major Functions:

 Recommend Procurement Method

 Create TWG

 Conduct the bidding activities

 Resolve Requests for Reconsideration

 Recommend Imposition of Sanctions

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PROCUREMENT ORGANIZATION
 Bids and Awards Committee

 Other Responsibilities:

 Invite Observers during all stages of the procurement

process

 Conduct due diligence review or verifications of the

qualifications of observers

 Prepare Procurement Monitoring Report

 Suspend or blacklist bidders

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PROCUREMENT ORGANIZATION

Bids and Awards Committee

 General Rule: Single BAC

 Exception: Expedite the procurement process for

practical intents and purposes where the number and
complexity of the items to be procured warrants

 Alternate BAC members may be designated

 Same qualification and term as principal
 Attend meetings and receive honoraria
 Accountability limited to their acts and decisions

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PROCUREMENT ORGANIZATION
Bids and Awards Committee

 Composition: 5 but not more than 7 MEMBERS designated

by the HOPE

 Regular Members –

 Chairperson (3rd Ranking Permanent Official);

 Member representing the Legal or Administrative areas (5th or
3rd Ranking Permanent Personnel);
 Member representing the Finance Area (5th or 3rd Ranking
Permanent Personnel);

 Provisional Members –
 Officer possessing Technical expertise relevant to the
procurement.
 End user unit Representative.

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PROCUREMENT ORGANIZATION
Bids and Awards Committee

 Prohibited Members:

 Head of the Procuring Entity

 Approving Authority
 Chief Accountant (Head of the
Provincial/City/Municipal Accounting Office) and
his/her staff, unless any of the former were
designated as end-user of the project (COA
Circular 2003-04)

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PROCUREMENT ORGANIZATION
Technical Working Group
 Created by the BAC from a pool of legal, technical and
financial experts
 Functions:

 Assist BAC in the following activities:

• Preparing bidding documents
• Eligibility check/short-listing
• Bid evaluation and preparation of reports
• Post-qualification
• Preparation of post-qualification summary report

 Assist BAC and BAC Secretariat in preparing BAC

Resolutions

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PROCUREMENT ORGANIZATION
BAC Secretariat
 HOPE may create a new office or designate an existing organic
office to act as BAC Secretariat

 Head – 5th or 3rd ranking permanent employee or, if not

available, a permanent official of the next lower rank

 Functions:

 Provide administrative support to the BAC

 Organize BAC meetings and conferences

 Take custody of procurement documents and other records

 Manage the sale and distribution of bidding documents

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PROCUREMENT ORGANIZATION
BAC Secretariat

 Functions:

 Advertise/post bidding opportunities and notices of

awards

 Assist in managing the procurement process

 Monitor procurement activities and milestones

 Consolidate PPMPs

 Act as central channel of communications

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32
33
Planning and Budgeting Linkage

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 Procurement Planning

PURPOSES
 Ensures that the overall goal of the particular
project will be achieved effectively and efficiently
 Ensures that only goods, infrastructure projects,
and consulting services which have been included in
the approved APP shall be procured
 Prevents unnecessary government purchases and
violation or circumvention of prescribed
procurement rules and procedures

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 Procurement Planning

 Involves identifying programs, activities, projects

needs of an agency, which includes deciding on the
following:

 Whether to procure
 What to procure
 How to procure
 Where to procure
 How much to procure
 When to procure

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  All procurement should be within the approved
budget of the Procuring Entity (PE)
 Should be meticulously and judiciously planned
by the PE concerned
 Only those considered crucial to the efficient
discharge of governmental functions* shall be
included in the APP
(*required for the day-to-day operations or is
in pursuit of the principal mandate of the
procuring entity concerned [Sec. 7.1, IRR])

Legal Bases - Section 7, R.A. No. 9184

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 APP - shall include provisions for foreseeable
emergencies based on historical records (Sec.
7.1, IRR)

 For infrastructure projects - APP shall consider the

appropriate timing/phasing of related project
activities to reduce/lower project costs
(e.g., engineering design and acquisition of right
of way) (Sec. 7.1, IRR)

 No government Procurement shall be undertaken

unless it is in accordance with the approved APP of
the PE

Legal Bases - Section 7, R.A. No. 9184

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 The APP shall be approved by the Head of the
Procuring Entity (HOPE) and must be consistent
with its duly approved yearly budget
 The APP shall bear the approval of the HOPE or
second-ranking official designated by the HOPE
to act on his behalf (Sec. 7.2, IRR)

 The APP shall be formulated and revised only in

accordance with the guidelines set forth in the IRR
(Sec. 7.3, IRR)

Legal Bases - Section 7, R.A. No. 9184

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 Preparation of PPMP and APP - (Section 7.3, IRR)
• Prepare proposed budgets

End-user • Prepare PPMPs and submit to the procuring entity’s Budget

Office
Units

• Evaluates each PPMP

• If warranted, include the PPMP in the budget proposal for

approval by the HOPE
Budget
• Furnish copy of approved budget proposal and corresponding
Office PPMPs to the BAC Secretariat for review and consolidation into
proposed APP

BAC/ • Consolidates the different PPMPs into the proposed APP

Secretariat

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 Preparation of PPMP and APP - (Section 7.3, IRR)

• Revise and adjust the PPMPs to reflect budgetary allocation,

as soon as the GAA, corporate budget, or appropriation
ordinance is approved
End-user
• Submit the revised PPMPs to the BAC, through Secretariat
Units

• Finalizes modes of procurement under the proposed APP

BAC/
• Submit finalized APP for approval by the HOPE
Secretariat

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 Updating of PPMPs and APP - (Sec. 7.4, IRR)

 Updating of the PPMPs and APP - every six (6) months or as

often as may be required by the HOPE

 Updating of PPMP - responsibility of respective end-user

units

 Consolidation of PPMPs into an APP - responsibility of the

BAC Secretariat

 Approval - by the HOPE

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 ABC in APP and PPMP
 The ABC to be reflected in the APP and PPMP shall be
at all times consistent with the appropriations for
the project authorized in:

 GAA; continuing appropriations; and automatic

appropriations - NGAs
 COBs approved by the governing boards per E.O. No.
518 – GOCCs
 Appropriation Ordinance (Annual and
Supplemental Budgets) enacted by the
Sanggunian - LGUs

Legal Bases - Section 7, R.A. No. 9184

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 2/18/2020
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 PROJECT PROCUREMENT MANAGEMENT PLAN (PPMP)
PROJECT TITLE(s): 1. Various In-house Training and Seminar
2. MCWD Property Office and Stock Room Renovation
END-USER/UNIT: Administrative Department

SCHEDULE/MILESTONE OF ACTIVITIES

CODE
GENERAL QUANTITY/ ESTIMATED
DESCRIPTION SIZE BUDGET Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec

2009-01 Procurement of Laptop 10 Php. 700,000 x

Computers

2009-02 Conduct of an 30 pax Php. 80T x

Orientation Seminar on
the Provisions of R.A.
9184 and its-IRR-A

2009-03 MKWD Property Office N/A P. 200 T X

and Stock Room
Renovation

NOTE: Technical Specifications for each Item/Project being proposed shall be submitted as part of the PPMP

Prepared By: Submitted By:

____________________________ __________________________
Unit Head
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 COST COMPONENTS
IN DETERMINING ABC
 Cost or market price of the product or service itself;
 Freight, insurance, taxes, and other incidental expenses (For goods
only);
 Cost of money, to account for government agencies usually buying
on credit terms;
 Inflationary factor (For goods only);
 Quantities, considering that buying in bulk usually means lower unit
prices;
 Supply of spare parts and/or maintenance services, if part of the
contract package (For goods only);
 Cost for securing all types and forms of securities other than cash (e.g.
premiums for surety bond, bank fees and other charges to be incurred
by the bidder in obtaining bid, performance and warranty securities);
and
 Currency valuation adjustment for contracts with foreign component.

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 Prospective Trainers' Orientation, Seminar and 2/18/2020
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Workshop on RA 9184 and Latest Issuances
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 Prospective Trainers' Orientation, Seminar and 2/18/2020
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Workshop on RA 9184 and Latest Issuances
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 Prospective Trainers' Orientation, Seminar and 2/18/2020
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Workshop on RA 9184 and Latest Issuances
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Red Flags in the Bidding Process

 Same Contractor/Supplier gets the award

repeatedly.

 No invitations to bid are found in public places,

any newspaper of national circulation or the
PhilGEPS website and a contract is awarded to a
person.

 No bid bulletin posted in public places, any

newspaper of national circulation or the PhilGEPS
website and a contract is awarded to a person

 No pre-bid conference
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Red Flags in the Bidding Process

 No bidders and observers in the opening of bids

 No announcement of award

 Award of contract to relative or “favored person”

of the head of the procuring entity, BAC chair or
members, members of the technical working
group (TWG), BAC secretariat, members of the
project management office (PMO) and designers
of the project

 Winning bid substantially too low

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Red Flags in the Bidding Process

 Bids accepted after deadline of bid submission

 Always shopping

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 THANK YOU

 Comments, questions?

 Telephone/Fax: (+632) 900-6741 to 44

 Website: http://www.gppb.gov.ph
 Email: gppb@gppb.gov.ph