New Government Procurement Act (Republic Act No. 12009)

ARTICLE I GENERAL PROVISIONS SECTION 1. Short Tille. - This Act shall be known as the "New Government Procurement Act". SEC. 2. Declaration of Policy. - It is the declared policy of the State to promote the ideals of good governance with a view towards t r ansparency, competitiveness, efficiency, proportionality, accountability, public monitoring, procurement profession alization, s ustain ability, and value for money in government procurement. 2 3 SEC. 3. Governing Principles on Government (g) Sustainability in the procurement process which Procurement. - Procurements by all branches and covers the whole lifecycle of a property, ensures value for instrumentalities of the national government, its departments, money and maximum benefits to society and the economy, and bureaus, offices and agencies, including state universities and engenders minimal impact to the environment; and colleges (SUCs), government-owned and/or -controlled corporations (GOCCs), government financial institutions (GFis), (h) Professionalism in procurement through the and local government units (LGUs), shall, in all cases, be development of qualification standards, a competency and governed by these principles: certification framework, and a code of ethics that shall be observed by public procurement professionals. (a) Transparency in the procurement process by providing access to all related information in accordance with SEC. 4. Scope and Application. - This Act shall apply open contracting practice that enables the disclosure of data to the Procurement of Goods, Infrastructure Projects, and and facilitates information sharing related to all stages of Consulting Services, regardless of source of funds, wheth er procurement; local or foreign, by all branches and instrumei1talities of the national government, its departments, bureaus, offices and (b) Competitiveness through ensuring equal opportunity agencies, including SUCs, GOCCs, GFis, and LGUs. Any for all eligible and qualified suppliers, manufacturers, treaty or international or executive agreement affecting the distributors, contractors, consultants, and service providers; subject matter of this Act to which the Philippine government is a signatory shall be observed. (c) Efficiency by implementing an organized, uniform, and straightforward government procurement process through SEC. 5. Definition of Terms. - For purposes of this Act, the use of emerging technologies and innovative solutions; the following terms or words and phrases shall mean or be understood as follows: (d) Proportionality by ensuring that the conditions and parameters in the development of requirements, choice of (a) Approved Budget for the Contra.et (ABC) refers to procurement modality, and implementation of contracts shall the budget for the contract duly approved by the Head of the be reasonably proportional to the needs of the Procuring Entity Procuring Entity, as provided for in the General Appropriations and the nature of the contract or project to be procured; Act or other authorized source of funds, in the case of National Government Agencies (NGAs); the corporate budget for t he (e) Accountability where all public officials and personnel contract approved by the governing Boards, pursuant to directly or indirectly involved in the procurement process and Executive Order (E.0.) No. 518, series of 1979, in the case in the implementation of contracts are investigated and held of GOCCs, GFis, and Republic Act No. 8292, or the "Higher accountable for their actions when necessary; Education Modernization Act of 1997", in the case of SUCs; and the budget for the contract approved by the Sanggunian (f) Participatory procurement through public monitoring through an appropriations ordinance in the case of LGUs; of the procurement process and the implementation of contracts to guarantee that every step is in accordance with (b) Beneficial Owner refers to a natural person who: (1) the provisions of this Act and its implementing rules and ultimately owns or dominantly influences the management or regulations (IRR), and to ensure prudent and judicious use of policies ' of the juridical entity; or (2) exercises ultimate effective government resources; control over the juridical entity; -I 5 (c) Bid refers to a signed offer or proposal submitted by G) End-User or Implemen ting Unit refers to the a supplier, manufacturer, distributor, contractor, consultant, employee or organic office within the organization of the and service provider in response to the bidding documents; Procuring Entity that identifies, plans, prepares, designs, and implements the procurement project based on the requirements (d) Bidder refers to a supplier, manufacturer, or needs of the agency in accordance with its mandate; distributor, contractor, consultant, and service provider who submits a bid in response to the requirements of the (k) Financial Eligibility refers to having the financial bidding documents; capacity to manufacture, distribute. or deliver the Goods, Infrastructme Projects, and Consulting Services being procured; (e). Bidding Documents refer to documents issued by the Procuring Entity as the basis for Bids , furnishing all 0.) Goods refer to all items, supplies, materials, and information necessary for a prospective bidder to prepare a Bid general support services, except Consulting Services and for the Goods, Infrastructure Projects, and Consulting Services Infrastructure Projects, which may be needed in the to be provided; transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the (f) Bids and Awards Committee (BAC) refers to the nature of equipment, furniture, stationery, materials for Committee established in accordance with Article V of this Act: construction, or personal property of any kind, including non-personal or contractual services such as the repair and (g) Blachlisting refers to an administrative penalty maintenance of equipment and furniture, as well as trucking, imposed by the Head of the Procuring Entity which prohibits hauling, janitorial, security, and related or analogous services, a person or an entity including its affiliates from participating as well as procurement of materials and supplies provided by in all government procurement activities; the Procuring Entity for such services; (h) Common- Use Siipplies and Equipment (CSE) refer (m) GPPB refers to the Government Procurement Policy to goods, materials, and equipment that are used repetitively Board established in accordance with Article XIX of this Act; in the day-to-day operations of Procuring Entities in the performance of their functions which are included in the (n) Head of the Procuring Entity (HoPE) refers to: electronic catalogue of the Philippine Government Electronic (1) the head of the agency or the duly authorized official, for Procurement System (PhilGEPS); NGAs; (2) the governing board or its duly authorized official, for GOCCs, SUCs, and GFis; or (3) the local chief executive, (i) Consulting Services refer to services for for LGUs: Provided, That in a department, bureau, office, or Infrastructure Projects and other types of projects or activities agency where the procurement is decentralized, the Head of of the government requiring adequate external technical and each decentralized unit shall be considered as the HoPE subject professional expertise that are beyond the capability and/or to the limitations and authority delegated by the head of the capacity of the government to undertake such as, but not department, bureau, office or agency; limited to: (1) advisory and review services; (2) pre-investment or feasibility studies; (3) design; (4) construction supervision; (o) Infrastructure Projects include the construction, (5) management and related services; and (6) other technical improvement, rehabilitation, demolition, repair, restoration, or services or special studies; maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information 6 7 technology projects, irrigation, flood control and drainage, water (2) any good, article, material, and supplies produced, supply, sanitation, sewerage and solid waste management manufactured, or assembled in the Philippines which has a systems. shore protection, energy/power and electrification minimum local content as may be determin ed by the facilities, national buildings, school buildings, hospital buildings, Department of Trade and Industry (DTI); and other related construction projects of the government; (3) services, which refer to the deliver y of value (p) Jury Duty refers to a responsibility in which the or intangible acts or uses through high -level skills, expertise, BAC, Technical Working Group (TWG), and Secretariat labor, or some form of k nowledge, technology- or process- members, including e nd-user s, give utmost priority to intensive activities; or procurement a ssignments over all the oth er duties and responsibilities until the r equirements for the procurement at (4) intangible products, which refer to properties without hand are completed; physical existence including, but not limited to, computer software and products of t h e creative industry; (q) Legal Eligibility r efers to having t he legal capacity to act as an entity as evide nced by permits, licenses, (v) Portal refers to a website that aggr egates a wide and/or registrations required by law to engage in the business variety of content for the purpose of attracting a large number of manufacturing, distributing, or delivering the Goods, of users; Infrastructme Projects, and Consulting Services being procured; (w) Procurement refers to the acquisition of Goods a n d (r) Lifecycle Cost refers to the total cost of ownersh ip Consulting Services, and the contracting for Infrastructure over t he entire life span of an a sset from its acquisition , Projects by the Procuring Entity. Procurement shall also operation, maintenance, and disposal; include the lease of goods and real property. With respect to real property, its procurement sh a ll be governed by t h e (s) Multi-Year Contractual Authority (MYCA) refers to provisions of Republic Act No. 10752, or "The Right-of-Way the authority given to the Procuring Entity to procure multi- Act", and other applicable laws, rules, and regulations; year projects in accordance with the form and conditions set by the Department of Budget and Management (DBM) ; (x) Procuring Entity refers to any branch, department, bureau, office, agency, or instrumen tality of the government, (t) Philippine Government E lectronic Procurement including SUCs, GOCCs, GFis, and LGUs pr ocuring Goods, System (PhilGEPS) refers to the single electronic procurement Infrastructure Projects, and Consulting Services; portal managed by the Procurement Service (PS-DBM) as provided in Section 20 of this Act; (y) Technical Eligibility refers to having the experience or expertise to undertake t h e ser vices, m anufacturin g, (u) Philippine Products and Services refer to local goods, distribution, or delivery of the Goods, Infrastructure Projects, articles, materia ls, supplies, services, and intangible products and Consultin g Services being procured; and which may be: (z) Value for Money refers to the optimum combination (1) unman ufact ured goods, a rticles, materials, or of quality and cost to meet the r equirements and obj ectives supplies wholly obtained or produced in the Philippines; of the 'end-user. 8 9 SEC. 6. Standardization of Procurement Process and Measures such as, but not limited to, rehabilitation of Forms. - To systematize the procurement process, avoid properties, condemnation/destruction of properties, transfer of confusion, and ensure transparency, the procurement process, properties to other government agencies, barter, donation, including the forms to be used, shall be standardized insofar return to supplier/vendor, trade-in, sale to government as practicable. officials/employees of the agency, public auction, negotiated sale , sale of junk or scrap and/or recycling, and direct For this purpose, the GPPB shall purnue the development negotiation shall be considered by the Procuring Entity in the of generic procurement manuals and standard bidding forms, development of its requirements for purposes of disposal at the the use of which, once issued shall be mandatory upon all end of the useful life of the property. Procuring Entities. However, whenever necessary, to suit the particular needs of the Procuring Entity, modifications may For subcontracting arrangements, the following rules be made particularly for major and specialized procurement, shall apply to locally-funded projects and to projects financed subject to the approval of the GPPB. In addition, the GPPB through Official Development Assistance, except those covered shall develop a decision-tree to be included in the IRR, that by treaty provisions: shall guide Procuring Entities on which mode of procurement is the most fit for their desired purpose. (a) The HoPE must provide prior approval to subcontracting;

ARTICLE II (b) Subcontractors must meet eligibility criteria; STRA.TEGIC PROCUREMENT PLANNING (c) The bidder or general contractor must disclose SEC. 'i. Strategic Procurement Planning and Budgeting subcontractors during the bidding process; Linlwge. - All procurement shall be undertaken with proper and sufficient planning a nd preparation to e nsure sound (d) The general contractor shall remain liable for the procurement decisions. This includes the conduct of relevant subcontractor's actions, defaults, delays, and negligence; market scoping, supply positioning, analysis of available procurement modalities, risk management, and disposal (e) The general contractor and the subcontractor shall procedures as may be applicable. share liability in cases where safety standards or other labor standards are violated; and Procuring Entities shall likewise adopt a procurement strategy that includes fit-for -purpose and proportional (f) The value of the entire completed and accepted approaches. considers the whole lifecycle of a procurement project, including the subcontracted portion, shall be recorded project, including its environmental impact, and aims to as experience of the general cont ractor, in particular: achieve value for money. (1) The subcontractor shall get credit for one hundred During the planning stage, the Procuring Entity shall percent (100%) of the value of the subcontracted portion of the ensure that the project has minimal economic, social, and project; environmental risks or negative impact during its lifecycle, and that the goods and services are procured with due consideration (2) Subcontractors shall be eligible to concessional for responsible and sustainable consumption and production windows of GFis that treat receivables from the government practices, and the national policy. II as loan security; the receivables of subcontractors due from (g) Source of funds; and their general contractor shall similarly be accepted as loan security by GFis; and (h) Approved Budget for the Contract. (3) Contract performance monitoring, s uch as, but not No government procurement shall be undertaken unless limited to the Constructors Performance Evaluation System it is in accordance with the approved APP or Indicative APP (CPES), shall also be mandatorily applied to the work of of the Procurin g Entity, as the case may be. The APP shall subcontractors. be approved by the HoPE and must be consistent with its duly approved yearly budget or proposed budget in the case of t he To. guarantee the usefuln ess throughout t h e whole Indicative APP. The APP shall be formulated and revised only lifecycle of goods to be procured, the Procuring Ent ity shall m accordance with the guidelines set forth in the IRR. ensure that goods to be procured are brand new: Pro vided, That the procurem e n t of second-hand, r efurbis h ed or SEC. 8. Detailed Engineering for the Procnrement of reconditioned goods, such as military, defense , or l aw I nfrastructure Projects. - With the exception of an enforce ment equipment or materiel, may be con sider ed to Infrastructure Project under a design-and-build scheme, no secure a contract that is most advantageous to the government bidding and award of contract for Infrastructure Project s sh all subject to the guidelines to be issued by the DBM and subject be made unless the detailed en gineer in g investigations, to compliance with relevant criteria, such as durability. surveys, and designs for the project which shall consider remammg useful life, sustainability, maintenance cost. and among other s, the impact on the environment, have been warranty. sufficiently carried out and duly approved in accordance with the standards and specifications prescribed by the HoPE All procurement should be within the approved budget concerne d or the duly authorized representative, and the of the Procuring Entity. Consistent with government fiscal acquisition of right-of-way pursuant to Republic Act No. 10752 discipline measures, only those considered crucial to t h e has been accomplished. efficient discharge of governmental functions shall be included in the Annual Procurement Plan (APP), which sha ll at least Procuring Entities may consider architectural design that include the following: is well-curated and aesthetic to ensm e that th e Infrastructure Project not only meets functional requirements but also (a) Name of t he project/procurement; contributes to its overall appeal and architectural integrity. (b) Project management office (PMO)/end-u ser unit; SEC. 9. Multi-Year Contracting. - NGAs, including SUCs, implementing multi-year programs, activities, and projects shall (c) General description of the project/procurement; request the DBM for the issuance of a MYCA prior to the commencement of any procurement activity for multi-year (d) Procurement meth ods to be adopted and indicating projects: Provided, That for multi-year projects to be funded if the procurement tasks are to be outsourced; from internally gen erated income of SUe s , the SUCs shall secure prior authority from its Board befor e starting any (e) Criteria for bid evaluation ; procurement activity covering the full contract cost. ~ (f) Time schedule ; In the case of GOCCs, GFis, and sues, t hey shall secur e prior authority from their respective governing Boards 12 13 before commencing procurement activities for multi-year maintenance, or preservation of supplier warranty in order to projects covering the full contract cost. For LGUs, they shall keep the performance, functionality, and useful life of t he secure any equivalent document issued by their respective equipment, in which case, the Procuring Entity shall indicate Sanggunian authorizing them to enter into multi-year the reasons or justifications for availing of the exception. contracts. SEC. 12. Early Procurement Activities. - For Goods to The total project cost reflected in the MYCA or its be delivered, Infrastructure Projects to be implemented, and equivalent document shall be the basis or reference for the Consulting Services to be rendered in the following fiscal year, ABC of the procurement contract. Procuring Entities are authorized to undertake early procurement activities pending the approval of the funding SEC. 10. Marhet Scoping. - To ensure proper and thereof. strategic procurement planning, a Procuring Entity shall conduct market scoping as a preliminary undertaking in The conduct of early procurement activities shall be made preparing its Project Procurement Management Plan (PPMP), only upon approval of the Indicative APP by the HoPE. No which covers the proper cost estimation, project design and award of contract shall be made until the approval and specifications, technical and selection criteria, delivery lead effectivity of the appropriate funding. time, storage or warehousing requirements, related industry practices, and other relevant market information. In case of projects requiring acquisition of right-of-way, no award of contract shall likewise be made until an authority Market scoping may include the following activities: or permit to enter is issued by the property owner; or a consultations with suppliers, contractors or consultants, notarized deed of sale or deed of donation is executed in favor professional associations or groups; participation in summits, of the government; or a writ of possession is issued by a court fora or conferences; evaluation of market reviews; review of of competent jurisdiction, as the case may be. product or service brochures and marketing materials, industry journals and publications, other related materials and SEC. 13. Lifecycle Assessment and Lifecycle Cost publications; price sourcing for quotations or cost estimates Analysis. - To further support strategic procurement from suppliers, contractors or consultants; use of relevant data management and ensure smart and prudent use of government from the PhilGEPS or agency websites to serve as a guide resources, Procuring Entities shall apply Lifecycle Assessment or reference; or any analogous activity for the purpose of (LCA) and Lifecycle Cost Analysis (LCCA) in project planning, gathering relevant market information. eligibility and selection criteria, or contract implementation: Provided, That the GPPB shall issue appropriate guidelines SEC. 11. Specifications. - Specifications for the on the application of LCCA. procurement of goods, as well as the goods component of Infrastructure Projects and Consulting Services, shall be based SEC. 14. Design-and-Build Scheme for Infrastructure on any or a combination of the following: relevant Projects. - In preparing for a procurement project, Procuring characteristics; performance or functionality requirements; or Entities may consider employing the design-and-build scheme product or service standards specified by appropriate as a procurement approach whereby a single contractor is government entities or similar international bodies. responsible for both design and construction of the government building, which allows quality assurance and effective cost and Reference to a brand name shall not be allowed except schedule management. for reasons of technical compatibility, interoperability, servicing, 1-1 15 SEC. 15. Engagement of a Procurement Agent. - As part obligations of the two (2) parties; the ABC; services fees, if of strategic procurement planning, the HoPE may authorize applicable; and such other details as may be necessary. The the engagement of a government procurement agent, which MOA shall be in effect at least six (6) months before the end shall undertake the functions of the BAC, if the Procuring of the validity of the relevant appropriations as authorized in Entity does not have the capability or proficiency to undertake the relevant appropriations law, or in the corporate operating a particular procurement: Provided, That the Procuring Entity budgets or appropriations ordinances, in the case of GOCCs, cannot delegate the issuance of the notice of award and the GFis, and LGUs respectively. In no case shall the award of contract to the procm·ement agent and there shall undertakings of the MOA contravene this provision and its IRR be no transfer of funds to the procurement agent, except for to be issued by the GPPB. the payll!ent of service fee, if applicable. Procuring Entities with existing MOAs with a The engagement of a procurement agent shall be further procurement agent which have not yet been implemented upon subject to the following conditions: the effectivity of this Act are encouraged to revisit the same and amend as may be necessary to conform with this (a) Made on a per procurement project basis; prov1s10n. (b) Limited to procurement undertaken through SEC. 16. Use of Frameworh Agreement. - Procuring competitive bidding: Provided, That in instances where the Entities may use a framework agreement as a procurement Procuring Entity lacks sufficient qualified personnel to strategy to expand the pool of prospective bidders, take constitute its own BAC, the Procuring Entity may engage a advantage of economies of scale, minimize the administrative procurement agent to undertake other modes of procurement; burden of conducting separate procurement activities, and generate time and money savings. (c) The procurement agent should be another government agency expert in the field which is the subject of The framework agreement shall be in the nature of an procurement. This shall be expressly provided in the option contract between the Procuring Entity and the bidder Memorandum of Agreement (MOA) with the Procuring Entity; that stipulates the terms and conditions that would be applied in subsequent contracts for the procurement of Goods, (d) Have at least one (1) representative from the Infrastructure Projects, and Consulting Services with a single Procuring Entity to be designated as a member of the TWG or multiple contractor, manufacturer, supplier, distributor, of the procurement agent to ensure that technical specifications consultant, and service provider. or terms of reference of the Procuring Entity are properly reflected in the bidding documents; SEC. 17. Pooled Procurement. - Procuring Entities shall consider the advantages of a pooled procurement mechanism, (e) Have a representative from the Procuring Entity as a procurement strategy, by collaborating or consolidating designated as a provisional member of the BAC of the their requirements in a single , joint, bulk, or group procurement agent; and procurement in order to achieve greater value for money and procurement efficiency through demand aggregation, improve (f) Covered by a MOA that is executed between the quality standards by combining technical capacity, and to Procuring Entity and the procurement agent providing the increase availability and secure sustainability of supplies. details of the project to be procured; the accountabilities and 16 17 SEC. 18. Renewal of R egular and Recurring Services. - information accessible and tra n sparent at a ll stages of The Procuring Entity may consider undertaking renewal of procurement except procurements involving and affecting regular and recurring services to facilitate the immediat e national security. implementation of procurement projects. The duration for each renewal contract shall not exceed one (1) year. To take advantage of the significant built-in efficiencies of the PhilGEPS and the volume discounts inherent i n bulk SEC. 19. Warehousing and I nventory System. - For purchasing, through t he centralized procurement undertaken efficient planning for th e storage and tracking of procured by t h e PS-DBM, all Procuring E ntities shall utilize the Goods, Procuring Entities may adopt a general system of PhilGEPS for the procurement of CSEs in accordance with the warehousing and cloud-based inventory of procured Goods, as rules and procedures t o be established by t he GPPB in may be necessary depending on the type, nature and volume consultation with the PS-DBM. The PhilGEPS shall include of procurement undertaken by the Procuring Entity and the following innovative features and solutions: electronic subject to the avail ability of funds in accordance with bulletin board; registry of supp liers, manufacturers, applicable budgetin g, accounting, and auditing rules and distributors, contractor s, con sultants, and service providers; regulations. electronic catalogue; virtual store; electronic marketplace; electronic reverse auction; electronic small value procurement; The Procuring Entity, whenever applicable, shall develop electronic payment; and electronic bidding. Electronic signatures guidelines for its warehousing functions en suring auditable used for t his purpose must comply with the standards set in systems that promote integrity and efficiency, a n d sh all Republic Act No. 8792 or the "Electronic Commerce Act". establish a compliance framework mandating training, audits, and transparent reporting. All Procuring Entities shall register with the PhilGEPS and ensure their access to an online network to facilitate open, The adoption of cloud-based inventory by NGAs, GOCCs, speedy, and efficient online transmission, conveyance, an d use GFis, SUCs, and LGUs shall be done in consultation with the of electronic data messages or electronic documents. Depart ment of Information and Communications Technology (DICT) to ensure that the risks and vulnerabilities associated Procuring Entities with established electronic procurement with data storage are adequately addressed through pr oper systems shall provide for the seamless interface of systems with and effective security protocols. the PhilGEPS to ensu re efficient sharing of procurement information.

ARTICLE III SEC. 21. Electronic Payment. - The electronic and PROCUREMENT BY ELECTRONIC MEANS uniform payment syst em to be used by the Procuring Entity and suppliers, manufacturers, distributors, contractors, SEC. 20. Procurement by Electronic Means. - To promote consultants, and service providers shall be defined in the gr eater transparency, accountability, operational efficiency, and context of the Integrated Financial Management Information value for money, the PhilGEPS shall be the single electronic System to be developed by t he DBM, Commission on Audit portal that s hall serve as the primary source of information (COA), and Department of Finance (DOF). and channel in the conduct of all procurement activities of t he government. The PhilGEPS shall maintain an integrated SEC. 22. Security, I ntegrity, and Confidentiality. - The system that covers procurement planning until payment. The PhilGEPS shall ensure the security, integrity, an d PhilGEPS shall devel op features that make pertinent 18 19 confidentiality of documents submitted, stored, and managed (i) Other relevant government agencies, as may be through the system. It shall include features that provide for determined by the GPPB: an audit trail of electronic transactions and allow the COA to verify the security and integrity of the system at any time. Provided, That the GPPB shall coordinate with the DICT, PS-DBM, DTI, CIAP, LGUs, BIR, SEC, CDA, IC, and other SEC. 23. Systems Interconnectivity between Government relevant government agencies to ensure the implementation of Agencies. - Notwithstanding the provisions of Republic Act this Section: Provided, further, That at all times, the sharing No. 10173, otherwise known as the "Data Privacy Act of 2012", of information between and among government agencies and the GPPB is hereby authorized to promulgate rules to ensure instrumentalities shall protect trade secrets and promote the interGonnectivity of the following government databases: competition. (a) PhilGEPS in relation to the Government of the SEC. 24. Procurement Data Analytics. - The GPPB, Philippines Official Merchants Registry (GOP-OMR); through its Technical Support Office (TSO), shall analyze the data obtained from the PhilGEPS and submitted procurement (b) DTI on its database relating to business registration, reports to ensure disclosure of information related to the list of all ongoing projects in public and private sector, procurement process. The GPPB shall publish an annual report and records of priority domestic goods and services; on its website for the following purposes: (c) Construction Industry Authority of the Philippines (a) Assist Procuring Entities in the strategic planning (CIAP) on the CPES and the Philippine Contractors' of their procurement projects; Assessment Board (PCAB) on the licensing of contractors; (b) Assist oversight bodies in formul ating and (d) All LGUs on their issuance of permits and licenses; implementing data-driven effective procurement policies and rules pursuant to the State policy under Section 2 of this Act; (e) Bureau of Internal Revenue (BIR) on tax returns and clearance; (c) Assist government agencies in identifying and detecting patterns that could help deter or mitigate fraud and (f) Securities and Exchange Commission (SEC) and non-competitive practices; and Cooperative Development Authority (CDA) on mandatory submissions of all registered enterprises and beneficial (d) Facilitate public awareness, active participation, and ownership information; monitoring of government procurement processes. (g) Insurance Commission (IC) on the list of identified SEC. 25. Maintenance, Update, and Bachup. - The surety companies providing callable-on-demand surety PhilGEPS shall undertake periodic maintenance and upgrading contracts; of all its systems. It shall formulate a business continuity plan which shall include features such as, but not limited to, the (h) Procuring Entities with established electronic establishment of backup sites, and regular backup of all procurement systems and websites on the status of projects, information to maintain the integrity of the system and contracts, and performance of its respective winning bidders; minimize risk of halts or interruptions in operations. and 21 20

ARTICL E IV SEC. 27. Competi tive Bidding . - A mode of procurem ent which is open to participa tion by any eligible bidder and which MODES OF PROCUREMENT consists of the following processe s: (a) Publicat ion; SEC. 26. Modes of Procurem ent. - The Procurin g Entity shall adopt any of the followin g modes of procure ment (b) Pre-bid conference; consiste nt with the fit-for-pu rpose procurem ent approach : (a) Competi tive Bidding; (c) Eligibili ty screenin g of prospect ive bidders; (b) Limited Source Bidding; (d) Receipt and opening of bids; (c) Competi tive Dialogue; (e) Evaluati on of bids; (f) Post-qua lification ; and (d) Unsolici ted Offer with Bid Matchin g; (e) Direct Contract ing; (g) Award of contract . (f) Direct Acquisition; Notwith standing the applicab ility of the other modes of procurem ent defined herein, the Procurin g Entity may adopt (g) Repeat Order; competi tive bidding in its procure ment activity. (h) Small Value Procurem ent; SEC. 28 . Limited Source Bidding . - A mode of procure ment that involves direct invitatio n to bid by the (i) Negotiat ed Procurem ent; Procuri ng Entity to a se t of pre-sele cted supplie rs or consulta nts with known experien ce and proven capabili ty G) Direct Sales; and relative to the requirem ents of a particul ar contract . Limited source bidding may only be resorted to in any (k) Direct Procure ment for Science, Technol ogy and Innovation. of the following conditio ns: (a) Procurement of highly specialized types of Goods and The specific terms and conditio ns for the applicat ion of Consulti ng Services which are known to be obtainab le only each mode of procurem ent shall be specified in the IRR: from a limited number of sources; Provided, That the GPPB is authoriz ed to approve changes (b) Procure ment of major plant compone nts where it is in the procure ment process to adapt to improve ments in deemed advanta geous to limit the bidding to known eligible modern and emergin g technologies: Pro vided, further, That bidders in order to maintai n an optimum and uniform level such modific ations are consiste nt with the provisio ns of Section 3 of this Act. of quality and perform ance of the plant as a whole; or 23 22 (c) Procurement of highly specialized Infrastructure (b) The Procuring Entity h as invited comparative or Projects involving and affecting national security. competitive bids. SEC. 29. Competitive Dialogue. - A mode of procurement The contract shall be awarded to the original offer or if: that employs a two-stage bidding process where the Procuring (1) no comparative or competitive bid is received within the Entity invites suppliers, manufacturers , distributors, period prescribed in the IRR; (2) the bids submitted by the contractors, consultants, and service providers to a dialogue comparative offerors failed at bid opening; or (3) the original to propose solutions to address its needs and requirements. offeror matched or submits a lower price proposal against the comparative or competitive bid. Upon the submission of their initial technical proposals, without price tenders, eligible bidders shall be en gaged in a For purposes of this mode of procurement, and when the dialogue to :finalize the project requirements. Bidders shall then new concept or technology is acceptable, the Procuring Entity submit their technical and financial proposals which shall be may secure funds from available sources, subject to government subjected to the bid evaluation and post-qualification processes budgeting, accounting, and auditing rules. prescribed under this Act. Competitive dialogue may be resorted to if any of the following conditions are present: SEC. 31. Direct Contracting. - A mode of procurement wherein t he supplier is required to submit a price quotation (a) The procurement includes innovative design or or a pro-forma invoice together with t he conditions of sale, solutions involving procurement of complex purchases such as, which may be accepted immediately or after some negotiations. but not limited to, sophisticated products, intellectual services, Direct contracting may only be resorted to in any of the or major information and communications technology projects; following conditions: (b) The contract requires prior negotiations with the (a) When the goods are of proprietary natme, which can suppliers, manufacturers, distributors, contractors, consultants, be obtained only from the proprietary source, or when patents, and service providers because of specific circumstances related trade secrets, and copyrights prnhibit others from to the nature, complexity, legal and financial issues, or risks manufacturing the same item; attached to the procurement; or (b) When the procurement of critical components (c) The technical specification s cannot be sufficiently from a specific manufacturer, supplier, or distributor is established or precisely defined by the Procuring Entity. a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of the SEC. 30. Unsolicited Offer with Bid Matching. - A mode contract; or of procurement wherein the Procuring Entity may consider un solicited offers on a n egotiated basis for Goods and (c) When it i s sold by an exclusive dealer or Consulting Services: Provided, That the following conditions manufacturer which does not have sub-dealers selling at lower are met: prices and for which no suitable substitute can be obtained at more advantageous terms to the government. (a) The procurement involves a new concept or technology as determined by the HoPE; and SEC. 32. Direct Acquisition. - A mode of procurement wherein , subject to compliance with the identified legal, 24 25 technical, and financial requirements, a Procuring Entity may SEC. 35. Negotiated Procurement . - Negotiated procure directly from any known and reputable source, its procurement shall be allowed only in the following instances: required non-CSEs and CSEs not available in the PS-DBM and services with an ABC not exceeding Two hundred thousand (a) Two Failed Biddings. In case of two (2) failed pesos (P200,000.00). The threshold amount can be adjusted as biddings, as provided in Section 64 hereof; may be deemed appropriate by the GPPB to reflect changes in economic conditions and for other justifiable reasons. (b) Emergency Cases. In case of imminent danger to life or property during a state of calamity, or when time is of the SEC. 33. Repeat Order. - A mode of procurement essence arising from natural or man-made calamities or other wherein the Procuring Entity may procure Goods from the causes where immediate action is necessary to prevent damage previous winning bidder whenever there arises a need to to or loss of life or property, or to restore vital public services, replenish the Goods procured under a contract previously infrastructure facilities, and other public utilities; awarded through bidding. Repeat order shall be subject to the post-qualification process prescribed in the bidding documents (c) Take-over of Contracts. Take-over of contracts which and all the following conditions: have been rescinded or terminated for causes provided for in the contract and existing laws, where immediate action is (a) The unit price must be equal to or lower than that necessary to prevent damage to or loss of life or property, or provided in the original contract; to restore vital public services, infrastructure facilities, and other public utilities; (b) Except in special circumstances as may be defined in the IRR, the repeat order shall be availed of only within (d) Adjacent or Contiguous. Where the subject contract six (6) months from the date of the notice to proceed arising is adjacent or contiguous to an ongoing Infrastructure Project from the original contract; and or Consulting Service: Provided, That the original contract is the result of a competitive bidding; the subject contract to be (c) The repeat order shall not exceed twenty-five percent negotiated has similar or related scope of work; it is within (25%) of the quantity of each item in the original contract. the contracting capacity of the contractor; the contractor uses the same prices or lower unit prices as in the original contract SEC. 34. Small Value Procurement. - A mode of less mobilization cost; the amount involved does not exceed the procurement whereby the Procuring Entity requests for the amount of the ongoing project; and the contractor has no submission of at least three (3) price quotations for goods not negative slippage: Provided, further, That negotiations for the avail able in the PS-DBM, Infrastructure Projects, and Consulting Services. The receipt of one (1) quotation is procurement are commenced before the expiry of the original sufficient to proceed with the evaluation of bidders: Provided, contract. Whenever applicable, this principle shall also govern That the amount involved does not exceed Two million pesos consultancy contracts, where the consultants have unique (P2,000,000.00) subject to the periodic review of the threshold experience and expertise to deliver the required service; amount and adjustments as may be deemed appropriate by the GPPB. (e) Agency-to-Agency. Procurement of Goods, Infrastructure Projects, and Consulting Services from another agency of the In the case of LGUs, the GPPB is authorized to adjust government which has the mandate and absorptive capacity to the threshold amount based on the LGU income classification. undertake the project, as certified by the servicing agency and validated by the Procuring Entity; 26 27 (f) Scientific, Scholarly or Artistic Work, Exclusive with which the Philippines has entered into a defense Technology and Media Services. Where Goods, Infrastructure cooperation agreement or oth erwise maintains diplomatic Projects and Consul ting Services can be contracted to a relations wh en the procurement involves m ajor defense particular supplier, contractor or consultant and as determined equipment or materiel and/or defense-related consultancy by the HoPE, for any of the following: services, subject to the following conditions: (1) Work of art; commissioned work or services for (1) The Secretary of National Defense has deemed it creative design or a specific artist skill; necessary in order to protect the interest of the country; (2) ;Restorative works for the conservation of historical (2) The expertise or capability r equired is not locally and culturally significant structures; available; and (3) Scientific, academic, scholarly work or research, or (3) The defense equipment or materiel and/or defense- legal services; related consultancy services to be procured under this modality is included in the Armed Forces of the Philippines (4) Highly-specialized life-saving medical and biotech Modernization Program previously approved by the President equipment and devices, medicine, supplies, materials, tools and of the Philippines. consumables. as certified by the Department of Health (DOH); In the interest of national security, the Secretary of (5) Scientific, technical, economic, business, trade or legal National Defense may also directly negotiate with a supplier journal, magazine, paper, subscription, or other exclusive or manufacturer in procuring inventory-based items, pertaining statistical publications and references; or to major defense equipment or materiel, subject to the following conditions: (6) Media documentation, advertisement, or announcement through television, radio, newspaper, internet, and other (1) Direct negotiation will address compatibility, communication media; interoperability, and sustainability; (g) Highly Technical Con sultants. In the case of (2) The supplier or manufacturer has fully and individual consultants hired to do work that is (1) highly satisfactorily implemented a contract of the same item with technical or proprietary; or (2) primarily confidential or policy the Department of National Defense (DND), any of its bureaus determining: Provided, That in both instances, trust and or attached agencies, or law enforcement agencies; and confidence are the primary considerations for the hiring of the consultant: Provided, however, That the term of the individual (3) The supplier or manufacturer shall provide a consultant shall, at the most, be on a yearly basis, renewable performance security in accordan ce with this Act. at the option of the appointing HoPE, but in no case shall exceed the term of the latter; Law enforcement agencies may utilize this mode when the aforementioned conditions are met. These agencies are the (h) Defense Cooperation Agreements and Inventory-Based Philippine National Police (PNP), including the PNP Maritime Items. The Secretary of National Defense may directly Group " (PNP-MG) and the PNP Aviation Security Group negotiat:e with an agency or instrumentality of another country (PNP-AVSEGROUP), Philippine Drug Enforcement Agency 28 29 (PDEA), Bureau of Immigration (BI), Office for Transportation gr oups, social enterprises, associations of barangay health Security (OTS), Bureau of Fire Protection (BFP), National workers, farmers, fisherfolk, women, elderly, indigenous Bureau of Investigation (NBI), Presidential Security Group peoples, parent-teacher associations, solo parents, and per sons (PSG), National Police Commission (NAPOLCOM), Bureau of with disabilities; Jail Management and Penology (BJMP), Bureau of Corrections (BuCor), and Philippine Coast Guard (PCG); (1) United Nation s (UN) Agencies , International Organizations or I nternational Financing Institutions. (i) Lease of Real Property and Venu e. For lease of real Procurement from specialized agencies of the UN, international property and venue for official use, it is preferred that organizations or international financing institutions, of any of government agencies lease publicly-owned real property or the following: venue from other government agencies. If there is an available publicly-owned real property or venue that complies with (1) Small quantities of off-the-shelf goods, exclusively used the requirements of the Procuring Entity, it may enter into in education and health; a contract of lease with the government-agency owner. In the event that the Procuring Entity would resort to privately- (2) Specialized pr oducts wh er e the number of suppliers owned real property or venue, the end-user unit shall justify 1s limited, such as vaccines; that the same is more efficient and economical to the government; (3) Goods and Consulting Services involving advanced technologies, techniques, and innovations not locally available G) NGO Participation. When an appropriation law or as certified by th e DTI, when it is most advantageous to the ordinance earmarks an amount to be specifically contracted Procuring Entity; or out to non-governmental or ganizations (NGOs), the Procuring Entity may enter into a MOA with an NGO; (4) Goods for critical public health priorities as determined by the DOH; (k) Community Participation. The Procuring Entity may directly purchase agricultural and fishery products from local (m) Direct Retail Purchase of Petroleum Fuel, Oil and farmers and fis h erfolk and directly n egotiate simpl e Lubricant (POL) Products, electronic charging devices, and Infrastructure Projects with local communities or social groups Online Subscription s. Direct retail purchase of POL products, or members thereof. For this purpose, community or social electronic char ging devices, and online subscriptions not groups may be classified as organi zed or unorganized. available in the P S-DBM may be made by end-users delegated Organized community or social group (OCSG) shall refer to to procure the same from identified direct suppliers or service a community or social group that h as a defined organizational providers, where goods and services are required by a structure, identified membership and leadership, adopts a Procurin g Entity for the efficient discharge of its principal principle of shared responsibility for their actions and shall functions or day-to-day operations. Online subscription includes: be registered with the appropriate regulatory bodies. It shall ( 1) compu ter software and applications such as video include Microenterprises. Unorganized community or social conferencing applications, computer-aided design and drafting group (UCSG) shall refer to a community or social group that applications, office productivity tools, and system protection is not registered with any government regulatory body or a software; (2) electronic publications, reference materials and member of a duly recognized private organization, which journals; (3) off-the-shelf software and applications, except include, but are not limited to, community labor or "pakyaw" internet and cloud computing services; and (4) web-based services. 30 31 The GPPB may provide an amendment on the above months from the acceptance of the non-CSEs by the original enumeration or make an additional type of negotiated government agency; procurement subject to the following conditions: (d) The contract to be executed between the Procuring (1) The Procuring Entity has requested the GPPB for the Entity and the supplier must be within the amount of t he use of negotiated proclll'ement of Goods, Infrastructure Projects contract executed with the original government agency, and or Consulting Services with utmost necessity and justification; that the supplier must offer the non-CSEs to the Procuring Entity at the same or lower unit price offered to the original (2) The GPPB shall have :findings that any of the existing government agency; and modes of procurement will be impossible or defeats the purpose of the procurement; (e) The supplier agreed to the terms offered by the Procuring Entity and remains legally, technically, and (3) The Goods, Infrastructure Projects or Consulting financially capable to undertake the contract with the Services are better identified by the Procuring Entity on its Procuring Entity. distinctiveness and uniqueness to a procurement program, activity or project; and For purposes of this provision, the original government agency shall provide a copy of the relevant procurement (4) Other circumstances that may be identified by the documents and papers with the Procuring Entity for GPPB which justifies the addition of a new type of negotiated procurement, budgeting, accounting, and auditing purposes. procurement that will address the concerns of one or more government agencies. SEC. 37. Direct Procurement for Science, Technology and Innovation. - A mode of procurement where the Procuring SEC. 36. Direct Sales. - A mode of procurement of Entity may procure the following goods and services directly non-CSEs where a Procuring Entity directly purchases from from a legally, technically and financially capable manufacturer a supplier that has satisfactorily delivered non-CSEs to another or supplier, or from a qualified startup business: government agency under a completed contract. Direct sales may only be resorted to when all of the following conditions (a) Supplies, materials, equipment, and related services are met: to be used actually, exclusively, and directly in the conduct (a) The proclll'ement contract by the original government of research and development projects or activities; agency that procured the non-CSEs was awarded through bidding; (b) Goods which include products of a commissioned task by a Procuring Entity which were processed, developed, and (b) The government agency that originally procured the manufactured in satisfaction of its needs and requirements. non-CSEs has inspected and accepted the same, and has issued These include: (1) pre-commercial goods and services that a certification that the supplier ha·s satisfactorily performed involve early market engagement to stimulate the development its obligations under the contract; of new goods and services that meet specific government needs; and (2) goods to be manufactured by qualified startup (c) The procurement for the same non-CSEs by the businesses alongside the thrust to develop and support new Procuring Entity shall only be initiated once within six (6) and startup businesses. 32 33 Unless otherwise indicated in a written agreement, the When national security is involved, the HoPE shall decide intellectual property rights and ownership over the whether or not to video record all procurement related commissioned goods developed and manufactured pursuant conferences, taking into consideration the nature, classification, to this provision shall belong to the Procuring Entity, and sen sitivity, and confidentiality thereof. no manufacturing or sale thereof can be performed by t he supplier; and The GPPB is authorized to adjust the threshold amounts and the storage period as may be deemed appropriate. (c) Other goods analogous to the foregoing. SEC. 39. Prohibition on Splitting of Government The GPPB, in coordination with the National Innovation Contracts. - In using any of the modes of procurement under Council (NIC), shall develop procurement policies encompassing Article IV of this Act, the Procuring Entity shall ensure that the entire research, innovation, and enterprise ecosystem. To this does not result in splitting of government contracts, which foster innovation, relevant government agencies shall expedite involves dividing or breaking up of contracts into smaller the release of goods used in and documents necessary for quantities and amounts, or dividing contract implementation science, technology, and innovation. into artificial phases or subcontracts for the purpose of evading or circumventing the requirements of this Act and its IRR: SEC. 38. Video Recording of All Procurement-Related Provided, That procurement per unit, by lot or package, is Conferences for Competitive Bidding. - To enhance the allowed subject to the available budget, required quantity, tran sparency of the procurement process, the Procuring Entity product availability, delivery sites, geographical location and shall keep a video recording of all procurement-related market capacity. conferences for Competitive Bidding , which includes pre-procurement conference, pre-bid conference, bid opening, SEC. 40. Procurement of CSE. - All NGAs, GOCCs, and other meetings of the BAC. All procurement-related GFis, SUCs, and LGUs shall only procure their CSE from conferences for Competitive Bidding shall not commence PS-DBM, subject to its availability. In case of unavailability without a video recording initiated by the BAC. The Procuring of stock or for purposes of effi ciency, practicality, and/or Entity shall also livestream the preliminary examination and economic viability, Procuring Entities may procure their CSEs the opening of the bids to the public on its website, social from other sources, subject to guidelines to be issued by media account, or any other form of livestreaming services. the GPPB. The mandatory video recording shall only apply to th e Due to the efficiency and economy of bulk purchasing, procurement of Goods costing above Ten million pesos the PS-DBM may deal directly with manufacturers or exclusive (Pl0,000,000.00), Infrastructure Projects costing above Twenty distributors subject to legal, technical, and financi al million pesos (P20,000,000.00), and Consulting Services costing requirements, ensuring that products are obtained from reliable above Five million pesos (P5,000,000.00) using competitive sources, of the best quality, and at the most advantageous price bidding as the mode of procurement. for the whole of government. Access to goods and equipment in economic lot sizes may likewise be achieved by PS-DBM The Procuring Entity shall ensure that copies of the video through consignment or any appropriate contractual recording shall be stored for not less than five (5) years and arrang;ment. shall be made available to the public upon request and payment of a fee. For purposes of this Section, consignment shall refer to an arrangement where the consignor gives actual or constructive possession of goods, equipment, and services to the 34 35 consignee without transfer of ownership and disbursement of HoPE: Provided, That no member of the BAC shall serve for government funds between consignee and consignor, and such more than three (3) consecutive terms, except when allowed goods, equipment, and services are to be sold by the consignee by the HoPE. In case of resignation, retirement, separation, for and on account of the consignor at terms advantageous to transfer, reassignment, removal, or death, the replacement the government. The consignee shall remit the proceeds of the shall serve only for the u nexpired term: Provided, further, sale to the consignor, net of service fees, if applicable. The That in case of leave or suspension, the replacement shall PhilGEPS electr onic marketplace may be used as a serve only for the duration of the leave or suspension. For consignment platform for goods and equipment. justifiable causes to be expressed in writing, a member shall be suspended or removed by the HoPE. For transfer of PS-DBM, which is tasked with the centralized knowledge and experience, membership in the BAC shall allow procurement of CSE for the government in accordance with for staggered designations, to be identified in the IRR. Letter of Instruction (LOI) No. 755, series of 1978, E.O. No. 359, series of 1989, and Administrative Order No. 17, series SEC. 42. Functions of the BAG. - The BAC shall have of 2011, shall develop the parameters in the identification, the following functions: expansion, and the definition of requirements and specifications of CSEs through the conduct of market scoping, market (a) Recommend to the HoPE the use of any of the smvey and market availability. modes of procmement as provided in Article IV of this Act;

ARTICLE V (b) Publish and/or post the invitation to bid; BIDS AND AWARDS COMMI'ITEE (c) Conduct pre-procurement and pre-bid conferences; SEC. 41. The BAG and its Composition. - Each (d) Determine the eligibility of prospective bidders; Procuring Entity shall establish one or several BACs as warranted by the volume and complexity of the procuxement (e) Receive bids; projects and to ensure the efficient and effective conduct of its procurement, as determined by the HoPE. (f) Conduct the evaluation of bids; Each BAC shall have five (5) or seven (7) members, at (g) Undertake post-qualification proceedings; the discretion of the HoPE. It shall be chaired by at least a third ranking permanent official of the Procming Entity or (h) Recommend award of contracts to the HoPE or the in the absence thereof, a permanent official of the next lower duly authorized representative: Provided, That in the event rank other than the duly authorized representative of the the HoPE shall disapprove such recommendation, such HoPE. The members of the BAC shall be designated by the disapproval shall be based only on valid, reasonable, and HoPE. However, in no case shall the HoPE or the approving justifiable grounds to be expressed in writing, copy fmnished authority be a member of the BAC and the Chief Accountant the BAC; cannot be a regulax member of the BAC. (i) Recommend the imposition of sanctions in accordance Unless sooner removed for a cause, the members of the with Article XXI; BAC shall have a fixed term of one (1) year reckoned from the date of designation, renewable at the discretion of the 36 37 G) Prepare a procurement monitoring report that shall The GPPB shall maintain a registry or roster of qualified be approved and submitted by the HoPE to the GPPB on a observers for the benefit of the Procuring Entities and shall semestral basis. The contents and coverage of this report shall have the authority to determine additional qualifications of be provided in the IRR; and the observers. (k) Perform such other related functions as may be SEC. 44. Procurement Unit. - There shall be a necessary, including the creation of a TWG from a pool of procurement unit, division, or office in each Procuring Entity technical, financial, and/or legal experts to assist in the which shall serve as Secretariat to the BAC and perform other procurement process. The HoPE shall be informed of the functions related to procurement as may be delegated by the creation of a TWG. HoPE. The creation of the procurement unit, division, or office shall be subject to the standards and guidelines prescribed by SEC. 43. Observers. - To enhance the transparency of the DBM. the process, the BAC shall, in all stages of the procurement process invite, in addition to the representative of the COA, SEC. 45. Honora.ria.. - The Procuring Entity may grant at least two (2) observers to sit in its proceedings: one (1) from payment of honoraria to all members of the BAC, regardless a duly recognized private group in a sector or discipline of position, TWG, and ad hoe Secretariat, in an amount not relevant to the procurement at hand, and the other from a to exceed thirty percent (30%) of theix respective basic monthly civil society organization (CSO) or people's organization (PO), salaries, subject to availability of funds, which may be sourced as the case may be: Provided, That they do not have any from fees collected by the BAC in relation to its procurement direct or indirect interest in the contract to be bid out. The activities. The DBM shall promulgate the necessary guidelines private group or CSO or PO shall be duly registered with the for this purpose and may determine other sources of funds to SEC or the CDA, as the case may be, and the observers implement the grant of honoraria. therefrom shall meet the following qualifications: SEC. 46. Professiona.liza.tion of Government Procurement (a) Knowledge, experience or expertise in procurement or Practitioners. - In order to build a cadre of public procurement m the subject matter of the contract bid; professionals, the DBM shall create procurement positions in the government based on the qualification standards (b) Absence of actual or potential conflict of interest in recommended by the GPPB and approved by the Civil Service the contract to be bid out; and Commission (CSC). The GPPB shall ensure the professionalization of procurement practitioners and for this (c) Any other relevant criteria that may be determined purpose, shall develop the following: by the GPPB under the IRR: (a) A competency framework to identify the skills, Provided, further, That the head of the sector, discipline knowledge, and attribute of each of the procurement positions; or organization duly certifies that the observer is a member in good standing. Each observer shall make a separate report (b) A certification framework to upscale procurement on the conduct of the public bidding, its procedures, conditions, competencies and ensure continued professional development; and problems, if any, which shall be submitted to the HoPE, PhilGEPS and COA. The GPPB shall prescribe the form of (c) A code of ethics for public procurement professionals; the report. and 38 39 (d) An inclusive capacity development program in order to enhance accountability of all procurement practitioners, both (h) Form of Bid, Price Form, and List of Goods or Bill from the public and private sectors, promote supplier diversity, of Quantities; promote competition, and optimize efficiency and value for money. (i) Delivery Time or Completion Schedule; Moreover, the Professional Regulation Commission (PRC), G) Form and Amount of Bid Security; in consultation with the GPPB, shall establish, administer. j and regulate a professional licensing program and the (k) Form and Amount of Performance Security and continuing education of public procmement professionals as a Warranty; requirement for holding a procurement position in government. (1) Form of Contract, and General and Special

ARTICLE VI Conditions of Contract; and PREPARATION OF BIDDING DOCUMENTS (m) Additional documentary requirements or specifications necessary to complete the information required for the bidders SEC. 47. Fann and Content of Bidding Documents. - to prepare and submit their respective bids. The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals prescribed Based on specific needs, t h e en d-user unit or by the GPPB . The Bidding Documents shall include implementing unit of the Procuring Entity shall be responsible the following: for the preparation of all documents necessary for the procurement activity including, but shall not be lin1ited to, the (a) Approved Budget for the Contract; technical specifications, scope of work, or terms of reference. (b) Invitation to bid/request for expression of interest; SEC. 48. Access to Information. - In all stages of the preparation of the Bidding Documents, the Procuring Entity (c) Instructions to Bidders, including criteria for shall ensure equal access to information. Prior to their official eligibility, bid evaluation and post-qualification, the weight release, no aspect of the Bidding Documents shall be divulged assigned to each criterion and the quality-price ratio if awarded or released to any prospective bidder or person having direct to the most economically advantageous responsive bid or indirect interest in the project to be procured, or to any (MEARB), as well as the date, time and place of the pre-bid party, except those officially authorized in the handling of conference (where applicable), submission of bids and opening the documents. of bids; In procmements involving and affecting national security, (d) Terms of Reference; the disclosure of the specific components of the procurement documents, such as the technical specifications, requirements, (e) Scope of work, where applicable; and compone nts, shall be dependent upon the HoPE, having due regard to the nature, classification, sensitivity, and (f) Eligibility Requirements; confidentiality of the relevant documents vis-a-vis the purpose and reason for the request. (g) Plans and Technical Specifications; -11

ARTICLE VII financial aspects of the project is more appropriate to recognize both the qualitative and economic values of the bid. INVITATION TO BID The period for the conduct of pre-procurement conference SEC. 49. Pre-Procurement Conference. - Prior to the shall be provided in the IRR. issuance of the invitation to bid, the BAC is mandated to hold a pre-procurement conference on each and every procurement, SEC. 50. Publica.tion a.nd Contents of the lnvita.tion to except those contracts below a certain level or amount specified Bid. In line with the principle of transparency and in the IRR, in which case. the pre-procurement conference competitiveness and to ensure the widest possible dissemination is optional. thereof, all invitations to bid shall be published continuously by the Procuring Entity, for seven (7) calendar days in the In procurements involving and affecting national security, PhilGEPS, in any conspicuous place in the premises of the the pre-procurement conference shall be dependent upon the Procuring Entity, and in the website or social media platforms HoPE , having due regard to the nature, classification, of the Procuring Entity, if available, or such other channels sensitivity, and confidentiality of the Goods, Infrastructure as may be authorized by the GPPB. For justifiable reasons, Projects, and Consulting Services being procured. Procuring Entities that cannot publish procurement opportunities in its website, social media platform, or such The pre-procurement conference shall assess the readiness other channels authorized by the GPPB shall publish its of the procurement in terms of confirming the certification of invitation to bid, at least once, in a newspaper of general availability of funds, as well as reviewing all relevant nationwide circulation. documents in relation to their adherence to the law. This shall be attended by the BAC, the end-user unit or implementing In procurements involving and affecting national security, unit, or officials who prepared the Bidding Documents and the publication shall be dependent upon the HoPE, having due draft invitation to bid. Consultants, if any, may W<.ewise attend regard to the nature , classification, sensitivity , and the pre-procurement conference, as necessary. confidentiality of the Goods, Infrastructure Projects, and Consulting Services being procured. For the procurement of Goods and Infrastructure Projects, the BAC, based on the recommendation of the • The details and mechanics of implementation shall be end-user unit, shall finally determine whether the contract will provided in the IRR. be awarded to the Lowest Calculated Responsive Bid (LCRB) or the MEARB. The GPPB is authorized to adopt other award The Invitation to Bid shall contain, among others: criterion, such as, but not limited to, the Most Advantageous Responsive Bid (MARB), in the procurement of Goods and (a) A brief description of the subject matter of Infrastructure Projects consistent with the fit-for-purpose the Procurement; procurement approach. The specific terms and conditions of such award criterion shall be specified in the guidelines to be (b) A general statement on the criteria to be used by issued by the GPPB. the Procuring Entity for the eligibility check, the examination and evaluation of Bids, and post-qualification: Provided, That The MEARB, as an award criterion, may be used where in the case~of procurement of Consulting Services, the the consideration of assigning weights for the technical and invitation to bid shall also contain the criteria for t he shortlisting of prospective bidders; ./2 n (c) For the procurement of Goods and Infrastructure procurement process: Provided, That in procurements involving Projects, whether the contract will be awarded to the LCRB and affecting national security, the pre-bid conference shall be or the MEARB; dependent on the HoPE, having due regard to the nature, classification, sensitivity, and confidentiality of the Goods, (d) If the contract is to be awarded to the MEARB, the Infrastructure Projects, and Consulting Services being procw:ed. criteria to be used in assessing the bid, the weight or score assigned by the Procuring Entity to each criterion, and the ARTICLE VIII quality-price ratio to determine the award; RECEIPT AND OPENING OF BIDS (e) The date, time, and place of the deadline for the submission and receipt of the eligibility requirements, the SEC. 52. Eligibility Requirements for the Procurement pre-bid conference, if any, the submission and receipt of bids, of Goods, Infrastructure Projects, and Consulting Services. - and the opening of bids; The BAC or, under special circumstances specified in the IRR, its duly designated organic office, shall require the submission (f) The ABC to be bid; of the prospective bidder's valid and updated PhilGEPS Certificate of Registration and Membership to ensure that the (g) The source of funds; bidder is technically, legally, and financially capable to undertake the proposed project for the procurement of Goods, (h) The period of availability of the Bidding Documents, Infrastructure Projects, and Consulting Services within the and the place where these may be secured; period set forth in the Invitation to Bid. (i) The contract duration; and A prospective bidder may be allowed to submit its eligibility requirements electronically. However, the said bidder G) Such other necessary information deemed relevant by shall later on certify under oath as to the correctness of the the Procuring Entity. statements made and the completeness and authenticity of the documents submitted. SEC. 51. Pre-bid Conference. - At least one (1) pre-bid conference shall be conducted for each procurement, unless For procurement of Goods and Infrastructure Projects, otherwise provided in the IRR. Subject to the approval of the joint ventures may participate: Provided, That the primary BAC, a pre-bid conference may also be conducted upon the purpose of each member of the joint venture must be similar written request of any prospective bidder. or related to the requirement of the project to be bid out: Provided, further, That each member of the joint venture shall The pre-bid conference(s) shall be held at least twelve (12) be jointly and severally liable to the Procuring Entity in cases calendar days before the deadline for receipt of bids to allow of breach or failure to comply with the requirements of prospective bidders to adequately prepare their bids, which the project. shall be specified in the IRR. The documents submitted to support the issuance of the For purposes of transparency, efficiency, and PhilGEPS Certificate of Registration and Membership shall be competitiveness, Procuring Entities may guide prospective subject to v~alidation by the BAC during post-qualification. bidders in the understanding and accomplishment of the necessary documents to support their participation in the -1./ -15 The bidder shall ensure that its Certificate of Registr ation th e deadline for the receipt of bids. In such cases, t hey shall and Member ship ar e current and updated. The failure to no longer be allowed to submit another bid for th e same update its Certificate with the current and updated supporting contract either direct ly or indirectly . documents shall result in the automatic suspension of t he bidder 's certificate. SE C. 56. Bid S ecu.rity. - All Bids unde r modes of procuremen t to be determined in t he IRR shall be accompanied SEC. 5:3. S hort-Listing for Consulting Services. - The by a Bid security, which shall serve as a guarantee that, after eligible prospective bidders for the procuremen t of Consult ing receipt of the Notice of Award, the winning bidder shall enter Services sh all be evalua ted using numerical ratings on the into contract with t he Procuring Entity wit hin the stipulated ba sis of the shor t -listing r equiremen ts prescribed for the t ime and furnish the required performa nce security. The Competitive Bidding concerned, within the period stated in the Invitation to Bid to determine the short-list of bidders t hat specific a mounts a nd allowable forms of the Bid security shall be prescribed in the IRR: Provided, That sector s enumerated I sha ll be allowed to submit t heir respective bids. under Section 76. of this Act may be allowed to post such other forms su ch as a bid securing declaration. SEC. 54. S u bmission a nd Receipt of Bids. - A bid shall have two (2) components, namely the technical and financial SEC. 57. Bid Validity. - Bids and Bid securities shall be components, which shall be in separate sealed envelopes, and valid for such a reasona ble period of time indicated in th e which shall be submitted simultaneo usly. The bids sh all be Bidding Documents. The duration for each undertaking sh all received by the BAC on such date, t ime, a nd place specified take into account the time involved in t he process of Bid in the I nvitation to Bid. The deadline for the receipt of bids evaluation and award of contract. shall be fixed by the BAC, providing sufficient time to complete the bidding process and giving the prospective bidders sufficient SEC. 58. Bid Opening. - The BAC sha ll publicly open all time to study a nd prepare their bids. The deadline sha ll also bids at t he time, da te, a nd place specified in the bidding consider the urgency of the procuremen t involved. documents: Provided, That it shall be held not later than one (1) calendar day after the deadline for the submission and Bids submitted after the deadline shall not be accepted. receipt of Bids. The minutes of the bid opening sh all be made availa ble to t he public upon written r equest and payment of Notwithstanding the provisions of this Section and Section a specified fee. 55 of this Act, t he GPPB sh all adopt technologica l advances t o enha nce the procuremen t process, and leverage emerging ARTICLE IX technologie s a nd innovative procedu res for the submission , receipt , a nd openin g of bids t hrough t he PhilGEPS. BID EVALUATIO N SEC. 55. Modifica tion and Withdrawal of B ids. - Bidders SEC. 59. Preliminary Examinatio n of Bids. - Prior to Bid may modify their bids: Provided, That t his is done befor e the eva luation , the BAC sh a ll first exa mine t he technical deadline for the receipt of bids. The modification sh all be compon ents of the bids using "pass/fail" criteria to det ermine submitted in a sealed envelope duly identified as a modification whether a ll required documents are present. Only bids tha t of t he original bid and stamped received by t he BAC. are determined to contain all the bid requiremen ts of the technical component sh a ll be cons ider ed for opening a nd Bidder s may, through a letter, withdraw their bids or evaluation of their financial component . express their intention not to participate in the bidding before 46 -17 SEC. 60. Ceiling for Bid Prices. - The ABC shall be the (h) On-going contracts and work commitments; upper limit or ceiling for the Bid prices. Bid prices that exceed this ceiling shall be disqualified outright from further (i) After-sales service and technical assistance; participating in the bidding. There shall be no lower limit to the amount of the award. (j) Delivery conditions, such as delivery period and delivery process; SEC. 61. Bid Evaluation for the Procurement of Goods and Infra.structure Projects. - For the procurement of Goods (k) Disposal measures; or and Infrastructure Projects, the BAC shall evaluate the financial component of the bids. (1) Other relevant criteria in relation to the subject Goods or Infrastructure Projects to be procured. For contracts to be awarded to the LCRB, the bids that passed the preliminary examination shall be ranked from The BAC shall specify in the invitation to bid the quality- lowest to highest in terms of their corresponding calculated price ratio and the criteria for assessing the quality prices. The bid with the lowest calculated price shall be component. The bidder with the best overall score using the r eferred to as the Lowest Calculated Bid (LCB). quality-price ratio shall be referred to as the Most Economically Advantageous Bid (MEAB). The quality and price proposals For contracts to be awarded to the MEARB, the BAC shall be given corresponding weights. The price proposal shall shall evaluate the bid using a predetermined quality-price ratio. be given a minimum weight of fifteen percent (15%) up to a The quality component shall be assessed on the basis of maximum of forty percent (40%). criteria that may include qualitative, environmental, and/or social aspects linked to the subject matter of the contract. The entire evaluation process for the procmement of These may comprise the following: Goods and Infrastructure Projects shall be completed within seven (7) calendar days from the deadline for receipt (a) Quality and technical merit, including technical of proposals. competence and a credible track record; SEC. 62. Bid Evaluation of Short-Listed Bidders for (b) Aesthetic and functional design and characteristics; Consulting Services. - For the procurement of Consulting Services under a quality-based evaluation procedure, the Bids (c) Approach and methodology; of the short-listed bidders shall be evaluated and ranked using numerical ratings in accordance with the evaluation criteria (d) Accessibility; stated in the Bidding Documents, which shall include factors such as, but not limited to, experience, performance, quality (e) Tools and equipment; of personnel, price, and methodology. The Bids shall be ranked from highest to lowest in terms of their corresponding (f) Social, environmental, economic, and innovative calculated ratings. The Bid with the highest calculated rating characteristics; shall be the Highest Rated Bid (HRB). The BAC shall invite the bidder concerned for negotiation and/or clarification on the (g) Organization, qualification, and experience of following items: financial proposal submitted by the bidder, employees or staff assigned to perform the contract; terms of reference, scope of services, methodology and work 48 .:/9 program, personnel to be assigned to the job, services/facilities/ The same procedure shall be repeated until the LCRB, HRRB, data to be provided by the Procuring Entity concerned, and or the MEARB, as the case may be, is finally determined. provisions of the contract. When negotiations with the first-in-rank bidder fails, the financial proposal of the second In all cases, the contract shall be awarded only to the rank bidder shall be opened for negotiations: Provided, That bidder with the LCRB, HRRB, or MEARB, as t he case the amount indicated in the financial envelope shall be made may be. as the basis for negotiations and the total contract amount shall not exceed the amount indicated in the envelope and the The post-qualification process shall be completed in not ABC. Whenever necessary, the same process shall be repeated more than twelve (12) calendar days from the determination until the bid is awarded to the winning bidder. of the LCB/HRB/MEAB. In exceptional cases, the post-qualification period may be extended by the HoPE.

ARTICLE X SEC. 64. Failure of Bidding. - There shall be a failure POST-QUALIFICATION of bidding in competitive bidding, limited source bidding, or competitive dialogue if: SEC. 63. Objective a.nd Process of Post-Qualification. Post-qualification is the stage where the bidder with the LCB, (a) No bids are received; or the MEAB, in the case of Goods and Infrastructure Projects, or the HRB , in the case of Consulting Services, (b) All bidders are declared ineligible; undergoes verification and validation whether it has passed all the requireme nts and co nditions as specified in the (c) No bid qualifies as the LCRB , HRRB, or MEARB; or Bidding Documents. (d) Whenever the bidder with the LCRB, HRRB, or If the bidder with the LCB or HRB passes all the criteria MEARB, as the case may be, refuses, without justifiable cause, for post-qualification, its Bid shall be considered the LCRB , to accept the award of contract. in the case of Goods and Infrastructure Projects or the Highest Rated Responsive Bid (HRRB), in the case of Consulting Under any of the above instances, the contract shall be Services. re-published or reposted and re-bid. The BAC shall observe the same process and set the new periods according to the same If the bidder with the MEAB passes the verification and rules followed during the first bidding. After the second failed validation by the BAC and TWG of each bid component, to biddin g, however, the BAC may resort to negotiated which any weight or score is given during evaluation, as well procurement as provided for in Section 35 of this Act. as all the criteria for post-qualification, its bid shall be considered the MEARB. The quality and price components, the SEC. 65. Single Ca.lculatedl Ra.tedl Economically corresponding numerical weights, and the procedures for the Advantageous and Responsive Bid Submission. - A Single determination of the MEARB shall be provided in the IRR. Calculated/Rated/Economically Advantageous Responsive Bid shall be considered for award if it falls under any of the However, if a bidder fails to meet any of the requirements following circumstances: or conditions, it shall be post-disqualified and the BAC shall conduct the post-qualification on the bidder with the second (a) If after publication, only one (1) prospective bidder LCB or HRB, or the MEAB with the second highest score. applies for eligibility check, and meets the eligibility 50 51 requirements or criteria, after which it submits a bid, which In the case of GOCCs, the concerned board shall take is found t o be responsive to the bidding requirements; action on the said recommendation within twenty (20) calendar days from receipt ther eof. The prescribed periods for execution (b) If after the publication, more than o n e ( 1) and/or approval of cont racts may be extended for r easons prospective bidder applies for e ligibility check, but only beyond the control of the Procuring Entity or the approving one (1) bidder meets the eligibility requirements or criteria, aut h ority, or for other justifiable causes. after which it submits a bid which is found to be respon sive to the bidding requirements; or In the event that the approving a u t h ority shall disapprove the contract, such disapproval shall be based only (c) If after the eligibility check, more than one (1) on valid, reasonable, and justifiable grounds to be expressed bidder meets the eligibility requirements, but only one (1) in writing. A copy of the decision to disapprove the contract bidder submits a bid, and its bid is found to be responsive shall likewise be furnished to the BAC. to the bidding requirements. The Procuring Entity shall issue the Notice to Proceed In all instances, the Procuring Entity shall ensure that to the winning bidder not later tha n three (3) calendar days the ABC reflects the most advantageous prevailing price for from the date of approval of t he contract by the appropriate the government. authority. All n otices called for by the t erms of the contract s hall be effective only at the t ime of receipt thereof by

ARTICLE XI the contractor. AWARD, IMPLEMENTATION, AND SEC. 67. Period of Action on Procurement Activities. - TERMINATION OF THE CONTRACT The period from the opening of bids up to the award of contr act shall not exceed sixty (60) calendar days. SEC. 66. Notice and Execution of Award. - Within a period not exceeding te n (10) calendar days from t h e The GPPB is authorized to adjust the period as may be determination and declaration by th e BAC of t h e LCRB, deemed appr opriate: Provided, That such adjustment shall not HRRB, or MEARB, as t h e case may be, a nd the exceed n inety (90) calendar days. r ecommendation of the award, the HoPE or the duly authorized representative shall approve or disapprove the said All members of the BAC shall be on a jury duty type recommendation. In case of approval, the HoPE or the duly of assignment until the Notice of Award is issued by the HoPE authorized representative shall immediately issue the Notice in order to complete t he entire procurement process at the of Award to the bidder with the LCRB, HRRB, or MEARB. earliest possible time. The winrung bidder shall formally enter into contract with SEC. 68. Performance Security. - Prior to the signing the Procuring Entity within ten (10) calendar days from the of the contract, t he winning bidder shall, as a measure of receipt of the notice of award. When further approval of higher guarantee for the faithful performan ce of and compliance with authority is required, the approving authority for the contract its obligations under the contract prepared in accordance with shall be give n a maximum period of fifteen (15) calendar days the Bidding Docu ments, be required to post a performance from receipt of the contract to approve or disapprove it. security in such form and amount as may be specified by the GPPB: Pro vided, That sectors enumerated under Section 76 53 52 (b) If the BAC is found to have failed in following the of this Act may be allowed to post other forms such as prescrib ed bidding procedu res; or perform ance securin g declara tion. (c) For justifia ble and reasona ble ground s where the The IC shall identify the surety compan ies that may be award of the contrac t will not redound to the benefit of the tapped to issue surety and/or perform ance bonds. The list of governm ent in the following instanc es: (1) if the physica l and surety compan ies identifi ed by the IC shall include only those economic conditions have signific antly change d so as to render whose surety busines s is ready to provide callable -on-dem and the project no longer economically, financially, or technic ally surety contrac ts, where the Procur ing Entity can claim feasible, as determ ined by the HoPE; (2) if the project is no outrigh t on the surety contrac t and receive the proceeds thereof longer necessa ry, as determ ined by the HoPE; or (3) if the upon default of the bidder. The perform ance security posted source of funds for the project has been withhel d or reduced by the winnin g bidder must remain effectiv e until final through no fault of the Procuri ng Entity. accepta nce by the Procuri ng Entity. SEC. 71. Contrac t Implem entatio n and Termin ation. - SEC. 69. Failure to Enter into Contra ct and Post The rules and guideli nes for the implem entatio n and Perform ance Security . - If for justifia ble causes, the bidder termina tion of contrac ts awarde d pursua nt to the provisio ns with the LCRB, HRRB, or MEARB, as the case may be, fails, of this Act shall be prescrib ed in the IRR. refuses, or is otherwi se unable to enter into contrac t with the Procuri ng Entity, or if the bidder fails to post the require d ARTIC LE XII perform ance securit y within the period stipula ted in the Bidding Docume nts, the BAC shall disqual ify the said bidder SUSTAINABLE PUBLIC PROCUREMENT and shall underta ke post-qualification for the next-ra nked LCB, HRB, or MEAB. This procedu re shall be repeate d until an SEC. 72. Sustai nable Public Procur ement. - All award is made. However, if no award is possible, the contrac t Procur ing Entitie s shall establi sh a sustain able public shall be subject ed to a new bidding . procure ment program to achieve value for money on a whole life basis not only to meet their specific organiz ational needs In case of failure to post the r equired perform ance but to benefit the society and the econom y, while reducin g secmity , the bid security shall be forfeite d withou t prejudi ce adver se environ mental impact. to the imposit ion of sanctio ns prescrib ed under Article XXI. SEC. 73. Green Public Procure ment Strateg y. - Green SEC. 70. R eservat ion Clause. - The HoPE reserve s the Public Procure ment is an approach whereb y Procuri ng Entities right to reject any and all Bids, declare a failure of bidding, seek to procure Goods, Infrastr ucture Projects, and Consult ing or not award the contrac t in the following situatio ns: Servic es with reduce d enviro nmenta l impact throug h their lifecycle. (a) If there is prima facie evidence of collusion between approp riate public officers or employ ees of the Procuri ng As part of strategi c procui-ement plannin g and in support Entity, or betwee n the BAC and any of the bidders , or if the of the Philippi nes' commit ment to accelerate climate action and collusio n is betwee n or among the bidders themse lves, or stren gthen disaste r resilien ce , Procur ing Entitie s shall betwee n a bidder and a third party, includi ng any act which integra te •and implem ent green practic es, as well as restrict s, suppres ses or nullifies, or tends to restrict, suppres s environ mentall y relevan t criteria or requirem ents, in the design or nullify compet ition; and specific ations of the:ii· procure ment projects . r t 54 55 I To further promote Green Public Procurement, SEC. 76. Registration of Certain Sectors. - The GPPB sustainability of products, materials, or structures with green shall maintain a registry of entities belonging to the following specifications shall be given greater weight in the evaluation sectors: I of bids. (a) Farmers as certified by the Department of t The GPPB shall ensure the incorporation and Agriculture (DA); i. ' ! implementation of the concepts of sustainability and green public procurement in the activities of the government. The Green Public Procurement Strategy shall be implemented in (b) Fisheifolk as certified by the Bui-eau of Fisheries and Aquatic Resources (BFAR); phases, taking into account the readiness of both the government agencies as well as green product suppliers. (c) Persons with disabilities as certified by the National Council for Disability Affairs (NCDA) pursuant to Republic Act SEC. 74. Development of a Green Local Marhet. - The No. 7277, otherwise known as the "Magna Carta for Disabled DTI, in consultation with relevant government agencies and Persons", as amended; the private sector, shall develop a cost-efficient validation and certification program for green products to attract green (d) Solo parents as certified by the Department of Social investments and improve competition in government Welfare and Development (DSWD); procurement. (e) Microenterprises and social enterprises as certified by SEC. 75. Inclusive Procurement Progra.m. - To provide the Micro, Small and Medium Enterprises Development equal opportunities to the vulnerable and marginalized sectors, (MSMED) Council; as well as microenterprises, social enterprises, and startups, Procuring Entities shall encourage active participation of the (f) Startups, spin-offs and other forms of entities registered sectors in all procurement activities, giving weight involved in science, technology, and innovation activities as to inclusivity in programs involving gender and ethnic equity, certified by the DTI, DICT, National Innovation Council (NIC) poverty reduction and respect to fundamental labor standards. or the Department of Science and Technology (DOST), as may This program shall likewise be considered by the Procuring be applicable; Entity when an appropriation law earmarks an amount for projects specifically contracted out to any of these sectors. (g) Cooperatives duly registered with the CDA pursuant to Republic Act No. 6938, otherwise known as the "Cooperative The GPPB shall develop procurement policies that Code of the Philippines", as amended; and engender an enabling environment for meaningful competition across all bidders and incorporate social considerations and (h) Other relevant sectors as may be determined by the gender parity in the procurement of Goods, Infrastructure GPPB to ensure inclusivity and diversity in the procurement Projects, and Consulting Services. It shall also issue policy process. guidelines on how Procuring Entities can implement gender responsive approaches in public procurement in relation to SEC. 77. Exemptions and Other Forms of Support. - The project planning, eligibility and selection criteria, contract GPPB, after due consultation with the DA, BFAR, NCDA, performance. and grounds for exclusion/suspension/blacklisting. DSWD , M'SMED Council, DTI , DICT, NIC, DOST, Commission on Higher Education, and CDA shall prescribe •• ••1 I ! 57 56 instances for outright exemption and other forms of support ARTICLE XIV for the sectors mentioned in the preceding section, as may be provided for in the IRR. LEASE OF MOVABLE PROPERTIES

ARTICLE XIII SEC. 80. Lease Contracts. - The lease of movable properties shall also be subject to government procurement DOMESTIC AND FOREIGN PROCUREMENT using the most applicable mode of procurement. Movable properties refer to those properties defined under Articles 416, SEC. 78. Procurement of Domestic and Foreign Goods. - 417, and 418 of the New Civil Code of the Philippines. Consistent with the country's obligations under international treaties or agTeements, Goods may be obtained from domestic ARTICLE XV or foreign sources and the procurement thereof shall be open to all eligible suppliers, manufacturers and distributors. DISCLOSURE OF RELA.TIONS SEC. 79. Domestic Preference. - Subject to the provisions SEC. 81. Disclosure of Relations. - In addition to the of Republic Act No. 11981 or the "Tatak Pinoy (Proudly proposed contents of the invitation to bid as mentioned under Filipino) Act", the Procuring Entity shall give priority and Section 50 of this Act, all Bidding Documents shall be preference to Philippine products and services: Provided, That accompanied by a sworn affidavit of the bidder that he or she, the preference and priority for Philippine products shall be any partner, member of the board, or officer of the juridical guaranteed upon all levels of the procurement process, entity is not related to the HoPE; the members of the BAC, including raw materials, ingredients, supplies or fixtures. the TWG, and the BAC Secretariat, the head of the Project Management Office or the end-user unit or implementing unit, The Procuring Entity shall award to the domestic bidder and the project consultants of the Procuring Entity, or of the if the bid is not more than twenty-five percent (25%) in excess procurement agent, whichever is applicable, by consanguinity of the lowest foreign bid. The margin of preference provided or affinity up to the third civil degree. In order to determine herein shall be subject to a periodic review and adjustment the ultimate beneficiary and prevent collusion, the ultimate by the GPPB, as may be necessary. beneficial ownership of an entity shall be disclosed by the bidder. Failure to comply with the afor ementioned provision The priority and preference established herein may be shall be a ground for the automatic disqualification of the bid waived should any of the following conditions be present: in consonance with Section 59 of this Act. For this reason, relation to the aforementioned persons within the third civil (a) when domestic production is insufficient or degree of consanguinity or affinity shall automatically unavailable in the required commercial quantities; disqualify the bidder from participating in the procurement of contracts of the Procuring Entity notwithstanding the act (b) when the specific or desired quality is not met; of such persons inhibiting themselves from the procurement process. (c) when the priority and preference will result in inconsistencies with the Philippines' obligations under SEC. 82. Declaration of Beneficial Ownership. - international agreements; and Notwithstatiding the provisions of Republic Act No. 10173, legal entities like corporations, partnerships, private sector (d) other analogous circumstances. organizations, foundations, and associations that participate in f 58 59 ir procurement projects shall safeguard the government from all jurisdiction. The Regional Trial Court shall have jurisdiction acts that undermine a transparent, fair, and competitive over final decisions of the HoPE. Court actions shall be procurement process. The beneficial ownership information of governed by Rule 65 of the 1997 Rules of Civil Procedure, the suppliers, manufacturers, distributors, contractors, or as amended. consultants shall be a r equirement to participate in government procurement. The GPPB shall maintain an online In cases where the amounts are in excess of the specified registry of beneficial ownership information of bidders thresholds in the IRR, the decisions of the HoPE shall become established for government procurement which shall be final and executory ten (10) calendar days after receipt of a accessible to the public. copy thereof by the parties, unless, within the same period, an appeal to the Regional Trial Court has been perfected.

ARTICLE XVI Nothing in this Act shall be interpreted to prejudice or PROTEST MECHANISM prohibit the Office of the Ombudsman from exercising its duties, functions, and powers as provided under the 1987 SEC. 83. Protests on Decisions of the BAG. - Decisions Constitution, Republic Act No. 6770, otherwise known as the of the BAC in all stages of procurement may be protested to "Ombudsman Act of 1989", and/or any relevant rules and the HoPE. For this purpose, the GPPB shall establish an regulations pursuant thereto. electronic filing system for bidders to submit their protests after paying a non-refundable protest fee via electronic SEC. 86. Non-interruption of the Bidding Process. - In payment channels within the system. The amount of the no case shall any protest taken from any decision treated in protest fee, which shall be a reasonable amount in proportion this Article shall stay or delay the bidding process. Protests to the ABC but not to exceed Five million pesos must first be resolved before any award is made. (P5,000,000.00), and the periods during which the protests may be filed and resolved shall be specified in the IRR: Provided, SEC. 87. Prohibition on the I ssuance of Temporary however, That a prior request for reconsideration should have Restraining Orders, Preliminary Mandatory Injunctions. - No been filed by the party concerned to the BAC and t he same court, except the Supreme Court, shall issue any temporary has been resolved. restraining order, preliminary injunction, or preliminary mandatory injunction against the government or any of its The HoPE shall resolve the filed protest and issue a subdivisions, officials, or any person or entity, whether public decision through the system. or private acting under the government direction, to restrain, prohibit, or compel the procurement, bidding, or awarding of SEC. 84. Resolution of Protests. - The protests shall be contracts for Goods, Infrastructure Projects, and Consulting resolved strictly on the basis of records of the BAC. Up to a Services of the government; commencement , execution, certain amount to be specified in the IRR, the decisions of the implementation, operation of a ny such contract; termination HoPE shall be final. or rescission of any such contract; and the undertaking or authorization of any other lawful activity necessary for SEC. 85. Resort to Regular Courts. - Court action may such contract. be resorted to only after the protests contemplated in this Article have been completed. Cases filed in violation of the This prohibition shall apply in all cases, disputes, or process specified in this Article shall be dismissed for lack of controver sies instituted by a party, including, but not limited to, cases filed by bidders or those claiming to have rights 60 61 through such bidders involving such contract. This prohibition Authority (PSA), a price escalation may be authorized at a shall not apply when the matter is of extreme urgency no loss, no-gain basis , using the appropriate formula prescribed involving a constitutional issue, such that unless a temporary by the GPPB. For the purpose of this section, the PSA shall restraining order is issued, grave injustice and irreparable ensure that its price indices are region specific and updated injury will arise. The applicant shall file a bond, in an amount on a monthly basis. to be fixed by the court, which shall accrue in favor of the government should the court finally decide that the applicant SEC. 90. Warra.nty. - (a) For the procurement of Goods, was not entitled to the relief sought. in order to assure that manufacturing defects shall be corrected by the supplier, manufacturer, or distributor, as the case may

ARTICLE XVII be, for a specific time after performance of the contract, a warranty shall be required from the contract awardee for such SE'ITLEMENT OF DISPUTES period of time as may be provided in the IRR, the obligation for which shall be covered by either retention money in the SEC. 88. Dispute R esolution. - Any and all disputes amount equivalent to a percentage of every progress payment, arising from the implementation of a contract covered by t his or a special bank guarantee equivalent to a percentage of the Act may be submitted to a rbitration or other forms of total contract price, to be provided in t he IRR. The s aid alternative dispute resolution in the Philippines according to amounts shall only be released after the lapse of the warranty the provisions of Republic Act No. 9285, otherwise known as period: Provided, Tha t the Goods supplied are free from defects the "Alternative Dispute Resolution Act of 2004": Provided, and all the conditions imposed under the contr act have been That construction disputes that are within the competence and fully met. jurisdiction of the Construction Industry Arbitration Commission shall be referred thereto. (b) For the procurement of Infrastructure Projects, the contractor shall assume full responsibility for the contract work To ensure efficiency in the procurement process, parties to the dispute are encouraged to select the most expedit ious I from the time project construction comme nced up to a r easonable p eriod as defined in t h e IRR, taking in to mode of dispute resolution. I consideration the scale and coverage of the project from its final acceptance by the government, and shall be held

ARTICLE XVIII i responsible for any damage or construction of works except CONTRACT PRICES AND WARRANTIES I those occasioned by force majeure. The contractor shall be fully responsible for the safety, protection, security, and convenience of its per sonnel, third parties, and the public at large, as well as the works, equipment, installation and the like to be l SEC. 89. Contract Prices. - For the given scope of work in t he contract as awarded, all bid prices shall be considered affected by its construction work a nd sh all be required to put as fixed prices, and therefore not subject to price escalation up a warranty security in the form of cash, bank guarantee, during con tract implementation. In the event of an letter of credit, Government Service Insurance System bond, extraordinary increase in prices of specific components of the or callable surety bond. Infrastructure Project, price escalation may be consider ed, s ubject to prior approval of the GPPB. If the cost of The contr actor shall undertake the repair works, at its construction components increases by more than ten percent own expense, of any defect or damage to t he Infrastructure (10%) of the unit price of work items, as determined against Projects on account of t he use of materials of inferior quality, the prevailing price indices of t he Philippine Statistics defects in the construction, or due to any violation of the terms i 62 63 of the contracts within ninety (90) calendar days from the time with the following as members: the Secretaries of the the HoPE has issued an order to undertake repair. In case Departments of Public Works and Highways, National Defense, of failure or refusal to comply with this mandate, the Education, Interior and Local Government, and Transportation , government shall undertake such repair works and shall be or their duly authorized representatives; a representative from entitled to full reimbursement of expenses incurred therein the PS-DBM; and a representative from the private sector, to upon demand. be appointed by the President of the Republic of the Philippines upon the recommendation of the GPPB. The GPPB

ARTICLE XIX may invite a representative from the COA to serve as a resource person. THE GOVERNMENT PROCUREMENT POLICY BOARD In the performance of its functions, the GPPB shall be SEC. 9 1. Organization and Functions. - The Government supported by a Technical Support Office (TSO), an agency Procuremen t Policy Board (GPPB) shall be the central body attached to the DBM. The TSO shall be headed by a Director that sets strategic dir ection and makes policy decisions General with a rank equivalent to an Undersecretary and regaxding all matters affecting public procUTement, having due supported by Deputy Directors General with a rank equivalent regard to the country's regional and international obligations, to an Assistant Secretary, to be appointed by the President, and is tasked to lead the nation's efforts in advancing public as endorsed by the Secretary of the DBM, all of whom should procurement reforms in accordance with this Act. The Board be of good moral character, honesty , probity, and shall: unquestionable integrity. The Secretary of the DBM shall appoint the officials and employees of the TSO for ranks lower (a) Formulate and amend, whenever necessary, the IRR than the Deputy Directors General. The security of tenure of of this Act, associated issuances and government procurement existing officials and employees of the GPPB-TSO shall be manuals, Philippine Bidding Documents and standard forms observed, subject to existing civil service rules and regulations. for procurement, and issue policy papers to ensUTe that the procurement process is streamlined and responsive to the needs In addition to the powers granted under this Act, the of the government. In line with its digitalization efforts, the GPPB shall absorb all the powers, functions , and GPPB shall establish an online automated process to provide responsibilities of the ProcUTement Policy Board created under timely responses to inquiries related to the implementation of E.O. No. 359, series of 1989. All affected functions of the this Act; Infrastructure Committee of the NEDA Board are hereby transferred to the GPPB. (b) Establish and implement the professionalization program provided in this Act; and The GPPB may establish Inter-agency Technical Working Gr oup/s (IATWG/s) to provide subject matter expertise to the (c) Establish and implement a strategic procurement GPPB in the formulation and review of policies, rules, and monitoring progr am that uses data analytics to enhance regulations related to government procurement. The IATWG/ procurement planning and evidence-based policymaking as s , in particular, shall endorse policy recommendations for the provided under Section 24 of this Act. GPPB's consideration and approval. The IATWG/s shall consist of representatives from the economic services, social services, The GPPB shall be composed of the Secretary of the DBM agriculture, health, education , construction , energy, as Chairperson, an d the Secretary of the National Economic environment, information and communications technology, and Development Authority (NEDA) as Alternate Chairperson, research and development, and other sectoral groups as 64 65 determined by the GPPB, to guarantee that the procurement (f) Simulating procurement eligibility requirements or policies are inclusive and promote good governance. strategic procurement planning activities; or

ARTICLE XX (g) All other acts or omissions with the intention of not complying with the mandatory provisions of this Act. ADMINISTRATIVE SANCTIONS SEC. 93. Jurisdiction. - Jurisdiction over the offenses l SEC. 92. Administrative Liability of Public Officers. - defined under this Article shall belong to the appropriate I Without prejudice to the criminal and civil liabilities under Republic Act_No. 3019, otherwise known as the "Anti-Graft courts, according to laws existing at the time of the commission of the offenses. l and Corrupt Practices Act" and other penal laws, any public officer found to have committed any of the following acts shall Notwithstanding Article 22 of the Revised Penal Code or l be administratively liable with all the accessory penalties for government employees even if no criminal prosecution is any law to the contrary, the administrative, civil, and/or criminal liability of any person, corporation, or any other entity I instituted against him: for any unlawful act committed prior to the effectivity of this Act shall not be diminished, modified, or affected in any way (a) Opening any sealed bid including, but not limited to, by its enactment. bids that may have been submitted through the electronic system and any and all documents required to be sealed or SEC. 94. Preventive Suspension. - The head of agency divulging their contents to any prospective bidder, person, or may preventively suspend any member of the TWG or the any party having direct or indirect interest in the project to Secretariat, or the BAC, and other officials and employees be procured. prior to the appointed time for the public opening involved if there are strong reasons or prima facie evidence of bids or other documents; showing that the officials or employees concerned are found liable of the charges filed against them under Article XX of (b) Delaying, without justifiable cause, the screening for this Act or for dishonesty as defined by civil service laws. In eligibility, opening of bids, evaluation and post evaluation of all cases, procedural and substantive due process as mandated bids, and awarding of contracts beyond the prescribed periods by the Constitution and civil service laws, rules and of action provided for in the IRR; regulations shall be strictly observed. (c) Unduly influencing or exerting undue pressure on SEC. 95. Lifting of Suspension and R emoval of any member of the BAC or any officer or employee of the Administrative Disabilities. - Lifting of preventive suspension Procuring Entity to take a particular bidder, or allowing pending administrative investigation, as well as removal of oneself to be unduly influenced or pressured; administrative penalties and disabilities shall be in accordance with the provisions of Sections 52 and 53, Chapter 7 (Civil (d) Splitting of contracts which exceed procedural Service Commission) , Book V of E.O. No. 292, otherwise purchase limits and competitive bidding; known as the "Administrative Code of 1987". (e) Abusing t he exercise of the power of the HoPE or SEC. 96. Civil Liability in Case of Conviction. - Without his or her duly authorized representative to reject any and prejudice to ..administrative sanctions that may be imposed in all bids with manifest preference to any bidder; proper cases, a conviction under Republic Act No. 3019 and other p enal laws shall carry with it civil liability, which may t 66 67 either consist of restitution for the damage done, or forfeiture (a) Refusing or failing to post the required performance in favor of the government of any unwarranted benefit derived security within the prescribed time; from the act or acts in question, or both, at the discretion of the courts. (b) Withdrawing a bid, or refusing to accept an award, or refusing or failing to enter into contract with the Procuring SEC. 97. Liquidated Damages. - All contracts executed Entity without justifiable cause, after the approval of the HoPE in accordance with this Act shall contain a provision on for having been the declared LCRB, MEARCB, or HRRB, as liquidated damages which shall be payable in case of breach the case may be; thereof. The amount thereof shall be specified in the IRR. (c) Refusing to clarify or validate in writing its bid

ARTICLE XXI during post-qualification within a period of seven (7) calendar days from receipt of the request for clarification; SUSPENSION AND BLACKLISTING (d) Causing the delay, without justifiable cause, of the SEC. 98. Administrative Liability of Private Entities. screening for eligibility, opening of Bids, evaluation and post Without prejudice to criminal and civil liabilities under evaluation of Bids, and awarding of contracts; applicable laws, including their accessory penalties, if any, administrative liability attaches to private entities, such as (e) For the renewal of contracts for regul ar and suppliers, contractors or consultants, that are subjected to any recurring services, refusal of the service provider to accept the of the following penalties: notice of renewal or failure to submit its updated documentary requirements for the renewal of contract without any justifiable (a) Any appropriate corrective measure, depending on the reason; severity of the offense considering its disadvantages to the GOP, shall be imposed in accordance with the guidelines of the (f) Delivering goods of unsatisfactory or inferior quality GPPB ; as may be provided in the contract; (b) Suspension shall be imposed for offenses committed (g) Rendering poor performance by the consultant of under Section 99 of this Act. The entity is prohibited from one's service. Poor performance shall be as follows: participating in any procurement of the Procuring Entity concerned for a given period; or (1) Defective design resulting in substantial corrective works in design and/or construction; (c) Blacklisting shall be imposed in case offenses occur under Sections 100 and 101 of this Act. The entity shall be (2) Failure to deliver critical output due to the fault or disqualified from participating in all government procurements negligence of the consultant; for a given period or perpetually, as the case may be. (3) Specifying materials which are inappropriate , SEC. 99. Imposition of Suspension. - The HoPE, subject substandard, or way above acceptable standards; and to the authority delegated to the BAC, if any, shall impose the penalty of suspension for one (1) year for the first offense, (4) Allowing defective workmanship or works by the and suspension of two (2) years for the second offense, for any winning bidder being supervised by the consultant; or of the following offenses: .I I 68 (h) Rendering poor performance by the winning bidder 69 concealmen t of such information that will mat.erially alter t he I or unsatisfact ory quality and/or progress of work. Poor o utcom e of eligibility scree ning or any stage of the procuremen t; I performanc e shall be as follows: (1) Negative slippage of fifteen percent (15%) and above within the critical path of the project due entirely to the fault or (f) Maliciously submitting different bids through two (2) more per sons, corporation s, partnership s, or any other or negligence of the winning bidder; and bu siness entity in which it has interest, to create t h e appearance of competition that does not in fact exist so as to (2) Quality of materials and workmansh ip not complying be declared as the winning bidder; with the approved specificatio ns arising from the fault or negligence of the winning bidder. (g) Submission of beneficial ownership informatio n containing false entries; Moreover, the bid security or the performanc e security posted by the entity concerned shall also be forfeited . (h) Unauthoriz ed accessing of the contents of any Bid submitted to the Procuring Entity before the opening of bids; SEC. 100. I mposition of B lacklisting. - The HoPE may impose the penalty of blacklisting consisting of one (1) year (i) Entering into an agr eement with other bidder /s prohibition for the first offense, or two (2) years prohibition which call upon one to refrain from bidding for procuremen t for the second offense for any of the following offenses: contracts, or which call for withdrawa l of bids already submitted, or which are otherwise int.ended to secure an undue (a) Committing three (3) or more of any of the acts advantage to a ny of the bidders; imposed with suspension, as provided under Section 99 of t his Act; (j) Failing to faithfully disclose its relationsh ip , regardless of the time of its discovery, with the HoPE, (b) Using force , fraudulent machinatio ns, coer cion , members of the BAC, the TWG, and the BAC Secretariat, the undue influence or pressur e on any member of the BAC or head of the PMO or the end-user unit or implementi ng unit, any officer or employee of the Procuring Entity to take a and the project consultants of the Procuring Entity, or of the particular action for its own favor or gain , or to t h e procuremen t agent, whichever is applicable, by consanguin ity , disadvantag e of a particular bidder; or affinity up to the third civil degree pursuant to Section 81 of this Act; (c) Agr eeing with two (2) or more bidders and submitting different bids as if they were bonafide, when they (k) Terminatin g th e contract due to the default or knew that one or more of them was so much higher than unlawful acts of the bidder supplier, contractor or consultant; the other that it could not be honestly accepted and that the (1)Engaging in any documented unsolicited attempt to contract will surely be awarded to the pre-anange d lowest bid; unduly influence the outcome of th e bidding; (d) Using the name of another for purposes of (m) Employing schemes which stifle or suppress any participatin g in any procuremen t activity; procuremen f activity; (e) Submitting eligibility requireme nts and bids containing false information or falsified documents or t he 71 70 Moreover, the bid security or the performanc e security (n) Assigning or subcontract ing the contract or any part posted by the entity concerned shall be forfeited. thereof or substituting key personnel named in the proposal without prior written approval by the Procuring Entity; SEC. 102. Snspension Pending Bla.chlisting Proceedings. During the pendency of the blacklisting proceedings , the (o) Willful or deliberate abandonmen t or non-performance bidder shall be automatical ly suspended from participatin g in of the project or contract by the winning bidder resulting the current procuremen t activity being undertaken by the in substantial breach thereof without lawful and/or just Procuring Entity concerned. cause; or The suspension order shall be immediately lifted in case (p) In case it is determined prima facie that the winning the HoPE dismisses the case. bidder has engaged, before or during implementa tion of the contract, in the following unlawful deeds and behaviors relative SEC. 103. Status of Suspended or Blacldisted Person. - to contract acquisition and implementa tion: Before the issuance of a blacklisting order , the erring bidder may participate in the procuremen t of any governmen t project (1) Corrupt, fraudulent, collusive and coercive practices; except in the Procuring Entities where it is suspended: Provided, That if the blacklisting order is issued prior to the (2) Drawing up or using forged documents; or date of the Notice of Award, the blacklisted person sh all not be qualified for award and such contract shall be awarded to (3) Using adulterated materials, means or methods, or another bidder. engaging in production contrary to rules of science or the trade. It is the responsibili ty of the Procuring Entity to upload Moreover, the bid security or the performanc e security to the portal of the GPPB the corrective measure, suspension posted by the entity concerned shall be forfeited. or blacklisting order, as t he case may be, within seven (7) calendar days after its respective issuance. SEC. 101. Imposition of Blacldistin g with Perpetual Disqualification. - The HoPE shall impose blacklisting with The issuance of a suspension or blacklisting order shall perpetual disqualifica tion based on any of the following not prejudice any contract awarded prior thereto: Provided, grounds: That the offenses which brought about the suspension or blacklisting are not connected to the awarded contr act. (a) Committing a third offense imposed with blacklisting under this Act by the same Procuring Entity, or a SEC. 104. Initiation of Action. - The BAC or the HoPE combination of three (3) violations imposed with blacklisting may, motn proprio, commence the administrat ive proceedings by the Procuring Entity and other Procuring Entities, as posted for corrective measures, suspension or blacklisting, at any on the GPPB portal; or stage of the procuremen t or contract implementa tion, upon prima facie determinati on that a bidder or prospective bidder (b) Failing to comply with the prov1s10n on warranty has committed any of the grounds provided for in Sections 99, that requires to repair any noted defect or damage to the 100, and 101 of this Act. Any bidder or prospective bidder may Infrastructu re Project due to the use of materials of inferior also initiate the suspension and blacklisting proceedings . quality within ninety (90) calendar days from the issuance of the order by the HoPE to undertake such repairs. 72 73 At the option of the Procuring Entities, a reasonable fee the settlement: Provided , That the public officials to be may be required for initiating the suspension and blacklisting indemnified have not committed gross negligence or grave proceedings. misconduct in the performance of their functions and duties. SEC. 105. Extent of Administrative Sa.net.ions. - The The members of the BAC, TWG, and Secretariat shall penalties of suspension and blacklisting shall be applied also be entitled to medical assistance for injuries incurred in against (a) any entity in which the suspended or blacklisted the performance of their functions. person has a controlling interest: and (b) any beneficial owner of the suspended or blacklisted person. ARTICLE XXIII

ARTICLE XXII FINAL PROVISIONS LEGAL ASSISTANCE AND INDEMNIFICATION PACKAGE FOR SEC. 108. Appropriations. - The amount necessary for BAC MEMBERS AND SUPPORT STAFF the initial implementation of this Act shall be charged against the current year's available appropriations. Thereafter, such SEC. 106. Private Legal Assistance. - All members of the sums as may be necessary for the implementation of this Act BAC, TWG. and Secretariat, are hereby authorized to engage shall be included in the annual General Appropriations Act. the services of private lawyers or external counsel immediately upon receipt of notice that an administrative, civil or criminal SEC. 109. Whole-of-Government. Approach. - In order to action, suit or proceeding is filed against them in connection effectively achieve the objectives of this Act and to scale up with the performance of their functions and duties. The professionalization of government procurement practitioners, the lawyer's fee shall be part of the indemnification package for GPPB shall provide sustained training, capacity-building, and the members of the BAC, TWG, and Secretariat. subject to support to stakeholders in the government procurement the provisions of Section 107 hereof. process, such as education, training, seminars, and workshops in areas such as modes of procurement, streamlined processes, SEC. 107. Indemnification Pa.clwge. - The GPPB shall supply chain management and logistics including warehousing, establish an equitable indemnification package for public and digitalization. officials providing services in the BAC, TWG, and Secretariat, which may be in the form of free legal assistance, liability The HoPE, members of the BAC, and TWG shall undergo insurance, and other forms of protection and indemnification an executive com·se on procm·ement while the BAC Secretariat for all costs and expenses reasonably incurred by such persons shall undergo annual training programs. in connection with any administrative, civil or criminal action, suit or proceeding to which they may be, or have been made, Pursuant thereto, all branches and instrumentalities of a party by reason of the performance of their functions or the government, its departments, bureaus, offices and agencies, duties, unless they are finally adjudged in such action or including SUCs, GOCCs, GFis, and LGUs shall allocate a proceeding to be liable for gross negligence or grave misconduct portion of their capacity development funds to send their BAC or grave abuse of discretion. members, BAC Secretariats, and TWGs to training. The capacity-building program shall include the development of In the event of a settlement or compromise , skills of government agencies in understanding and indemnification shall be confined only to matters covered by implementing the government's Green Public Procurement Strategy through the following: 74 75 (a) Conduct of relevant training needs assessment of the SEC. 111. Mandatory Review. - The Congress shall public sector; conduct a mandatory review of this Act at least once every five (5) years, and as often as it may deem necessary. (b) Provision of technical assistance to suppliers, particularly the microenterprises and social enterprises; and SEC. 112. Implementing Rules and Regulations and Standard Forms. - Within one hundred eighty (180) days from (c) Conduct of public awareness campaigns on green the promulgation of t his Act, the necessary rules and procurement, among others. regulations for the proper implementation of its provisions shall be formulated by the GPPB. For a period not later than ninety The GPPB shall establish partnerships with SUCs or (90) days upon the approval of the IRR, the standard forms other educational institutions in providing training programs. for procurement shall be formulated and approved. It shall establish standards for accreditation of said institutions. SEC. 113. Transitory Provision. - Prior to the effectivity The Procuring Entity, through the HoPE, shall submit of the IRR of this Act, the provisions of Republic Act No. 9184 periodic progress reports to the GPPB on the status of its and its IRR shall remain in force and effect in order to ensure capacity development. Reportorial requirements prescribed the continued implementation of programs, activities, under this Act shall take into consideration reports required and projects. under other laws related to procurement, with a view to harmonizing and achieving efficiencies in the preparation of The GPPB and all HoPE , Procuring Entities and the these reports. BACs affected by this Act shall be given a three (3)-year transitory period from the approval of the standard forms for SEC. llO. Oversight Committee. - There is hereby created procurement, to fully comply with the requirements of this Act. a Joint Congressional Oversight Committee to oversee the implementation of this Act for a period not exceeding five (5) SEC. 114. Reportorial Reqllirem.ents. - The GPPB shall, years from the effectivity of this Act. The Committee shall be upon approval of the IRR and the standard procurement forms, composed of the Chairperson of the Senate Committee on effect the publication of the same, in accordance with existing Finance , Chairperson of the Senate Committee on laws, rules, and regulations. Upon approval, the same shall Constitutional Amendments and Revision of Codes, and two (2) also be posted on the website of the GPPB. members thereof appointed by the Senate President, and the Chairperson of the House Committee on Appropriations. the Thereafter, the GPPB, through its TSO, shall send Chairperson of the House Committee on Revision of Laws, and written notices when the said documents have been posted on two (2) members thereof to be appointed by the Speaker of its website to the Office of the President, the Senate of the the House of Representatives. The minority groups in the Philippines, and the House of Repr esentatives. Senate and the House of Representatives shall each have one seat in the Joint Congressional Oversight Committee. It shall SEC. 115. Repealing Clause. - Republic Act No. 9184 submit its report and recommendation to the Senate President otherwise known as the "Government Procurement Reform Act" and the Speaker of the House of Representatives within five and Commonwealth Act No. 138 are hereby repealed. All other (5) years from its organization. laws, acts, presidential decrees, executive orders, presidential proclamations, issuances, rules and regulations, or parts 76 thereof which are contrary to or inconsistent with any of the provisions of this Act are hereby repealed, amended, or modified accordingly. SEC. 116. Separability Clause. - If any portion or provision of this Act is subsequently declared invalid or unconstitutional, other provisions hereof which are not affected thereby shall remain in full force and effect. SEC. 117. Effectivity. - This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in two (2) newspapers of general circulation. Approved, ~- FRANCIS ''CHIZ" G. ESCUDERO Speaker of the House President of the Senate ofRepresentatives This Act, which is a consolidation of Senate Bill No. 2593 and H ouse Bill No. 9648, was passed by the Senate of the Philippines and the House of Representatives on May 22, 2024. RE~ Secretwy General House of Representatives Approved: JUL I O 202~ . ~t FERD INAN D R ALDEZ MARCOS JR. REPUBLIC OF THE PHILIPPINES Preside e Philippines 1111111 II I111111111111111 Ill PBBM005110 0 Office of the Preside nt MALACANANG RECORDS OFFICE