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RA 9184:

ACTUAL PROCUREMENT PROCESS

it uses a case study methodology grounded in system engineering theory to analyze an application in government procurement processes. It requires the procuring authority to issue public tenders if the value of the procurement exceeds a certain threshold. Government Procurement is also called public tendering or public procurement. this paper puts forward the methods of activities identifying and processes identifying to analyze the relationships among processes. . then how-to identify processes in anfractuous government procurement processes is a chief precondition of implementing government procurement processes reengineering. In order to achieve the targets of government procurement. The law mandates that there must be a streamlined procurement process that will uniformly apply to all government procurement. This process is designed to prevent fraud. Said method refers to Competitive Bidding which consists of the following processes: advertisement.ACTUAL PROCUREMENT PROCESS Government procurement is becoming a kind of important economic activity now. With the increase of government procurement operation. it is a complex system engineering which includes commerce activity and administration activity. the management of government procurement will become very onerous. The procurement process shall be simple and made adaptable to advances in modern technology in order to ensure an effective and efficient method. government procurement includes the procurement activities such as procurement mode and procurement process. Republic Act 9184 is the law that governs the Government Procurement here in the Philippines. waste. government procurement is considered as one of the significant economic activities that can reflect the function of government processes reengineering synthetically. corruption or local protectionism.

b) project management office or end-user unit. It shall be chaired by at least a third ranking permanent official of the procuring entity other than its head. retirement.Pre-bid Conference. post-qualification and award of contract. Similar BACs for decentralized and lower level offices may be formed when deemed necessary by the head of the procuring entity. civil works to be procured) that it plans to undertake within the calendar year. The BAC and its Composition. the replacement shall serve only for the unexpired term: Provided. 11. evaluation of bids. renewable at the discretion of the Head of the Procuring Entity. the replacement shall serve only for the duration of the leave or suspension. The members of the BAC shall be designated by the Head of Procuring Entity. the members of the BAC shall have a fixed term of one (1) year reckoned from the date of appointment. in no case shall the approving authority be a member of the BAC. services. Eligibility screening of Prospective bidders.Each procuring entity shall establish a single BAC for its procurement. Consistent with government fiscal discipline measures. receipt and opening of bids. Goods. Xxx SECOND STEP Establish Bids Awards and Committee SEC. transfer. a member shall be suspended or removed by the Head of the Procuring Entity. The Annual Procurement Plan shall be approved by the Head of the Procuring Entity and must be consistent with its duly approved yearly budget. as follows: a) name of the procurement program. as may be deemed fit by the head of the procuring entity. The Illustration above shows the actual procedure of procurement here in the Philippines Meanwhile. only those considered crucial to the efficient discharge of governmental functions shall be included in the Annual Procurement Plan to be specified in the IRR. The BAC shall have at least five (5) members. FIRST STEP PREPARE ANNUAL PROCUREMENT PLAN Annual Procurement Plan is the requisite document that the agency must prepare to reflect the necessary information on the entire procurement activities (ie. there may be separate BACs where the number and complexity of the items to be procured shall so warrant. re-assignment. In case of resignation. For justifiable causes. removal. . the following are the precise guidelines of what are the parameters set in the implementing rules and procedure of government procurement law. and its composition shall be specified in the IRR. . but not more than seven (7) members. Section 7 of RA 9184 provides that all procurement should be within the approved budget of the Procuring Entity and should be meticulously and judiciously planned by the Procuring Entity concerned. separation. That in case of leave or suspension. Unless sooner removed for a cause. However. Alternatively. No government Procurement shall be undertaken unless it is in accordance with the approved Annual Procurement Plan of the Procuring Entity. c) general description of the procurement d) procurement method to be adopted e) time schedule for each procurement activity d) source of fund e) approved budget for the contract.

its duly designated organic office shall determine the eligibility of prospective bidders for the procurement of Goods and Infrastructure Projects. 23. However. SEVENTH STEP Opening and Evaluation of Bidder’s envelope eligibility check of the prospective bidders. .THIRD STEP Procurement Planning involves the preparation/ updating of the agency’s project procurement management plan by individual project. the consolidation of all PPMP’s into the APP and approval of the APP by agency head. The documents submitted in satisfaction of the eligibility requirements shall be made under oath by the prospective bidder or by his duly authorized representative certifying to the correctness of the statements made and the completeness and authenticity of the documents submitted. PhilGeps website. . said bidder shall later on certify under oath as to correctness of the statements made and the completeness and authenticity of the documents submitted.The BAC or. Eligibility Requirements for the Procurement of Goods and Infrastructure Projects. FOURTH STEP Pre-Procurement Conference assessment of the readiness of the procurement in terms of confirming the certification of availability of funds. A prospective bidder may be allowed to submit his eligibility requirements electronically. based on the bidders' compliance with the eligibility requirements within the period set forth in the Invitation to Bid. SEC. The eligibility requirements shall provide for fair and equal access to all prospective bidders. FIFTH STEP Advertisement/ posting of the invitation to bid announcing to the public the proposed projects and inviting bidders to join the bidding. procuring entity’s website and conspicuous places SIXTH STEP Pre-Bid Conference the forum where the procuring entity’s representatives and the bidders discuss the different aspects of the project. as well as consultants hired by the agency concerned and the representative of the end-user. under special circumstances specified in the IRR. thru the following media: newspaper of general nationwide circulation. as well as reviewing all relevant documents and the draft invitation to bid.

Post-qualification is the stage where the bidder with the Lowest Calculated Bid. . the same procedure shall be repeated until the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid is finally determined. In all cases. from lowest to highest bidder in terms of their calculated price. undergoes verification and validation whether he has passed all the requirements and conditions as specified in the Bidding Documents. SEC. However. in the case of procurement of goods and infrastructure projects of the highest bidder. in the case of consulting services. he shall be "post-disqualified" and the BAC shall conduct the post-qualification on the bidder with the second Lowest Calculated Bid or Highest Rated Bid. time and place as specified in the invitation to bid SEC. Objective and Process of Post-qualification. the contract shall be awarded only to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. 25. 34. time and place specified in the invitation to bid. has passed all the legal. in the case of Goods and Infrastructure Projects. Bids submitted after the deadline shall not be accepted. in the case of Consulting Services. The deadline shall also consider the urgency of the procurement involved. giving it sufficient time to complete the bidding process and giving the prospective bidders sufficient time to study and prepare their bids. The deadline for the receipt of bids shall be fixed by the BAC.EIGHT STEP Submission and Receipt of bids involves the submission by the bidders of two separate sealed envelopes containing the technical and financial components. Notwithstanding the provisions of this Section and Section 26 of this Act. the GPPB NINTH STEP Detailed Evaluation of bids evaluation of the financial component of the bids and ranking of the bids which passed the preliminary examination. or the Highest Rated Bid." in the case of Goods and Infrastructure or the "Highest Rated Responsive Bid. . If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the criteria for postqualification. If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is post-disqualified. namely the technical and financial components which should be in separate sealed envelopes. his Bid shall be considered the "Lowest Calculated Responsive Bid. TENTH STEP Post Qualification of Bids verification and validation on whether the lowest bidder. technical." in the case of Consulting Services. Submission and Receipt of Bids. . The bids shall be received by the BAC on such date. and the receipt by the BAC of said envelopes on such date. and which shall be submitted simultaneously. if a bidder fails to meet any of the requirements or conditions. financial requirements and conditions as specified in the bidding documents.A bid shall have two (2) components.

. . the winning bidder shall formally enter into contract with the Procuring Entity. Notice and Execution of Award. the Head of the Procuring Entity or his duly authorized representative shall approve or disapprove the said recommendation. 37. In the case of government owned and/or controlled corporations. All notices called for by the terms of the contract shall be effective only at the time of receipt thereof by the contractor. the concerned board shall take action on the said recommendation within thirty (30) calendar days from receipt thereof. In case of approval. When further approval of higher authority is required. the Head of the Procuring Entity or his duly authorized representative shall immediately issue the Notice of Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. FINAL STEP Contract Implementation actual implementation of the project.ELEVENTH STEP & TWELVTH STEP Award of the contract awarding of contract to the lowest calculated responsive bid or the highest responsive bid. and the recommendation of the award. SEC. Within ten (10) calendar days from receipt of the Notice of Award.Within a period not exceeding fifteen (15) calendar days from the determination and declaration by the BAC of the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. the approving authority for the contract shall be given a maximum of twenty (20) calendar days to approve or disapprove it. Notice to Proceed issuance of the notice to proceed together with a copy of the approved contract to the successful bidder within the 7 calendar days from the date of approval of the contract by the approving authority of the agency. The Procuring Entity shall issue the Notice to Proceed to the winning bidder not later than seven (7) calendar days from the date of approval of the contract by the appropriate authority.

particularly agencies that engage in a lot of procurement. economic growth averaged only 3. details of where the corruption lies must still be examined. . Not only will there be an improvement in the state of the country's finances but on the Philippine's performance in global transparency and accountability or competitiveness surveys. head of Department of Budget and Management's (DBM) Public Information Unit. In 2011.7%. the impact would be significant. He noted that there are various avenues where corruption can breed and thrive. areas that can be unique to certain agencies in government and could be larger or smaller than the rough estimate of 20 to 30%.On the Positive side : REFORMS IN THE COUNTRY’S PROCUREMENT PROCESSES HAVE NOW MADE PROJECTS CHEAPER BY AS MUCH AS 30% While the government's efforts to streamline processes in project implementation led to gross underspending in 2011. No easy task Francis Capistrano. Trimming the fat if these procurement reforms are extended to other agencies. explained that while there were ballparks or estimates that around 20 to 30% of a budget is subject to corruption. it had a positive outcome: cheaper publiclyfunded projects. The government's gross underspending in 2011 was cited as the biggest factor that caused lackluster economic growth in that year.

or personal property of any kind. he said. security. Are NGOs covered by the procurement law? NGOs transacting w/ gov't considered 'goods’. which may be needed in the transaction of the public businesses or in the pursuit of any government undertaking. The GPRA provides a streamlined procurement process and a system of accountability for both the public and the private sector. Graft and corruption will continue in the country as long as the laws being implemented remain unclear. the DBM considers the 'blackhole' in terms of government finances is budget execution. as well as procurement of materials and supplies provided by the procuring entity or such services. and consulting services.' Anti-graft court Sandiganbayan Justice Samuel Martires believes the country's laws governing government transactions with the private sector need more clarity. supplies. "That is the definition of the DBM (Department of Budget and Management). ON THE NEGATIVE SIDE: “ UNCLEAR LAWS” As we may recall the case of neri vs senate.Currently. whether in the nature of equipment. project or activity. NGOs contracted by state firms are considered goods. materials and general support services. stationery. including non-personal or contractual services such as the repair and maintenance of equipment and furniture. as well as trucking. because all other items – except "infrastructure projects" and "consulting services" – fall under the said category. hauling. furniture. 'All other' [are] goods. janitorial." . the senate blue ribbon committee conducted an investigation in aid of legislation directing redress over the anomalous NBN-ZTE deal scandal. even janitorial services. Capistrano said it is important to be vigilant when it comes to each and every agency's budgets." The GPRA defines goods as "all items. goods. and related or analogous services. Within the GPRA's scope are infrastructure projects. The main purpose of its investigation was to amend the government procurement law in so far as the remedial aspect is concern. except consulting services and infrastructure projects. 'Unclear' laws inflame corruption. materials for construction.

” he said. hurting 36 people. MRT users have criticized slow government action in improving the passenger line. when one of its trains derailed and breached the safety barriers of its southernmost station. MRT3 spokesperson Hernando Cabrera said transportation authorities are mulling over the possibility of presenting the Government Procurement Policy Board with a better procurement system to speed up the process. In the meantime. and also the funding of course. you have to pass through a lot of processes just to buy 10 pieces of air conditioning units. very difficult to procure anything. The Department of Transportation and Communications (DOTC) recently announced it has proposed 11 projects worth P10 billion to improve MRT3 operations. You have to go through a lot of processes to buy the needed spare parts for the trains. Cabrera said the MRT3 management is faced with a stringent procurement law that makes it "very. highlighted by its worst accident so far on August 13. . But the agency can only hope that the rehabilitation projects would be completed before the end of Aquino administration.EPILOGUE: “ GOVERNMENT NEEDS FASTER PROCUREMENT SYSTEM” A specialized procurement process is needed to hasten the improvement of government facilities and services. commuters have to endure kilometric queues during peak hours . The MRT3 has been hounded by technical problems.