I.

Legal and Institutional Framework

II. General Provisions
 Governing Principles
 Scope, Coverage and Application
 Key Features of Government Procurement
Reform Act
 Definition of Terms

III. The Government Procurement Policy

Board and its Technical Support Office
IV. Procurement Methods and Procedures

Government Procurement Policy Board – Technical Support Office 2

 3 Office
Government Procurement Policy Board – Technical Support
 Executive
Orders

Implementing
Rules and
Regulations Administrative
Issuances
Government Procurement Reform Act
10 January 2003

Implementing Rules and Regulations (IRR) Part A

8 October 2003
Memorandum
Circulars
Revised IRR of 2009
2 September 2009

Revised IRR of 2016

28 October 2016

4
 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)

Use of PhilGEPS (Philippine

Lack of transparency Government Electronic Procurement
System)

Lack of check and balance Participation of civil society

5
 6 Office
Government Procurement Policy Board – Technical Support
 STREAMLINED SYSTEM OF PUBLIC
TRANSPARENCY COMPETITION PROCESS ACCOUNTABILITY MONITORING

> Wider > Competitive > Uniformly > Answerable > Awareness
dissemination Bidding as applicable to > Inclusion of and Vigilance
of bid default all Penal and > Allows
opportunities method government Administrative public
> Equal agencies Sanctions involvement
opportunity to in the
all eligible > Effective procurement
bidders and efficient process
method
 9 Office
Government Procurement Policy Board – Technical Support
R.A. 9184 applies to all branches
and/or instrumentalities of the
government:
NGAs
 NGAs - National
Government Agencies
 SUCs - State
Universities and LGUs SUCs
Colleges R.A.
 GOCCs - Government 9184
Owned or Controlled
Corporations
 GFIs – Government
Financial Institutions GFIs GOCCs
 LGUs – Local
Government Units
R.A. 9184 governs the
procurement of: Infrastructure
Projects
 Infrastructure Projects
 Goods, Supplies,
Materials and Related
Services
 Consulting Services
R.A.
R.A. 9184 Covers: 9184
Goods,
 Procurement Planning Supplies, Consulting
Materials and
up to Contract Related Services
Services
Implementation
Scope and Application of the revised IRR:

 Domestically-funded procurement.
 Foreign-funded procurement, unless otherwise specified in treaty
stipulations.
 “Pacta sunt servanda” - Any treaty or international or executive
agreement shall be observed.

NOTE: Negotiating panel members’ default position - use of the IRR, or

at least, selection through competitive bidding.
The revised IRR shall not apply to:

 Procurement of Goods, Infrastructure Projects, and Consulting

Services funded from foreign Grants covered by RA 8182, as
amended by RA 8555, (Official Development Assistance)
 Acquisition of real property (RA 8974 as amended by RA 10752)
 Public-Private sector infrastructure or development projects (RA
6957 as amended by RA 7718)
The following are not considered as procurement
undertakings under RA 9184 and its IRR:
1. Direct financial or material assistance to beneficiaries
2. Participation to scholarships, trainings, continuing education, etc.
3. Lease of government property for private use
4. Job order workers
5. Joint Venture Agreements between Private Entities and GOCCs
or LGUs
6. Disposal of property and assets
Sec. 4.5, 2016 IRR of RA 9184
 Singular procurement legal framework for all of government.
 Strengthened Competitive Bidding
 Alternative Methods of Procurement allowed in highly exceptional
cases
 Shift from pre-qualification regime to simplified eligibility checking
 Use of the Approved Budget for the Contract (ABC) as ceiling for bid
prices
 Use of transparent, objective and non-discretionary pass/fail
criteria
 Use of Lowest Calculated and Responsive Bid (LCRB) or Highest
Rated and Responsive Bid (HRRB)
 Allowance of centralized or decentralized procurement
 Professionalization of procurement officials
 Participation of Observers in the procurement process
 Reinforced “accountability” through inclusion of Penal and Civil
Liabilities
 All Procurement shall be done through competitive bidding except
as provided in R.A. 9184
 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 and its IRR
 18 Office
Government Procurement Policy Board – Technical Support
 Procurement
Procurement refers to the acquisition of goods,
consulting services, and the contracting for infrastructure
projects by procuring entity.

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

Refer to:

 All items, supplies and materials

 Including general support services
 Needed in the transaction of public businesses or in the pursuit of any
government undertaking, project or activity
 Whether in the nature of equipment, furniture, stationery, materials or
construction, personal property, including non-personal or contractual
services, such as:
 repair and maintenance of equipment and furniture
 trucking, hauling, janitorial and security and other related and
analogous services

Except: Infrastructure projects and consulting services

Refer to:
 construction, improvement, demolition, rehabilitation, repair,
restoration or maintenance of civil works components of :
 IT projects
 Irrigation
 flood control and drainage
 water supply
 sanitation, sewerage and solid waste management
 national buildings, hospital buildings, and other related
constructions projects of the Government
 Refer to services for Infrastructure Projects and other types of projects
or activities of the Government requiring adequate external technical
and professional expertise that are beyond the capability and/or
capacity of the Government to undertake such as, but not limited to:
 advisory and review services;
 pre-investment or feasibility studies;
 design;
 construction supervision;
 management and related services; and
 other technical services or special studies.
 MIXED PROCUREMENT

 In case of projects involving mixed procurements, the

nature of the procurement, shall be determined based
on the primary purpose of the contract.

 Determination shall be made by the procuring entity.

 In mixed procurements, the PE shall specify in the Bidding

Documents all requirement applicable to each
component of the project. In the preparation of Bidding
Documents, the PE shall ensure compliance with existing
laws, rules and regulations, especially those concerning
licenses and permits required for the project (Sec. 17.2, 2016
IRR of RA 9184)
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 DETERMINATION OF TYPE OF PROCUREMENT

PE is in the best position to determine the correct

classification of its procurement based on its identified
needs and the best way by which these needs may be
addressed, managed, and satisfied.

It is the motivation or intention of the PE in pursuing the

project that will determine the primary purpose of a
project.

NPM 11-2013

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 PARTIES TO
GOVERNMENT
PROCUREMENT
ACTIVITIES

25
 PARTIES

 Head of the Procuring Entity (HOPE)

 Bids and Awards Committee (BAC)
 BAC Secretariat
 Technical Working Group (TWG)
 Observers
 Bidders (Suppliers, Manufacturers, Contractors,
Distributors and/or Consultants)

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 HEAD OF PROCURING ENTITY (HOPE)

Refers to:
Head of the agency or body, or his duly authorized official,
for NGAs and the constitutional commissions or offices,
and other branches of government;
Governing Board or its duly authorized official, for GOCCs,
GFIs and SUCs; or
Local Chief Executive, for LGUs

Note: In an agency, department, or office where the

procurement is decentralized, the head of each
decentralized unit shall be considered as the HoPE,
subject to the limitations and authority delegated by the
head of the agency, department, or office
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 HEAD OF PROCURING ENTITY (HOPE)

FUNCTIONS AND RESPONSIBILITIES:

1. Establishes BAC and appoints its members
 Ensures that BAC members give their utmost priority to
duties
 Ensures professionalization of members of the
procurement organization
Within six (6) months upon designation, the BAC, its Secretariat
and TWG members should have satisfactorily completed such
training or program conducted, authorized or accredited by the
GPPB through its TSO. (Sec. 16, 2016 IRR of RA 9184)

28
 HEAD OF PROCURING ENTITY (HOPE)

2. Approves the Annual Procurement Plan (APP)

3. Approves/Disapproves the Contract Award
4. Resolves Protests

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 BIDS AND AWARDS COMMITTEE (BAC)

As a general rule, HOPE must create a single BAC. However,

separate BACs may be created under any of the following
conditions:

1. The items to be procured are complex or specialized;

2. If the single BAC cannot reasonably manage the
procurement transactions as shown by delays beyond the
allowable limits; or
3. If the creation is required according to the nature of the
procurement.

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 BIDS AND AWARDS COMMITTEE (BAC)

PE’s creation of sub-BACs to be placed under a main

BAC is not in compliance with the requirements under
Sec 11 of the IRR of RA 9184.

PE may, however, establish separate BACs with the

composition of the BAC members subject to the
qualifications under Section 11.2.2 of the IRR of RA 9184.
Each BAC shall not be considered as decentralized
committees pursuant to Section 11.1.2 of the IRR since it
will be headed by a single HOPE.

NPM 74-2013
31
 BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES:

Recommends Procurement Method

Creates a Technical Working Group (TWG)
Conducts the bidding activities
Resolves Requests for Reconsideration
Recommends Imposition of Sanctions
Invites Observers during stages of the procurement process
identified in Sec. 13
Conducts due diligence review or verifications of the
qualifications of observers
Prepares Procurement Monitoring Report

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 BIDS AND AWARDS COMMITTEE
(BAC)

FUNCTIONS AND RESPONSIBILITIES:

Advertise and/or post the IB/REI

Conduct pre-procurement and pre-bid conferences;
Determine the eligibility of prospective bidders;
Receive and open bids;
Conduct the evaluation of bids;
Undertake post-qualification proceedings;
Recommend award of contracts to the HoPE or his duly
authorized representative;
Recommend to the HoPE the use of Alternative Methods of
Procurement

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 BIDS AND AWARDS COMMITTEE
(BAC)

FUNCTIONS AND RESPONSIBILITIES:

Conduct any of the Alternative Methods of Procurement;

Conduct periodic assessment of the procurement processes
and procedures
Perform such other related functions as may be necessary

(Sec. 12.1, 2016 IRR of RA 9184)

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 BIDS AND AWARDS COMMITTEE
(BAC)
MEMBERSHIP AND QUALIFICATIONS:

BAC members should occupy plantilla positions with the

procuring entity concerned.

All members are regular members except the end-user

member who is considered as a provisional member. The
members, whether regular or provisional, are equally entitled
to participate and to vote during deliberations.

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 BIDS AND AWARDS COMMITTEE
(BAC)
COMPOSITION: 5 but not more than 7 MEMBERS
designated by the HOPE

1.Regular Members:
Chairperson (3rd Ranking Permanent Official);
Member representing the Legal or Administrative areas
(5th Ranking Permanent Personnel); or if not available, an
officer of the next lower rank;
Member representing the Finance Area (5th Ranking
Permanent Personnel); or if not available, an officer of the
next lower rank;

36
 BIDS AND AWARDS COMMITTEE
(BAC)
COMPOSITION: 5 but not more than 7 MEMBERS designated by
the HOPE

2. Provisional Members
 Officer possessing Technical expertise relevant to the
procurement.
 End user unit Representative. In case of procurement
outsourcing, a representative from the Procuring Entity
may be designated as a provisional member

37
BIDS AND AWARDS COMMITTEE (BAC)

HOPE
2nd
3rd 3rd 3rd
4th
5th
6th
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 QUALIFICATIONS OF A
BAC CHAIRMAN

Agriculturist I as BAC Chairman

Section 11.2.2(a) of the IRR of R.A. 9184 provides that for agencies,
departments, bureaus, offices or instrumentalities of the National
Government, the BAC Chairman should be at least a third ranking
permanent official.

The term “permanent” does not refer to whether the person holding the
plantilla position is contractual, regular, designated or appointed rather it is
whether said position is included in the list of authorized positions
created by DBM or existing within the organizational structure of the
procuring entity.

The propriety of the designation of an Agriculturist I as BAC Chairman

lies on whether he occupies at least a 3rd ranking permanent position within
the procuring entity’s organization structure.

NPM 40-2014
39
 QUALIFICATIONS OF A
BAC CHAIRMAN
4th Level Official cannot be designated as BAC Chairperson

The absence of a personnel occupying the position of Sr. Vice

President (second ranking), does not make the plantilla positions for
the Sr. Department Manager (fourth ranking) a third ranking plantilla
position.

As long as the entire organizational structure has the Sr. Vice
President position in the plantilla, the Sr. Department Manager
position remains a fourth ranking plantilla position, for which reason
the Sr. Department Manager cannot be designated as BAC Chairman.

NPM 02-2014

40
 ALTERNATE BAC MEMBERS

Same qualifications as their principals.

Same term as the principal.
Presence of alternate BAC members in BAC meetings
are considered for purposes of quorum.
The relationship of the principal and the alternate is
of co-equal nature, rather than hierarchical.
Accountability shall be limited to their respective acts
and decisions.
Shall be entitled to the proportionate honoraria for
attendance in meetings.

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 BIDS AND AWARDS COMMITTEE (BAC)

TERMS OF MEMBERSHIP:

The BAC members shall be designated for a term of one (1) year
only, reckoned from the date of designation. However, the HOPE
may renew or terminate such designation at his discretion.

Upon expiration of the terms of the current members, they shall

continue to exercise their functions until new BAC members are
designated.

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 BIDS AND AWARDS COMMITTEE (BAC)

TERMS OF MEMBERSHIP:

In case of resignation, retirement, separation, transfer, re-

assignment, or removal of a BAC member, the HOPE shall
designate a replacement that has similar qualifications as
the official replaced. The replacement shall serve for the
unexpired term. In case of leave or suspension, the
replacement shall serve only for the duration of the leave
or suspension.

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 PROHIBITED BAC MEMBERS

1. Head of the Procuring Entity

2. Official who approves procurement contracts;

3. Chief Accountant or Head of the

Provincial/City/Municipal Accounting Office and
his/her staff, unless the Accounting Department is the end-
user unit, in which case the Chief Accountant, Head of the
Accounting Department or his/her staff may be designated as
an end-user member. (COA Circular Letter No. 2004 – 3)

44
 BAC SECRETARIAT

HOPE may create a new office or designate an existing

organic office to act as BAC Secretariat

In case of ad hoc BAC Secretariat, the HOPE shall assign full-

time support staff in its BAC Secretariat (Sec. 14.2)

There is no minimum or maximum number of members of

the BAC Secretariat.

Head of the BAC Secretariat must be at least a 5th or 3rd

ranking permanent employee or, if not available, a
permanent official of the next lower rank

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 BAC SECRETARIAT

FUNCTIONS:
Provide administrative support to the BAC and TWG
Organize BAC and TWG meetings and conferences
Take custody of procurement documents and other records
Manage the sale and distribution of bidding documents
Advertise/post bidding opportunities, including Bidding
Documents, and notices of awards
Assist in managing the procurement process
Monitor procurement activities and milestones
Consolidate PPMPs
Act as central channel of communications
Prepare minutes of meetings and resolutions of the BAC
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 BAC SECRETARIAT

BAC Secretariat Head’s authority to sign

procurement-related documents should be
confined to those that are within the scope of her
duties and responsibilities under RA 9184 and its
IRR, and should exclude those that require the
exercise of discretion, consent or approval on
matters under the jurisdiction of a different
authority.

NPM 66-2013

47
 BAC SECRETARIAT

Section 14 of RA 9184 and its IRR limits the responsibilities

of the BAC Secretariat to administrative support functions
and primarily ministerial duties. Since the BAC
Secretariat is limited to these functions, the conduct of
opening and preliminary examination of bids, where
discretion and sound judgment is required, cannot be
considered as clerical or secretariat nature; therefore,
outside the functions of the BAC Secretariat.

NPM 69-2013

48
 CONCURRENT POSITIONS IN THE
BAC AND ITS SECRETARIAT

RA 9184 and its IRR do not categorically prohibit the HOPE
from designating the same personnel as BAC member and BAC
Secretariat Head.

Nevertheless, procurement officials should avoid holding

concurrent positions in the BAC and its Secretariat in
accordance with the thrust to professionalize the procurement
organization geared towards strengthening the procurement
functions in order to increase operational effectiveness and
efficiency.

NPM 001-2014

49
 TECHNICAL WORKING GROUP (TWG)

Created by the BAC from a pool of legal, technical and

financial experts
- those experts outside the procuring entity concerned
may be included, i.e. government personnel and officials
and consultants from the private sector and academe
with proven expertise on the sourcing of goods, works or
consulting services. (GPPB Resolution No. 07-2012, GPPB
Circular No. 02-2012)
BAC may create separate TWGs to handle different
procurements

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 TECHNICAL WORKING GROUP (TWG)

FUNCTIONS:
Assist BAC in the following activities:
 Eligibility screening
 Bid evaluation
 Post-qualification
 Review of the Technical Specifications, Scope of Work, and
Terms of Reference
 Review of Bidding Documents
 Shortlisting of consultants
 Resolution of Request for Reconsideration
(Sec. 12.1, 2016 IRR of RA 9184)

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CONTACT US AT:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44
Email address: gppb@gppb.gov.ph