Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
Second Regular Session 
HOUSE BILL NO. __________ 
___________________________________________________________________________ 
Introduced by REP. JOHNNY T. PIMENTEL 
___________________________________________________________________________ 
EXPLANATORY NOTE 
The Procurement Services –Department of Budget and Management (PS – DBM) 
was created on October 18, 1978 through the Letter of Instruction (LOI) No. 755. 
It was intended to create an integrated procurement system for the national 
government and its instrumentalities. It has then served as the national 
government’s procurement arm and carried out the procurement of common-use 
supplies, equipment, and infrastructure projects. 
The subsequent enactment of the Government Procurement Reform Act through 
Republic Act No. 9184 has placed the mandate of the DBM – PS irrelevant. The 
same law has mandated government offices to establish their own Bids and 
Awards Committees (BACs) for their respective procurements.  
Furthermore, PS – DBM has been embroiled with various scandals and 
controversies in relation to its operations. During the peak of the Covid 
pandemic, the same office was subject to the controversial transfer of Php 42 
Billion from the Department of Health used for the purchase of face masks, face 
shields and other medical assets used to combat Covid. Earlier this year, it was 
again under scrutiny for its acquisition of subpar laptop units for highly inflated 
prices. 
Public office is public trust. It is no less than the Philippine Constitution which 
requires that the State maintain honesty and integrity in the public service, and 
take positive and effective measures against graft and corruption. 
Where an office becomes riddled and corroded with irreparable distrust, it must 
be the thrust of the people’s representatives to address it. This bill seeks to 
abolish the PS – DBM office. 
The approval of this Bill is earnestly sought. 
JOHNNY T. PIMENTEL 
October 27, 2022
4:40 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
Second Regular Session 
HOUSE BILL NO. __________ 
___________________________________________________________________________ 
Introduced by REP. JOHNNY T. PIMENTEL 
___________________________________________________________________________ 
AN ACT 
ABOLISHING THE PROCUREMENT SERVICES -  
DEPARTMENT OF BUDGET AND MANAGEMENT (PS – DBM) AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Republic of the Philippines in Congress assembled: 
Section 1.  The Procurement Services - Department and Budget and Management 
(PS – DBM) created under Letter of Instruction (LOI) No. 755 and other laws, 
rules and regulations concerning its creation is hereby abolished. 
Respective Departments, Agencies, Government Owned and/or Controlled 
Corporations (GOCCs), State Universities and Colleges (SUCs), and Local 
Government Units (LGUs) shall, thereafter, undertake the procurement of 
common-use supplies, materials, and equipment. 
Section 2. Employees affected by the abolition of the DBM-PS shall receive 
separation benefits under the Government Reorganization Law and other 
existing laws, rules and regulations. Provided that, those who are qualified to 
retire and receive retirement benefits under existing retirement laws, rules and 
regulations shall be allowed to retire under the same laws, rules and regulations. 
Section 3. In coordination with the concerned Departments, Agencies, 
Government Owned and/or Controlled Corporations (GOCCs), State Universities 
and Colleges (SUCs), and Local Government Units (LGUs), all prior year’s and 
current year’s advances for the purchase of supplies, materials and equipment 
not available in the DBM – PS inventory shall be reverted to the National 
Treasury. 
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Section 4. One (1) year upon effectivity of this Act, the PS – DBM, in coordination 
and under direction supervision of the Department of Budget and Management 
(DBM), shall undertake an inventory of all the supplies, materials, and 
equipment under their custody for the use of the different Departments, 
Agencies, Government Owned and/or Controlled Corporations (GOCCs), State 
Universities and Colleges (SUCs), and Local Government Units (LGUs). The PS – 
DBM shall continue to service the requirements for common-use supplies, 
materials, and equipment until the inventories of such are fully consumed. 
Provided that, no additional procurement shall be undertaken by the PS – DBM 
during the same period. 
 
Section 5. If any portion or provision of this Act shall be held unconstitutional 
or invalid, the remaining provisions not affected thereby shall continue to be in 
full force and effect. 
 
Section 6. All laws, executive orders, proclamations, rules, regulations and other 
issuances or parts thereof which are inconsistent with the provisions of this Act 
are hereby repealed, amended, or modified accordingly. 
 
Section 7.  This Act shall take effect fifteen (15) days following its publication in 
the Official Gazette or in at least two (2) newspapers of general circulation. 
 
             Approved,