GOVERNMENT PROCUREMENT REFORM ACT

REPUBLIC ACT NO. 9184

An act providing for the modernization, standardization and regulation of the procurement activities of the government and for other purposes.

WHAT IS PROCUREMENT?
Procurement refers to the acquisition of Goods, Consulting Services, and the contracting for Infrastructure Projects by the Procuring Entity. (Article I, Sec. 5 (n), R.A. 9184) Procurement means the acquisition by any means of goods, construction or services.

Governing Principles of Procurement

1. 2. 3. 4. 5. Transparency Equal Opportunity(through standardization) Streamlined Process Accountability Public Monitoring

Coverage:
Goods:
Items Supplies Materials needed in Transaction of public business Pursuit of any government undertaking, project or activity

Still considered as goods:

Services that are not consulting services
General Support Services (e.g. Janitorial, Security, Repair and Maintenance Services) Related or Analogous Services (e.g. Lease of Office Space) Materials and supplies needed for such services

General Rule (section 10, RA 9184):

Competitive Bidding

What is Competitive Bidding?

[Section 5 (e), RA 9184]

1. Method of procurement 2. Open to participation by any interested party 3.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, 4. Specific requirements and mechanics of which shall be defined in the IRR to be promulgated under this Act

The General Processes of Competitive Bidding:

Advertisement Pre-bid conference Eligibility screening of prospective bidders Receipt and opening of bids Evaluation of bids Post-qualification Award of contract

BAC Composition:
Head of Procuring Entity forbidden as Chairperson or member of BAC

BAC Composition: (for Agencies, GOCCs, SUCs, GFIs,etc.)

Regular Members: 1. Chairman- at least third ranking permanent official of procuring entity 2. Member- procurement/legal/ administrative expertise and at least fifth ranking permanent official 3. Member- finance expertise and at least fifth ranking permanent official

BAC Composition:
Provisional Members: 1. Member- technical expertise in relevant to the procurement 2. Member- end user unit

BAC Composition:
(for LGUs)
One (1) representative each From the regular offices under the office of the local chief executive (e.g., Office of the Administrator, Budget Office, Legal Office, General Services, Engineering Service)
To be appointed by the local chief executive

BAC Composition:
Observers: Two (2)
1. At least one (1) shall come from a duly recognized private group in a sector or discipline relevant to the procurement at hand 2. The other from a non-governmental organization (NGO)

COA Representative

BAC Composition:
No. of Members: At least Five (5) but not more than Seven (7)

COA Representative & Observers (nonmembers)

honoraria to the BAC members in an amount not to exceed twenty-five percent (25%) of their respective basic monthly salary subject to availability of funds (Section 15)

Bid Documents Preparation:

Prepared by procuring entity Following the standard forms and manuals prescribed by the GPPB (Government Procurement Policy Board)

Technical Working Group

from a pool of technical, financial and/or legal experts assist in the procurement process particularly in the eligibility screening, evaluation of bids and postqualification

Standardized Bidding Procedures for Goods

Pre-Procurement Conf. 2-wk advertisement Pre-Bid Conference

Submission of Eligibility Req. & Bid

Opening of Eligibility Env. & Eligibility Check

Opening of Tech. Env. & Prel. Exam.

Opening of Financial Env.

Bid Evaluation & Ranking

Postqualification

Award of Contract

Invitation to Bid 1. Publication 2. Website 3. Posting

Publication:
Twice: 1. Minimum 6 days maximum 14 days in between publication 2. Newspaper of general nationwide circulation 3. Newspaper published at least 2 years prior to advertisement

Posting @ Website
1. Website of the procuring entity 2. Website of the service provider of the procuring entity, if available 3. Maximum period of 14 days

Posting at premises
1. Conspicuous place 2. Reserved for the purpose 3. Certified by the BAC Secretariat of the procuring entity

Procedure:
1. Late bids shall not be accepted 2. Opening of Technical Envelopes 3. Counter-checking compliance of Technical Envelope with requirements 4. Opening of Financial Envelope 5. Counter-checking compliance of Financial Envelope with requirements

6. Bid Evaluation 7. Ranking 8. Lowest Calculated Bid

Note:
Bids above the ABC are automatically disqualified No Floor Prices If failed Technical Envelope, cannot open the Financial Envelope Bid shall include all taxes

Post-Qualification
To determine whether the bidder concerned complies with and is responsive to all the requirements and conditions for eligibility, the bidding of the contract, as specified in the bidding documents

Post-Qualification
BAC shall verify, validate and ascertain all statements made and documents submitted by the bidder with the Lowest Calculated Bid/Highest Rated Bid.

Post-Qualification Period: Within seven (7) calendar days from determination of the Lowest Calculated Bid
In exceptional cases, the seven (7) calendar day period may be extended by the GPPB (Government Procurement Policy
Board)

Result: Lowest Calculated Bid becomes Lowest Calculated and Responsive Bid

Recommendation of the Award to the Head of the Procuring Entity Action of Head on Recommendation: 1. Approve 2. Disapprove

Action of Head on Recommendation: Disapproval based only on valid, reasonable and justifiable grounds to be expressed in writing, copy furnished the BAC. (Bids and Awards Committee)

Republic Act No. 9184

If approval: Head issues the Notice of Award BAC notifies the losing bidders of the decision

Contract Preparation and Signing

Time Period:

Ten (10) days from receipt of Notice of Award by Winning Bidder

Failure of Bidding:

1. No Bids are received 2. No bid qualifies as the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid 3. Refusal of winning bidder to accept the award of contract

Consequence: 1. Second Bidding Process 2. If this still fails, BAC may resort to negotiated procurement

Alternative Modes of Procurement

Limited Source Bidding Direct Contracting Repeat Order Shopping Negotiated Procurement

Alternative Modes of Procurement

Limited Source Bidding or Selective Bidding
A method of procurement of goods and consulting services, that involves direct invitation to bid by the concerned procuring entity from a set of preselected suppliers or consultants with known experience and proven capability on the requirements of the particular contract

Alternative Modes of Procurement

Limited Source Bidding or Selective Bidding
Procurement of highly specialized types of goods and consulting services Procurement of major plant components to maintain uniform quality and performance of the plant as a whole

Alternative Modes of Procurement

Direct Contracting or Single Source Procurement
Applies only to procurement of goods Does not require elaborate bidding documents Supplier is simply asked for a price quotation or a pro-forma invoice with the conditions of sale Offer may be accepted immediately or after some negotiations

Alternative Modes of Procurement

Direct Contracting or Single Source Procurement 1. Proprietary items 2. Critical plant components from a specific manufacturer 3. Sold by an exclusive dealer or manufacturer with no suitable substitute

Alternative Modes of Procurement Repeat Order

Need to replenish goods Procured under a contract previously awarded through Competitive Bidding

Alternative Modes of Procurement Repeat Order

1. 2. 3. 4. Same contract prices Not a result of splitting Within six (6) months from the date of the Notice to Proceed of the original contract Not to exceed twenty-five percent (25%) of the quantity of each item in the original contract

Republic Act No. 9184

Alternative Modes of Procurement Shopping
Submission of price quotations Readily available off-the-shelf goods or ordinary/regular equipment Procured directly from suppliers of known qualifications

Republic Act No. 9184

Alternative Modes of Procurement Shopping
1. 2. Unforeseen contingency requiring immediate purchase but not to exceed P50,000.00 Ordinary or regular office supplies and equipment not available in the Procurement Service not to exceed P250,000.00

Republic Act No. 9184

Alternative Modes of Procurement Shopping
Not as a result of splitting Amounts subject to periodic review by the GPPB

Republic Act No. 9184

Alternative Modes of Procurement Negotiated Procurement
Directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant Conditions in law and IRR are exclusive

Republic Act No. 9184

Alternative Modes of Procurement Negotiated Procurement
1. 2.
3.

Second Bid Failure Imminent danger to life or property during a state of calamity Time is of the essence arising from natural or man-made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities

Republic Act No. 9184

Alternative Modes of Procurement Negotiated Procurement
4. Take-over of contracts where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities Adjacent or Contiguous contract to an on-going infrastructure project

5.

Republic Act No. 9184

Alternative Modes of Procurement Negotiated Procurement
6. 7. 8. Inter-agency purchase of goods Individual consultants that are highly technical or primarily confidential Major defense equipment for use by the AFP

Republic Act No. 9184

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