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RA 9184:



Government procurement is becoming a kind of important economic activity now,
government procurement includes the procurement activities such as procurement mode and
procurement process, it is a complex system engineering which includes commerce activity and
administration activity.
With the increase of government procurement operation, the management of government
procurement will become very onerous. In order to achieve the targets of government
procurement, government procurement is considered as one of the significant economic activities
that can reflect the function of government processes reengineering synthetically, then how-to
identify processes in anfractuous government
procurement processes is a chief precondition
of implementing government procurement
processes reengineering, this paper puts
forward the methods of activities identifying
and processes identifying to analyze the
relationships among processes, it uses a case
study methodology grounded in system
engineering theory to analyze an application
in government procurement processes.
Government Procurement is also
called public tendering or public procurement.
This process is designed to prevent fraud,
waste, corruption or local protectionism. It
requires the procuring authority to issue
public tenders if the value of the procurement
exceeds a certain threshold. Republic Act
9184 is the law that governs the Government
Procurement here in the Philippines.
The law mandates that there must be a
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. Said method
refers to Competitive Bidding which consists
of the following processes: advertisement,

Pre-bid Conference, Eligibility screening of Prospective bidders, receipt and opening of bids,
evaluation of bids, post-qualification and award of contract.
The Illustration above shows the actual procedure of procurement here in the Philippines
Meanwhile, the following are the precise guidelines of what are the parameters set in the
implementing rules and procedure of government procurement law.
Annual Procurement Plan is the requisite document that the agency must prepare to reflect the
necessary information on the entire procurement activities (ie. Goods, services, civil works to be
procured) that it plans to undertake within the calendar year, as follows: a) name of the
procurement program; b) project management office or end-user unit; c) general description of
the procurement d) procurement method to be adopted e) time schedule for each procurement
activity d) source of fund e) approved budget for the contract.
Section 7 of RA 9184 provides that all procurement should be within the approved budget of the Procuring
Entity and should be meticulously and judiciously planned by the Procuring Entity concerned. Consistent
with government fiscal discipline measures, only those considered crucial to the efficient discharge of
governmental functions shall be included in the Annual Procurement Plan to be specified in the IRR.
No government Procurement shall be undertaken unless it is in accordance with the approved Annual
Procurement Plan of the Procuring Entity. The Annual Procurement Plan shall be approved by the Head of
the Procuring Entity and must be consistent with its duly approved yearly budget. Xxx

SECOND STEP Establish Bids Awards and Committee

SEC. 11. The BAC and its Composition. - Each procuring entity shall establish a single BAC for its
procurement. The BAC shall have at least five (5) members, but not more than seven (7) members. It shall
be chaired by at least a third ranking permanent official of the procuring entity other than its head, and its
composition shall be specified in the IRR. Alternatively, as may be deemed fit by the head of the procuring
entity, there may be separate BACs where the number and complexity of the items to be procured shall so
warrant. Similar BACs for decentralized and lower level offices may be formed when deemed necessary by
the head of the procuring entity. The members of the BAC shall be designated by the Head of Procuring
Entity. However, in no case shall the approving authority be a member of the BAC.
Unless sooner removed for a cause, the members of the BAC shall have a fixed term of one (1) year
reckoned from the date of appointment, renewable at the discretion of the Head of the Procuring Entity. In
case of resignation, retirement, separation, transfer, re-assignment, removal, the replacement shall serve
only for the unexpired term: Provided, That in case of leave or suspension, the replacement shall serve only
for the duration of the leave or suspension. For justifiable causes, a member shall be suspended or removed
by the Head of the Procuring Entity.

Procurement Planning involves the preparation/ updating of the agencys project procurement
management plan by individual project, the consolidation of all PPMPs into the APP and
approval of the APP by agency head.
Pre-Procurement Conference assessment of the readiness of the procurement in terms of
confirming the certification of availability of funds, as well as reviewing all relevant documents
and the draft invitation to bid, as well as consultants hired by the agency concerned and the
representative of the end-user.
Advertisement/ posting of the invitation to bid announcing to the public the proposed projects
and inviting bidders to join the bidding, thru the following media: newspaper of general
nationwide circulation, PhilGeps website, procuring entitys website and conspicuous places
Pre-Bid Conference the forum where the procuring entitys representatives and the bidders
discuss the different aspects of the project.
Opening and Evaluation of Bidders envelope eligibility check of the prospective bidders.
SEC. 23. Eligibility Requirements for the Procurement of Goods and Infrastructure Projects. - The BAC
or, under special circumstances specified in the IRR, its duly designated organic office shall determine the
eligibility of prospective bidders for the procurement of Goods and Infrastructure Projects, based on the
bidders' compliance with the eligibility requirements within the period set forth in the Invitation to Bid. The
eligibility requirements shall provide for fair and equal access to all prospective bidders. The documents
submitted in satisfaction of the eligibility requirements shall be made under oath by the prospective bidder
or by his duly authorized representative certifying to the correctness of the statements made and the
completeness and authenticity of the documents submitted. A prospective bidder may be allowed to submit
his eligibility requirements electronically. However, said bidder shall later on certify under oath as to
correctness of the statements made and the completeness and authenticity of the documents submitted.

Submission and Receipt of bids involves the submission by the bidders of two separate sealed
envelopes containing the technical and financial components, and the receipt by the BAC of said
envelopes on such date, time and place as specified in the invitation to bid
SEC. 25. Submission and Receipt of Bids. - A bid shall have two (2) components, namely the technical
and financial
components which should be in separate sealed envelopes, and which shall be submitted simultaneously.
The bids shall be received by the BAC on such date, time and place specified in the invitation to bid. The
deadline for the receipt of bids shall be fixed by the BAC, giving it sufficient time to complete the bidding
process and giving the prospective bidders sufficient time to study and prepare their bids. The deadline
shall also consider the urgency of the procurement involved.
Bids submitted after the deadline shall not be accepted. Notwithstanding the provisions of this Section and
Section 26 of this Act, the GPPB

Detailed Evaluation of bids evaluation of the financial component of the bids and ranking of the
bids which passed the preliminary examination, from lowest to highest bidder in terms of their
calculated price.
Post Qualification of Bids verification and validation on whether the lowest bidder, in the case of
procurement of goods and infrastructure projects of the highest bidder, in the case of consulting
services, has passed all the legal, technical, financial requirements and conditions as specified in
the bidding documents.
SEC. 34. Objective and Process of Post-qualification. - Post-qualification is the stage where the bidder
with the Lowest Calculated Bid, in the case of Goods 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 postqualification, 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. However, if
a bidder fails to meet any of the requirements or conditions, he shall be "post-disqualified" and the BAC
shall conduct the post-qualification on the bidder with the second Lowest Calculated Bid or Highest Rated
Bid. If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is post-disqualified, the
same procedure shall be repeated until the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid is finally determined. In all cases, the contract shall be awarded only to the bidder with
the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.


Award of the contract awarding of contract to the lowest calculated responsive bid or the highest
responsive bid.
Notice to Proceed issuance of the notice to proceed together with a copy of the approved contract
to the successful bidder within the 7 calendar days from the date of approval of the contract by
the approving authority of the agency.
SEC. 37. Notice and Execution of Award. - Within a period not exceeding fifteen (15) calendar days from
the determination and declaration by the BAC of the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid, and the recommendation of the award, the Head of the Procuring Entity or his duly
authorized representative shall approve or disapprove the said recommendation. In case of approval, the
Head of the Procuring Entity or his duly authorized representative shall immediately issue the Notice of
Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.
Within ten (10) calendar days from receipt of the Notice of Award, the winning bidder shall formally enter
into contract with the Procuring Entity. When further approval of higher authority is required, the
approving authority for the contract shall be given a maximum of twenty (20) calendar days to approve or
disapprove it. In the case of government owned and/or controlled corporations, the concerned board shall
take action on the said recommendation within thirty (30) calendar days from receipt thereof.
The Procuring Entity shall issue the Notice to Proceed to the winning bidder not later than seven (7)
calendar days from the date of approval of the contract by the appropriate authority. All notices called for
by the terms of the contract shall be effective only at the time of receipt thereof by the contractor.

Contract Implementation actual implementation of the project.

On the Positive side : REFORMS IN THE COUNTRYS

While the government's efforts to
streamline processes in project
underspending in 2011, it had a
positive outcome: cheaper publiclyfunded projects. The government's
gross underspending in 2011 was
cited as the biggest factor that caused
lackluster economic growth in that
year. In 2011, economic growth
averaged only 3.7%.
Trimming the fat
if these procurement reforms are extended to other agencies, particularly agencies that engage in
a lot of procurement, the impact would be significant. Not only will there be an improvement in
the state of the country's finances but on the Philippine's performance in global transparency and
accountability or competitiveness surveys.
No easy task
Francis Capistrano, head of Department of Budget and Management's (DBM) Public Information
Unit, explained that while there were ballparks or estimates that around 20 to 30% of a budget is
subject to corruption, details of where the corruption lies must still be examined.
He noted that there are various avenues where corruption can breed and thrive, areas that can be
unique to certain agencies in government and could be larger or smaller than the rough estimate
of 20 to 30%.

Currently, he said, the DBM considers the 'blackhole' in terms of government finances is budget
execution. Capistrano said it is important to be vigilant when it comes to each and every agency's


As we may recall the case of neri vs senate, the senate blue ribbon committee conducted an
investigation in aid of legislation directing redress over the anomalous NBN-ZTE deal scandal.
The main purpose of its investigation was to amend the government procurement law in so far as
the remedial aspect is concern. 'Unclear' laws inflame corruption. Graft and corruption will
continue in the country as long as the laws being implemented remain unclear,' Anti-graft court
Sandiganbayan Justice Samuel Martires believes the country's laws governing government
transactions with the private sector need more clarity.
Are NGOs covered by the procurement law?
NGOs transacting w/ gov't considered 'goods. The GPRA provides a streamlined procurement
process and a system of accountability for both the public and the private sector.
Within the GPRA's scope are infrastructure projects, goods, and consulting services.
NGOs contracted by state firms are considered goods, because all other items except
"infrastructure projects" and "consulting services" fall under the said category.
"That is the definition of the DBM (Department of Budget and Management). 'All other' [are]
goods, even janitorial services,"
The GPRA defines goods as "all items, supplies, materials and general support services, except
consulting services and infrastructure projects, which may be needed in the transaction of the
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 or such services."


A specialized procurement process is needed to hasten the improvement of government
facilities and services. MRT3 spokesperson Hernando Cabrera said transportation authorities are
mulling over the possibility of presenting the Government Procurement Policy Board with a
better procurement system to speed up the process.
The MRT3 has been hounded by technical problems, highlighted by its worst accident so far on
August 13, when one of its trains derailed and breached the safety barriers of its southernmost
station, hurting 36 people. MRT users have criticized slow government action in improving the
passenger line.
Cabrera said the MRT3 management is faced with a stringent procurement law that makes it
"very, very difficult to procure anything, you have to pass through a lot of processes just to buy
10 pieces of air conditioning units. You have to go through a lot of processes to buy the needed
spare parts for the trains, and also the funding of course, he said.
The Department of Transportation and Communications (DOTC) recently announced it has
proposed 11 projects worth P10 billion to improve MRT3 operations.
But the agency can only hope that the rehabilitation projects would be completed before the end
of Aquino administration. In the meantime, commuters have to endure kilometric queues during
peak hours .