I.

General Overview of RA 9184 and its IRR

Historical Background
Key Features of RA 9184 and its IRR
Scope and Coverage
GPPB and its Functions
II. Definition of Terms
III. Principles of Public Procurement
IV. Procurement Methods and Procedures
V. Procurement Organizations

Government Procurement Policy Board – Technical Support Office 2

AMERICAN LAWS ON
PROCUREMENT
CONTRACTS

American Practice of
NO CONTRACT SHALL BE
Public Bidding was INVITATION TO ENTERED INTO WITHOUT
BID
introduced in the PUBLIC BIDDING
Philippines on 1900
LOWEST
RESPONSIVE
BIDDER

PHILIPPINE PUBLIC
PROCUREMENT
3
 1917 Administrative Code of the Philippines
 1978 Procurement of Civil Works – Presidential Decree No.
1594
 1990 Procurement among LGUs – RA No. 7160
 1998 Procurement of Consulting Services – NEDA guidelines

 1996 Procurement of Goods – EO No. 302 (1996), EO No. 201

(2000), as amended by EO 262(2000)
 2000
 2001 EO 40 – Consolidated procurement rules and
regulations for NGAs, GOCCs and GFIs
4
PE BEFORE THE
ENACTMENT OF GPRA

5
 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

6
 PROBLEMS REFORMS
Confusion caused by fragmented legal Enactment of the Government
system Procurement Reform Act (GPRA)

Inconsistent policies, rules, and Creation of the Government Procurement

regulations due to lack of standards Policy Board (GPPB)

Lack of transparency Use of PhilGEPS (Philippine Government

Electronic Procurement System)

Lack of check and balance Participation of civil society

---------------------------------------------------------- -----------------------------------------------------------------
Unresolved procurement Clearly defined protest mechanisms in
cases/controversies place
Non-compliance with the requirements of Penal, civil and administrative sanctions
the law available
7
 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
R.A. 9184 applies to all branches and/or
instrumentalities of the government:

1. National Government Agencies (NGAs)

2. State Universities and Colleges (SUCs)
3. Government Owned or Controlled
Corporations (GOCCs)
4. Government Financial Institutions (GFIs)
5. Local Government Units (LGUs)
It shall apply to all procurement
activities involving:

1. Goods and Services

2. Infrastructure Projects
3. Consulting Services
Section 4, Revised IRR
 All fully domestically-funded procurement activities

 All foreign-funded procurement activities, unless

otherwise provided in a treaty or international /executive
agreement

Mandates adherence to RA 9184 or selection through

competitive bidding. Otherwise, negotiating panel shall
ensure that the reasons for the adoption of a different rule or
method of procurement are clearly reflected in the records of
discussion. (Sec. 4.3, 2016 IRR of RA 9184)
Section 4, Revised IRR

 As may be agreed upon by the GOP and IFI in their

treaty or international or executive agreement

• Projects funded from foreign grants

• Projects for International Competitive Bidding
• Consulting Services for National Competitive Bidding
EXCEPTIONS TO RA 9184:
1. Procurement for goods, infrastructure projects, and
consulting services funded from Foreign Grants covered by
R.A. 8182, as amended by R.A. 8555, entitled “An Act Excluding
Official Development Assistance (ODA) from the Foreign Debt Limit in order to
Facilitate the Absorption and Optimize the Utilization of ODA Resources,
Amending for the Purpose Paragraph 1, Section 2 of Republic Act No. 4860, as
amended”, unless the GOP and the foreign grantor/foreign or international
financing institution agree otherwise;

2. Acquisition of real property which shall be governed by R.A.

8974, as amended by RA 10752 entitled “An Act to Facilitate the
Acquisition of Right-of-Way Site or Location for National Government
Infrastructure Projects and for Other Purposes,” and other applicable laws;
EXCEPTIONS TO RA 9184:

3. Public-Private sector infrastructure or development

projects and other procurement covered by R.A. 6957,
as amended by R.A. 7718 (BOT Law), entitled “An Act Authorizing the
Financing, Construction, Operation and Maintenance of
Infrastructure Projects by the Private Sector, and for Other
Purposes,” as amended;

4. Disposal of government properties

 Commission on Audit Circular No. 86-264
 DBM National Budget Circular No. 425
GAA 2019 General Provisions
NEP 2020 General Provsions
Enumerated activities that are not considered as
procurement undertakings under RA 9184 and its IRR:

1. Direct financial or material assistance to

beneficiaries
Section 4.5(a) of the 2016 Revised IRR of RA 9184 contemplates
financial or material assistance given directly to individual
recipients or beneficiaries to address their immediate medical,
funeral, transportation and other allied needs and concerns,
which do not involve actual procurement of goods and services by
government agencies.
Enumerated activities that are not considered as
procurement undertakings under RA 9184 and its
IRR:
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
Leasing out of publicly-owned real property for private use

 Transactions where a government agency leases out its real property

for private use, such as in the case of a canteen or food
concessionaire, are governed by Executive Order 301 (Series of 1987),
particularly Section 7 thereof, and its associated guidelines.

 Implementing Guidelines for Lease of Privately-Owned Real Estate

guidelines will only apply to lease of privately-owned real estate by
government agencies for official use.

NPM 50-2013
Leasing Out of Government Properties for Private Use

 As long as lease out undertakings do not involve expenditure of public

funds for the procurement of goods, works and consulting services, RA
9184, its IRR, and its associated rules will not apply.

 Transactions involving lease of government properties for private use

are covered by Executive Order No. 301, series of 1987 (EO 301). Other
laws and issuances that may be looked into are RA 6957, as amended
by RA 7718, for lease out of undertakings that require infrastructure or
development projects, or the Revised Joint Venture Guidelines issued
by the NEDA in case of JV.
NPM 10-2014
 Composed of the following:

 Chairman: Secretary of Department of

Budget and Management
 Alternate Chairman: Director-General
DBM
of the National Economic and
Development Authority
 12 Regular Members
 Invited Resource Persons (audit, anti-
NEDA
corruption agencies)

DTI DND DOF DOST DOE PRIVATE

SECTOR
REP

DPWH DOH DEPED DILG DOTr DICT

20
 11 Regular Members –
Secretaries of the following:
 DPWH - Department of Public Works and Highways 12th Regular Member
 DTI - Department of Trade and Industry
 DOH - Department of Health  Private Sector Representative
 DND - Department of Defense
 DEPED - Department of Education
 DOF - Department of Finance DBM
 DILG - Department of Interior and Local Government
 DOST - Department of Science and Technology
 DOTr - Department of Transportation
 DOE - Department of Energy
 DICT - Department of Information and Communication NEDA
Technology

DTI DND DOF DOST DOE PRIVATE

SECTOR
REP

DPWH DOH DEPED DILG DOTr DICT

21
 Capacity
Policy-Making Monitoring
Development
> Amend > Establish a > Ensure the proper
implementing rules & sustainable training implementation by
regulations of program PEs of the Act, this
procurement law
IRR and all other
(quasi-legislative
function) relevant rules and
regulations on public
> Prepare generic
procurement manual procurement
and standard bidding > Review
forms effectiveness of
procurement law

> Protect national interest in all matters affecting public procurement, having due regard to
the country’s regional and international obligations.

22
 GPPB has no jurisdiction to rule over actual
controversies with regard to the conduct of the
bidding since it has no quasi-judicial functions
under the law.

 It is the prerogative and discretion of the

procuring entity through its BAC to come up with
the declaration since they are in the best
position to determine the details of their project.

NPM 56-2013
 Same agency members as the GPPB
 Reviews issues on the implementation
of the GPRA
 Evaluates recommended changes in
the IRR, standard bid docs ++
 Recommends resolution of issues, or
amendments ++ to the GPPB
24
The TSO provides research, technical and administrative
support to the GPPB (Sec. 63.3, IRR of RA 9184), including:

1. Research-based procurement policy recommendations and rule-drafting;

2. Development and updating of generic procurement manuals and standard
bidding documents/forms;
3. Management and conduct of training on procurement systems and
procedures;
4. Evaluation of the effectiveness of the government procurement system and
recommendation of improvements in systems procedures;
5. Monitoring the compliance to the Act and assisting procuring entities
improve their compliance;
6. Monitoring the effectiveness of the Government Electronic Procurement
System (G-EPS); and
7. Secretariat support.

25
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27
28
29
Sec. 8.5.2 All bidders shall upload and maintain in PhilGEPS a current
and updated file of the following Class “A” eligibility documents under
Sections 23.1(a) and 24.1(a):

a) Registration Certificate;
b) Mayor’s/Business Permit or its Equivalent Document;
c) Tax Clearance;
d) Philippine Contractors Accreditation Board (PCAB) license and
registration; and
e) Audited Financial Statements.

For foreign bidders participating in the procurement by a Philippine

Foreign Service Office or Post, they shall submit their eligibility
documents under Sec. 23.1 of the 2016 IRR of RA 9184.
Government Procurement Policy Board – Technical Support32Office
 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) PURCHASE

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:

 Articles which are normally consumed in use within

one (1) year or converted in the process of
manufacture or construction, or those having a life
expectancy of more than one (1) year but which
shall have decreased substantially in value after
being put to use for only one (1) year (e.g.,
medicines, stationery, fuel, and spare parts).

 Single Largest Completed Contract (SLCC)

requirement: 25%
 Refer to:

 Articles which are not consumed in use and

ordinarily retain their original identity during the
period of use, whose serviceable life is more than
one (1) year and which add to the assets of the
GoP (e.g., furniture, fixtures, transport and other
equipment). For this IRR, the term non-expendable
supplies shall include semi-expendable property

 SLCC requirement: 50%

 Refer to: those goods, materials and
equipment that are used in the
Goods, materials and equipment that operations
day-to-day are usedof in the day-to-
day operations of PEs in the performance
Procuring Entitiesof their functions.
in the
performance of their functions.
For the purpose of the IRR, CSE shall
For the beofthose
purpose this IRR,included
CSE in the
Electronic Catalogue of the PhilGEPS
shall be those(Virtual Store)
included in the
Electronic Catalogue of the
• APP-CSE submitted to PS-DBM & GPPB in October [PBB]
PhilGEPS
• To be bought in PS DBM unless there is a CNAS
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.
 Approved Budget for the Contract
ABC
Budget for the contract duly approved by the HoPE, as provided for in:

 National Government Agencies (NGAs):

 General Appropriations Act (GAA),
 Continuing (CONAP), and automatic appropriations,
 GOCCs and GFIs:
 Corporate budget for the contract approved by the Governing Board,
pursuant to Executive Order (E.O). No. 518, s. 1979
 SUCs:
 Approved budget pursuant to R.A. 8292
 LGUs.
 Budget approved by the Sanggunian through an appropriations ordinance
 Approved Budget for the Contract
ABC

For multi-year contracts, for which a Multi-Year

Obligational/Agreement Authority (MYOA/MYCA)
or an equivalent document is required, the ABC
shall be that incorporated in the project cost
reflected in the MYOA/MYCA or equivalent
document.
 PE & EUU/IU
 PROCURING ENTITY (PE)
- any branch, constitutional commission or
office, agency, department, bureau, office,
or instrumentality of the GoP (NGA),
including GOCC, GFI, SUC and LGU
procuring goods, infrastructure projects
and consulting services.

 End-User Units (EUU) or

Implementing Units (IU) – requesting
office/procurement package user
within the PE
 BID & BIDDER
BID -- PROPOSAL or TENDER
- signed offer or proposal to
undertake a contract submitted by a
bidder in response to and in
consonance with the requirements of
the Bidding Documents.

BIDDER -- a contractor,
manufacturer, supplier, distributor
and/or consultant
 GOVERNING PRINCIPLES

P A C T S
Public Accountability Competitiveness Transparency Streamlined
process
Monitoring
•Public & •Equal •Wider
private sector opportunity to dissemination •Uniformly
• Awareness of applied to all
and are made liable participate
or answerable procurement •Simple &
vigilance opportunities made
•Responsibility adaptable to
• Compliant over actions/
•Participation
to GPRA of NGOs modern
decisions technology to
ensure
efficiency and
effectiveness
 Essence of PUBLIC MONITORING

 Allows public involvement of qualified and eligible

Civil Society Organizations (NGOs, PAs, academic
institutions, and religious groups) to observe and
monitor the procurement process until contract
implementation.
Procuring
Entity

 Allows increased transparency of procurement

transactions.
 ACCOUNTABILITY

 Pertinent laws and the prescribed

procedures must be faithfully
complied with in the discharge of RA9184

functions in all stages of the

procurement process as well as the
implementation of contracts.

 Private parties that deal with

government should also be held
accountable for their actions.
 ENSURING COMPETITIVENESS

 Procurement must be conducted through competitive

bidding process, unless otherwise provided under GPRA &
its IRR , then the Alternative Methods of Procurement can
be resorted to.

 This is to guarantee:

1. Equitable and fair grounds for competition among

bidders.
2. That no single bidder significantly influences the
outcome of the bidding.
 ENSURING TRANSPARENCY
 Posting
 PE’s website,
 PhilGEPS’ website, and
 in a conspicuous place within the premises of the PE is
required for all procurements.
 BAC Secretariat notification in writing to all bidders whose bid it
has received through its PhilGEPS-registered physical address or
official e-mail address 7 CDs from date of bid opening [S25.7]
 BAC notification to all other bidders, in writing, of its
recommendation to award within 3 CDs from issuance of the
resolution . ([S37.3.1]
 Proper Documentation and maintenance - Each procurement
transaction must be properly documented and such records must
be maintained and made available to proper parties.
 STREAMLINED PROCUREMENT
SYSTEM
 Uniform application to all government
procurements.

 Simple and adaptable to advances in

modern technology in order to ensure
an effective and efficient method of
procurement.

 GPPB conducts a periodic review of

government procurement procedures,
and whenever necessary, formulates
and implements changes thereto.
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
 Mode of Procurement Goods Infrastructure Consulting
1) Two failed bidding   
2) Emergency Cases   
3) Take Over Contracts   
4) Adjacent & Contiguous   
5) Agency-to- Agency   
6) Scientific, Scholarly or
Artistic Work, Exclusive
Technology and Media   
Services
 Mode of Procurement Goods Infrastructure Consulting
7) Highly technical consultants   
8) Small Value Procurement   
9) Lease of Real Property & Venue   
10) Defense Cooperation Agreement   
11) NGO participation   
12) Community Participation   
13) United Nations Agencies,
International Organizations,
International Financing   
Institutions
 Pre- Advertisement
and/or Pre-Bid
Procurement
Posting Conference
Conference

Opening of
Opening of
Bid Submission Technical Proposal
Financial Proposal
(incl. eligibility docs)

Contract
Bid Evaluation Post-qualification Award

58
 Pre- Advertisement
and/or Eligibility and
Procurement
Posting Shortlisting
Conference

Opening of
Pre-Bid Bid Submission Bids
Conference (QBE or QCBE)

Post-qualification Contract
Bid Evaluation
Award
(QBE or QCBE)
Negotiation
59
 Nature of the procurement, shall be determined based on the
PRIMARY PURPOSE of the contract.

 Determination shall be made by the PE.

 PE shall specify in the Bidding Documents all requirements

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)
 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
 PERIOD ALLOWED in calendar days
GOODS & INFRASTRUCTURE CONSULTING
SERVICE PROJECTS SERVICES
Earliest Maximum Earliest Maximum Earliest Maximum

26 136 26 141 36 180

or
156
4.53 4.7/5.2 6
 HEAD OF THE PROCURING ENTIT Y (HOPE)

 B I D S A N D AWA R D S C O M M I T T E E ( B A C )

 B A C S E C R E TA R I AT

 TECHNICAL WORKING GROUP (T WG)

 OBSERVERS

 END-USER UNIT/IMPLEMENTING UNIT (EUU/IU)

 NGAs and the constitutional commissions or offices, and
other branches of government -- HEAD of the agency or body,
or HIS DULY AUTHORIZED OFFICIAL
 GOCCs, GFIs and SUCs -- GOVERNING BOARD or its DULY
AUTHORIZED OFFICIAL
 LGUs -- LOCAL CHIEF EXECUTIVE
 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
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)
2. Approves the Annual Procurement Plan (APP)

3. Approves/Disapproves the Contract Award

4. Resolves Protests
DECISION
 As held in the case of Binamira v. Garrucho, designation “connotes
merely the imposition by law of additional duties on an incumbent
official”, which was reiterated in Triste v. Leyte State College Board
of Trustees, which states that to “designate” a public officer to
another position may mean to vest him with additional duties while
he performs the functions of his permanent office.

 The designated OIC could be considered as the HOPE, but his

powers and authority shall depend on the nature of his designation,
that is, whether the designation contains specific reservations,
limitations or qualifications on the functions, duties, and
responsibilities to be performed, which could validly affect his
functions or authority as a HOPE.

NPM 102-2014
 Supposing that there is no reservation on the designation as OIC that
limits his authority as HOPE, the OIC may approve or sign BAC
Resolutions, NOA and NTP of procurement projects undertaken by the
new BAC, provided that such were made in accordance with RA 9184 and
its IRR.

 The incumbent HOPE may approve or disapprove the recommendation of

the BAC, such as award of contract, as long as the HOPE is neither the
Chairman nor a member of the BAC that rendered the recommendation
pursuant Section 11.2.5 of the IRR of RA 9184.

 The incumbent HOPE may sign the Notice to Proceed for a project that
was awarded when he was a BAC member but the contract must have
been duly awarded by the previous HOPE.
NPM 102-2014
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.
 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
FUNCTIONS AND RESPONSIBILITIES: (S12.1)

a) advertise and/or post the invitation to

bid/request for expressions of interest;
b) conduct pre-procurement and pre-bid
conferences;
c) determine the eligibility of prospective bidders;
d) receive and open bids;
e) conduct the evaluation of bids;
f) undertake post-qualification proceedings;
g) resolve requests for reconsideration;
FUNCTIONS AND RESPONSIBILITIES: (S12.1)
h) recommend award of contracts to the HoPE or his duly authorized
representative:
i) recommend the imposition of sanctions in accordance with Rule XXIII:
Administrative Sanctions;
j) recommend to the HoPE the use of Alternative Methods of Procurement as
provided in Rule XVI: Alternative Methods of Procurement, hereof;
k) conduct any of the Alternative Methods of Procurement;
l) conduct periodic assessment of the procurement processes and procedures
to streamline procurement activities pursuant to Section 3(c) of the IRR;
m) perform such other related functions as may be necessary, including the
creation of a Technical Working Group (TWG) from a pool of technical,
financial, and/or legal experts
M E M B E R S H I P A N D Q U A L I F I C AT I O N S :

 BAC members should occupy plantilla positions of the PE

 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.
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;
 case of bureaus, regional offices and sub-regional/district offices,
BAC members shall be at least a third (3rd) ranking permanent
personnel or if not available, an officer of the next lower rank
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
 HOPE
2nd
3rd 3rd 3rd
4th
5th
6th
 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.
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.
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.
 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, 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)
 HOPE may create a new office or designate an existing organic office
to act as BAC Secretariat

In case of an existing ad hoc BAC Secretariat, the HOPE shall

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

 No minimum or maximum number of members.

 Head of the BAC Secretariat must be at least a 5th (central offices) or

3rd (bureaus, regional offices and sub-regional/district offices)
ranking permanent employee or, if not available, a permanent official
of next lower rank
 Integrity & Proficiency to consider for selecting Head of
Secretariat & Procurement Unit
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
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
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
 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
 Created by the BAC from a pool of legal,
technical and financial experts
- those experts outside the PE 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- Legal Experts
2012, GPPB Circular No. 02-2012)
Financial Experts
Technical Experts
 BAC may create separate TWGs to handle
different procurements
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 Validate
 Review of Bidding Documents Verify
 Shortlisting of consultants Ascertain
 Resolution of Request for Reconsideration

(Sec. 12.1, 2016 IRR of RA 9184)

 Observers represent the public, the taxpayers who are interested
in seeing to it that procurement laws are observed and
irregularities are averted.
 At least three (3) Observers shall be invited coming from:
1. COA
2. Duly recognized private group in the sector or discipline of
the particular type of procurement involved
 INFRA - national association duly recognized by Construction Industry
Authority of the Philippines (CIAP) eq. PCA , NCAP
 GOODS - specific relevant chamber-member of the Phil Chamber of
Commerce and Industry
 CONSULTING SERVICES – project-related professional organization
accredited by PRC or Supreme Court EQ. PICE, PICPA, COFILCO
3. Non-Government Organization (NGO)
 In all stages of procurement process, During the 1)
eligibility checking, 2) shortlisting, 3) pre-bid
conference, 4) preliminary examination of bids, 5) bid
evaluation, and 6) post-qualification, the BAC must
invite, in writing, at least three (3) Observers, at least
3 cd 5cd before the date of the procurement
stage/activity
Observers shall be allowed access or be provided with
the following documents free of charge upon their
request, subject to signing of a confidentiality
agreement:

1. Minutes of BAC meetings;

2. Abstract of Bids;
3. Post-qualification summary report;
4. APP and related PPMP; and
5. Opened proposals

In all instances, observers shall be required to enter

into a confidentiality agreement with the concerned
PE in accordance with the form prescribed by the
GPPB.
RESPONSIBILITIES:

1. Prepare report (jointly or separately) indicating their

observations on the procurement activities
2. Submit report to the PE and furnish a copy to the GPPB
and the Office of the Ombudsman/Resident
Ombudsman.
3. Immediately inhibit and notify in writing the PE of any
actual or potential conflict of interest

If no report is submitted by the observer within seven (7)

calendar days after each procurement activity, then it is
presumed that the bidding activity conducted by the BAC
followed the correct procedure
 Responsible for the preparation of all documents necessary
for the procurement activity, including but shall not be
limited to, the PPMP, Purchase Request, technical,
specifications, ABC, scope of work, or terms of reference etc
 Conducts market study, feasibility study
 Justification for alternative modes of procurement,
submission of documentary requirements
 Attends BAC meetings- pre-procurement and pre-bid
conferences etc.
 Abides by confidentiality rule & no contact rule
 PE is authorized to grant honoraria to the members of the BAC,
the TWG, and the BAC Secretariat 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

 the grant of honoraria conforms to the guidelines

promulgated by the DBM. (Section 15, IRR of R.A. 9184)
 DBM Budget Circular No. 2004-5A, dated 7 October 2005, as
amended by DBM Budget Circular No. 2007-3, dated 29 November
2007.

 Only for successfully completed procurement projects

 Limited to procurement that involves competitive bidding –

Competitive Bidding, LSB and Nego Proc-Two Failed Bidding.

 Granted to Chair or Members of the BAC or the TWG by the PE

concerned.
 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

 Those who are receiving honoraria shall no longer be entitled to

overtime pay for procurement-related services rendered.

 Payment of overtime services may be allowed for the administrative

staff, (clerks, messengers and drivers supporting the BAC, the TWG
and the Secretariat), for procurement activities rendered in excess of
official working hours.
 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; and
 proceeds from bid security forfeiture
 DBM-BC No. 2007 -3
Savings -portions or balances of agencies’ budget, free from any
obligation or encumbrance which are (S3.2):
• Still available after completion or final discontinuance or abandonment
of the work, activity or purpose for which the appropriation is
authorized
• Arising from unpaid compensation and related costs pertaining to
vacant positions and leaves of absence without pay
• Realized from the implementation of collective negotiation
agreements which resulted in improved systems and efficiencies
resulting to agency meeting and deli8vering the required or planned
targets, programs and services at lesser cost
Use of Savings (S3.3):
• Priority given to augmentation for mandatory expenditures,
• Only used for honoraria after satisfying mandatory expenditures
 Maximum Honorarium rate per
procurement project
BAC Chair Php 3,000.00

BAC Members Php 2,500.00

BAC Secretariat (Ad hoc)
Php 2,000.00
TWG Chair and Members

Members of the BAC Secretariat whose positions are in the Procurement Unit of the
agency shall not be entitled to honoraria although the payment of overtime services may
be allowed, subject to existing policy on the matter.
 House Bill No. 182 entitled Energy Efficiency and Conservation
Bill of 2016 (now Republic Act 11285 , January 30, 2019)
provide for mechanisms to enable government agencies to
procure energy savings performance contracts.

 Through GPPB Resolution No. 20-2016, dated 23 September

2016, GPPB espoused that in the procurement of goods,
government agencies shall be able to incorporate the minimum
energy performance standards for equipment, products and
devices in crafting technical specifications.
Why Go Green?
The PDP 2017-2022 aims to strengthen the nation’s aspirations of inclusive
and sustainable development through national efforts; GPP is one of the
mechanisms.
Support of local
businesses

GPP’s contribution
to the Philippine Increase
Development Plans competitiveness
& other policies

Help to achieve
environmental
objectives at national
and international
levels
GPPB Resolution 25-2017, dated 30 May
2017 approved the Philippine Green Public
Procurement Roadmap, providing for
strategies and mechanisms for the gradual
advancements of GPP in the country.
 The intervention logic of the Philippine
Green Public Procurement (GPP) Roadmap

GOAL GPP is established throughout the government

(national to local)

POSITIVE IMPACT …on Environment + Society + Economy

STRATEGIES FOR Policy commitment - GPP for CSEs and non-CSEs -

THE WAY FORWARD communication and awareness - monitoring

STATE OF PLAY
Building on existing policies and laws, inspired by international
best practices and addressing stakeholders issues and concerns

RATIONALE The government shall lead by example in creating a green market

THE WAY
SESSION THEFORWARD
2 – OVERVIEW
1 PHILIPPINE
OF THE
GREEN
GPP EDUCATION
PUBLIC PROCUREMENT
MODULE ROADMAP 2017 - 2022

5 Strategies
1 Policy commitment

2 GPP for CSEs

3 GPP for Non-CSEs

4 Communication & Awareness

5 Monitoring
Commitment

GPP shall be the desirable norm of public

procurement

A resolution shall adopt:

• The first set of CSEs and the mechanisms
of the roadmap
• The first set of non-CSEs and the mechanisms
of the roadmap in this respect
• To establish and implement complementary
measures (capacity development,
communication, monitoring)
GPP: Common-use Supplies
and Equipment (CSEs)
FIRST SET OF
PRIORITIZED CSEs
ASSESSMENT MATRIX

Market readiness
Environmental impact
Cost implications
Practicability
Support to government
Environmental objectives
Support to the local economy
GPP: Non-Common-use Supplies
and Equipment (Non-CSEs)
FIRST SET OF PRIORITIZED
PRODUCTS (non-CSEs)
ASSESSMENT MATRIX

Market readiness
Environmental impact
Cost implications
Practicability
Support to government
Environmental objectives
Support to the local economy
Sample Green Core Criteria and Technical Specifications

CSE PRODUCT: TOILET PAPER

SCOPE:
Toilet paper in rolled form, interfolded or coreless for toilet facilities of
government offices and public amenities
KEY ENVIRONMENTAL IMPACT
• Forest destruction and potential loss of biodiversity related to the pulp
production;
• Energy and water consumption during production of toilet paper;
• Harmful emissions to air and water during pulp and paper production.
• Chemical consumption during production;
• Waste generation and packaging.

GPP APPROACH is to Purchase Products:

• with a low energy and resource use during processing;
• which avoid harmful substances in paper production and
bleaching;
• with high recycled content;
• from legally and sustainably harvested wood.
Sample Green Core Criteria and Technical Specifications

CSE PRODUCT: TOILET PAPER

PRODUCT SPECIFICATIONS:

• Product must be made out of raw materials from 100% recycled

fiber.
• At least Elementary Chlorine Free (ECF).
• The core as well as any paper wrapping and carton box packing
must be made from 100% recycled fiber and the cartons must be
strong enough for storage transit.

FUTURE CRITERIA:

• Recycled fiber must contain not less

than 60% post-consumer fiber.
• Totally Chlorine Free (TCF)
Sample Green Core Criteria and Technical Specifications

CSE PRODUCT: TOILET PAPER

JUSTIFICATION:

• Paper production from recycled paper is far less environmentally

damaging.
• It avoids destruction of natural forests, reduces water
consumption, energy consumption (40%-64%) as well as emissions
of chemical substances to the air (74%) and to the water (35%).

EVIDENCE:

• Supplier must provide evidence that specifications are met.

Especially concerning the origin of raw materials certification
schemes or evidence or recycled materials must be provided
• Any appropriate means of proof demonstrating that the criteria
are met will be accepted (technical dossier from manufacturer, test
report from recognized body)
Sample Green Core Criteria and Technical Specifications

CSE PRODUCT: TOILET PAPER

VERIFICATION:

• High quality recycled paper may look identical to

conventional paper, which neither has an official label
nor a product mark indicating the recycled content.

• Independent testing can be carried out by the Forest

Product Research and Development Institute of DOST
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