There are no specific laws on private procurement in the Philippines as private

procurement is not regulated by the government. The processes of private procurement depend
on the IRR set by the private sector. Private procurement is more flexible and open to
innovations; they are profit and people driven. Laws in procurement include R.A. 9184 known as
Government Reform Act and R.A. 7718 known as the Amended BOT Law. These laws do not
state the IRR of private procurement but state that the private sectors are included in the IRR
and processes of public procurement. The private sector is allowed to participate in public
procurements as stated on Article 1, Section 3(b) of the GPRA:
SEC 3. b) Competitiveness by extending equal opportunity to
enable private contracting parties who are eligible and qualified to
participate in public bidding.
R.A 7718 also states that the participation of the private sector on public procurements is
important.

SEC. 1. Declaration of Policy. - It is the declared policy of the State to recognize the
indispensable role of the private sector as the main engine for national growth and
development and provide the most appropriate incentives to mobilize private
resources for the purpose of financing the construction, operation and maintenance
of infrastructure and development projects normally financed and undertaken by the
Government. Such incentives, aside from financial incentives as provided by law,
shall include providing a climate of minimum government regulations and procedures
and specific government undertakings in support of the private sector.

Private organizations draw their revenue from sales, investments, and other business
related areas. Their money is more centralized, and this speeds the procurement process along.
Privately owned businesses can seek out different suppliers to find the best deal because they
have more time and resources to do so. Their focus is more on saving the most money and
getting things done quickly. Because of the high risk, high return nature of private procurement
practices, there is a lot more risk analysis that should be done. Public entities are more secure
economically, and more stable, but private organizations often generate more growth than
public ones do.