Philippine Government Procurement System

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PHILIPPINE GOVERNMENT

PROCUREMENT SYSTEM
Tags CEM

PROCUREMENT
Legal Basis
DEFINITION OF TERMS
PROBLEM AREAS REFORM MEASURES
APPLICATION OF R.A. 9184
GOVERNING PRINCIPLES
Key Features of GPRA
Philippine Procurement Paradigm
Procurement Organization
Procurement Planning
Procurement Method
Bidding Process

PROCUREMENT
Refers to the acquisition of goods, consulting services, and the contracting for
Infrastructure Projects by the Procuring Entity. Procurement shall also include the lease
of goods and real estate

Legal Basis
R.A. 9184: Government Procurement Reform Act
"An act providing for the Modernization, Regulation, and Standardization of the
Procurement Activities of the Government and for other Purposes"

DEFINITION OF TERMS
Approved Budget for the Contract (ABC)- Refers to the budget for the contract duly
approved by the head of the Procuring Entity.(tiga labas ng budget)
BAC-Refers to the Bids and Awards Committee
Bidding Documents-Are documents issued by the procuring entity as the basis for
bids, furnishing all information necessary for a prospective bidder to prepare a bid.
Bid - Refers to a signed offer or proposal submitted by a supplier, manufacturer,
distributor, contractor or consultant in response to Bidding Documents
Competitive Bidding - Refers to a method of procurement which is open to
participation by any interested party. (in government lahat pede mag bid)
Consulting Services - Refer to services for Infrastructure Projects and other types of
projects or activities of the Government requiring adequate external technical and
professional expertise.
G-EPS- Refers to the Government Electronic Procurement System (PHIL G-EPS)

PHILIPPINE GOVERNMENT PROCUREMENT SYSTEM 1


Goods -Refer to all items, supplies, materials and general support services, except
consulting services and infrastructure projects. (laptops, pc, chairs etc.)
GPPB - Refers to the Government Procurement Policy Board.
Head of the Procuring Entity - Refers to the head of the agency or his duly authorized
official, for national government agencies. Infrastructure Projects Include the
construction, improvement, rehabilitation, demolition, repair, restoration, or maintenance
of roads and bridges, railways, airports, and the like.
Portal - Refers to a website that aggregates a wide variety of content for the purpose of
attracting a large number of users. (acredited bidders etc.)
Procuring Entity - Refers to any branch, department, office, agency, or instrumentality
of the government procuring goods, consulting services and Infrastructure Projects.
(DPWH)

GAA (General Appropriation Act) - Defines the expenditure program of the


government agency.(National Govn as whole...mga pinapasa ng congressman
annually)

PROBLEM AREAS REFORM MEASURES


PROBLEMS REFORMS

Confusion caused by fragmented Enactment of the Government


legal system Procurement Reform Act (GPRA)

Inconsistent policies, rules, and Creation of the Government


regulations due to lack of standards. Procurement Policy Board (GPPB)

Lack of Transparency Use of PhilGEPS

Lack of check and balance Participation of civil society

APPLICATION OF R.A. 9184


R.A. 9184 Applies to:

National Government Agencies (NGAS)

State Universities and Colleges (SUCS)

Government Owned or Controlled Corporations (GOCCs)

Government Financial Institutions (GFIS)

Local Government Units (LGUS)

R.A. 9184 Governs the Procurement of:

Infrastructure Projects

Goods (including supplies, materials, and related Services)

Consulting Services

PHILIPPINE GOVERNMENT PROCUREMENT SYSTEM 2


GOVERNING PRINCIPLES
Transparency

Wide dissemination of bid opportunities and the participation of pertinent non-


government organizations

Competitiveness

Public Bidding, alternative methods of procurement must only be resorted to when


competitiveness not a feasible option.

Streamlining and use of technology in procurement

Must be simple, and made adaptable to advances in modern technology in order to


ensure an effective and efficient method. (from dyaryo to social media)

System of Accountability

Public officials directly or indirectly involved in the procurement process are


responsible and liable for their actions relative thereto. (need to be justified)

Public Monitoring

Reports submissions to GPPB; observers from NGOs, Pos and other public and
private sectors

Key Features of GPRA

Covers procurement of all government agencies

General rule is Public/Competitive Bidding

Alternative Method of Procurement allowed in highly exceptional


cases

Use of the Approved Budget for the Contract (ABC) as ceiling for
the bid price

Use of transparent, objective, and non-discretionary criteria

Increased transparency in the procurement process

Professionalization of procurement officials

Inclusion of Penal and Civil liabilities

PHILIPPINE GOVERNMENT PROCUREMENT SYSTEM 3


Philippine Procurement Paradigm
Identify

Cost-benefit analysis

Feasibility Study

Market Study

PPMP (Project Procurement Management Plan)

Assess

Review Studies

Consolidate into APP-(Annual procurement Plan)

Decide Procurement Method

Approved APP

Determine Readiness

Procure

Post/ Advertise Opportunity

Open and Evaluate Bids

Post-qualify

Award and enter into contract

Implement

Oversee Implementation

Inspect and accept deliveries

Release Payment

Procurement Organization
HOPE - Head of the Agency

Bids and Awards Committee -


have at leas 5-7 members
Technical Working Group -
created by the BAC from a pool of
technical, financial, and legal
experts

PHILIPPINE GOVERNMENT PROCUREMENT SYSTEM 4


Procurement Planning

Actions Risk Identified

Purchase is necessary

Necessary but overestimated


Unrealistic/ Deficient Budget

Needs, Assessment, Planning and Not aligned with the overall program
Budgeting Interference of high-level officials
Informal agreement on contract

Insufficient time frame

Tailored for one company

Too vague
Definition of Technical Requirements
and/or specifications Not based on performance
requirements

Abuse of non-competitive procedures


on the basis of legal exceptions
through:

a. Contract Splitting
Choice of Procurement Procedure
b. Abuse of extreme urgency

c. Abuse of other exceptions based


on a technically or exclusive rights
etc.
d. Untested continuation of existing
contracts

All Procurement shall be done through Competitive Bidding except as provided in R.A
9184.

PHILIPPINE GOVERNMENT PROCUREMENT SYSTEM 5


Resort to alternative methods shall be made

Only in highly exceptional cases

To promote economy and efficiency

Justified by conditions specified in R.A. 9184 its IRR

Procurement Method
1. Competitive Bidding Refers to a method of procurement which is open to
participation by any interested party.

2. Limited Source Bidding - otherwise known as selective bidding, is a method of


procurement of Goods and Consulting Services that involves direct invitation to bid
by the Procuring Entity from the list of pre-selected suppliers or consultants with
known experience and proven capability on the requirements of the particular
contract.

3. Direct Contracting - or single source procurement is a method of procurement of


Goods that does not require elaborate Bidding Documents. The supplier is simply
asked to submit a price quotation or a pro-forma invoice together with the conditions
of sale. The offer may be accepted immediately or after some negotiations.

4. Repeat Order - when provided for in the APP, is a method of procurement of Goods
from the previous winning bidder, whenever there is a need to replenish goods
procured under a contract previously awarded through Competitive Bidding.

5. Shopping - is a method of procurement of Goods whereby the Procuring Entity


simply requests for the submission of price quotations for readily available off the-
shelf goods or ordinary/regular equipment to be procured directly from suppliers of
known qualifications.

6. Negotiated Procurement - is a method of procurement of Goods, Infrastructure


Projects and Consulting services, whereby the Procuring Entity directly negotiates a
contract with a technically, legally and financially capable supplier, contractor or
consultant.

PHILIPPINE GOVERNMENT PROCUREMENT SYSTEM 6


Bidding Process

PHILIPPINE GOVERNMENT PROCUREMENT SYSTEM 7

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