Directing The Use Of The Procurement Service And The Philippine Government Electronic Procurement System In Procurement Activities In Accordance With Republic Act No. 9184, And Improving The Operation Of The Procurement Service

Case Overview and Summary

Summary of Administrative Order No. 17

Reiteration of Policy
- Procurement of government supplies, materials, and equipment shall be done transparently and competitively. (Section 1)
- All government agencies shall procure common-use supplies from the Procurement Service (PS) and use the Philippine Government Electronic Procurement System (PhilGEPS) in all procurement activities, including publishing bid opportunities and posting awards and contracts, in accordance with Republic Act No. 9184. (Section 1)

Coverage
- This Administrative Order applies to: (Section 2)
    - National Government Agencies, including Military and Police Units
    - Government-Owned and/or -Controlled Corporations (GOCCs)
    - Government Financial Institutions (GFIs)
    - State Universities and Colleges (SUCs)
    - Local Government Units (LGUs)

Definition of Terms (Section 3)
- Common-Use Supplies: Supplies, materials, and equipment included in the PS price list, necessary for official business and day-to-day operations.
- Electronic Bulletin Board: Central repository of government procurement opportunities, notices, and bid results in PhilGEPS.
- Suppliers Registry: Centralized electronic database of manufacturers, suppliers, distributors, contractors, and consultants registered under PhilGEPS.
- Electronic Catalogue: List of common-use supplies available from PS and its depots, appearing in PhilGEPS.
- Virtual Store: Enhanced electronic catalogue in PhilGEPS that allows online purchase of common-use supplies from PS and its depots.
- Electronic Payment (E-payment): Digital financial transaction for transfer of funds to and from PhilGEPS and from procuring entities to suppliers.
- Electronic Bid Submission (E-bid Submission): PhilGEPS facility that allows bidders to download bidding documents and submit bid proposals online.

Procurement of Common-Use Supplies (Section 4)
- Common-use supplies shall be procured directly from PS or its depots without need for public bidding, as provided in Section 53.5 of the Implementing Rules and Regulations (IRRs) of Republic Act No. 9184.

Use of PhilGEPS (Section 5)
- All government procuring entities are mandated to use PhilGEPS in procurement activities and post all opportunities, notices, awards, and contracts in it.
- All shall subscribe to additional PhilGEPS features like Virtual Store, E-payment, and E-bid submission as they become available.
- The Department of Budget and Management (DBM) may consider data in PhilGEPS in evaluating and reviewing proposed budgets of agencies.
- Procuring entities without Internet access may use Public Access Terminals at PS Depots or other public Internet facilities, and seek assistance from the PhilGEPS Help Desk.
- Government agencies with Internet access are encouraged to share facilities with those without Internet for using PhilGEPS.
- PS may charge fees for using PhilGEPS to sustain its operation, subject to existing rules and regulations.
- DBM shall provide funding from its appropriations for continuous enhancement and operation of PhilGEPS until it achieves financial sustainability as determined by the Government Procurement and Policy Board (GPPB).

Improving Service Delivery (Section 6)
- PS shall strengthen operations and undertake the following activities regularly:
    - Review product standards and specifications for common-use supplies in coordination with the Bureau of Product Standards of the Department of Trade and Industry (DTI) to improve product quality. (Section 6a)
    - Conduct survey to determine other products commonly purchased by procuring entities for addition to the list of common-use supplies. (Section 6b)
    - Conduct price monitoring of common-use supplies for benchmarking against the market. (Section 6c)
    - Encourage LGUs to establish depots in their locality as part of economic enterprise activity. (Section 6d)
    - Develop a computerized system to manage inventories and determine and control stock levels, connected to the Virtual Store. (Section 6e)
    - Pursue development of additional PhilGEPS features and enhancements to enhance transparency and competition. (Section 6f)
- GPPB shall conduct periodic evaluation of the centralized procurement system's performance in terms of economy and efficiency, and evaluate all Procuring Entities' compliance with conducting Procurement Training Programs and producing Procurement Operations Manuals. (Section 6)

Compliance and Monitoring (Section 7)
- Non-compliance with the provisions of this Administrative Order shall be dealt with in accordance with applicable laws, rules and regulations.

Repealing Clause (Section 8)
- All issuances, orders, rules, and regulations or parts thereof which are inconsistent with the provisions of this Administrative Order are hereby revoked and/or modified accordingly.

Effectivity Clause (Section 9)
- This Administrative Order shall take effect immediately upon publication in a newspaper of general circulation.