SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENATE 
S.B. No. 2120 
Introduced by Senator Sergio Osmena III 
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AN ACT AMENDING REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS 
THE GOVERNMENT PROCUREMENT REFORM ACT, AND FOR OTHER 
PURPOSES 
EXPLANATORY NOTE 
The Government Procurement Reform Act 
The procurement of goods and services for government contracts is governed by 
Republic Act No. 9184, otherwise known as the Government Procurement Reform Act 
(GPRA). 
Apart from promoting transparency and accountability in the procurement 
process and the implementation of government contracts, the GPRA also counts 
competitiveness as a governing principle, by seeking to extend equal opportunities to 
eligible and qualified private contracting parties. 
However, the principle of competitiveness in the GPRA is diluted by its adoption 
of the domestic preference policy embodied in a 78-year-old law- Commonwealth Act 
No. 138 (CA 138). 
CA 138 was enacted in 1936, at a time when limitations in 
infrastructure and technology confined the need to remain competitive primarily within 
territorial boundaries. Times have clearly changed. Technology has improved by leaps 
and bounds, facilitating freer and more efficient movement of goods and services across 
borders. In the 21 st century, competition has taken on a new, 'global dimension. 
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Competition And Procurement Reform 
Regional free trade agreements, such as the developing Trans Pacific Partnership 
Agreement (TPP), must be considered to keep us competitive. 
The procurement 
chapter of the TPP would require that all firms operating in any signatory country be 
provided equal access as domestic firms in government procurement contracts. The 
United States, for example, would have to agree to waive "Buy American" and "Buy 
Local" procurement policies for all such foreign firms. 
Countries such as Australia, 
Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the 
United States, and Vietnam are currently part of negotiations to join the TPP, and 
therefore represent potential markets that the Philippines will either be a part of or 
excluded from. 
The World Trade Organization (WTO) Agreement on Government Procurement 
(GPA) is undergoing revision to increase international competition in government 
procurement contracts by providing for a more level playing field for foreign bidders In 
countries that are Parties to the GPA. Joining as a Party to the GPA may mean that a 
country's national government would have to implement policies that call for non-
discriminatory treatment to foreign suppliers. 
Parties to the GPA include Canada, 
Israel, Japan, Norway, Switzerland, the United States, and the 15 states of the 
European Union (Australia, Belgium, Denmark, Finland, France, Germany, Greece, 
Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United 
Kingdom). 
Within the ASEAN, Singapore is already a Party to the GPA, while 
Indonesia, Malaysia and Vietnam joined as Observers to the GPA in 2012. 
The procurement chapter of Singapore's Free Trade Agreement with the 
European Union (EU-Singapore FTA) demonstrates the· kind of uniform treatment that 
allows domestic and foreign supplies to compete fairly. Under the EU-Singapore FTA, 
Singapore and its procuring entities are committed to treating goods, services, and 
supplies from the EU no less favorably than it would its own domestic goods, services 
and suppliers. 
Singapore is likewise committed to not discriminating among local 
suppliers on the basis of their foreign affiliation or ownerShip. This should mean that a 
local supplier that is partly owned by nationals of EU member countries would not be 
treated less favorably than a 100% Singapore owned company. The EU has the same 
commitments. 
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Philippine law still discriminates against foreign suppliers, and we have not taken 
steps toward joining the TPP or the WTO GPA as a Party or as an Observer. But the 
repercussions of being excluded from these significant trading blocks should be urgently 
considered in the context of positioning the Philippines more competitively in the global 
procurement market. 
Therefore, this bill seeks to provide a level playing field, and 
extend equal opportunities to eligible and qualified domestic and foreign bidders to 
participate in government procurement contracts. 
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;O~j\-LM-A 
SERGIO OSMENA III 
Senator 


SIXTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES I 
First Regular Session 
) 
SENAT E 
S. 8. No._~l?O 
Introduced by Senator Sergio Osmena III 
AN ACT 
'14 
FEB 12 I' 3 :02 
AMENDING REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS 
THE GOVERNMENT PROCUREMENT REFORM ACT, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representative of the Philippines in 
Congress assembled: 
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Section 1. Section 4 of Republic Act No. 9184 is hereby amended to read as 
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follows: 
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"Sec. 4. 
Scope and Application. -
This act shall apply to the 
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Procurement of 
Infrastructure Projects, Goods and Consulting 
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Services, regardless of source of funds, whether local or foreign, by all 
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branches and instrumentalities of government, its departments, offices 
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and 
agencies, 
including 
government-owned 
and/or-controlled 
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corporations and local government units [,subject to the provisions of 
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Commonwealth Act No. 138]. Any treaty or international or executive 
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agreement affecting the subject matter of this Act to which the 
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Philippine government is a signatory shall be observed." 
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Sec. 2. Section 76 of Republic Act No. 9184 is hereby amended to read as 
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follows: 
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"Sec. 76. Repealing C/ause.- This law repeals COMMONWEALTH 
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ACT NO. 138, ENTITLED "AN ACT TO GIVE NATIVE PRODUCTS 
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AND DOMESTIC ENTITIES THE PREFERENCE IN THE PURCHASE 
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OF ARTICLES FOR THE GOVERNMENT"; Executive Order No. 40, 
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series of 2001, entitled "Consolidating Procurement Rules and 
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Procedures for all National Government Agencies, Government-
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Owned-or-Controlled 
Corporations and/or Government 
Financial 
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Institutions, and requiring the Use of the Government Electronic 
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Procurement System"; Executive Order No. 262, series of 2000, 
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entitled "Amending Executive Order No. 302, series of 1996, entitled 
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"Providing Policies, Guidelines, Rules and Regulations for the 
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Procurement of Goods/Supplies by the National Government" and 
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Section 3 of Executive Order No. 201, senes of 2000, entitled 
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"Providing Additional Policies and Guidelines in the Procurement of 
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Goods/Supplies by the National Government"; Executive Order No. 
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302, series of 1996, entitled "Providing Policies, Guidelines, Rules and 
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Regulations for the Procurement of Goods/Supplies by the National 
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Government" and Presidential Decree No. 1594 dated June 11, 1978, 
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entitled "Prescribing Policies; Guidelines, Rule and Regulations for 
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Government Infrastructure Contracts." 
This law amends Title Six, 
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Book Two of Republic Act No. 7160, otherwise known as the "Local 
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Government Code of 1991'; the relevant provisions of E:xecutive Order 
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No. 164, series of 1987, entitled "Providing Additional Guidelines in the 
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processing and Approval of Contracts of the National Government': 
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and the relevant provisions of Republic Act No. 7898 dated February 
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23, 1995, entitled "An Act Providing for the Modernization of the Armed 
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Forces of the Philippines and for Other Purposes." Any other law, 
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presidential decree or issuance, executive order, letter of instruction, 
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administrative order, proclamation, charter, rule or regulation and/or 
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parts thereof contrary to or inconsistent with the provisions of this Act 
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is hereby repealed, modified or amended accordingly." 
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Sec. 3. 
Separability Clause. - If any portion or provision of this Act is 
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declared unconstitutional, the remainder of this Act or any provisions not affected 
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thereby shall remain in force and effect. 
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Sec. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
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its publication in the Official Gazette or two (2) newspapers of general circulation. 
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Approved. 
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