What is PROCUREMENT?

Procurement refers to the acquisition of goods, consulting

services, and the contracting for infrastructure projects by
procuring entity.

2
SCOPE AND COVERAGE

R.A. 9184 applies to all branches and/or instrumentalities

of the government:

1. National Government Agencies (NGAs)

2. Government Owned or Controlled Corporations
(GOCCs)
3. Government Financial Institutions (GFIs)
4. State Universities and Colleges (SUCs)
5. Local Government Units (LGUs)

3
SCOPE AND COVERAGE

 It shall apply to all procurement activities involving:

1. Goods and Services

2. Infrastructure Projects
3. Consulting Services

1
2
3 4
SCOPE AND COVERAGE

 All fully domestically-funded procurement activities

 All foreign-funded procurement activities, unless

otherwise provided in a treaty or int’l/executive
agreement

Mandates adherence to RA 9184 or selection through

competitive bidding. Otherwise, negotiating panel shall
ensure that the reasons for the adoption of a different rule or
method of procurement are clearly reflected in the records of
discussion. (Sec. 4.3, 2016 IRR of RA 9184)

5
SCOPE AND COVERAGE

Enumerated activities that are not considered as

procurement undertakings under RA 9184 and its IRR:

1. Direct financial or material assistance to beneficiaries

2. Participation to scholarships, trainings, continuing
education, etc.
3. Lease of government property for private use
4. Job order workers
5. Joint Venture Agreements between Private Entities
and GOCCs or LGUs
6. Disposal of property and assets

6
BACK
 GOODS

Refer to:
All items, supplies and materials
Including general support services
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 or construction, personal property,
including non-personal or contractual services, such as:
1. repair and maintenance of equipment and furniture
2. trucking, hauling, janitorial and security and other
related and analogous services.
7
BACK
INFRASTRUCTURE PROJECTS

Refer to:
 construction, improvement, demolition, rehabilitation,
repair, restoration or maintenance of civil works
components of :
1. IT projects
2. irrigation
3. flood control and drainage
4. water supply
5. sanitation, sewerage and solid waste management
6. national buildings, hospital buildings, and other
related constructions projects of the Government.
8
BACK
 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:

1. advisory and review services;

2. pre-investment or feasibility studies;
3. design;
4. construction supervision;
5. management and related services; and
6. other technical services or special studies. 9
BACK
 MIXED PROCUREMENT

 In case of projects involving mixed procurements,

the nature of the procurement, shall be determined
based on the primary purpose of the contract.

 Determination shall be made by the procuring entity.

 In mixed procurements, the PE shall specify in the

Bidding Documents all requirement applicable to
each component of the project. In the preparation of
Bidding Documents, the PE shall ensure compliance with
existing laws, rules and regulations, especially those
concerning licenses and permits required for the project.

10
BACK
DETERMINATION OF TYPE OF
PROCUREMENT
 PE is in the best position to determine the correct
classification of its procurement based on its identified
needs and the best way by which these needs may be
addressed, managed, and satisfied.

 It is the motivation or intention of the PE in pursuing

the project that will determine the primary purpose of a
project.
PRINCIPLES OF PUBLIC
PROCUREMENT

12
PUBLIC PROCUREMENT
PRINCIPLES
• Transparency
• Efficiency – Streamlined Procurement
Process
• Equity – Fairness
• Competition
• Accountability
• Public Monitoring
• Economy – Value for Money
13
PROCUREMENT
METHODS AND
PROCEDURES
PROCUREMENT METHODS

All Procurement shall be done through competitive

bidding except as provided in R.A. 9184.

Resort to alternative methods shall be made:

 Only in highly exceptional cases

 To promote economy and efficiency

 Justified by conditions specified in R.A. 9184 and its

IRR
PROCUREMENT METHODS
 BIDDING PROCESS FOR
GOODS & INFRA PROJECTS

Advertisement
Pre-
and/or Pre-Bid
Procurement
Conference Posting Conference

Opening of
Bid Opening of
Technical Proposal
Submission Financial Proposal
(incl. eligibility docs)

Contract
Bid Evaluation Post-qualification Award

17
BIDDING PROCESS FOR
CONSULTING SERVICES
Advertisement
Pre-
and/or Eligibility and
Procurement
Conference Posting Shortlisting

Opening of
Pre-Bid Bid Bids
Conference Submission (QBE or QCBE)

Post-qualification Contract
Bid Evaluation
Award
(QBE or QCBE)
Negotiation

18
 PROCUREMENT
ORGANIZATIONS

19
The GPPB and its TSO

The GPPB is the central procurement policy making body

of the government under the Government Procurement
Reform Act

Section 63 of RA 9184 and its IRR authorizes the

Government Procurement Policy Board (GPPB) to
formulate public procurement policies, rules and
regulations, and amend, whenever necessary, the IRR.

The GPPB-TSO is the technical, research, monitoring and

administrative arm of the GPPB.

20
On Authority Over Procuring
Entities

It cannot dictate to the procuring entity how

to decide or resolve issues relative to its
procurement activities. The GPPB is a quasi-
legislative body mandated to formulate and
amend the IRR. It has no quasi-judicial powers and
functions; hence, cannot investigate and ascertain
the existence of facts, hold hearings, and exercise
discretion of a judicial nature over actual
controversies with regard to the conduct of
bidding by procuring entities.
21
On Granting exemption from
application of RA 9184

It is beyond the authority of the GPPB to

grant exemptions from the application of RA 9184
and its IRR as it does not have the mandate to
legislate nor determine the coverage of the law.
The GPPB however, may render contemporaneous
construction of the provisions of the law pursuant
to its quasi-legislative fiat, and issue rules and
regulations on the basis of its rule-making power.

22
On Resolving issue on
post-disqualification

GPPB cannot grant a bidder’s request to

resolve the issue of their post-disqualification.
Nonetheless, they are urged to follow the
prescribed rules and procedures on Protest
Mechanism laid down in Section 55 of the IRR of
RA 9184.

23
On Declaring Failure of
Bidding

GPPB is not vested with the authority to declare

a PE’s procurement activity to have incurred a
failure of bidding.

Declaration of failure of bidding is within the

authority and accountability of the Bids and
Awards Committee and the Head of the
Procuring Entity to exercise, under Sections 35
and 41 of the IRR of RA 9184, respectively.

24
PROCUREMENT ORGANIZATIONS

 Head of the Procuring Entity (HOPE)

 Bids and Awards Committee (BAC)
 BAC Secretariat
 Technical Working Group (TWG)
 Observers

1
2
3
4 25
5
HEAD OF PROCURING ENTITY
(HOPE)
Refers to:
 Head of the agency or body, or his duly authorized
official, for NGAs and the constitutional commissions or
offices, and other branches of government;
 Governing Board or its duly authorized official, for
GOCCs, GFIs and SUCs; or
 Local Chief Executive, for LGUs

Note: In an agency, department, or office where the

procurement is decentralized, the head of each
decentralized unit shall be considered as the HoPE,
subject to the limitations and authority delegated by the
head of the agency, department, or office
26
HEAD OF PROCURING ENTITY
(HOPE)

FUNCTIONS AND RESPONSIBILITIES:

1. Establishes BAC and appoints its members
 Ensures that BAC members give their utmost priority
to duties
 Ensures professionalization of members of the
procurement organization

Within six (6) months upon designation, the BAC, its

Secretariat and TWG members should have satisfactorily
completed such training or program conducted,
authorized or accredited by the GPPB through its TSO.
(Sec. 16, 2016 IRR of RA 9184)
27
HEAD OF PROCURING ENTITY
(HOPE)

2. Approves the Annual Procurement Plan (APP)

3. Approves/Disapproves the Contract Award

4. Resolves Protests

BACK

28
BIDS AND AWARDS COMMITTEE
(BAC)
As a general rule, HOPE must create a single BAC.
However, separate BACs may be created under any of the
following conditions:
1. The items to be procured are complex or specialized;
2. If the single BAC cannot reasonably manage the
procurement transactions as shown by delays beyond
the allowable limits; or
3. If the creation is required according to the nature of the
procurement.

29
BIDS AND AWARDS COMMITTEE
(BAC)

FUNCTIONS AND RESPONSIBILITIES:

 Recommends Procurement Method

 Creates a Technical Working Group (TWG)
 Conducts the bidding activities
 Resolves Requests for Reconsideration
 Recommends Imposition of Sanctions
 Invites Observers during all stages of the procurement
process
 Conducts due diligence review or verifications of the
qualifications of observers
 Prepares Procurement Monitoring Report
30
BIDS AND AWARDS COMMITTEE
(BAC)

FUNCTIONS AND RESPONSIBILITIES:

 Advertise and/or post the IB/REI

 Conduct pre-procurement and pre-bid conferences;
 Determine the eligibility of prospective bidders;
 Receive and open bids;
 Conduct the evaluation of bids;
 Undertake post-qualification proceedings;
 Recommend award of contracts to the HoPE or his duly
authorized representative;
 Recommend to the HoPE the use of Alternative Methods
of Procurement
31
BIDS AND AWARDS COMMITTEE
(BAC)
FUNCTIONS AND RESPONSIBILITIES:

 Conduct any of the Alternative Methods of Procurement;

 Conduct periodic assessment of the procurement
processes and procedures
 Perform such other related functions as may be
necessary

32
BIDS AND AWARDS COMMITTEE
(BAC)

MEMBERSHIP AND QUALIFICATIONS:

 BAC members should occupy plantilla positions with

the procuring entity concerned.

 All members are regular members except the end-user

member who is considered as a provisional member.
The members, whether regular or provisional, are
equally entitled to participate and to vote during
deliberations.

33
BIDS AND AWARDS COMMITTEE
(BAC)
COMPOSITION: 5 but not more than 7 MEMBERS
designated by the HOPE

1. Regular Members:
 Chairperson (3rd Ranking Permanent Official);
 Member representing the Legal or Administrative
areas (5th Ranking Permanent Personnel); or if not
available, an officer of the next lower rank;
 Member representing the Finance Area (5th Ranking
Permanent Personnel); or if not available, an officer
of the next lower rank;

34
BIDS AND AWARDS COMMITTEE
(BAC)
COMPOSITION: 5 but not more than 7 MEMBERS
designated by the HOPE

2. Provisional Members
 Officer possessing Technical expertise relevant to the
procurement.
 End user unit Representative. In case of procurement
outsourcing, a representative from the Procuring Entity
may be designated as a provisional member

35
BIDS AND AWARDS COMMITTEE
(BAC)
COMPOSITION: 5 but not more than 7 MEMBERS
designated by the HOPE

Members for LGUs (Regular Offices under OLCE):

1. Administrator’s Office
2. Budget Office
3. Legal Office
4. Engineering Office
5. General Services Office
6. End User Office

36
BIDS AND AWARDS COMMITTEE
(BAC)
 The BAC members shall elect among themselves
who shall act as the Chairman and Vice-Chairman.

The BAC Chairman and Vice-Chairman shall be

designated by the LCE

QUALIFICATIONS:

 BAC members should occupy plantilla positions with

the procuring entity concerned
 BAC Chairperson shall be at least a third ranking
permanent official

37
LGU BAC

BAC Composition in Local Government Units (LGUs)

 While the list of offices mentioned in Sec 11.2.3 of the
IRR of RA 9184 is not exclusive, it is necessary that the
BAC members shall come from the regular offices under
the Office of the Local Chief Executive (LCE), except the
Chief Accountant and any personnel from the
Accounting Unit.

Term of Office of BAC Members in LGUs

 The LCE was given the discretion to designate the
members of the BAC for the period of one (1) year, and
to extend the terms of office of BAC Members granting
that the extension will be most desirable and
advantageous for the PE. 38
ALTERNATE BAC MEMBERS

 Same qualifications as their principals.

 Same term as the principal.
 Presence of alternate BAC members in BAC meetings
are considered for purposes of quorum.
 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.
 Shall be entitled to the proportionate honoraria for
attendance in meetings.
1
2
3
45 39
BIDS AND AWARDS COMMITTEE
(BAC)
TERMS OF MEMBERSHIP:

The BAC members shall be designated for a term of one

(1) year only, reckoned from the date of designation.
However, the HOPE may renew or terminate such
designation at his discretion.

Upon expiration of the terms of the current members, they

shall continue to exercise their functions until new BAC
members are designated.

1
2
3
4 40
5
BIDS AND AWARDS COMMITTEE
(BAC)
TERMS OF MEMBERSHIP:

In case of resignation, retirement, separation, transfer, re-

assignment, or removal of a BAC member, the HOPE shall
designate a replacement that has similar qualifications as
the official replaced. The replacement shall serve for the
unexpired term. In case of leave or suspension, the
replacement shall serve only for the duration of the leave
or suspension.

41
PROHIBITED BAC MEMBERS

1. Head of the Procuring Entity

2. Official who approves procurement contracts;

3. Chief Accountant or Head of the

Provincial/City/Municipal Accounting Office and
his/her staff, unless the Accounting Department is the
end-user unit, in which case the Chief Accountant,
Head of the Accounting Department or his/her staff
may be designated as an end-user member. (COA
Circular Letter No. 2004 – 3)
BACK

42
BAC SECRETARIAT

 HOPE may create a new office or designate an existing

organic office to act as BAC Secretariat

In case of ad hoc BAC Secretariat, the HOPE shall assign

full-time support staff in its BAC Secretariat (Sec. 14.2)

 There is no minimum or maximum number of

members of the BAC Secretariat.

 Head of the BAC Secretariat must be at least a 5th or 3rd

ranking permanent employee or, if not available, a
permanent official of the lower rank

43
BAC SECRETARIAT

FUNCTIONS:
 Provide administrative support to the BAC and TWG
 Organize BAC and TWG meetings and conferences
 Take custody of procurement documents and other
records
 Manage the sale and distribution of bidding documents
 Advertise/post bidding opportunities, including Bidding
Documents, and notices of awards
 Assist in managing the procurement process
 Monitor procurement activities and milestones
 Consolidate PPMPs
 Act as central channel of communications BACK

 Prepare minutes of meetings and resolutions of the BAC 44

TECHNICAL WORKING GROUP
(TWG)
FUNCTIONS:
 Provide administrative support to the BAC and TWG
 Organize BAC and TWG meetings and conferences
 Take custody of procurement documents and other
records
 Manage the sale and distribution of bidding documents
 Advertise/post bidding opportunities, including Bidding
Documents, and notices of awards
 Assist in managing the procurement process
 Monitor procurement activities and milestones
 Consolidate PPMPs
 Act as central channel of communications
 Prepare minutes of meetings and resolutions of the BAC 45
TECHNICAL WORKING GROUP
(TWG)
FUNCTIONS:
 Provide administrative support to the BAC and TWG
 Organize BAC and TWG meetings and conferences
 Take custody of procurement documents and other
records
 Manage the sale and distribution of bidding documents
 Advertise/post bidding opportunities, including Bidding
Documents, and notices of awards
 Assist in managing the procurement process
 Monitor procurement activities and milestones
 Consolidate PPMPs
 Act as central channel of communications BACK

 Prepare minutes of meetings and resolutions of the BAC 46

OBSERVERS

 Observers represent the public, the taxpayers who are

interested in seeing to it that procurement laws are
observed and irregularities are averted.
 At least three (3) Observers shall be invited coming
from:
 COA
 Duly recognized private group in the sector or
discipline of the particular type of procurement
involved
 Non-Government Organization (NGO)

47
OBSERVERS

In all stages of procurement process, During the

1) eligibility checking, 2) shortlisting, 3) pre-bid
conference, 4) preliminary examination of bids,
5) bid evaluation, and 6) post-qualification, the
BAC must invite, in writing, at least three (3)
Observers, at least 3 cd 5cd before the date of
the procurement stage/activity

48
OBSERVERS

Observers shall be allowed access or be provided with the

following documents free of charge upon their request,
subject to signing of a confidentiality agreement:

1. Minutes of BAC meetings;

2. Abstract of Bids;
3. Post-qualification summary report;
4. APP and related PPMP; and
5. Opened proposals

In all instances, observers shall be required to enter into a

confidentiality agreement with the concerned Procuring Entity in
accordance with the form prescribed by the GPPB.
49
OBSERVERS

RESPONSIBILITIES:
1. Prepare report (jointly or separately) indicating their
observations on the procurement activities
2. Submit report to the PE and furnish a copy to the GPPB
and the Office of the Ombudsman/Resident
Ombudsman.
3. Immediately inhibit and notify in writing the PE of any
actual or potential conflict of interest
If no report is submitted by the observer within seven (7)
calendar days after each procurement activity, then it is
presumed that the bidding activity conducted by the BACBACK

followed the correct procedure

50
GRANT OF HONORARIA

 PE is authorized to grant honoraria to the members of

the BAC, the TWG, and the BAC Secretariat provided
the amount so granted does not exceed twenty-five
percent (25%) of their respective basic monthly salary,
subject to the following conditions:

• funds are available for the purpose; and

• the grant of honoraria conforms to the guidelines
promulgated by the DBM. (Section 15, IRR of
R.A. 9184)

51
GUIDELINES ON THE GRANT
OF HONORARIA
 DBM Budget Circular No. 2004-5A, dated 7 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 – Competitive Bidding, LSB and Nego
Proc-Two Failed Bidding.
 Granted to Chair or Members of the BAC or the
TWG by the PE concerned.

52
GUIDELINES ON THE GRANT
OF HONORARIA
 BAC Secretariat performing attendant functions in
addition to their regular duties and functions may be
paid honoraria at the same rate as the TWG Chair and
Members
 Those who are receiving honoraria shall no longer be
entitled to overtime pay for procurement-related
services rendered.
 Payment of overtime services may be allowed for the
administrative staff, (clerks, messengers and drivers
supporting the BAC, the TWG and the Secretariat), for
procurement activities rendered in excess of official
working hours. 1
2
3
4 53
5
FUNDING SOURCE

 Collections from successfully completed procurement

projects, limited to activities prior to the awarding of
contracts to winning bidders:

 proceeds from sale of bid documents;

 fees from contractor/supplier registry;
 fees charged for copies of minutes of bid openings,
BAC resolutions and other BAC documents;
 protest fees; and
 proceeds from bid security forfeiture

54
CEILING FOR HONORARIA
Maximum Honorarium rate
per procurement project

BAC Chair Php 3,000.00

BAC Members Php 2,500.00

BAC Secretariat Php 2,000.00

TWG Chair and Members

Members of the BAC Secretariat whose positions are in

the Procurement Unit of the agency shall not be entitled
to honoraria although the payment of overtime services
may be allowed, subject to existing policy on the matter. BACK

55
IMPORTANCE OF RA 9184

The procurement law was enacted to lay

down rules and regulations and to
modernize, standardize, and regulate the
procurement activities of the government. It
is a response to the clamor of the citizenry
to provide value for taxpayer money and
show government commitment to good
governance, transparency, accountability,
equity, efficiency, and economy in the
procurement process.
56