Government Procurement Program Reform Act Republic Act No.

9148
“An act providing for the Modernization, Standardization and regulation of the
Procurement Activities of the Government and for other Purposes”

FORMULA FOR CORRUPTION

C= D+M-A
Corruption= Discretion + <monopoly – Accountability
By Robert Klitgard

Republic Act No. 9184 also known as the Government Procurement Reform Act was
enacted to eliminate or at least minimize corruption in procurement

Republic Act No. 9184 was signed into law on 10 January 2003 and became effective on
26 January 2003

The implementation rules and Regulations was signed on 18 September 2003 and became
effective on 09 October 2003.

DECLARATION OF POLICY

• Government’s commitment to goods and governance

• Adherence to the principles of transparency, accountability, equity, efficiency and
economy
• Procurement must be competitive and transparent-Public Bidding
• Adopt standard and uniform set of rules governing procurement of infrastructure
projects, goods, and services

SCOPE OF GPRA

Procurement of:
a. Infrastructure Projects
b. Goods, Supplies, Materials and Related Services
c. Consulting Services

Mixed Procurement- the nature of procurement shall be determined by the

PRIMARY PUPOSE of the contract

Covers procurement planning up to contract implementation

APPLICATION OF GPRE

Applies to;

• National Government Agencies (NGAs)

• State Universities and College (SUCs)
Government Owned and Controlled Corporations (GOCCs)
• Government Financial Institute (GFIs)
• Local Government Unit (LGUs)

KEY FEATURES OF THE GPRA

• Removal of pre-qualification and strengthening of post-qualification

• Use of approved Budget for the Contract as the ceiling for bid price
• Use of transparent, objective and non-discretionary criteria
• Use of Generic Procurement manuals and Philippine Bidding Documents

KEY FEATURES O THE GPRA

• Use of Lowest Calculated and Responsive Bid for Infrastructure Project Goods
and services, and Highest Rated and Responsive Bid for Consulting Services
• Increased transparency in the procurement process
• Professionalization of procurement officials
• Inclusion of Penal and Civil Liabilities

ANNUAL PROCUREMENT PLAN (APP)

• Approved by the head of the procuring entity or second ranking

• Items to be procured are
- Required for day-to-day operations
- In pursuit of the principal mandate
• No procurement shall be undertaken unless in accordance with the APP

GOVERNMENT ELECTRONIC PROCUREMENT SYSTEM (G-EPS)

• The G-EPS shall serve as the primary source of information on government

procurement
• All procuring entities shall:

-Utilize the G-EPS for the procurement of common –use supplies

- Post all procurement opportunities and results in the G-EPS website.

FEATURES OF THE G-EPS

• Electronic Bulletin Board

• Registry of Supplies, Contractors, and Consultants
• Electronic Payment
• Electronic Bid Opening

BID AND AWARDS COMMITTEE

• BAC shall have at least five(5) members but not more than seven (7)
 • The members of the BAC shall have a fixed term of 1 year, renewable at the
discretion of the Head of the Procurement Entity
• Majority of the members including the BAC Chair and/or Vice Chair constitute a
quorum

BAC COMPOSITION
• BAC for NGAs, GOCCs, GFIs, & SUCs
• The members including the Chairman shall be designated by the Head of the
• Procuring Entity Procuring Entity
Regular Members
1. Chairman-(at least 3rd Ranking Permanent Official)
2. Member representing the legal or the administrative area of the procuring
entity
3. Member representing the finance area of the procuring entity
Provisional Members
1. An official who has technical expertise relevant to the procurement
2. Representative form the end-user unit
• BAC for Local Government Units
• The Local Chief Executive shall designate the members of the BAC
• The BAC members shall elect among themselves who shall act as chairman
Members
1. Budget Office
2. Legal Office
3. Engineering Office
4. General Service Office
5. Administrator’s Office
6. End-User Office
7. Other regular office under the office of LCE

FUCTION OF THE BAC

• Advertise/Post Invitation to Bid
• Conduct pre-procurement conference/ pre-bid conference
• Determine eligibility of bidders
• Receive bids
• Conduct evaluation of bids

FUNCTIONS OF THE BAC

• Undertake post-qualification
• Resolve motion for reconsideration
• Recommend alternative methods of procurement

BAC SECRETARIAT

• Head of the Procurement Entity shall create a BAC Secretariat

• It shall act as the main support unit of the BAC
• Its function, among others, include:
 o Provide administrative support for the BAC
o Organize and make all necessary arrangements for the BAC meetings
o Attend BAC meetings
o Prepare minutes of the BAC meetings
o Take custody of procurement documents
o Be responsible for the sale and distribution of the bidding documents
o Assist in managing the procurement process
o Monitor procurement activities and make proper report
o Be the central channel of communication

OBSERVERS
• The BAC shall invite in all stages of the procurement, in addition to the
representative of the COA, at least two (2) observers to sit in the proceedings
- One from a duly organized private group in a sector relevant to
the procurement at hand
- One from a non-government organization that does not have
any direct or indirect interest in the contract to be bid

The Observer should be registered with the SEC

OBSERVERS

• Observers must be informed at LEAST TWO DAYS before the stages of

procurement to which observers shall be invited:

-pre-bid conference -contract award

-opening bids -special meetings of the BAC
-post qualification

• Observers are NOT REQUIRED to be invited to attend the pre-procurement

conference.
• The absence of observers will not nullify the BAC proceedings, provided that
they have been duly invited in writing

RESPONSIBILITIES OF OBSERVERS

• Preparation of the Report either jointly or separately indicating their observations

made on the bidding activity conducted
• Repost shall assess the extent of the BAC’s compliance with the provisions of the
IRR-A and areas of improvement in the BAC’s proceedings
REQUEST FOR RECONSIDERATION

• Bidders declared by the BAC to have failed a bidding requirement may file a
request for reconsideration with the BAC within 3 days upon receipt of written
notice of its failure, or if present at the time of opening of bids, upon verbal
notification
• The BAC shall act on the request for reconsideration within 7 days from receipt
thereof.

PROTESTS ON THE DECISIONS OF THE BAC

• Decisions of the BAC in all procurement stages may be protested to the head of
the procuring entity (HOPE) by filing a verified position paper and payment fee
(at least 1% of the ABC) within 7 calendar days from receipt of the BAC
Resolution denying its request for reconsideration.

PROTESTS ON THE DECISIONS OF THE BAC

• The protest shall not stay or delay the bidding process but it must first be resolved
before any award is made.
• The HOPE shall resolve the protest within 7 days from receipt thereof.

DISCLOSURE OF RELATIONS

• All bids shall be accompanied by a sworn affidavit of the bidder that he or any
officer of their corporation is not related to the Head of the Procuring Entity by
consanguinity or affinity up to the third (3rd) civil degree
Consanguinity-relationship by blood
Affinity-relationship by marriage
• Applies to BAC, BAC Secretariat and TWG members
SINGLE CALCULATED/RATED AND RESPONSIVE BID

• Shall be considered for award if:

1. Only 1 applies for eligibility but only 1 meets the requirements but
only 1 submits a bid
2. More than 1 applies for eligibility but only 1 meets the
requirements, and submits a bid
3. More than 1 meets the eligibility requirements but only 1 submits a
bid
• Bid should be responsive to the bidding requirements
• ABC should reflect most advantageous prevailing price for Government

FAILURE OF BIDDING

• There shall be a failure of bidding if:

1. No bids are received
2. All prospective bidders declared ineligible
3. All bids fail to comply with bid requirements, all bids exceed the
ABC or fail post-qualification
4. LCRB unjustifiably refuses to accept award and award not made to
next bidders

BIDDING OF PROVINCIAL PROJECTS

• For priority programs and infra projects funded out of GAA and identified in
consultation with members if the Congress
• Provincial Bidder- principal office is within the same province
• Lowest provincial bidder has the right to match LCB within 48 hours, if submitted
by an outside bidder.
• Only available within 5 years effectivity of GPRA, or up to CY2008

BIDDING OF PROVINCIAL PROJECTS, NOT APPLICABLE TO:

• Contracts the coverage of which includes more than 1 province

• Projects located within Metro Manila
• Procurement of consulting services

ALTERNATIVE METHODS OF PROCUREMENT

• Limited source bidding (goods, consulting services)

• Direct contracting (goods)
• Repeat order (goods)
• Shopping (goods)
• Negotiated procurement (goods, consulting services and infrastructure projects)
APPROVAL OF GOVERNMENT CONTRACTS ENTERED INTO THROUGH
ALTERNATIVE METHODS

• For contracts involving an amount of at least 500M pesos, the head of the
procuring entity shall obtain an approval from the GPPB to proceed with a
specific alternative method
• After obtaining the approval from the GPPB, the head of the procuring entity shall
have full authority to approve the contract

PENALTIES

• Administrative, Civil & Criminal Liabilities

1. Administrative Liability, examples:
-submission of eligibility requirements and/ or bids containinjg
false info and/ or falsified documents;
-Withdrawal of bid, refusal to accept an award or enter into a
contract without justifiable cause;
-Refusal to post performance security;
1st offense- 1 year suspension
2nd offense- 2 years suspension
3rd offense- disqualification to participate in any public bidding
2. Civil Liability
Public official, example:
Open any sealed bid or divulging its contents before bid opening.
Private individual example;
Agreement between two or more bidders to submit different bids
but with a pre-arrange3d lowest bid
3. criminal Liability, examples;
Public Official- Splitting of contracts.
Private individuals-When two or more bidders agree not to submit
bids or withdraw those already submitted to secure advantage to
any of them.
Imprisonment of not less than 6 years and 1 day, but not more than
15 years

GOVERNMENT PROCUREMENT POLICY BOARD

Chairman- Secretary of the DBM

Alternate Chairman- Director-General of NEDA
Members- Secretaries of DPWH, DOF, DTI, DOH, DND, DepEd, DILG, DOST, DOTC
and DOE or their duly authorized representatives, and a representative from the private
sector to be appointed by the president upon recommendation of the GPPB.
Resource Persons- COA and DOJ representatives

THANK YOU