GOVERNMENT

PROCUREMENT 101

Atty. A. Raymond M. Velicaria

GPPB Recognized Trainer
 I Philippine Government Procurement Laws: Then and Now

The Government Procurement Policy Board and its Technical

II Support Office

Principles of Public Procurement

III

Key Concepts on Government Procurement

IV
Scope and Application of Republic Act No. 9184 and its revised
V Implementing Rules and Regulations

VI Procurement Organization
PHILIPPINE GOVERNMENT
PROCUREMENT LAWS:
THEN AND NOW
EARLY LAWS ON PROCUREMENT

“No contract shall

be entered into
without Public
Bidding.”
BEFORE ENACTMENT OF GOVERNMENT PROCUREMENT REFORM
ACT (GPRA)
ENACTMENT OF THE GPRA OR REPUBLIC ACT NO. 9184

Executive
Orders
Administrative
Issuances

Memorandum
Circulars

Implementing
Rules and
Regulations
DEVELOPMENT

CHALLENGES BEFORE SOLUTIONS BROUGHT

GPRA ABOUT BY GPRA

Confusion caused by Enactment of the GPRA

fragmented legal system Creation of the Government
Inconsistent policies, rules, and Procurement Policy Board
regulations due to lack of (GPPB)
standards
Use of Philippine Government
Lack of transparency Electronic Procurement System
Lack of check and balance
Participation of Civil Society
KEY FEATURES OF THE GPRA

❑ Covers procurement of all government agencies

❑ General Rule is Public/Competitive Bidding
❑ Alternative Methods 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
PURPOSE

Standardize

Regulate
Modernize
PHILGEPS REGISTRATION

❑ Requires suppliers, contractors, consultants to register with PhilGEPS.

It does not qualify based on threshold.

❑ Inapplicability of the posting requirement is not tantamount to a

situation where PhilGEPS registration may also be dispensed with
since the amount of the project is not a factor for the condition to
apply.

❑ Registration with PhilGEPS is absolute, and must be complied with

regardless of the cost of procurement.
VIRTUAL BAC MEETINGS
USE OF DIGITAL SIGNATURE

GPPB Resolution No. 16-2019

(17 July 2019)

Procurement officers and

officials may digitally or
electronically sign procurement
documents
SCOPE AND COVERAGE

This IRR shall apply to the following activities:

Section 4.1: All procurement of Goods & Services, Infrastructure Projects and
Consulting Services of all branches and/or instrumentalities of the government:

National Government Agencies

State Universities and Colleges
Government Owned or Controlled Corporations (GOCCs)
Government Financial Institutions
Local Government Units

Max periods and recommended earliest possible time for action on specific
procurement activities are provided in Annex C. When the duration/period
provides the number of days, it refers to “calendar” days
SCOPE AND COVERAGE

Section 4.2: All Treaty or International or Executive Agreement to which the government
is a signatory.

Exception: In case of conflict in terms, Treaty or International or Executive Agreement shall

prevail.

Section 4.3: All foreign-funded procurement activities of the government through

Competitive Bidding as default.

Exception: Unless otherwise provided in the Treaty or International or Executive Agreement

another or different procedures or guidelines. In this case, the Government of the Philippines
(GoP) negotiating panel shall ensure that the reasons are clearly stated in the records of
discussion.
OUTSIDE THE SCOPE AND COVERAGE

This IRR shall not apply to the following activities:

Section 4.4.a: Procurement for Goods, Infrastructure Projects, and Consulting Services
funded from Foreign Grants covered by R.A. No. 8182, as amended by R.A. No. 8555.
Exception: Unless the GoP and the foreign grant/ international financing institution agree
otherwise.

Section 4.4.b: Acquisition of real property which shall be governed by R.A. No. 10752.

Section 4.4.c: Public-Private sector infrastructure or development projects and other

procurement covered by R.A. No. 6957, as amended by R.A. No. 7718.

Exception: For the portions financed by the GoP, in whole or in part, this IRR shall prevail.
OUTSIDE THE SCOPE AND COVERAGE

Activities that are not considered as procurement undertakings under R.A. No.
9184 and its IRR :

Section 4.5(a): Direct financial or material assistance given to

beneficiaries
Exception: If the direct financial or material assistance takes the form of goods, supplies or
items that are to be procured (e.g., relief goods), the procurement rules and regulations
embodied in R.A. No. 9184 and its IRR shall prevail. (GPPB Circular 01-2017)

Section 4.5(b): Participation to both local or foreign scholarships,

trainings, continuing education, conferences, seminars or similar
activities that are governed by Commission on Audit, Civil Service
Commission, and Department of Budget and Management rules.
OUTSIDE THE COVERAGE

➢ Disposal of government properties pursuant to COA Circular No. 86-264

and DBM National Budget Circular No. 425

➢ Lease of government properties for private use (EO No. 301 of 1987, and
RA No. 6957 as amended by RA no. 7718)
➢ Job Order or Contract of Service

➢ Joint Venture Agreements Participation between private entities and

GOCCs or LGUs
GOVERNMENT PROCUREMENT POLICY BOARD (GPPB)

DBM

NEDA

PHILIPPINE
DTI DND DOF DOST DOE SPACE
AGENCY

PRIVATE
DPWH DOH DEPED DILG DOTr DICT SECTOR
REP
COMPOSITION
Chairman: Secretary of the Department of Budget and Management
Alternate Chairman: Director-General of the National Economic and Development
Authority
12 Regular Members from the Secretaries of the following:
DPWH – Department of Public Works and Highways
DTI – Department of Trade and Industry
DOH – Department of Health
DND – Department of Defense
DepEd – Department of Education
DOF – Department of Finance
DILG – Department of the Interior and Local Government
DOST – Department of Science and Technology
DOTr – Department of Transportation
DOE – Department of Energy
DICT – Department of Information and Communications Technology
PhilSA – Philippine Space Agency
13th Regular Member: Private Sector
Invited Resource Persons
FUNCTIONS OF THE GPPB
GPPB- TECHNICAL SUPPORT OFFICE (TSO)
FUNCTIONS OF THE GPPB-TSO
GPPB AND ITS TSO WEBSITE

www.gppb.gov.ph
PRINCIPLES OF PUBLIC
PROCUREMENT
GOVERNING PRINCIPLES
 KEY CONCEPTS ON
GOVERNMENT PROCUREMENT
WHAT IS PROCUREMENT?

Refers to the acquisition of goods, consulting services and the contracting for
infrastructure projects by the Procuring Entity (PE). It shall also include the lease
of goods and real estate.
KINDS OR NATURE OF PROCUREMENT

(Supplies,
Materials
(Construction and Other (Technical &
and Repair) Related Professional
Services)
Expertise)
WHAT IS GOODS?

Refer to all items, supplies, materials and general support services, except
Consulting Services and Infrastructure Projects, which may be needed in the
transaction of :
WHAT IS INFRASTRUCTURE PROJECTS?

Include the construction,

improvement, rehabilitation,
demolition,repair, restoration IT Communication
Projects Irrigation Facilities
or maintenance of:

Energy/ Airports Flood

Power and
and
Control Water
Electrification and
Supply
Facilities Seaports Drainage

Sanitation, National/
Roads Sewerage School, Shore
Railways and and Solid Hospital Protection
Bridges Management Buildings
WHAT IS CONSULTING SERVICES?

Refer to services for infrastructure projects and other types of projects or

activities requiring adequate external technical and professional expertise that
are beyond the capability of the government to undertake:
KEY CONCEPTS ON GOVERNMENT PROCUREMENT
WHAT ARE THE PROCUREMENT METHODS?
WHAT ARE THE PROCUREMENT METHODS?

Highly Exceptional
Cases

To promote Economy
and Efficiency

Justified by conditions
STANDARD BIDDING PROCEDURES
FOR GOODS & INFRASTRUCTURE PROJECTS

Pre-Procurement Advertisement / Issuance of Bidding Pre-Bid

Conference Posting of IB Docs Conference

Opening of Submission of
Opening of Eligibility & Eligibility & Tech,
Bid Evaluation Financial Proposals Technical and Financial
Proposals Proposals

Contract Contract
Post Qualification
Award Implementation

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
STANDARD BIDDING PROCEDURES
FOR CONSULTING SERVICES
Opening of Eligibility
Pre-Procurement Advertisement / Submission of Docs
Conference Posting (REI) Eligibility Docs
(eligibility check)

Evaln and Ranking to

Submission of Issuance of Bidding determine
Technical and Pre-Bid Conference Shortlisted Bidders
Docs
Financial Proposals (shortlisting)

Opening of Technical Technical Evaln and Opening of Evaluation and

Proposals Ranking Financial Proposals Ranking

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
STANDARD BIDDING PROCEDURES
FOR CONSULTING SERVICES

Post Contract
Negotiation Contract Award
Qualification Implementation

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Alternative Methods of Procurement

3
Repeat Order

2 4
Direct Contracting Shopping

1 5
Limited Source Bidding Negotiated Procurement
Negotiated Procurement

and Online Subscriptions

PROCUREMENT
ORGANIZATION
WHO ARE THE PROCUREMENT ACTORS?

End User Unit

End User Unit

WHO ARE THE PROCUREMENT ACTORS?
HOPE
1
BAC Secretariat
2 3

PROCUREMENT

TWG End-User
4 5

Observers
6
HEAD
Head ofOF THE PROCURING
Procuring Entity (HoPE) ENTITY (HoPE)
FUNCTIONS AND RESPONSIBILITIES OF HoPE

Establishes BAC and appoints the members

May designate alternate BAC members, who shall have the same qualifications as that of the members
originally designated under Section 11.2.2 of this IRR. (Section 11.2.4)

Ensures the professionalization of the BAC, its Secretariat and TWG Members
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 Technical Support Office. (Section 16 )

Approves the Annual Procurement Plan (APP) Resolves Protest

Approves or Disapproves the Contract Award

OFFICER-IN-CHARGE AS HoPE

Powers and authority shall depend on the nature of the designation.

Unless there is no The incumbent HoPE The incumbent HoPE

reservation, OIC may may approve or may sign the Notice to
approve or sign: disapprove the Proceed when he was
recommendation of a BAC member but the
the BAC so long as contract must have
he is: been awarded by the
BAC Resolutions
Neither the Chairman previous HoPE.
Notice of Award nor a member of the
BAC who rendered the
Notice to Proceed recommendation
(Section of the IRR)

NPM 102-2014
BIDS AND AWARDS COMMITTEE (BAC)

General Rule: HoPE must create a single BAC

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

The items to be procured are complex or specialized;

If the single BAC cannot reasonably manage the procurement transactions as

shown by delays beyond the allowable limits; or

If the creation is required according to the nature of the procurement.

The HoPE shall designate 5-7 Members occupying plantilla positions in the Procuring
Entity concerned, and of unquestionable integrity and procurement proficiency
PROHIBITED BAC MEMBERS

Prohibited members are the following:

Head of the Procuring Entity

Official who approves procurement contracts

Chief Accountant or Head of the Provincial/City/Municipal Accounting Office and his/her

staff.
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)

Local Treasurers and Assistant Local Treasurers (DOF Department Order No. 042-
2019 dated 12 June 2019)
Internal Auditors (Revised PGIAM, issued through DBM NBC 2020-8)
QUALIFICATIONS

For NGAs, GOCCs, GFIs and SUCs

Regular Members Provisional Members

Chairperson (3rd Ranking Permanent Official); Officer Possessing technical
Member representing the Legal or expertise relevant to the
Administrative areas (5th or 3rd* Ranking procurement
Permanent Personnel, of if not available, the End User Representative
next in rank)
Member representing the Finance Area (5th or
3rd* Ranking Permanent Personnel, of if not
available, the next in rank)

*In the case of bureaus, regional offices and sub-regional/district offices

RANKING OFFICERS

HOPE
2nd 2nd
3rd 3rd 3rd
4th
5th
6th
TERM OF MEMBERSHIP
QUORUM

QUORUM:
- majority of the total composition
provided that the Chair or Vice Chair be present

DECISION/RESOLUTION:
- Majority of those present in the meeting.
Chair or Vice Chair will only vote in case of tie
FUNCTIONS AND RESPONSIBILITIES OF THE BAC
BAC SECRETARIAT

Organic
HoPE may create a new
office or designate an
existing organic office to act
as BAC Secretariat

Ad Hoc
In case of ad hoc BAC Secretariat,
the HoPE shall assign full- time
support staff in its BAC Secretariat
There is no minimum or maximum number of
members of the BAC Secretariat
BAC SECRETARIAT HEAD

Functions:
Head of the BAC Secretariat Provide administrative support to the BAC and TWG
must be at least a 5th or 3rd
ranking permanent employee Organize BAC and TWG meetings and conferences
or, if not available, a Prepare minutes of meetings and resolutions
permanent official of the Take custody of procurement documents and other
lower rank. 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 processes
Monitor procurement activities and milestones
Consolidate PPMPs and prepare the APP
Act as central channel of communications.
TECHNICAL WORKING GROUP (TWG)

Functions:
Created by the BAC from a Review of the Technical Specifications, Scope of
pool of:
Work, and Terms of Reference
Technical Experts
Review of Bidding Documents
Financial Experts
Shortlisting of Consultants
Legal Experts
Eligibility screening
Evaluation of Bids
BAC may create separate
Post-qualification
TWGs to handle different
procurements. Resolution of Request for Reconsideration
END-USERS
END-USERS

➢ Prepares other documents necessary for the procurement activity such as

Purchase Request (PR), Cost-benefit analysis, Feasibility study, Market
Study, and Justification

➢ Oversees the implementation of the project

➢ Inspect and accept deliveries

➢ Recommends for the release of payment

OBSERVERS

Prepare and
Shall be invited, in writing at least five (5) calendar days
Submit before the date of the:
Observation
Report Notify PE of Eligibility Checking Preliminary Examination of Bids
Conflict of
Interest Shortlisting Bid Evaluation

Pre-bid Conference Post-Qualification

Allowed to access, free of charge:

subject to signing of Confidentiality Agreement

APP and related PPMP

Private Non- Minutes of BAC Meetings
Government
Organization
Opened Proposals
Commission
Abstract of Bids
on Audit
Post- Qualification Summary Report
PHILIPPINE PROCUREMENT PARADIGM

2 ASSESS PROCURE 3
HOPE
Review feasibility/ market studies HOPE
Post/Advertise opportunity
Consolidate into Annual
BAC
Open and evaluate bids BAC
Procurement Plan (APP)
Post-qualify
BAC Sect
Decide procurement method BAC Sect
Award and enter into contract
Approve APP
Budget Determine readiness TWG

1 IDENTIFY IMPLEMENT 4
Cost-benefit analysis Oversee implementation
Feasibility study Inspect and accept deliveries
Release payment
Market study
PPMP
End User End User

NEEDS SATISFACTION
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and
any form of reproduction and distribution without the author’s approval is prohibited.
GUIDELINES ON THE GRANT OF HONORARIA

Bids and Awards Secretariat

Technical Working Group
Committee (Ad hoc)

Provided the amount so granted does not exceed twenty-five percent (25%) of their
respective basic monthly salary, subject to the following conditions:
Funds are available for the purpose; and
Conforms to the guidelines promulgated by the Department of Budget and
Management.
GUIDELINES ON THE GRANT OF HONORARIA
DBM Budget Circular No. 2004-5A, dated 23 March 2004, as amended by DBM
Budget Circular No. 2007-3, dated 29 November 2007:

Only for successfully completed procurement projects

Limited to procurement that involves:

Negotiated
Limited Source
Competitive Bidding Procurement- Two-
Bidding
Failed Biddings
GUIDELINES ON THE GRANT OF HONORARIA

BAC Secretariat Honoraria Overtime Pay

Ad hoc

Procurement Unit

BAC Secretariat performing attendant functions in addition to their regular duties and functions may be paid
honoraria at the same rate as the TWG Chair and Members, subject to the same regulations.

Payment of overtime services may be allowed for the administrative staff, (clerks, messengers and drivers
supporting the BAC, the TWG and the Secretariat whose positions are in the Procurement Unit of the
agency), for procurement activities rendered in excess of official working hours.

Those who are receiving honoraria shall no longer be entitled to overtime pay for procurement-related
services rendered.
FUNDING SOURCE

Collections from successfully completed procurement projects, limited to

activities prior to the awarding of contracts to winning bidders:

Proceeds from sale of bid documents

Fees from contractor/supplier registry
Fees charged for copies of minutes of bid openings, BAC resolutions and other BAC
documents
Protest fees
Proceeds from bid security forfeiture
FUNDING SOURCE

Maximum Honorarium Rate per

Procurement Project

BAC Chair PhP 3,000.00

BAC Members PhP 2,500.00

BAC Secretariat (Ad hoc); and

PhP 2,000.00
TWG Chair and Members