GOVERNMENT PROCUREMENT REFORM ACT

Case Overview and Summary

Summary of Republic Act No. 9184 (Government Procurement Reform Act)

Declaration of Policy and Governing Principles (Sections 2-3)
- Promote ideals of good governance in government procurement
- Principles: transparency, competitiveness, streamlined process, accountability, public monitoring

Scope and Application (Section 4)
- Applies to procurement of infrastructure projects, goods, and consulting services by government agencies
- Covers procurement funded by local or foreign sources

Definitions (Section 5)
- Defines key terms like approved budget, bids, competitive bidding, consulting services, goods, infrastructure projects, procurement, procuring entity

Standardization of Procurement Process (Section 6)
- Procurement process and forms shall be standardized by the Government Procurement Policy Board (GPPB)

Procurement Planning and Budgeting (Section 7)
- Procurement must be within approved budget and Annual Procurement Plan
- Plan must be approved by Head of Procuring Entity

Procurement by Electronic Means (Sections 8-9)
- Utilization of information technology in procurement process
- Establishment of Government Electronic Procurement System (G-EPS)
- Ensuring security, integrity, and confidentiality of electronic documents

Competitive Bidding (Section 10)
- Competitive bidding is the default method of procurement

Bids and Awards Committee (BAC) (Sections 11-16)
- Each procuring entity shall establish a BAC with 5-7 members (Section 11)
- Functions of BAC include bid evaluation, post-qualification, and contract award recommendation (Section 12)
- BAC shall invite observers from private sector and non-government organizations (Section 13)
- BAC shall have a Secretariat to provide support (Section 14)
- BAC members may receive honoraria up to 25% of basic monthly salary (Section 15)
- GPPB shall establish training program for BAC members (Section 16)

Preparation of Bidding Documents (Sections 17-19)
- Bidding documents shall follow standard forms prescribed by GPPB (Section 17)
- Specifications shall be based on relevant characteristics, not brand names (Section 18)
- Equal access to information shall be ensured (Section 19)

Invitation to Bid (Sections 20-22)
- Pre-procurement conference shall be held to assess readiness (Section 20)
- Invitation to bid shall be advertised and contain specific information (Section 21)
- At least one pre-bid conference shall be conducted (Section 22)

Receipt and Opening of Bids (Sections 23-29)
- Eligibility requirements for goods, infrastructure projects, and consulting services (Sections 23-24)
- Procedures for submission, receipt, modification, and withdrawal of bids (Sections 25-26)
- Bid security and validity requirements (Sections 27-28)
- Public opening of bids (Section 29)

Bid Evaluation (Sections 30-36)
- Preliminary examination of bids (Section 30)
- Ceiling for bid prices (Section 31)
- Evaluation of bids for goods, infrastructure projects, and consulting services (Sections 32-33)
- Post-qualification process (Section 34)
- Conditions for failure of bidding and single calculated/rated bid submission (Sections 35-36)

Award, Implementation, and Termination of Contract (Sections 37-42)
- Procedures for notice and execution of award (Section 37)
- Time periods for procurement activities (Section 38)
- Performance security requirements (Section 39)
- Consequences of failure to enter into contract and post performance security (Section 40)
- Reservation clause for rejection of bids (Section 41)
- Rules for contract implementation and termination (Section 42)

Domestic and Foreign Procurement (Section 43)
- Goods may be obtained from domestic or foreign sources
- Preference may be given to domestically-produced goods

Bidding of Provincial Projects (Sections 44-45)
- Priority programs and infrastructure projects intended for implementation within a province shall be subject to public bidding
- Within 5 years, provincial bidders may be granted privilege to match lowest bid from non-provincial bidder

Lease of Computers, Communications, and Other Equipment (Section 46)
- Lease contracts for equipment are subject to public bidding

Disclosure of Relations (Section 47)
- Bidding documents shall include sworn affidavit of bidder's non-relation to Head of Procuring Entity

Alternative Methods of Procurement (Sections 48-54)
- Alternative methods include limited source bidding, direct contracting, repeat order, shopping, and negotiated procurement (Section 48)
- Conditions for use of each alternative method (Sections 49-53)
- Terms and conditions for alternative methods shall be specified in Implementing Rules and Regulations (IRR) (Section 54)

Protest Mechanism (Sections 55-58)
- Decisions of BAC may be protested to Head of Procuring Entity (Section 55)
- Resolution of protests and finality of decisions (Sections 56-57)
- Court action may be resorted to after completion of protest process (Section 58)

Settlement of Disputes (Sections 59-60)
- Disputes shall be submitted to arbitration in the Philippines (Section 59)
- Arbitral awards may be appealed to the Court of Appeals (Section 60)

Contract Prices and Warranties (Sections 61-62)
- Contract prices shall be fixed, subject to extraordinary circumstances (Section 61)
- Warranty requirements for goods and infrastructure projects (Section 62)

Government Procurement Policy Board (GPPB) (Sections 63-64)
- Establishment, functions, and composition of GPPB (Sections 63-64)

Penal Clause (Sections 65-66)
- Offenses and penalties for public officers and private individuals (Section 65)
- Jurisdiction over offenses (Section 66)

Civil Liability (Sections 67-68)
- Civil liability in case of conviction, including restitution and forfeiture (Section 67)
- Liquidated damages provision in contracts (Section 68)

Administrative Sanctions (Sections 69-71)
- Imposition of administrative penalties like suspension from public bidding (Section 69)
- Preventive suspension of BAC members and officials (Section 70)
- Lifting of suspension and removal of administrative disabilities (Section 71)

Legal Assistance and Indemnification of BAC Members (Sections 72-73)
- BAC members authorized to engage private lawyers (Section 72)
- Indemnification package for BAC members, including legal assistance and liability insurance (Section 73)

Final Provisions (Sections 74-78)
- Creation of Joint Congressional Oversight Committee (Section 74)
- Formulation of Implementing Rules and Regulations and standard forms (Section 75)
- Repealing clause (Section 76)
- Separability clause (Section 77)
- Effectivity clause (Section 78)