Lesson 5: The Basics

of Procurement
GUIDING PRINCIPLES
 Public Office is a Public
Trust
(Sec. 1 Art. 11, 1987 Philippine Constitution; RA 6713)

Public officials and employees must be

at all times accountable to the people,
serve them with utmost honesty,
responsibility, integrity, loyalty, and
efficiently, act with patriotism and lead
modest lives.
 “All resources of the government
shall be managed, expended or
utilized in accordance with laws,
rules, regulations, and safeguarded
against loss or wastage through
illegal or improper disposition with
the view of ensuring economy,
efficiency, and effectiveness in the
operation of the government. “

(Sec. 2 PD 1445, State Auditing of the Philippines)

WHAT IS PROCUREMENT?
 Procurement
Acquisition of goods, consulting
services, and the contracting for
infrastructure projects by
procuring entity.

(Sec. 5(aa), IRR, R.A. 9184)

DEFINITION OF TERMS
 Definition of Terms

GOODS & SERVICES

Items, supplies, materials & general

support services which may be
needed in the transaction of public
businesses or in the pursuit of any
government undertaking.
 Definition of Terms

INFRASTRUCTURE PROJECTS
(CIVIL WORKS)

Construction, improvement,
rehabilitation, demolition, repair,
restoration or maintenance of
construction projects of the government.
DEFINITION OF TERMS

CONSULTING SERVICES

Services for infrastructure projects

and other governmental projects
requiring adequate external
technical and professional expertise
SCOPE, COVERAGE,
AND APPLICATION
 Republic Act 9184
Governs and covers all domestically-
funded procurement activities – from
planning to contract implementation – of
the following:
• National Government Agencies
• State Universities & Colleges
• Government-Owned and Controlled
Corporations (GOCCs)
• Government Financial Institutions (GFIs)
• Local Government Units (LGUs) – including
BARANGAYS
Republic Act 9184

Also covers foreign-funded

activities except when
agreement expressly
provides the use of foreign
financing institution
procurement rules
General Principles
Of RA 9184
1. TRANSPARENCY
Wide dissemination of procurement
opportunities; Observers’ presence

2. COMPETITIVENESS
Equitable treatment of
bidders; Fair grounds for
competition
General Principles
Of RA 9184
3. Streamlined Process and
Use of Modern Technology
Simple; non-discretionary; Adaptable
to changes in technology

4. Accountability Responsibilities
clear; Legally
identifiable
5.Public Monitoring sanctions for
violations
BARANGAY PROCUREMENT
ORGANIZATION
 Procuring Entity

Provincial, City, Municipal

Government concerned; Barangay
governments may procure through
their respective city or municipal
governments. The Barangay
Treasurer shall as be head of the
Procurement Office.
 Bids & Awards
Committee (BAC)
The Punong Barangay shall create a BAC
composed of 5 – 7 Sangguniang Barangay
members. The members shall elect among
themselves who shall act as the Chairman and
Vice-Chairman. The Punong Barangay, Barangay
Treasurer and other appointive officials are
disqualified.
BAC members shall be appointed for a term of
one (1) year only but can be renewed at the
discretion of the Punong Barangay.
 Functions of the BAC

• Advertise or post invitation to bid

• Conduct pre-procurement and pre-
bid
• Determine eligibility of bidders
• Receive bids
• Conduct evaluation of bids
• Undertake post qualification
 Functions of the BAC
• Resolve motion for reconsideration
• Recommend awards for contracts
• Recommend imposition of sanctions
• Recommend use of alternative
methods
• Create Technical Working Group
 BAC Secretariat
- headed by the Barangay Treasurer
Functions:
• Provide administrative support to the
BAC
• Organize & make arrangements for BAC
meetings and conferences
• Prepare minutes and resolutions of the
BAC
• Take custody of procurement documents
and other records
• Advertise or post bid opportunities, bid
docs, and notice of awards
 BAC Secretariat
Functions:
• Assist in managing the
procurement process
• Monitor procurement activities
and milestones
• Consolidate PPMPs
• Central channel of
communication
• Manage sale or distribution of
bid documents
 Other Procurement
Actors

Technical Working Group

(TWG)
- provide assistance to the BAC in
terms of the technical, financial,
legal and other aspects of the
procurement
 Other Procurement
Actors

Observers
- ensures the transparency of the
procurement process;
- represents the public, the taxpayers
who are interested to see if
procurement laws are observed and
irregularities are averted.
COMPETITIVE BIDDING
 Competitive Bidding
- Public bidding;
- A method of procurement that is
open to any interested and qualified
party

Note: A Procuring Entity should,

therefore, see to it that its
procurement program allows for
enough time to conduct such public
bidding.
 Procedural Steps in
Competitive Bidding
1. Advertise and post an Invitation to
Apply for Eligibility and to Bid
(IAEB).
2. Accept letter of intent, issue
eligibility documents, and conduct
eligibility check.
3. Shortlist eligible consultants.
4. Issue the bidding documents.
 Procedural Steps in
Competitive Bidding
5. Call a pre-bid conference and, if
necessary, issue supplemental/bid
bulletins.
6. Receive and open the technical and
financial envelopes.
7. Evaluate the bids.
8. Negotiate with the consultant with
the highest-rated bid.
9. Post-qualify.
10. Award the contract.
 Procurement by Electronic
Means: PHILGEPS
PHILIPPINE GOVERNMENT
ELECTRONIC PROCUREMENT
SYSTEM (PhilGEPS) shall serve as
the primary and definitive source of
information on government
procurement
 Procurement by Electronic
Means: PHILGEPS
• Established in accordance with EO 322
s. 2000; EO 40 s. 2001 (E.O. 40)
 Procurement by Electronic
Means: PHILGEPS
• All Procuring Entities (Public Sector
including Barangays) are mandated
to register and fully use the
PhilGEPS.
 PHILGEPS Purposes
• Shall be utilized for procurement of
common-use goods

• Shall be used for the posting of

procurement opportunities (from
Advertisements to Awards)

• Shall be the source of information

for other procurement needs
 PHILGEPS Purposes
For more info, visit http://philgeps.gov.ph
 PHILGEPS Portal
• The Electronic Bulletin Board
Posting of procurement
opportunities, notices of awards,
electronic distribution of bid
documents and automatic
notification of amendments
• Registry
Data base of all manufacturers,
supplies, distributors, contractors
and consultants
 PHILGEPS Portal
• The Electronic Catalogue
A centralized price list of
commodities that can be procured
without bidding
• Virtual Store
Online procurement of
both common and
non-common use item
from suppliers
 PHILGEPS Portal
• Online Payment
For purchases thru virtual store;
can generate purchase orders and
payment of bids

• Electronic Bid Submission

E-bid forms, delivery of e-bid
submission, notice to bidders of
receipt, bid receiving & evaluation
 PhilGEPS promotes…
• Security
• Integrity
• Confidentiality
• Audit Trail
• Performance Tracking
 Thank you for
listening!

End of Module 1
Basics of Barangay Governance
and Administration

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