R.A.

9184
The Government
Procurement Reform Act
An Act Providing for the Modernization,
“

Standardization and Regulation of the

Procurement Activities of the
Government and for Other Purposes”

1
 TOPIC OUTLINE
 Introduction
 Coverage and Scope of RA 9184
 Application and Salient Features of RA
9184
 Procurement Organization
 Modes of Procurement
 Public Bidding
 Alternative Modes of Procurement
 PhilGEPS
 Effectivity of R.A. 9184
 Consolidation of House Bill 4809 and Senate Bill
2248
 Signed into law on JANUARY 10, 2003
Published on JANUARY 11, 2003
Took effect on JANUARY 26, 2003
 IRR-A took effect on October 8, 2003
 REVISED IRR signed July 22, 2009
Published on August 3, 2009
EFFECTIVE on September 2, 2009
 2016 IRR published on 29 August 2016
EFFECTIVE on 28 October 2016
 Coverage
•Roads and Bridges
Construction • Railways
Improvement • Procurement of:
Airports, seaports
Communication
Rehabilitation •
Facilities
Demolition Goods,
• Civil works components
Repair of IT projects
Restoration
Supplies,
• Energy/power and
Maintenance Materials
electrification facilities • Equipment
Government
• and
• Advisory reviewbuildings
services
and Related • Furniture
• Pre-investment or feasibility • Construction Materials
studies
Services • Trucking Services
• Design • Hauling Services
Infrastructure
• Construction supervision • Janitorial Services
Consulting
• Management and related • Security Services
Projects Services
services
• Other technical services or
special studies
 Scope
Covers:
Procurement Contract
R.A. 9184
Planning Implementation

Procuring Entities:
 Application

Scope and Application of the revised IRR:

a) Domestically-funded procurement
b) Foreign-funded procurement, unless
otherwise specified in treaty stipulations
c) “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.
 Application
The revised IRR shall not apply to:

 Procurement of Goods, Infrastructure Projects,

and Consulting Services funded from foreign
Grants covered by RA 8182

 Acquisition of real property (RA 8974)

 Public-Private sector infrastructure or

development projects (RA 6957 / 7718)
 Key Features of R.A. 9184
• Simplification of pre-qualification and the
strengthening of post-qualification
• Use of the Lowest Calculated and Responsive Bid
(goods/infra); Highest Rated and Responsive Bid
(consulting services)
• 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
Procurement Organizational Structure

HOPE

BIDS AND AWARDS

OBSERVERS
COMMITTEE (BAC) 1 COA
TWG Chairman 1 NGO
Vice-Chairman 1 Private Sector
3 to 5 Members

BAC Secretariat

PROCUREMENT UNITS
(End Users)
 PROCUREMENT ORGANIZATION
Disclosure of Relations
• All bidding documents shall be accompanied by a
SWORN AFFIDAVIT of the bidder that he or any
officer of their partnership or corporation is NOT
RELATED to the Head of the Procuring Entity by
consanguinity or affinity up to the third (3rd) civil
degree.

• Applies to:
 HOPE;
 Members of the BAC, BAC Secretariat, TWG;
 Head of the End-User Units, and
 Project Consultants.
 Modes of Procurement

PUBLIC
BIDDING

ALTERNATIVE
PhilGEPS
MODES

Government Procurement Reform Act (R.A. No. 9184)

 Procurement Standard

All Procurement shall be done through

Competitive Bidding except as provided in
RA 9184.

Resort to Alternative Methods shall be

made only in highly exceptional
cases.
 STANDARD BIDDING PROCEDURE
(GOODS and INFRA)

(7 ca. days) (1 ca. day)

PRE-PROCUREMENT INVITATION TO BID PRE-BID
CONFERENCE CONFERENCE
(12 ca. days)

SUBMISSION & OPENING OF BIDS

RECEIPT OF FIRST ENVELOPE:
SECOND ENVELOPE:
BIDS ELIGIBILITY REQ’TS
FINANCIAL PROPOSAL
& TECHNICAL PROPOSAL
(1 ca. day)

BID EVALUATION POST-QUALIFICATION AWARD OF

& RANKING (LCB) (LCRB) CONTRACT
(1 up to 7 ca. days) (1 up to 7 ca. days); ext>30 (1 ca. day for Reso+ 1 for NOA)
 PUBLIC BIDDING
BIDDING DOCUMENTS
• Bidders may be asked to pay for the Bidding
Documents to recover cost for preparation.
• Standard Rates (GPPB Resolution No. 04-2012, 24 Feb. 2012)
Approved Budget for the Contract Maximum Cost of Bidding Docs
500,000 and below 500.00
More than 500,000 up to 1 Million 1,000.00
More than 1 Million up to 5 Million 5,000.00
More than 5 Million up to 10 Million 10,000.00
More than 10 Million up to 50 Million 25,000.00
More than 50 Million up to 500 Million 50,000.00
More than 500 Million 75,000.00
 FIRST ENVELOPE - Goods
1. Eligibility Requirements
2. Bid Security
3. Technical Specifications/Project Requirements
4. Sworn Statement of Bidder:
a. NOT Blacklisted;
b. Docs are AUTHENTIC copies of Original;
c. Authorizing HOPE to VERIFY;
d. SIGNATORY is Authorized Representative;
e. Complying with DISCLOSURE Provision;
f. Complying with BIDDER’s RESPONSIBILITIES;
g. Complying with LABOR LAWS (Service)
h. Non-payment of commission or fee
FIRST ENVELOPE – Infra Projects
1. Eligibility Requirements
2. Bid Security in the prescribed form, amount and
validity period
3. Project Requirements, which shall include the ff:
a. Organizational chart for the contract to be bid;
b. List of contractor’s personnel (viz Project Manager, Project
Engrs., and Foremen), to be assigned to the contract to be
bid, with their complete qualification and experience data;
c. List of contractor’s equipment units, which are owned,
leased, and/or under purchase agreements, supported by
certification of availability of equipment from the equipment
lessor/vendor for the duration of the project; and
FIRST ENVELOPE –Infra Projects
4. Sworn Statement of Bidder:

a. NOT Blacklisted;
b. Docs are AUTHENTIC copies of Original;
c. Authorizing HOPE to VERIFY;
d. SIGNATORY is Authorized Representative;
e. Complying with DISCLOSURE Provision;
f. Complying with BIDDER’s RESPONSIBILITIES;
g. Complying with LABOR LAWS (Service)
h. Non-payment of commission or fee
 ELIGIBILITY REQUIREMENTS
A.Class A Documents
Legal Documents:
(1.) Registration certificate from SEC/ DTI/ CDA;
(2.) Mayor’s Permit issued by the city or
municipality where the principal place of business
of the prospective bidder is located;
(3.) Tax Clearance per EO 398,s 2005, as finally
reviewed and approved by the BIR
 ELIGIBILITY REQUIREMENTS
A.Class A Documents
Technical Documents: (4.) Statement of all On-Going
government and private contracts, including contracts
awarded but not yet started, if any, whether similar or not
similar in nature and complexity to the contract to be bid;
Contracts; (5.) Statement identifying the bidder’s Single
Largest Completed Contract similar to the contract to be
bid; (6.) PCAB License and Registration (Infra)
Financial Documents: (7.) Audited FS stamped
“Received” by BIR; (8.) NFCC
 ELIGIBILITY REQUIREMENTS
B.Class B Documents
(9.) For goods, valid Joint Venture Agreement (JVA), in case
the JV is already in existence. For infra projects, JV
bidders shall submit a JVA in accordance with RA 4566
and its IRR

NOTE: A prospective bidder may be allowed to

submit his eligibility requirements electronically
 BID SECURITY
Amount
Form
(% of the ABC)
a) Cash, cashier’s/manager’s
check issued by a universal
or commercial bank 2%
b) Bank draft/guarantee or
irrevocable letter of credit
c) Surety bond callable upon 5%
demand
Proportionate to share of
d) Combination of the
form with respect to the total
foregoing
amount of security

e) Bid Securing Declaration No percentage

 BID SECURITY
0 A Bid Securing Declaration is an undertaking which
states, among others, that the bidder shall enter into
contract with the procuring entity and furnish the
required performance security within 10 calendar
days, or less, as indicated in the Bidding Documents,
from receipt of the Notice of Award, and committing to
pay the corresponding fine and be suspended for a
period of time from being qualified to participate in
any government procurement activity in the event it
violates any of the conditions stated therein as
required in the guidelines issued by GPPB.
 FOR SUBMISSION 3 DAYS FROM
NOTICE OF LCB (Sec. 34)
1. Latest Income and Business Tax Returns
2. Certificate of PhilGEPS Registration or PhilGEPS
Registration Number if the procuring entity is a
Phil foreign office or post, provided that
participating bidders should register with the
PhilGEPS prior to bid opening; and
3. Other appropriate licenses and permits required
by law and stated in the Bidding Documents
 PERFORMANCE SECURITY
Form
a) Cash, cashier’s/manager’s
check issued by a universal
or commercial bank
b) Bank draft/guarantee or
Irrevocable Letter of Credit
c) Surety bond callable upon
demand
d) Combination of the foregoing
Amount
(% of Total Contract Price)
5% for goods and consulting
services
10% for infrastructure projects
30%
Proportionate to share of form
with respect to the total
amount of security
ALTERNATIVE METHODS OF PROCUREMENT

“Competitive Bidding is the RULE;

Alternative Methods of Procurement is the
EXCEPTION.”

Section 10 of RA 9184:
All Procurement shall be done through
Competitive Bidding, except as provided
for in Article XVI of this Act.
ALTERNATIVE METHODS OF PROCUREMENT

Resort to Alternative Methods:

Only in highly exceptional cases

- justified by
- the most
the conditions
- to promote advantageous
-prior approval provided
economy and price for the
of the HOPE under RA
efficiency Government is
9184 and its
obtained
IRR
 Alternative Methods of
Procurement
Types:
 Limited Source Bidding
 Direct Contracting
 Repeat Order
 Shopping
 Negotiated Procurement
 Alternative Methods of
Procurement
Types:
 Negotiated Procurement
1. Two Failed Biddings 8. Defense Cooperation
2. Emergency Cases Agreement
3. Take-Over of Contracts 9. Small Value Procurement
4. Adjacent or Contiguous 10. Lease of Real Property
5. Agency-to-Agency 11. NGO Participation
6. Procurement Agent 12. Community Participation
7. Highly Technical 13. United Nations Agencies
Consultants
The PhilGEPS (Philippine Government Electronic Procurement
System) is the single, centralized electronic portal that
shall serve as the primary and definitive source of
information on government procurement.
(Section 8 R.A. 9184)

Government entities are required to post all procurement

opportunities, bid results and other related information on
the procurement of:
Goods and general support services
Civil Works; and
Consulting Services
 Agencies Merchants
Registered Registered

27,012 80,363

as of October 22, 2015

 Electronic Bulletin Board
Posting of procurement opportunities, notices of
awards, electronic distribution of bid documents and
automatic notification of amendments.

Registry
Registry of all manufacturers, suppliers, distributors,
contractors and consultants including government
agencies.

Electronic Catalogue
A centralized price list of common use goods, supplies,
materials and equipment.
 Virtual Store
Make the PhilGEPS e-catalogue an interactive service
by allowing agencies to place order online

Inventory Management System (IMS)

For Procurement Service to support the online ordering
from PhilGEPS

Integrated Notice Publication

Implementation of the integrated access from agencies’
websites
 Virtual Store
Supports online procurement of common use goods from
the Procurement Service warehouse and depots

Electronic Payment
Electronic Transfer of Funds

Charges and Fees

Introduction of User Fees

Electronic Bid Submission

Implementation of E-Bid submission process
 Government of the Philippines – Official Merchants Registry
GPPB Resolution No. 12-2012 dated 01 June 2012 effective 13 Jan. 2013
Guidelines on the Use of the GoP-OMR

What is GoP-OMR?
• A SIMPLIFIED online registration process which introduces
different registration types (e.g. Red, Blue, Platinum)
• Support E-Payment, Land Bank of the Philippines Oncoll
Payment and Cashier Payment of certificate fees and allows
UNLIMITED printing of registration certificate
• An enhanced supplier directory for government agencies
 allows agencies to view scanned copies of eligibility
documents, registration certificates, list of consultants and
products and services of Merchants
Benefits of a merchant registered in
PhilGEPS:
• Access to nationwide government bid opportunities 24/7
• Easy downloading of electronic bid documents and other
attachments.
• Automatic notification, through the user’s email, of
bid postings and supplements including awards and/or
results of bids.
• Savings on newspaper costs, transportation and man hours
• Government procurement data in the PhilGEPS is important
market research information
Supplier Membership Classifications
starting April 26, 2013:

1. RED MEMBERS
2. BLUE MEMBERS
3. PLATINUM MEMBERS
Thank You…