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GENERAL PRINCIPLES
All procurement of the national government, its departments, bureaus, offices and agencies,
including state universities and colleges, government-owned and/or controlled corporations,
government financial institutions and local government units, shall, in all cases, be governed by these
principles:
a. Transparency in the procurement process and in the implementation of procurement contracts.
b. Competitiveness by extending equal opportunity to enable private contracting parties who are
eligible and qualified to participate in public bidding.
c. Streamlined procurement process that will uniformly apply to all government procurement. The
procurement process shall be simple and made adaptable to advances in modern technology in
order to ensure an effective and efficient method.
d. System of accountability where both the public officials directly or indirectly involved in the
procurement process as well as in the implementation of procurement contracts and the private
parties that deal with government are, when warranted by circumstances, investigated and held
liable for their actions relative thereto.
e. Public monitoring of the procurement process and the implementation of awarded contracts
with the end in view of guaranteeing that these contracts are awarded pursuant to the
provisions of this Act and its implementing rules and regulations, and that all these contracts are
performed strictly according to specifications.
SCOPE OF APPLICATION
Applies to Procurement of Infrastructure Projects, Goods and Consulting Services regardless of
source of funds, whether local or foreign, by all branches and instrumentalities of the government, its
departments, offices and agencies, including GOCCs and local government units, subject to the
provisions of Commonwealth Act No. 138.
Any treaty or international or executive agreement affecting the subject matter of this law which
the Philippine government is a signatory shall be observed.
Note: Certain activities for instance Public Private Sector Infrastructure Project or Development are not
guided by the RA 9184.
DEFINITION OF TERMS
(a) Act - refers to R.A. 9184, entitled “An Act Providing for the Modernization, Standardization and
Regulation of the Procurement Activities of the Government and for other Purposes,” otherwise known
as the Government Procurement Reform Act.
(b) Approved Budget for the Contract (ABC) – refers to the budget for the contract duly approved by the
Head of the Procuring Entity, as provided for in the General Appropriations Act and/or continuing and
automatic appropriations, in the case of National Government Agencies; the Corporate Budget for the
contract approved by the governing Boards, pursuant to E.O. No. 518, series of 1979, in the case of
Government-Owned and/or - Controlled Corporations, Government Financial Institutions, and R.A. 8292
in the case of State Universities and Colleges; and the Budget for the contract approved by the respective
Sanggunian, in the case of Local Government Units.
(d) Bid – refers to a signed offer or proposal submitted by a supplier, manufacturer, distributor,
contractor or consultant in response to the Bidding Documents.
(e) Bidder - refers to a contractor, manufacturer, supplier, distributor and/or consultant who submits a
bid in response to the requirements of the Bidding Documents.
(f) Bidding Documents – refers to documents issued by the Procuring Entity as the basis for Bids,
furnishing all information necessary for a prospective bidder to prepare a bid for the Goods,
Infrastructure Projects, and Consulting Services to be provided.
(g) Common-Use Supplies and Equipment (CSE)- refer to those goods, materials and equipment that are
used in the day-to-day operations of Procuring Entities in the performance of their functions.
(h) Competitive Bidding – refers to a method of procurement which is open to participation by any
interested party and which consists of the following processes: advertisement, pre-bid conference,
eligibility screening of prospective bidders, receipt and Republic Act No. 9184 3 opening of bids,
evaluation of bids, post-qualification, and award of contract, the specific requirements and mechanics of
which shall be defined in the IRR to be promulgated under this Act.
(i) Consulting Services – refer to services for Infrastructure Projects and other types of projects or
activities of the Government requiring adequate external technical and professional expertise that are
beyond the capability and/or capacity of the government to undertake such as, but not limited to: (i)
advisory and review services; (ii) pre-investment or feasibility studies; (iii) design; (iv) construction
supervision; (v) management and related services; and (vi) other technical services or special studies.
(j) Domestic Bidder- refers to any person or entity offering unmanufactured articles, materials or
supplies of the growth or production of the Philippines, or manufactured articles, materials, or supplies
manufactured or to be manufactured in the Philippines substantially from articles, materials, or supplies
of the growth, production, or manufacture, as the case may be, of the Philippines.
(k) Domestic Entity- refers to an individual or a sole proprietor who is a citizen of the Philippines or a
partnership, corporation, cooperative, or association duly organized under the laws of the Philippines
and of which at least seventy five percent (75%) of the interest or outstanding capital stock belongs to
citizens of the Philippines, habitually established in business and habitually engaged in the manufacture
or sale of the merchandise covered by his bid, and the business has been in existence for at least five (5)
consecutive years prior to the advertisement and/or posting of the Invitation to Bid.
(l) Executive Agreements- refer to International Agreements except that they do not require legislative
ratification.
(m) Expendable Supplies- refer to articles which are normally consumed in use within one (1) year or
converted in the process of manufacture or construction, or those having a life expectancy of more than
one (1) year but which shall have decreased substantially in value after being put to use for only one (1)
year (e.g., medicines, stationery, fuel, and spare parts).
(n) Foreign Bid- refers to any offer of articles, materials or supplies not manufactured or not to be
manufactured in the Philippines, substantially from articles, materials, or supplies of the growth,
production, or manufacture, as the case may be, of the Philippines.
(o) Foreign-funded Procurement- refers to the acquisition of goods, consulting services, and the
contracting for infrastructure projects by the GoP which are wholly or partly funded by Foreign Loans or
Grants pursuant to a Treaty or International or Executive Agreement.
(p) Foreign Grants- refer to grants with no repayment obligations and are provided in monetary form,
goods, works, and consultancy services, among others.
(q) Foreign Loans- refer to loans, credits, and indebtedness with private foreign banks or with foreign
governments, agencies, or instrumentalities of such foreign governments, foreign financial institutions,
or other international organizations with whom, or belonging to countries with which, the Philippines
has diplomatic relations, as may be necessary and upon such terms and conditions as may be agreed
upon, to enable the GoP to finance, either directly or through any government office, agency or
instrumentality or any government-owned and controlled corporation, industrial, agricultural or other
economic development purposes or projects authorized by law.
(r) Goods – refer to all items, supplies, materials and general support services, except consulting services
and infrastructure projects, which may be needed in the transaction of public businesses or in the
pursuit of any government undertaking, project or activity, whether in the nature of equipment,
furniture, stationery, materials for construction, or personal property of any kind, including non-personal
or contractual services such as the repair and maintenance of equipment and furniture, as well as
trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of
materials and supplies provided by the procuring entity for such services.
(t) Head of the Procuring Entity – refers to: (i) the head of the agency or his duly authorized official, for
national government agencies; (ii) the governing board or its duly authorized official, for
government-owned and/or -controlled corporations; or (iii) the local chief executive, for local
government units. Provided, That in a department, office or agency where the procurement is
decentralized, the Head of each decentralized unit shall be considered as the Head of the Procuring
Entity subject to the limitations and authority delegated by the head of the department, office or agency.
(u) Infrastructure Projects – include the construction, improvement, rehabilitation, demolition, repair,
restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities,
civil works components of information technology projects, irrigation, flood control and drainage, water
supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and
electrification facilities, national buildings, school buildings, hospital buildings and other related
construction projects of the government.
(w) IRR – refer to the implementing rules and regulations to be promulgated in accordance with Section
75 this Act.
(x) Non-expendable Supplies- refer to articles which are not consumed in use and ordinarily retain their
original identity during the period of use, whose serviceable life is more than one (1) year and which add
to the assets of the GoP (e.g., furniture, fixtures, transport and other equipment).
(y) Philippine Government Electronic Procurement System (PhilGEPS)- refers to the electronic System
as provided in Section 8 of this IRR. For purposes of, and throughout this IRR, the term “PhilGEPS” shall
have the same meaning as, and shall be used interchangeably with, “G-EPS”.
(z) Philippine National- refers to an individual or a sole proprietor who is a citizen of the Philippines or a
partnership, corporation, or association organized under the laws of the Philippines of which at least
sixty percent (60%) of the capital or interest is owned by citizens of the Philippines, or cooperatives
registered with the Cooperative Development Authority.
(aa) Portal – refers to a website that aggregates a wide variety of content for the purpose of attracting a
large number of users.
(bb) Procurement – refers to the acquisition of Goods, Consulting Services, and the contracting for
Infrastructure Projects by the Procuring Entity. In case of projects involving mixed procurements, the
nature of the procurement, i.e Goods, Infrastructure Projects or Consulting Services, shall be determined
based on the primary purpose of the contract. Procurement shall also include the lease of goods and real
estate.
(cc) Procuring Entity - refers to any branch, department, office, agency, or instrumentality of the
government, including state universities and colleges, government owned and/or -controlled
corporations, government financial institutions, and local government units procuring Goods, Consulting
Services and Infrastructure Projects.
(dd) Treaties- refer to international agreements entered into by the GoP which require legislative
ratification after executive concurrence.
(ee) Universal or Commercial Banks- Refer to universal or commercial banks duly authorized under R.A.
8791, otherwise known as “The General Banking Act of 2000.”
COMPETITIVE BIDDING
GR: All Procurement shall be done through Competitive Bidding.
EXP: When Alternative Modes of Procurement applies.
Functions:
● Advertise and/or post the invitation to bid.
● Conduct pre-procurement and pre-bid conference
● Determine the eligibility of prospective bidders.
● Receive bids
● Conduct the evaluation of bids
● Undertake post-qualification proceedings
● Recommend award of contracts to the Head of the Procuring Entity of his duly authorized
representative
● Recommend the imposition of sanctions, perform such other related sanctions as may necessary
including the creation of Technical Working Group from a pool of technical, financial and/or legal
experts to assist in the procurement process.
PHILGEPS
- Single portal that shall serve as the primary and definitive source of information on government
procurement.
- Shall have a centralized electronic bulletin board for posting procurement opportunities, notices,
awards and reasons for award. All procuring entities are required to post all procurement
opportunities, results of bidding and related information in the PhilGEPS bulletin board.
- Shall have a centralized electronic database of all manufacturers, suppliers , distributors,
contractors and consultants registered under the system.
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PROCUREMENT PROCEDURES
I. Preparation of Bidding Documents
Bidding documents refer to documents issued by the Procuring Entity as the basis for
Bids, furnishing all information necessary for a prospective bidder to prepare a bid for the
Goods, Infrastructure Projects, and Consulting Services to be provided. It shall include the
following:
(a) Approved Budget for the Contract;
(b) Instruction to Bidders;
(c) Terms of Reference;
(d) Eligibility Requirements;
(e) Plans and Technical Specifications;
(f) Form of Bid, Price Form, and List of Goods or Bill of Quantities;
(g) Delivery Time or Completion Schedule;
(h) Form and Amount of Bid Security;
(i) Form and Amount of Performance Security and Warranty; and
(j) Form of Contract, and General and Special Conditions of Contract
b. Advertising and Contents of the Invitation to Bid- posting in the Procuring Entity’s premises, in
newspapers of general circulation, the PHILGEPS and the website of the Procuring Entity, if
available. It shall contain the: (a) brief description of the subject matter of the procurement; (b)
general statement on the criteria to be used by the Procuring Entity for the eligibility check, the
short listing of prospective bidders, in the case of the Procurement of Consulting Services, the
examination and evaluation of Bids, and post qualification; (c) date, time and place of the
deadline for the submission and receipt of the eligibility requirements, the pre-bid conference if
any, the submission and receipt of bids, and the opening of bids; (d) Approved Budget for the
Contract to be bid; (e) source of funds; (f) period of availability of the Bidding Documents, and
the place where these may be secured; (g) contract duration; (h) such other necessary
information deemed relevant by the Procuring Entity.
c. Pre-bid Conference- for contracts with an Approved Budget Contract (ABC) of 1,000,000 or more
the BAC shall convene at least one (1) pre-bid conference to clarify and/or explain any of the
requirements, terms, conditions, and specifications stipulated in the Bidding Documents
Bid Validity
Bids and Bid securities shall be valid for such a reasonable period of time indicated in the Bidding
Documents. The duration for each undertaking shall take into account the time involved in the process of
Bid evaluation and award of contract.
V. Post Qualification
The stage where the bidder with the Lowest Calculated Bid, in the case of Good and
Infrastructure Projects, or the Highest Rated Bid, in the case of Consulting Services, undergoes
verification and validation whether he has passed all the requirements and conditions as specified in the
Bidding Documents.
If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the criteria for
post-qualification, his Bid shall be considered the "Lowest Calculated Responsive Bid," in the case of
Goods and Infrastructure or the "Highest Rated Responsive Bid," in the case of Consulting Services.
In all cases, the contract shall be awarded only to the bidder with the Lowest Calculated
Responsive Bid or Highest Rated Responsive Bid.
FAILURE OF BIDDING
There shall be a failure of bidding if:
a. No bids are received;
b. No bid qualifies as the Lowest Calculated Responsive Bid; or,
-All prospective bidders are declared ineligible
-All bids fail to comply with all the bid requirements or fail post qualification, or, in the
case of Consulting Services, there is no successful negotiation;
c. Whenever the bidder with the highest rated/lowest calculated responsive bid refuses, without
justifiable cause to accept the award of contract, as the case may be.
Under any of the above instances, the contract shall be re-advertised and re-bid. The BAC shall
observe the same process and set the new periods according to the same rules followed during the first
bidding. After the second failed bidding, however, the BAC may resort to negotiated procurement.
● In case of procurement of goods, failure to deliver at least 10% of the contract price
● In case of infrastructure, due to contractor's fault, negative slippage of 15% or more while
project is ongoing, or 10% or more in the completion of work, neglect, negligence, sublets any
part of the contract without approval
● In contracts for Consulting Services, failure deliver or perform the Outputs and Deliverables
within the period(s) specified in the contract, unable to deliver or perform a material portion of
the Outputs and Deliverables for a period of not less than sixty (60) calendar days after the
Consultant's receipt of the notice from the Procuring Entity stating that the circumstance of
force majeure is deemed to have ceased or fails to perform any other obligation under the
contract.
● For convenience
● Insolvency of the supplier, contractor or consultant
● Unlawful acts
● Termination by contractor/consultant
DISCLOSURE OF RELATIONS
All bidding documents shall be accompanied by a sworn affidavit of the bidder that he or she or any
officer of their corporation is not related to the Head of the Procuring Entity by consanguinity of affinity
up to the third civil degree. Failure to comply with the aforementioned provision shall be a ground for
the automatic disqualification of the bid.
Limites Source of Is a method of procurement a. Procurement of highly specialized types of goods (e.g.,
Bidding or of Goods and Consulting sophisticated defense equipment, complex air navigation,
Selective Bidding Services that involves direct systems, coal) and consulting services where only a few
invitation to bid by the suppliers or consultants are known to be available, such that
Procuring Entity from the list resorting to the competitive bidding method will not likely
of pre-selected suppliers or result in any additional suppliers or consultants participating
consultants with known the the bidding; or
experience and proven
capability on the b. Procurement of major plant components where it is deemed
requirements of the advantageous to limit the bidding to known qualifies bidders
particular contract in order to maintain uniform quality and performance of the
plant as a whole
Direct Contracting A method of procurement of a. Procurement of Goods of proprietary nature which can be
or single source Goods that does not require obtained only from the proprietary source,i.e. When patents,
procurement elaborate Bidding trade secrets, and copyrights prohibit others from
Documents. The supplier is manufacturing the same item;
simply asked to submit a
price quotation or pro-forma b. When the procurement of critical components from a specific
invoice together with the supplier is a condition precedent to hold a contractor to
conditions of sale. The offer guarantee its project performance, in accordance with the
may be accepted immediately provisions of its contract; or
or after negotiations
c. Thosed sold by an exclusive dealer or manufacturer which
does not have sub-dealers selling at lower prices and for
which no suitable substitute can be obtained at more
advantageous terms to the government of the Philippines.
Repeat Order When provided for in the a. Unit prices of the repeat order must be the same as or lower
Annual Procurement Plan, is a than those in the original contract. Provided, that such prices
method of procurement of are still the most advantageous to the GoP after the price
Goods from the previous verification;
winning bidder, whenever
there is a need to replenish b. The repeat order will not result in splitting of contracts,
goods procured under a requisitions, or purchase order;
contract previously awarded
through Competitive Bidding. c. Except in cases duly approved by the GPPB, the repeat orders
shall be availed only within six (6) months from the date of
the Notice to Proceed arising from the original contract:
Provided, that there has been a partial delivery, inspection
and acceptance of the goods within the same 6-month
period; and
● The BAC or the End-user unit or any other appropriate bureau,committee, support or procuring
unit shall request for the approval of the Annual Procurement Plan(APP) from the Head of
Procuring Entity(HoPE) to cover the Procurement Project. The APP may only be approved by the
HoPE upon confirmation of the existence and veracity of the ground(s) relied upon in resorting
to Negotiated Procurement (Emergency Cases) and the existence of funds for the purpose. Thus,
by approving the APP, the HoPE effectively confirms the existence of the grounds for emergency
procurement, thereby dispensing with the previous requirement for a written confirmation from
the HoPE prior to the approval of contract.
● The BAC or the End-user unit or any other appropriate bureau, committee, support or procuring
unit, authorized by the HoPE shall then directly negotiate with a legally, technically, and
financially capable supplier, contractor, or consultant.
● Upon recommendation of the BAC or End-user unit or any other appropriate bureau, committee,
support or procuring unit duly authorized by the HoPE, the contract shall be immediately
awarded to the legally, technically, and financially capable supplier, manufacturer, distributor,
contractor, and consultant, contractor, or consultant.
● Except for contracts with ABC of Fifty Thousand Pesos (PhP50,000.00) and below, the BAC,
through the Secretariat shall post for information purposes the Notice of Award, contract or
purchase order including the Notice to Proceed, if necessary, in
i. the PhilGEPS website;
ii. the website of the PE or its electronic procurement service provider, if any;and
● iii. any conspicuous place in the premises of the PE.
Reference:
Government Procurement Policy Board (GPPB). (2021). The 2016 Revised Implementing Rules and
Regulations of Republic Act No. 9184, Otherwise known as the Government Procurement Reform Act
(Updated as of 31 March 2021). Retrieved January 27, 2023, from
https://www.gppb.gov.ph/assets/pdfs/Updated%202016%20IRR_31%20March%202021.pdf