GOVERNMENT

PROCUREMENT 101

DIR. MARK LOUIE C. MARTIN, CPA, CESO III

GPPB-Recognized Trainer
Regional Director, DBM Regional Office IX

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This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 MODULE OBJECTIVES
At the end of this module, participants should have:

DEVELOPED broader knowledge on the major concepts of the

government procurement activities and processes;

ACQUIRED knowledge on how to ensure effective, efficient,

and ethical government procurement operations in their
respective areas of responsibility; and

GATHERED uniform interpretation of the Republic Act No.

9184 and its 2016 revised Implementing Rules and
Regulations.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 I Philippine Government Procurement Laws: Then and Now

II The Government Procurement Policy Board and its Technical

Support Office

III Principles of Public Procurement

IV Key Concepts on Government Procurement

Scope and Application of Republic Act No. 9184 and its revised
V Implementing Rules and Regulations

VI Procurement Organization

VII Legal Indemnification

Procurement Package for the Bids and Awards Committee
Organization

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 PHILIPPINE GOVERNMENT
PROCUREMENT LAWS:
THEN AND NOW

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ENACTMENT OF THE GPRA OR REPUBLIC ACT NO. 9184

Government Procurement Act

10 January
2003 (GPRA)
Executive
Orders
Implementing Rules and Administrative
Issuances
08 October
2003 Regulations (Part A)

02
Revised IRR Memorandum
September Circulars
2009

Implementing
28 October Revised IRR Rules and
2016 Regulations

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DEVELOPMENT

CHALLENGES BEFORE SOLUTIONS BROUGHT

GPRA ABOUT BY GPRA

Enactment of the GPRA

Confusion caused by
fragmented legal system Creation of the Government
Procurement Policy Board
Inconsistent policies, rules, and
(GPPB)
regulations due to lack of
standards Use of Philippine Government
Lack of transparency Electronic Procurement System
Lack of check and balance Participation of Civil Society

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
PURPOSE

Modernize

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 THE GOVERNMENT
PROCUREMENT POLICY
BOARD AND ITS TECHNICAL
SUPPORT OFFICE

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GOVERNMENT PROCUREMENT POLICY BOARD (GPPB)

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FUNCTIONS OF THE GPPB

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GPPB- TECHNICAL SUPPORT OFFICE (TSO)

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 FUNCTIONS OF THE GPPB-TSO

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GPPB AND TSO WEBSITE
www.gppb.gov.ph
GPPB Online Portal

Online Blacklisting Portal

Online Training Management System (OTMS)

PBD Builder

Annual Procurement Plan (APP)

Procurement Monitoring Report (PMR)

References (Resolutions, Circulars, RA 9184,

Standard PBDs, Forms, etc. )

FAQs

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 PRINCIPLES OF PUBLIC
PROCUREMENT

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5 GOVERNING PRINCIPLES

1 3 5 STREAMLINED

PUBLIC MONITORING COMPETITIVENESS PROCESS

2 4
TRANSPARENCY
ACCOUNTABILITY

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 KEY CONCEPTS ON
GOVERNMENT PROCUREMENT

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WHAT IS PROCUREMENT?
Refers to the acquisition of goods, consulting services
and the contracting for infrastructure projects by the
Procuring Entity (PE).

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
WHAT IS GOODS?
All items, supplies, materials and general support services,
except Consulting Services and Infrastructure Projects, which
may be needed in the transaction of :

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WHAT IS INFRASTRUCTURE PROJECTS?
construction, improvement,
rehabilitation, demolition,
repair, restoration or
maintenance of:

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WHAT IS CONSULTING SERVICES?

Refer to services for infrastructure projects and other types of projects or

activities requiring adequate external technical and professional expertise that
are beyond the capability of the government to undertake:

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KEY CONCEPTS ON GOVERNMENT PROCUREMENT

Professional
Procurement
Officials

Penal and Civil

Liabilities

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WHAT ARE THE PROCUREMENT METHODS?

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WHAT ARE THE PROCUREMENT METHODS?

Highly Exceptional
Cases

To promote Economy
and Efficiency

Justified by conditions

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BIDDING PROCESS FOR GOODS AND INFRASTRUCTURE PROJECTS

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BIDDING PROCESS FOR CONSULTING SERVICES

Highly Exceptional
Cases

To promote Economy
and Efficiency

Justified by conditions

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 SCOPE AND COVERAGE OF
GPRA AND ITS 2016 REVISED
IMPLEMENTING RULES AND
REGULATIONS

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SCOPE AND COVERAGE

Treaty or International
or Executive
Agreement

National Government Foreign-funded

State Universities and
Agencies procurement
Colleges
Competitive Bidding

Government Owned
or Controlled
Corporations

Government Financial Local Government

Institutions Units

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SCOPE AND COVERAGE
Activities that are NOT CONSIDERED as
procurement undertakings under R.A. No.
9184 and its IRR

Direct financial or material assistance given

to beneficiaries

Participation to both local or foreign

scholarships, trainings, continuing education,
conferences, seminars or similar activities that
are governed by Commission on Audit, Civil
Service Commission, and Department of Budget
and Management rules.

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 PROCUREMENT
ORGANIZATION

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PROCUREMENT ACTORS

End-User

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HEAD
Head of OF THE PROCURING
Procuring Entity (HoPE) ENTITY (HoPE)

NGAs

GOCCs, GFIs, SUCs LGUS

Head of the
Agency
Governing
Board Local Chief
Executive

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 FUNCTIONS
Head AND
of Procuring RESPONSIBILITIES
Entity (HoPE) OF THE HoPE

Establishes Ensures
professionalization
BAC and Approves the
of the BAC, its
designates Secretariat and Annual
its members TWG Members Procurement
Plan (APP)

Approves or
Disapproves
Resolves
the Contract
of Award Protest

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OFFICER-IN-CHARGE AS HOPE

Approve or disapprove
the recommendation of
the BAC

NPM 102-2014

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BIDS AND AWARDS COMMITTEE (BAC)

HoPE must Separate

create a single BACs may be
BAC created

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BIDS AND AWARDS COMMITTEE (BAC)

Head of the Procuring Entity

Approving Official of procurement contracts

Internal Auditors

Local Treasurers and Assistant Local

Treasurers

Chief Accountant or Head of the

Provincial/City/ Municipal Accounting Office
and staff

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MEMBERSHIP AND COMPOSITION FOR NGAS, GOCCS,
GFIS AND SUCS
REGULAR

Officer with
Technical Expertise
Legal or
Chairperson Finance Provisional Member
Administrative areas End-User
Representative

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MEMBERSHIP AND COMPOSITION FOR LGUS

For Provinces, Cities

For Barangays
and Municipalities

5-7 regular
Representative from the members of the
regular offices under the End-User Sangguniang
Office of the Local Chief Representative Barangay
Executive except Punong
Barangay

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ALTERNATE BAC MEMBERS

Presence in BAC meetings is considered for

purposes of quorum and shall be entitled to
the proportionate honoraria.

The relationship of the principal and the

alternate is of co-equal nature, rather than
hierarchical.

Accountability shall be limited to their

respective acts and decisions.

The same term as the original members

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FUNCTIONS AND RESPONSIBILITIES OF THE BAC

Recommend award
Recommend
of contract to the
approval and/or Conduct bidding
HoPE or his/her duly
revision of the APP process
authorized
and other reports
representative

Recommend to the
Conduct periodic
HoPE or his/her duly
assessment of the Creation of
authorized
procurement Technical Working
representative the
process and Group (TWG)
imposition of
procedures
sanctions

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BAC SECRETARIAT

HoPE may create a procurement unit to

act as BAC Secretariat

Head shall be at least 5th or 3rd Ranking

Permanent Employee or if not
available, permanent employee of lower rank
There is no minimum or maximum number of
members of the BAC Secretariat

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 FUNCTIONS and RESPONSIBILITIES OF THE BAC SECRETARIAT

Provide administrative support to the BAC and

1 TWG Advertise/post bidding opportunities, including
Bidding Documents, and notices of awards 6
Organize BAC and the TWG meetings and
2 conferences
Assist in managing procurement process 7
Prepare Minutes of Meetings and Resolutions
3 of the BAC

Monitor procurement activities and milestones 8

Take custody of procurement of procurement
4 records
Consolidate PPMPs and prepare the APP 9
Manage the sale and distribution of Bidding
5 Documents
Act as central channel of communications 10

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TECHNICAL WORKING GROUP (TWG)

Legal Experts Review of the Technical Specifications, Scope of

Work, and Terms of Reference
Technical Experts Financial Experts

Shortlisting of Consultants and Eligibility

screening

Review of Bidding Documents

Evaluation of Bids and Evaluation of Bids

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END-USERS

Prepare actual Plan, prepare,

requirements of the finalize, revise
procurement project PPMPs

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OBSERVERS

Prepare and
Submit
Observation
Report Notify PE of
Conflict of Eligibility Pre-bid
Interest Shortlisting Conference
Checking
Simplified Posting and Eectronic
Submission of Proc Reports?

Preliminary
Post-
Non- Examination Bid Evaluation
Private
Government Qualification
Organization of Bids
Commission
on Audit

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OBSERVERS

Post-
Minutes of
Abstract of Qualification
BAC
Bids Summary
Meeting
Report

APP and Opened

PPMP Proposals

Subject to signing of Confidentiality Agreement

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ONLINE ACCESS TO OBSERVERS

1 Online monitoring for

observers using the mPhilGEPS

2 PEs to provide online access to

observers for monitoring all stages of
procurement using the mPhilGEPS

3 PEs to inform the GPPB-TSO via

email (observers@gppb.gov.ph) if
online access cannot be provided

GPPB Circular No. 01-2021

GUIDELINES ON THE GRANT OF HONORARIA

Bids and Awards Committee

Technical Working Group

(TWG)

BAC Secretariat (Ad Hoc)

The amount granted does not exceed
twenty-five percent (25%) of their
respective basic monthly salary

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
GUIDELINES ON THE GRANT OF HONORARIA
DBM Budget Circular No. 2004-5A, dated 07 October 2005, as amended by DBM
Budget Circular No. 2007-3, dated 29 November 2007:

Only for successfully completed procurement projects

Limited to procurement that involves:

Competitive Bidding

Limited Source Bidding

Negotiated Procurement – Two Failed Bidding

Negotiated Procurement under Section 53(b) following the procedures

under Section 54.2(b)

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GUIDELINES ON THE GRANT OF HONORARIA

BAC Secretariat Procurement Unit

(Ad Hoc)

HONORARIA

OVERTIME PAY

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 FUNDING SOURCE FOR THE HONORARIA

Proceeds from sale of bid documents

Proceeds from forfeiture of Bid Security

Fees charged from copies of minutes of bid openings,

BAC resolutions, and other documents
Fees from contractor/ supplier registry

Protest Fees

Savings of PE

Collections from SUCCESSFULLY completed procurement projects, limited to activities prior to

the awarding of contracts to winning bidders
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AMOUNT OF HONORARIA
Maximum Honorarium Rate per Procurement Project

BAC Chair
Php 3,000.00
BAC Members
Php 2,500.00
BAC Secretariat (Ad Hoc)
& TWG
Php 2,000.00

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 LEGAL INDEMNIFICATION
PACKAGE
FOR THE BIDS AND AWARDS
COMMITTEE

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LEGAL INDEMNIFICATION PACKAGE
WHAT is INDEMNIFICATION?
This refers to the assistance or remuneration given to the members of the BAC
and/or the BAC Support Staff for any loss, damage, or injury caused to them by
reason of the lawful performance of their duty.

General Conditions

1 FREE LEGAL
ASSISTANCE
2 LIABILITY
INSURANCE
3 MEDICAL
ASSISTANCE

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FREE LEGAL ASSISTANCE

Indemnified by PE Legal Assistance shall cover actual cost

and fees with maximum PhP 5,000.00
Engaged the services of a
per appearance BAC MEMBER OR
private lawyer or external
counsel Shall not cover any action or suit initiated
SUPPORT STAFF
in personal capacity; and initiated by the
Have not been adjudged as Government against the concerned BAC
guilty of gross negligence, member or staff
misconduct, or grave abuse
of discretion Entitled to actual, moral and exemplary
damages

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LIABILITY INSURANCE

The procuring entity shall have the responsibility to procure and maintain adequate liability
insurance for and in behalf of its BAC members or BAC Support Staff.
The liability insurance policy shall cover only those liabilities asserted against the public official
and incurred by him in his capacity as such BAC members or BAC Support Staff as the case
may be.
The insurer shall pay for the loss arising from the claim or suit made against the BAC members
or BAC Support Staff during the policy period wherein they serve in such capacity.

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LIABILITY INSURANCE

For purposes of this issuance, the term “loss” shall include judgments, expenses for settlement
or compromise, as well as all reasonable fees and other expenses incurred by such persons in
connection with any administrative, civil, or criminal action, suit or proceeding to which they may
be or have been made a party by reason of the lawful performance of their official functions and
duties in such capacity.

Provided further, that, such BAC members or BAC Support Staff shall not be adjudged in such
action or proceeding to be guilty of gross negligence, misconduct, or grave abuse of discretion or
guilty of any other complaint or charges.

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LIABILITY INSURANCE

In the event of settlement or compromise, indemnification shall be confined only to matters

covered by the settlement, and to which the procuring entity had been advised by counsel that
the person to be indemnified have not committed gross negligence, misconduct, or grave abuse
of discretion in the performance of their duties and functions.

The procurement of liability insurance shall be subject to the setting of schedule of premium by
the GPPB.

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MEDICAL ASSISTANCE

Medical assistance shall be provided to BAC members and BAC Support Staff for
Injuries/disabilities incurred in the lawful performance of their official functions and duties.
The claimant(s) shall be entitled to indemnification for any injury or disability resulting from the
performance of their official functions as defined by law and without any contributory negligence
on their part.
The claimant or his/her relatives must notify the head of the procuring entity within seven (7)
calendar days from the occurrence of the injury or disability.

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MEDICAL ASSISTANCE

The medical assistance herein provided shall consist of indemnification for medicines, laboratory
and hospitalization expenses, provided that the amount claimed shall not exceed the actual
amount incurred, substantiated by receipts and other supporting documents.
Indemnification shall only be made upon presentation of the proof of payment in connection with
the injury or disability suffered.
The medical assistance granted herein shall be granted to the claimant as a matter of right and
subject to the conditions mandated by law.

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 DROP YOUR
QUESTIONS
HERE!

Contact us:
Unit 2504 Raffles Corporate Center, F. Ortigas Road, Ortigas
THANK YOU! Center, Pasig City, Philippines 1605

TeleFax: (632)7900-6741 to 44
Email address: training@gppb.gov.ph