GENERAL OVERVIEW OF

RA 9184 AND ITS REVISED

IRR & PROCUREMENT
ORGANIZATIONS

1
 MODULE OBJECTIVES

1. To provide an overview of the Government

Procurement Reform Act or Republic Act No.
9184, and its Implementing Rules and
Regulations – it’s scope, principles and
various procurement procedures
2. To discuss the functions and responsibilities
of the different actors involved in
procurement
2
 OUTLINE

I. General Overview of RA 9184 and its IRR

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

3
 AMERICAN LAWS
ON PROCUREMENT
CONTRACTS

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

PHILIPPINE PUBLIC
PROCUREMENT

4
 1917 NEDA
GUIDELINES ON
ADMINISTRATIVE
PROCUREMENT
CODE OF THE
OF CONSULTING
PHILIPPINES
SERVICES
N
PD 1 5 9 4 O N
MENT 62 O ENT
PROCURE 2
EO REM
WORKS
GOODS OF CIVIL OCU ODS
NG PR GO
LT I OF
N SU SER
VI C
CO ES
A
FR
IN

PE BEFORE THE
ENACTMENT OF GPRA

5
 ENACTMENT OF GPRA

Implementing
Rules and
Government Procurement
Regulations
Reform Act
10 January 2003

Executive
Implementing Rules and
Orders
Regulations (IRR) Part A
8 October2003

Revised IRR of 2009

2 September 2009
Administrativ
e Issuances Revised IRR of 2016
28 October 2016

Memorandum
Circulars

Over 100 Procurement Rules and Regulations

6
 PROCUREMENT REFORMS
PROBLEMS REFORMS
• Confusion caused by • Enactment of the Government
fragmented legal system Procurement Reform Act (GPRA)
• Inconsistent policies, rules, • Creation of the Government
and regulations due to lack of Procurement Policy Board
standards (GPPB)
• Use of PhilGEPS
• Lack of transparency (Philippine Government
Electronic Procurement System)
• Lack of check and balance • Participation of civil society
• Unresolved procurement • Clearly defined protest
cases/controversies mechanisms in place
• Non-compliance with the • Penal, civil and administrative
requirements of the law sanctions available

7
 GPRA GENERAL FEATURES
• Singular procurement legal framework for
all of government.
• Strengthened Competitive Bidding.
• Increased transparency in the procurement
process.
• Shift from Pre-Qualification Regime to
Simplified EligibilityChecking.
• Approved Budget for the Contract (ABC) as
ceiling for bidprices.
8
 GPRA GENERAL FEATURES
• Use of transparent, objective, and non-
discretionary pass/fail criterion.
• Allowance of Centralized or Decentralized
Procurement.
• Professionalization of procurement officials.
• Participation of Observers in all stages of
procurement process.
• Reinforced “accountability” through
inclusion of Penal andCivil Liabilities
9
GOVERNMENT PROCUREMENT
POLICY BOARD (GPPB)
 Composed of the following:
 Chairman: DBM Secretary
 Alternate Chairman: NEDA Director-
General
 11 Regular Members – Secretaries of
DPWH, DTI, DOH, DND, DepEd, DILG,
DOST, DOTC, DOE & DICT (Per RA
10844), or their duly authorized
representatives; Private Sector
Representative
 Invited Resource Persons (audit, anti-
corruption agencies)

10
 GPPB FUNCTIONS
Capacity
Policy-Making Monitoring
Development
• Amend • Establish a • Ensure the proper
implementing rules implementation by
& regulations of sustainable
PEs of the Act, this
procurement law training IRR and all other
(quasi-legislative program
function) relevant rules and
• Prepare generic regulations on
procurement manual public procurement
and standard • Review
bidding 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
11
 GPPB FUNCTIONS

 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 (PE) 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

12
 GPPB WEBSITE
www.gppb.gov.ph

13
 GPPB WEBSITE
www.gppb.gov.ph

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 GPPB WEBSITE
www.gppb.gov.ph

15
 PHILGEPS REGISTRATION
Philippine Government Electronic Procurement System

 Sec. 8.5.1 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.

NPM 34-2013
16
 PHILGEPS REGISTRATION

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.
17
 JSDF PROJECT
GPRA SCOPE AND COVERAGE

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)

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 SCOPE AND COVERAGE

It shall apply to all procurement

activities involving:

1.Goods and Services 

2.Infrastructure Projects
3.Consulting Services
19
 SCOPE AND COVERAGE

Section 4, Revised IRR

 All fully domestically-funded procurement activities

 All foreign-funded procurement activities, unless

otherwise provided in a treaty or int’l/executive
agreement Use of country system
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)
20
 SCOPE AND COVERAGE
Section 4, Revised IRR

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

treaty or international/executive agreement

• Projects funded from foreign grants

• Projects for International Competitive Bidding
• Consulting Services for National Competitive
Bidding

21
 SCOPE AND COVERAGE

EXCEPT:
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;
22
 SCOPE AND COVERAGE

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

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 SCOPE AND COVERAGE
Activities 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

24
 SCOPE AND COVERAGE
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

25
 SCOPE AND COVERAGE
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
26
DEFINITION OF TERMS

27
 What is 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)

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 GOODS
 All items, supplies and materials
 Expendable Supplies -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).
 Non-expendable Supplies - 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

 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:
1. repair and maintenance of equipment and furniture
2. trucking, hauling, janitorial and security and other related
and analogous services.

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 INFRASTRUCTURE PROJECTS
Refer to:
 construction, improvement, demolition, rehabilitation, repair,
restoration or maintenance of civil works components of :
1. IT projects
2. irrigation
3. flood control and drainage
4. water supply
5. sanitation, sewerage and solid waste management
6. national buildings, hospital buildings, and other related
constructions projects of the Government.

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 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 that are beyond
the capability and/or capacity of the Government to undertake
such as, but not limited to: (Annex B)

1. advisory and review services;

2. pre-investment or feasibility studies;
3. design;
4. construction supervision;
5. management and related services; and
6. other technical services or special studies.
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 ENGAGEMENT OF PERSONNEL UNDER JOB
ORDER AND CONTRACT OF SERVICE
Engagement of Personnel under Job Order and Contract of Service

 RA 9184 and its IRR will not apply in the hiring of individual
personnel under Job Order or Contract of Service (Sec. 4.5 of the
2016 IRR):
a. The engagement does not require that level of expertise as
primary consideration for its selection,
b. It is not what is contemplated under the definition and
enumeration of what involves General Support Services and
analogous services.

 However, RA 9184 and its IRR find applicability in the engagement

of non-personal service through sole proprietorship, partnership or
a corporation contracted for the purpose.

NPM 15-2014
32
 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 PE

 Mixed procurements -- 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)

33
 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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 PRINCIPLES OF PUBLIC
PROCUREMENT (SECTION 3)

35
 GOVERNING PRINCIPLES

Transparency Competition Streamlined System Public

process Accountability Monitoring
• Wider • Equal
dissemination of • Uniformly • Public & private • Awareness and
opportunity to
procurement participate applied to all sector are made vigilance
opportunities • Simple & made liable or • Compliant to
• Participation of adaptable to answerable GPRA
NGOs modern
technology to
ensure efficiency
and effectiveness

36
 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.

 Increased transparency of procurement

transactions.
37
 ACCOUNTABILITY OF
RA9184
PUBLIC OFFICIALS
 Pertinent laws and the prescribed
procedures must be faithfully
complied with in the discharge of
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.
38
 How to ensure COMPETITIVENESS

 As a rule, procurement must be conducted through

competitive bidding process, unless otherwise
provided under GPRA, its IRR and this Manual, 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.

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 How to ensure TRANSPARENCY

 Posting
 PE’s website,
 PhilGEPS’ website, and
 in a conspicuous place within the premises of the PE
is required for all procurements.

 Each procurement transaction must be properly

documented and such records must be maintained and
made available to proper parties.

40
 Essence of 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.

41
PROCUREMENT METHODS
AND PROCEDURES

42
 PROCUREMENT METHODS

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 43
PROCUREMENT METHODS

44
 BIDDING PROCESS FOR
GOODS & INFRA PROJECTS

Advertisement
Pre-
and/or Pre-Bid
Procurement
Conference Posting Conference

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

Contract
Bid Evaluation Post-qualification Award

45
 BIDDING PROCESS FOR
CONSULTING SERVICES

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

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

Post-qualification Contract
Bid Evaluation
Award
(QBE or QCBE)
Negotiation

46
 PROCUREMENT
ORGANIZATIONS

47
PROCUREMENT ORGANIZATIONS

 Head of the Procuring Entity (HOPE)

 Bids and Awards Committee (BAC)

 BAC Secretariat

 Technical Working Group (TWG)

 Observers 48
 HEAD OF PROCURING ENTITY (HOPE)
SoH
 Head of the agency or body, or his duly
authorized official, for NGAs and the Regional
Director
constitutional commissions or offices, and other
branches of government; Medical
 Governing Board or its duly authorized official, Center or
Hospital
for GOCCs, GFIs and SUCs; or Chief
 Local Chief Executive, for LGUs
Note: In an agency, department, or office where the Bureau
Director
procurement is decentralized, the head of each
decentralized unit shall be considered as the Director
HoPE, subject to the limitations and authority General
delegated by the head of the agency, department, Executive
or office Director ++
49
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)
50
HEAD OF PROCURING ENTITY (HOPE)

2. Approves the Annual Procurement Plan (APP)

3. Approves/Disapproves the Contract Award

4. Resolves Protests

51
 OIC as HOPE
 Case of Binamira v. Garrucho: Designation “connotes merely
the imposition by law of additional duties on an incumbent
official”
 Reiterated in Triste v. Leyte State College Board of Trustee: 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.

 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
 OIC TO SIGN/APPROVE
BAC RESOLUTIONS, NOA, NTP
 If 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.
 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 (Section 11.2.5)
 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

53
BIDS AND AWARDS COMMITTEE (BAC)

 General rule -- HOPE creates a single BAC.

 HOPE may create separate BACs under any of the
following conditions:
1. Items to be procured are complex or specialized;
2. A single BAC cannot reasonably manage the
procurement transactions as shown by delays beyond
the allowable limits; or
3. Creation is required according to the nature of the
procurement.
o BACs may be organized either according to: (a) geographical location
of PMO or end-user or implementing; (b) nature of procurement.

54
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.

 PE may establish separate BACs with the

composition of the BAC members subject to the
qualifications under Section 11.2.2.

 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.
55
BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES: (Sec.

12.1)

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;
h) recommend award of contracts to the HoPE or his duly
authorized representative;
56
BIDS AND AWARDS COMMITTEE (BAC)
i) recommend the imposition of sanctions using Rule XXIII;
j) recommend to the HoPE the use of Alternative Methods
of Procurement as provided in Rule XVI;
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; and
n) 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
.. Ensures PE abides by RA 9184 standards

57
BIDS AND AWARDS COMMITTEE (BAC)
QUORUM (12.3)
 A majority of the total BAC composition as designated
by the HoPE
 With presence of the Chairperson or Vice-Chairperson

MEETINGS (12.4)
 Presided by Chairperson or, in his absence, the Vice-
Chairperson
 Decision of at least a majority of those present at a
meeting at which there is quorum shall be valid and
binding as an act of the BAC: Provided, however, That
the Chairperson or, in his absence, the Vice-Chairperson,
shall vote only in case of a tie.
58
 BIDS AND AWARDS COMMITTEE
(BAC)
MEMBERSHIP AND QUALIFICATIONS:
 At least 5 members but not more than 7 of
unquestionable integrity and procurement proficiency
 Occupying a plantilla positions in the concerned PE.
 All members are regular members except the end-user
member who is considered as a provisional member.
 All members, whether regular or provisional, are
equally entitled to participate and to vote during
deliberations.

59
 BIDS AND AWARDS COMMITTEE
(BAC)
COMPOSITION: 5 but not more than 7 MEMBERS
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;

60
BIDS AND AWARDS COMMITTEE (BAC)

HOPE

2nd
3rd 3rd 3rd

4th

5th

6th

61
 BIDS AND AWARDS COMMITTEE
(BAC)

2. PROVISIONAL MEMBERS:

 Officer possessing Technical Expertise relevant to the

procurement.

 End user unit Representative. In case of procurement

outsourcing, a representative from the PE may be
designated as a provisional member

62
BIDS AND AWARDS COMMITTEE (BAC)

3. ALTERNATE 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.
 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.

63
BIDS AND AWARDS COMMITTEE (BAC)

MEMBERS TERMS OF MEMBERSHIP:

 Designated for a term of one (1) year only, reckoned

from the date of designation.

 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.

64
BIDS AND AWARDS COMMITTEE (BAC)

MEMBERS 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.

 Replacement serves for the unexpired term. In case of

leave or suspension, the replacement shall serve only for
the duration of the leave or suspension.

65
 PROHIBITED BAC MEMBERS

1. Head Of The Procuring Entity (HOPE)

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)

66
TECHNICAL WORKING GROUP (TWG)

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

financial experts
- those experts outside the PE 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

67
TECHNICAL WORKING GROUP (TWG)

FUNCTIONS: Assists the BAC on the

following:
1) Review of the Technical Specifications, Scope
of Work, and Terms of Reference;
2) Review of Bidding Documents;
3) Shortlisting of Consultants;
4) Eligibility Screening;
5) Evaluation of Bids;
6) Post-Qualification; and
7) Resolution of Request for Reconsideration.

68
 BAC SECRETARIAT/
PROCUREMENT UNIT
 Main support unit of the BAC

 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)

 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
69
 BAC SECRETARIAT

FUNCTIONS:
a) Provide administrative support to the BAC and the
TWG;
b) Organize and make all necessary arrangements for
BAC and the TWG meetings and conferences;
c) Prepare minutes of meetings and resolutions of the
BAC;
d) Take custody of procurement documents and other
records and ensure that all procurements undertaken
by the Procuring Entity are properly documented;
e) Manage the sale and distribution of Bidding
Documents to interested bidders;

70
 BAC SECRETARIAT

FUNCTIONS:
f) Advertise and/or post bidding opportunities, including Bidding
Documents, and notices of awards;
g) Assist in managing the procurement processes;
h) Monitor procurement activities and milestones for proper
reporting to relevant agencies when required;
i) Consolidate PPMPs from various units of the Procuring Entity to
make them available for review as indicated in Section 7 of this
IRR and prepare the APP; and
j) Act as the central channel of communications for the BAC with
end-user or implementing units, PMOs, other units of the line
agency, other government agencies, providers of goods,
infrastructure projects, and consulting services, observers, and the
general public

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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
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 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

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 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

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 OBSERVERS
 Public, or taxpayers’ ‘eye’ to see that procurement laws
are observed & irregularities are averted.
 Enhance transparency
 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)
 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
3) Non-Government Organization (NGO)
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 OBSERVERS

 Duly registered with the Securities and Exchange

Commission (SEC) or the Cooperative Development
Authority (CDA),
 Meet the following criteria:
a) Knowledge, experience or expertise in procurement or in
the subject matter of the contract to be bid;
b) Absence of actual or potential conflict of interest in the
contract to be bid; and
c) Any other relevant criteria that may be determined by the
BAC

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 OBSERVERS

 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
 BAC must invite, in writing, at least three (3) Observers,
at least 3 cd 5cd before the date of the procurement
stage/activity
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 OBSERVERS

RESPONSIBILITIES:
a) Prepare report (jointly or separately) indicating their
observations on the procurement activities
b) Submit report to the PE and furnish a copy to the GPPB
and the Office of the Ombudsman/Resident
Ombudsman.
c) 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
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 OBSERVERS
 No right to vote
 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.
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 GRANT OF HONORARIA

 PE is authorized to grant honoraria to members

of the BAC, 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)

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 GUIDELINES ON THE GRANT
OF HONORARIA
 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.

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 GUIDELINES ON THE GRANT
OF HONORARIA
 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.

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 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; and
 proceeds from bid security forfeiture

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 CEILING FOR HONORARIA

Maximum Honorarium rate

per procurement project

BAC Chair Php 3,000.00

BAC Members Php 2,500.00

BAC Secretariat 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.

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 THANK YOU!!
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

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