NINETEENTH CONGRESS OF THE    ) 
REPUBLIC OF THE PHILIPPINES      ) 
Second Regular Session      
    ) 
HOUSE OF REPRESENTATIVES 
H.B. NO. _____ 
INTRODUCED BY REPRESENTATIVE EMMARIE “LOLYPOP” 
OUANO-DIZON 
AN ACT 
AMENDING REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS 
THE “GOVERNMENT PROCUREMENT REFORM ACT” AND FOR 
OTHER PURPOSES 
EXPLANATORY NOTE 
Republic Act No. 9184, otherwise known as "Government Procurement Reform 
Act", was passed into law to modernize, standardize and streamline the 
procurement process across government agencies with the intention to curb graft 
and corruption in government. R.A. No. 9184 is seen as a tool to promote 
transparency and competition and lessen delays in the procurement process. Its 
Implementing Rules and Regulations have been revised four times since its 
passage in 2003. The latest revision was in 2021 
This bill seeks to further improve the government procurement system by 
providing additional measures that will shorten the present bureaucratic 
Intricacies of the system and expedite the procurement process through 
mandatory inclusion of the procurement plan and purchase priority In the annual 
development plan, the inclusion of the list of requirements in the posting and 
publication of the Invitation to bid, upgrading Philippine Government Electronic 
Procurement System (PhilGEPS) and establishment of the electronic bidding 
process. 
August 31, 2023
12:42 pm
9014


The latest impetus to further reform the government procurement process has 
been the need to find an alternative to the lowest-bid method. The bill introduces 
the Best Value Procurement (BVP), which refers to the procurement process 
where all key factors such as but not limited to price, life cycle cost, benefits, and 
predicted risks are considered in the selection process to maximize the 
performance and value for money of every government procurement activity. 
Apart from this, the bill proposes several reforms such as the adoption of Global 
Open Data Contracting Standards, which enhances the electronic government 
procurement system by facilitating publication and analysis of data related to all 
stages of the contracting process; promoting Sustainable Public Procurement, 
which supports the creation of an Inter-Agency Task Force to determine the 
standards for products and services needed to fulfill the government's 
environmental objectives; Support to Inclusive Public Procurement, which 
incentivizes the participation of MSMEs in government procurement; 
Institutionalization of a Procurement Academy, among others. 
These innovations will help make the procurement process more transparent, 
faster, and more efficient. Ultimately, the improved procurement process will be 
advantageous to the government in the long run. 
In view of the foregoing, the approval of this bill is urgently sought. 
 
 
 
  
 
 
 
 
 
 
EMMARIE “LOLYPOP” OUANO-DIZON 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No. _____ 
INTRODUCED BY REPRESENTATIVE EMMARIE “LOLYPOP” 
OUANO-DIZON 
AN ACT 
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 Representatives of the 
Philippines in Congress assembled: 
ARTICLE 1 
GENERAL PROVISIONS 
  SEC. 1. Short Title. - This Act shall be known as the "Revised Government 
Procurement Reform Act'  
SEC. 2. Declaration of Policy. — It is the declared policy of the State to 
promote the ideals of good governance in all its branches, departments, agencies, 
subdivisions, and instrumentalities, including government-owned and/or -
controlled corporations, and local government units. 
9014


SEC. 3. Governing Principles on Government Procurement. — All 
procurement of the national government, its departments, bureaus, offices and 
agencies, including state universities and colleges, government-owned and/or -
controlled corporations, government financial institutions and local government 
units, shall, in all cases, be governed by these principles: 
(a) 
Transparency in the procurement process and in the implementation of 
procurement contracts consistent with global open contracting data standards. 
(b) 
Competitiveness by extending equal opportunity to enable private 
contracting parties who are eligible and qualified to participate in public bidding. 
(c) 
Streamlined procurement process that will uniformly apply to all 
government procurement. The procurement process shall be simple and made 
adaptable to advances in modern technology in order to ensure an effective and 
efficient method. 
(d) 
System of accountability where both the public officials directly or 
indirectly involved in the procurement process as well as in the implementation of 
procurement contracts and the private parties that deal with government are, when 
warranted by circumstances, investigated and held liable for their actions relative 
thereto. 
(e) 
Public monitoring of the procurement process and the implementation 
of awarded contracts with the end in view of guaranteeing that these contracts are 
awarded pursuant to the provisions of this Act and its implementing rules and 
regulations, and that all these contracts are performed strictly according to 
specifications. 
(f) 
Sustainable public procurement as driver for innovation and sustainable 
development. 
(g) 
Inclusive public procurement and entrepreneurship through the 
encouragement and incentivization of priority enterprises involvement. 
 
SEC. 4. Scope and Application. — This Act shall apply to the procurement 
of infrastructure projects, goods, and consulting services, vehicles, regardless of 
source of funds, whether local or foreign, by all branches and instrumentalities of 
government, its departments, bureaus, offices and agencies, including government-
owned and/or -controlled corporations, government financial institutions, state 
universities and colleges, military and police units, and local government units, 
subject to the provisions of Commonwealth Act No. 138 entered into by the 
Philippine government before the passage of this Act shall likewise be governed by 
the provisions of this Act: Provided, That the Government Procurement Policy 
Board (GPPB) shall promulgate special rules consistent with the governing 
principles of this Act for the following classes of procurement: 
a. 
Those for the use of Philippine Government offices overseas; 


b. 
Those involving official development assistance or international 
development assistance through multilateral or bilateral agreements, and 
those covered by international agreements, international funding, 
international organization agreements between countries for joint 
implementation of projects, or any procurement funded by international grant, 
loan, or other assistance; 
c. 
Those covered by the national security interests including defense 
articles, services, and infrastructure projects determined by the Secretary of 
National Defense as vital to national security and other strategic 
considerations; and 
d. 
Those involving scientific research and development initiatives. 
However, for the procurement of science, engineering, technology and 
research equipment, and specialized supplies and materials, this Act shall not apply 
in case the amount of the goods and equipment to be procured are not more than 
One hundred thousand pesos (P 100,000.00). 
 
SEC. 5. Definition of Terms. — For purposes of this Act: 
(a) 
Approved Budget for the Contract (ABC) refers to the budget for the 
contract duly approved by the Head of the Procuring Entity, as provided for in the 
General Appropriations Act and/or continuing appropriations, in the case of 
National Government Agencies; the Corporate Budget for the contract approved by 
the governing Boards, pursuant to Executive Order No. 518, Series of 1979, in the 
case of government-owned and/or -controlled corporations, government financial 
institutions and state universities and colleges; and the budget for the contract 
approved by the respective sanggunian, in the case of local government units. For 
multi-year contracts, for which a Multi-year Contractual [Obligational] Authority 
(MYCA) [(MYOA)] or an equivalent document is required, the ABC shall be 
incorporated in the project cost reflected in the MYCA [MYOA] or equivalent 
document. 
(b) 
BAC refers to the Bids and Awards Committee established in 
accordance with Article IV of this Act. 
(c) 
Best value procurement refers to the procurement process where all key 
factors such as, but not limited to, price, life cycle cost, benefits and predicted risks 
are considered in the selection process to maximize the performance and value for 
money of every government procurement project or program. 
(d) 
Bidding Document refers to documents issued by the procuring entity 
as the basis for bids, furnishing all information necessary for a prospective bidder 
to prepare a bid for the goods, infrastructure projects, and consulting services to be 
provided, or to the electronic document published by the procuring entity to a portal 
or PhilGEPS for purposes of inviting potential bidders. 


(e) 
Bid refers to a signed offer or proposal submitted physically or through 
PhilGEPS by a supplier, manufacturer, distributor, contractor or consultant in 
response to the Bidding 
Documents. 
(f) 
Blacklisting refers to an administrative penalty disqualifying a person 
or an entity from participating in any government procurement for a given period. 
(g) 
Competitive bidding refers to a method of procurement which is open 
to participation by any interested party and which consists of the following 
processes: advertisement, pre-bid conference, eligibility screening of prospective 
bidders, receipt and opening of bids, evaluation of bids, post-qualification, and 
award of contract, the specific requirements and mechanics of which shall be 
defined in the IRR to be promulgated under this Act. 
(h) 
Consulting service refers to services for infrastructure projects and 
other types of projects or activities of the government requiring adequate external 
technical and professional expertise that are beyond the capability and/or capacity 
of the government to undertake such as, but not limited to: (i) advisory and review 
services; (ii) pre-investment or feasibility studies; (iii) design; (iv) construction 
supervision; (v) management and related services; and (vi) other technical services 
or special studies. 
(i) 
Cooperative refers to any association duly registered with the 
Cooperative Development Authority and defined as such by Republic Act No. 6938, 
otherwise known as the Philippine Cooperative Code of2008, as amended. 
(j) 
Disabled persons refers to any person described as such by Republic 
Act No. 7277, otherwise known as the Magna Carta For Disabled Persons, as 
amended. 
(k) 
Goods refer to all items, supplies, materials and general support 
services, except consulting services and infrastructure projects, which may be 
needed in the transaction of public businesses or in the pursuit of any government 
undertaking, project or activity, whether in the nature of equipment, furniture, 
stationery, materials for construction, or personal property of any kind, including 
non-personal or contractual services such as the repair and maintenance of 
equipment and furniture, as well as ü•ucking, hauling, janitorial, security, and 
related or analogous services, as well as procurement of materials and supplies 
provided by the procuring entity for such services. 
(l) 
GPPB refers to the Government Procurement Policy Board established 
in accordance with Article XXI of this Act. 
(m) 
Head of the procuring entity refers to: (i) the head of the agency or the 
duly authorized official, for national government agencies; (ii) the governing board 
or its duly authorized official, for government-owned and/or -controlled 
corporations; or (iii) the local chief executive, for local government units: Provided, 


That in a department, office or agency where the procurement is decentralized, the 
head of each decentralized unit shall be considered as the head of the procuring 
entity subject to the limitations and authority delegated by the head of the 
department, office or agency. 
(n) 
Key performance indicators (KPI) refers to measurable value that 
demonstrates how effective a procurement is being implemented. 
(o) 
Infrastructure project includes the construction, improvement, 
rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, 
railways, airports, seaports, communication facilities, civil works components of 
information technology projects, irrigation, flood control and drainage, water 
supply, sanitation, sewerage and solid waste management systems, shore protection, 
energy/power and electrification facilities, national buildings, school buildings, 
hospital buildings and other related construction projects of the government. 
(p) 
IRR refers to the implementing rules and regulations to be promulgated 
in accordance with Section 124 of this Act. 
(q) 
Life-cycle cost refers to the total cost of ownership of a good from its 
acquisition, operation, maintenance, and disposal. 
(r) 
Micro, Small and Medium Enterprise (MSME) refers to any business 
or enterprise defined and found eligible as such by Republic Act No. 6977, 
otherwise known as the Magna Carta for Small Enterprises, as amended. 
(s) 
Multi-year Project refers to the program or project that takes more than 
one (l) year to complete; 
(t) 
Multi-year Contractual Authority (MYCA) refers to the authorization 
awarded to multi-year projects or programs that will take more than one year for 
completion and will require multi-year appropriations. 
(u) 
Procuring entity refers to any branch, department, office, agency, or 
instrumentality of the government, including state universities and colleges, 
government owned and/or -controlled corporations, government financial 
institutions, and local government units procuring goods, consulting services and 
infrastructure projects. 
(v) 
Performance-based specification refers to a requirement describing the 
desired outcomes or results in terms of functional or performance requirements 
rather than in terms of technical details used in cases when the procuring entity is 
uncertain of the best process or method to deliver the requirements, when high-level 
technology is required, when suppliers are known to have the capability to design 
fit for purpose solutions, or when past performance or other non-financial 
considerations may be beneficial in the government. 
(w) 
PhilGEPS refers to the Philippine Government Electronic Procurement 
System as provided in Section 10 of this Act. 


(x) 
Priority enterprise refers to sheltered workshop, cooperative, and 
micro, small and medium enterprise. 
(y) 
Sheltered workshop refers to any business, enterprise, or workplace the 
main purpose of which is the social and professional integration of disabled persons: 
Provided, That at least thirty percent (30%) of workers, employees, or personnel in 
the sheltered workshop, at the time of bid evaluation and throughout the execution 
of the contract, are disabled persons. 
 
SEC. 6. Standardization of Procurement Process and Forms. — To 
systematize the procurement process, avoid confusion and ensure transparency, the 
procurement process, including the forms to be used, shall be standardized insofar 
as practicable. For this purpose, the GPPB shall pursue the development of generic 
procurement manuals and standard bidding forms, the use of which once issued shall 
be mandatory upon all procuring entities. 
 
SEC. 7. Procurement Planning and Budgeting Linkage. — All procurement 
should be within the approved budget of the procuring entity and should be 
meticulously and judiciously planned by the procuring entity concerned. Consistent 
with government fiscal discipline measures, only those considered crucial to the 
efficient discharge of governmental functions shall be included in the Annual 
Procurement Plan to be specified in the IRR. 
 
No government procurement shall be undertaken unless it is in accordance 
with the approved Annual Procurement Plan of the procuring entity. The Annual 
Procurement Plan shall be approved by the head of the procuring entity and must be 
consistent with its duly approved yearly budget. The Annual Procurement Plan shall 
be formulated and revised only in accordance with the guidelines set forth in the 
IRR. In the case of infrastructure projects, the plan shall include engineering design 
and acquisition of right-of-way. 
 
The annual procurement plan of the national government agencies shall 
conform with the National Development Plan and, in the case of the local 
government unit, with the local development plan. 
The procuring entities shall make a list of their purchase priority which shall 
be included in their annual procurement plan and budget. 
 
 
 
 
 


ARTICLE II 
COMPETITIVE BIDDING 
 
SEC. 8. Lowest Bid Procurement. — Lowest bid method of Competitive 
Bidding shall be the default mode of procurement, except as provided for in Section 
10 and Article XV of this Act. 
 
SEC. 9. Best Value Procurement. — Procurement of non-common use 
Goods, Infrastructure Projects, Consultancy Services, and other classes as 
determined by the GPPB, may be done through the Best Value Procurement (BVP) 
method. 
 
In the use of BVP method, the following factors or a combination thereof 
may be considered as relevant technical and financial components of each 
submission, including: 
a) 
Quality of the goods, materials, and services; 
b) 
Alignment with desired outcomes; 
c) 
Key performance indicators; 
d) 
Risks involved; 
e) 
Timeliness; 
f) 
Life cycle costs; 
g) 
Potential bidder's relevant experience and performance history; and 
h) 
Environmental 
sustainability 
of 
the 
proposed 
goods 
and 
infrastructures. 
 
ARTICLE III 
PROCUREMENT BY ELECTRONIC MEANS 
 
SEC. 10. Transparency and Efficiency in Electronic Procurement — To 
promote transparency and efficiency, information and communications technology 
shall be fully utilized in the conduct of procurement procedures. Accordingly, there 
shall be a single portal that shall serve as the primary source of information on all 
government procurement from the planning stage up to its implementation to be 
known as the Philippine Government Electronic Procurement System (PhilGEPS). 
The PhilGEPS shall serve as the primary and definitive source of information on 
government procurement and shall provide equal access to all potential bidders. 
Further, the Government Procurement Policy Board (GPPB), the governing body 
created under Article XXI of this Act, is authorized to approve changes in the 
procurement process to adapt to improvements in technology, provided that such 
modifications are consistent with the provisions of Section 3 of this Act. 


To take advantage of the significant built-in-efficiencies of the PhilGEPS and 
the volume discounts inherent in bulk purchasing, all Procuring Entities shall utilize 
the PhilGEPS for the procurement of common supplies in accordance with the rules 
and procedures to be established by the GPPB. With regard to the procurement of 
non-common use items, infrastructure projects and consulting services, agencies 
may hire service providers to undertake their electronic procurement provided these 
service providers meet the minimum requirements set by the GPPB. 
 
SEC. 11. Security, Integrity and Confidentiality. — The PhilGEPS shall 
ensure the security, integrity, and confidentiality of documents submitted through 
the system. It shall include features that provide for an audit trail for electronic 
transactions and allow the Commission on Audit to verify the security and integrity 
of the systems at any time. 
 
SEC. 12. Adoption of State-of-the-Art Technologies. — PhilGEPS shall 
continuously adopt state-of-the-art technologies which shall have the minimum 
features of real-time updates, traceability of all transactions, and accessibility to a 
large pool of users at any given time. 
 
SEC. 13. Prompt Payment — PhilGEPS shall incorporate an electronic 
payment system that shall ensure prompt payments to suppliers. In all cases, 
obligations of the government must be settled within thirty (30) calendar days after 
the delivery and favorable inspection of the goods or services. 
 
ARTICLE IV 
BIDS AND AWARDS COMMITTEE (BAC) 
 
SEC. 14. BAC and its Composition. — Each procuring entity shall establish 
a single BAC for its procurement. The BAC shall have at least five (5) members, 
but not more than seven (7) members. It shall be chaired by at least a third ranking 
permanent official of the procuring entity other than its head, and its composition 
shall be specified in the IRR. Alternatively, as may be deemed fit by the head of the 
procuring entity, there may be separate BACs where the number and complexity of 
the items to be procured shall so warrant. Similar BACs for decentralized and lower 
level offices may be formed when deemed necessary by the head of the procuring 
entity. The members of the BAC shall be designated by the head of procuring entity.  
 
However, in no case shall the approving authority be a member of the BAC. 
Unless sooner removed for a cause, the members of the BAC shall have a fixed term 
of one (l) year reckoned from the date of appointment, renewable at the discretion 


of the head of the procuring entity. In case of resignation, retirement, separation, 
transfer, reassignment, removal, the replacement shall serve only for the unexpired 
term: Provided, That in case of leave or suspension, the replacement shall serve only 
for the duration of the leave or suspension. For justifiable causes, a member shall 
be suspended or removed by the head of the procuring entity. 
 
SEC. 15. Functions of the BAC. — The BAC shall have the following 
functions: advertise and/or post the invitation to bid, conduct pre-procurement and 
pre-bid conferences, determine the eligibility of prospective bidders, receive bids, 
conduct the evaluation of bids, undertake post-qualification proceedings, 
recommend award of contracts to the head of the procuring entity or the duly 
authorized representative: Provided, That in the event the head of the procuring 
entity shall disapprove such recommendation, such disapproval shall be based only 
on valid, reasonable and justifiable grounds to be expressed in writing, copy 
furnished the BAC; recommend the imposition of sanctions in accordance with 
Article XIV, and perform such other related fimctions as may be necessary, 
including the creation of a technical working group from a pool of technical, 
financial and/or legal experts to assist in the procurement process. In proper cases, 
the BAC shall also recommend to the head of the procuring entity the use of 
alternative methods of procurement as provided for in Article XV hereof. The BAC 
shall be responsible for ensuring that the procuring entity abides by the standards 
set forth by this Act and the IRR, and it shall prepare a procurement monitoring 
report that shall be approved and submitted by the head of the procuring entity to 
the GPPB on a semestral basis. The contents and coverage of this report shall be 
provided in the IRR. 
 
SEC. 16. Observers. — To enhance the transparency of the process, the BAC 
shall, in all stages of the procurement process, invite, in addition to the 
representative of the Commission on Audit, at least two (2) observers to sit in its 
proceedings, one (l) from a duly recognized private group in a sector or discipline 
relevant to the procurement at hand, and the other from a non-government 
organization: Provided, however, That they do not have any direct or indirect 
interest in the contract to be bid out. The observers should be duly registered with 
the Securities and Exchange Commission, members in good standing of the sector, 
discipline or non-government organization they represent as duly certified by the 
head of the sector, discipline or organization to which they belong, and should meet 
the criteria for observers as set forth in the IRR. 
 


Each observer shall make a separate report on the conduct of the public 
bidding, its procedures, conditions and problems, if any, which shall be submitted 
to the procuring entity, the GPPB and the Commission on Audit. 
 
In case of unavailability of the observers from the non-government 
organization or private sector, the GPPB shall provide qualified observers to the 
BAC. For this purpose, the GPPB shall maintain a registry of procurement 
professionals qualified to be the observers to the BAC. 
 
The absence of any of the observers and corresponding reports shall nullify 
the bidding process. 
 
SEC. 17. BAC Secretariat. — To assist the BAC in the conduct of its 
functions, procurement units shall be established in all government agencies and 
instrumentalities that will serve as the main support unit of the BAC. The GPPB 
shall promulgate guidelines as to the duties of its personnel, number of plantilla 
items, compensation, and other matters necessary for the success of these units. 
 
SEC. 18. Honoraria of BAC Members. — The procuring entity may grant 
payment of honoraria to the BAC members in an amount not to exceed twenty-five 
percent (25%) of their respective basic monthly salary subject to availability of 
funds. For this purpose, the Department of Budget and Management shall 
promulgate the necessary guidelines. 
 
SEC. 19. Procurement Academy. — The GPPB shall establish a sustained 
training program for developing the capacity of the BACs, BAC secretariats, and 
technical working groups of procuring entities, and professionalize the same. 
 
For this purpose, the GPPB shall establish a procurement academy under its 
technical service office that shall be responsive to the needs and apt for the 
responsibilities of government procurement personnel and other interested 
individuals. 
 
The procurement academy may establish partnerships with state universities 
and colleges (WCs) or other educational institutions in providing these trainings. 
The GPPB shall establish standards for accreditation of these institutions. 
Certifications shall be awarded to individuals who will finish the courses. 
 
The members of the BAC secretariat shall undergo an annual training based 
on their responsibilities as conducted. The head of the procuring entities, members 


of the BAC, and the technical working groups shall undergo an executive course on 
procurement. 
 
The GPPB shall also establish a system professional licensure examinations 
of procurement practitioners. 
 
SEC. 20. Maintenance, Update, and Back Up. — PhilGEPS must undergo a 
periodic maintenance to ensure that its systems are running smoothly. It shall have 
a disaster backup feature to maintain the system's integrity and ensure uninterrupted 
operations. 
 
SEC. 21. Data Collection and Analysis. — the GPPB technical service office 
and the Department of Budget and Management procurement service shall collect 
data and create usable and presentable statistics on procurement activities to 
understand the status of public procurement and formulate and implement effective 
procurement policies. 
 
ARTICLE V 
INTEGRATED PROCUREMENT PROCESS 
 
SEC. 22. Integrated Procurement Process. - The life cycle of procurement 
activities has three integrated stages: 
a) 
Planning Stage that includes: 
(1) 
Procurement Planning; 
(2) 
Requirement Specification and Market Feasibility Analysis; 
(3) 
Preparation of bidding documents. 
b) 
Sourcing Stage 
(1) 
Invitation to Bid; 
(2) 
Receipt and Opening of Bids; 
(3) 
Bid Evaluation; 
(4) 
Post-Qualification; and 
(c) Management Stage 
(l) Implementation of Contract 
(2) Monitoring and Evaluation 
(3) Disposal. 
 
 
 
 
 


ARTICLE VI 
PREPARATION OF BIDDING DOCUMENTS 
 
SEC. 23. Form and Contents of Bidding Documents. — The bidding 
documents shall be prepared by the procuring entity following the standard forms 
and manuals prescribed by the GPPB. The bidding documents shall include the 
following: 
(a) Approved Budget for the Contract; 
(b) Instructions to Bidders, including criteria for eligibility, bid evaluation 
and post-qualification, as well as the date, time and place of the pre-bid 
Conference (where applicable), submission of bids and opening of bids;  
(c) Terms of Reference; 
(d) 
Eligibility Requirements; 
(e) 
Plans and Technical Specifications; 
(f) Form of Bid, Price Form, and List of Goods or Bill of Quantities; 
(g) 
Delivery Time or Completion Schedule; 
(h) 
Form and Amount of Bid Security; 
(i) Form and Amount of Performance Security and Warranty; and, 
(j) Form of Contract, and General and Special Conditions of Contract. 
 
The procuring entity may require additional document requirements or 
specifications necessary to complete the information required for the bidders to 
prepare and submit their respective bids. 
 
ARTICLE VII 
PLANNING STAGE 
 
A. 
PROCUREMENT PLANNING 
 
SEC. 24. Procurement Capability Index. — The procuring entity shall submit 
a self-assessed procurement capability index (PCI) to the Department of Budget 
Management every year. The PCI shall gauge the capacity of the procuring entity 
to undertake procurement activities. 
In the preparing the PCI, the procuring entity shall engage with stakeholders 
and also review previous or existing contracts. 
 
SEC. 25. Multi-year Contracting. — National government agencies, local 
government units, constitutional offices, and state universities and colleges may 
request the Department of Budget and Management for the issuance of a Multi-year 
Contracting Authority (MYCA) prior to entering into contracts to cover the total 


project costs of multi-year projects, whether locally-funded or foreign-assisted. In 
the case of government-owned and/or -controlled corporations, they shall secure 
prior authority from their respective governing boards before entering into multi-
year projects and proceeding with their procurement. 
 
SEC. 26. Estimate of the Total Monetary Value of a Procurement. — The 
end-user must consider the total value over the whole life of the contract required 
for the full delivery of the goods, infrastructure projects, or consulting services in 
estimating the total monetary value of procurement through methodologies such as 
life cycle costing. The GPPB may prescribe special methods of valuation in certain 
types of procurement. 
 
SEC. 27. Procurement Short of Award. — To facilitate the immediate 
procurement of goods, infrastructure projects, or consulting services, even pending 
approval of the General Appropriations Act, corporate budget, or appropriations 
ordinance, as the case may be, the procuring entity may undertake procurement 
activities short of award. National government agencies, state universities and 
colleges, constitutional commissions or offices may start their procurement 
activities immediately after the National Expenditure Program has been submitted 
by the President to Congress: Provided, That the head of the procuring entity has 
approved the corresponding indicative Annual Procurement Plan (APP). This will 
facilitate the awarding of procurement contracts after the enactment of the GAA, 
enabling the timely implementation and completion of programs and projects. 
 
The procuring entities shall proceed with the awarding of confract only upon 
approval or enactment of their respective appropriations or budget authorization 
documents, as the case may be, and on the basis of the amount authorized therein. 
 
Should the approved budget for a program, activity, or project be lesser than 
the amount indicated in the National Expenditure Program, the concerned 
procurement entity shall make the necessary adjustments accordingly. 
 
 
B.  REQUIREMENT SPECIFICATION AND INDUSTRY ANALYSIS 
 
SEC. 28. Requirement Specification. — Upon the issuance of the National 
Expenditure Program, the procuring entity shall instruct its end-users to further 
specify the requirements of their proposed procurement activities. 
 


SEC. 29. Industry Analysis. — After the end-users have specified their 
requirements, an industry analysis shall be conducted wherein the landscape of 
suppliers for the desired goods and services is examined. The end-users shall also 
determine the risks involved in the procurement and potential mitigation 
approaches. 
 
SEC. 30. Price References. — The DBM procurement service, in cooperation 
with the Department of Trade and Industry, shall maintain verified price references 
for common use items and other items that shall be seasonably updated. Procuring 
entities may use these verified price references in lieu of market feasibility studies. 
 
 
C.  PREPARATION OF BIDDING DOCUMENTS 
 
SEC. 31. Reference to Brand Names. Specifications for the procurement of 
goods and goods components of infrastructure projects shall be based on relevant 
characteristics and performance requirements. Reference to brand names shall be 
allowed in specific instances, as determined by the GPPB: Provided, That in cases 
where the reference to the brand name of a particular supplier is necessary, the 
phrase "or equivalent" shall be added after such reference. 
 
    
SEC. 32. Access to Information. — In all stages of the preparation of the 
bidding documents, the procuring entity shall ensure equal access to information by 
posting the said documents in the PhilGEPS website and making them available in 
the concerned offices. Prior to their official release, no aspect of the bidding 
documents shall be divulged or released on any prospective bidder or having direct 
or indirect interest in the project to be procured. 
 
ARTICLE VIII 
SOURCING STAGE 
 
A. 
INVITATION TO BID 
 
SEC. 33. Pre-Advertising Conference. — Prior to the issuance of the 
invitation to bid, the BAC is mandated to hold a pre-advertising conference on each 
and every procurement, except those contracts below a certain level or amount 
specified in the IRR, in which case, the holding of the same is optional. The pre-
advertising conference shall assess the readiness of the procurement in terms of 
confirming the certification of availability of funds, as well as reviewing all relevant 
documents in relation to their adherence to law. This shall be attended by the BAC, 


the unit or officials who prepared the bidding documents and the draft invitation to 
bid, as well as consultants hired by the agency concerned and the representative of 
the end-user. 
 
SEC 34. Advertising and Contents of the Invitation to Bid. — In line with the 
principle of transparency and competitiveness, all invitations to bid contracts under 
Lowest Cost Procurement and Best Value Procurement shall be posted on the entity' 
s website and openly advertised by the procuring entity in such manner and for such 
length of time as may be necessary under the circumstances, in order to ensure the 
widest possible dissemination thereof, the invitation to bid, including the list of 
requirements, conditions, contact details and required tax clearances and licenses, 
shall be posted in the procuring entity's premises, the PhilGEPS and the website of 
the procuring entity at least sixty (60) days before deadline for submission of bids. 
The details and mechanics of implementation shall be provided in the IRR to be 
promulgated under this Act. 
 
The invitation to bid shall contain, among others: 
(a) 
A brief description of the subject matter of the procurement; 
(b) 
A general statement on the criteria, certifications, and 
performance measures to be used by the procuring entity for the eligibility 
check, the shortlisting of prospective bidders, in the case of the procurement 
of consulting services the examination and evaluation of bids, and post-
qualification; 
(c) 
The date, time and place of the deadline for the submission and 
receipt of the eligibility requirements, the pre-bid conference if any, the 
submission and receipt of bids, and the opening of bids; 
(d) 
The approved budget for the contract to be bid; 
(e) 
The source of funds; 
(f) 
The period of availability of the bidding documents, and the 
place where these may be secured; 
(g) 
The estimated timeframe for delivering the goods, infrastructure 
projects, and consulting services, or the estimated contract duration and any 
options relating to the length of contract; 
(h) 
Any limitations on the number of bidders that may be shortlisted; 
(i) 
The mode of procurement; and 
(j) 
Such other necessary information deemed relevant by the 
procuring entity. 
 
Any prospective bidder may send queries about the invitation to bid to the 
procuring entity electronically. The procuring entity must promptly respond to all 


questions and reasonable requests for information within two (2) working days: 
Provided, That information that might give undue advantage over other prospective 
bidders or disclose confidential or commercially sensitive information must not be 
given. Provided, further, That when a procuring entity responds to a supplier's 
question, it must not discuss or disclose another supplier's confidential or 
commercially sensitive information. 
 
The procuring entity may make changes in its requirements or process or 
provide additional information to all participating bidders after an invitation to bid 
is published: Provided, That should a shortlisting be conducted, the information 
must be made available to all shortlisted bidders at the same time. Changes in the 
bid thereafter shall be allowed until the deadline for responses. 
 
SEC. 35. Closed Invitation to Bid. — Invitations to bid shall be sent to either 
a direct source or a limited number of known suppliers, as the case may be, for the 
alternative methods of procurement as defined in Article XV of this Act as well as 
to the following transactions: (a) Purchase of a prototype for research, experiment, 
study, or original development; 
(b) 
Purchase on exceptionally advantageous conditions that only arise on 
the very short term; 
(c) 
Where the contract is awarded to the winner of a design contest; and 
(d) 
Where an agency receives a unique unsolicited proposal. 
 
SEC. 36. Pre-bid Conference. — At least one physical or web-based pre-bid 
conference shall be conducted for each procurement, unless otherwise provided in 
the IRR. Subject to the approval of the BAC, a pre-bid conference may also be 
conducted upon the written request of any prospective bidder. 
 
The pre-bid conference shall be held within thirty (30) days after the last day 
of posting of the invitation to bid and within a reasonable period before the deadline 
for receipt of bids to allow prospective bidders to adequately prepare their bids, 
which shall be specified in the IRR. 
 
ARTICLE IX 
VIDEO RECORDS OF ALL BIDDING CONFERENCES 
 
SEC. 37. Video Recording of All Procurement-Related Conferences. — To 
enhance the transparency of the procurement process, the procuring entity shall keep 
a video recording of all procurement-related conferences including but not limited 


to pre-procurement conference, pre-bid conference, bid opening, and all meetings 
of the bids and BAC, for all procurement projects equal or exceeding the amount of 
One million pesos (P1,000,000.00). 
 
All procurement related conferences may not commence without a video 
recording initiated by the chair of the BAC. 
 
Violations of this Section shall be meted out penalties as prescribed under 
Articles XXII (Penal Clause), XXIII (Civil Liability), and XXIV (Administrative 
Sanctions) of this Act. In addition to the aforementioned sanctions, the contract 
in favor of the errant party shall be nullified if the bid has been awarded. 
 
SEC. 38. Specifications of the Video Recording. — The video recording shall 
be clear and shall provide a close-up view of those present in the conference. 
During recording, the members of the BAC, the prospective or qualified bidders, 
the representative of the Commission on Audit and the two (2) observers invited 
in accordance with Article IV of this Act, shall be introduced one by one. 
 
SEC. 39. Copies of the Video Recording. — There shall be made three (3) 
copies of the video recording for the perusal and/or record of the BAC, the GPPB, 
and the Commission on Audit (COA). The video copies shall be made available 
to the public upon written request and payment of a specified fee. 
  
SEC. 40. Written and Video Records as Evidence in Court. — In case of any 
pertinent legal action, the video records may be subject to subpoena duces tecum, 
and may be used as evidence in court as it finds appropriate. 
 
The BAC, GPPB, and COA shall store the video records for not less than 
twenty (20) years and may dispose of them thereafter. 
 
The BAC and the GPBB shall ensure that the copies of the recording are 
regularly checked to ascertain that they are in good condition and not 
deteriorating, subject to the recommended conservation practices for the storage 
of the same. 
 
SEC. 41. Logistics of Video Recording. — The BAC of each procuring entity 
shall be in charge of the logistics of video recording and other related technical 
matters, such as but not limited to audio, archiving, and such other matters 
necessary to carry out the provisions of this Act. 


SEC. 42. Procurement of Video Recording Equipment. — The GPPB shall be 
in charge of the procurement of the video recording equipment and related 
supplies to be allocated to the procuring entities. 
 
SEC. 43. Exclusion of bidders. — The procuring entity may exclude a bidder 
from participating due to the following reasons: 
a. 
Blacklisting of the supplier; 
b. 
Bankruptcy, receivership, or liquidation; 
c. 
Making a false declaration in its submissions; 
d. 
Serious performance issue in a previous contract; 
e. 
Conviction for a serious crime; 
 
 
Professional misconduct; 
     Failing to pay taxes, duties, or other levies; 
h. 
Human rights violations by the supplier or in the supplier's supply 
chain; and 
i. 
Any analogous matter. 
 
Evidence supporting the reason for exclusion must exist before exclusion. 
The excluded bidder must be notified of its exclusion together with the reasons for 
such and be afforded the right to refute within a reasonable time. 
 
SEC. 44. Eligibility Requirements for the Procurement of Goods and 
Infrastructure Projects. — The BAC or, under special circumstances specified in the 
IRR, its duly designated organic office shall determine the eligibility of prospective 
bidders for the procurement of goods and infrastructure projects, based on the 
bidders' compliance with the eligibility requirements within the period set forth in 
the invitation to bid. The eligibility requirements shall provide for fair and equal 
access to all prospective bidders. The documents submitted in satisfaction of the 
eligibility requirements shall be made under oath by the prospective bidder or by 
the duly authorized representative certifying to the correctness of the statements 
made and the completeness and authenticity of the documents submitted. 
 
A prospective bidder may be allowed to submit the eligibility requirements 
electronically. However, said bidder shall later on certify under oath as to 
correctness of the statements made and the completeness and authenticity ofthe 
documents submitted: Provided, That for the procurement of infrastructure projects, 
the participation of prospective bidders shall be determined based on the approved 
budget for the contract (ABC) as follows: 


l. ABC of One hundred million pesos (P 100,000,000.00) and below. The 
location of the main office of the bidder must be within the province where the 
project shall be implemented; 
2. 
ABC of above One hundred million pesos (P 100,000,000.00) and 
below Two hundred million pesos 
 The location of the main office 
of the bidder must be within the region where the project shall be implemented; and 
3. 
ABC of above Two hundred million pesos 
 The 
location of the main office of the bidder may be anywhere in the Philippines. 
 
B. RECEIPT AND OPENING OF BIDS 
 
SEC. 45. Eligibility Requirements and Shortlisting. — The eligibility of 
prospective bidders for the procurement of goods, infrastructure services, and 
consulting services shall be determined by their compliance with the eligibility 
requirements prescribed for the competitive bidding concerned, within the period 
stated in the invitation to bid. The eligibility requirements shall provide for fair and 
equal access to all prospective bidders. The prospective bidder shall certify under 
oath as to the correctness of the statements made, and the completeness and 
authenticity of the documents submitted. A prospective bidder may be allowed to 
submit the eligibility requirements electronically. However, said bidder shall later 
on under oath as to correctness of the statements made and the completeness and 
authenticity of the documents submitted. The eligible prospective bidders shall then 
be evaluated using numerical ratings on the basis of the shortlisting requirements 
prescribed for the competitive bidding concerned, within the period stated in the 
invitation to bid to determine the short list of bidders who shall be allowed to submit 
their respective bids. 
 
SEC. 46. Submission and Receipt of Bids. — A bid shall have two (2) 
components, namely the technical and financial components which should be in 
separate electronic folders or sealed envelopes, and which shall be submitted 
simultaneously. The bids shall be received by the BAC on or before such date, time 
and place specified in the invitation to bid. The deadline for the receipt of bids shall 
be fixed by the BAC, giving the prospective bidders sufficient time to study and 
prepare their bids. The deadline shall also consider the urgency of the procurement 
involved. 
 
Bids submitted after the deadline shall not be accepted. 
 
Notwithstanding the provisions of this Section and Section 47 of this Act, the 
GPPB may prescribe innovative procedure for the submission, receipt and opening 


of bids through the PhilGEPS. The GPPB shall upgrade the electronic bidding 
system in the G-EPS that facilitates the submission of bids, quotation, documents 
and payment to the BAC through an electronic device. The GPPB may prescribe 
other innovative procedures that expedite the procurement process. 
 
SEC. 47. Modification and Withdrawal of Bids. — A bidder may modify the 
bid, provided that this is done before the deadline for the receipt of bids. The 
modification shall be submitted in an electronic folder or sealed envelope duly 
identified as a modification of the original bid and stamped received by the BAC. 
 
A bidder may, through an electronic mail, withdraw the bid or express the 
intention not to participate in the bidding before the deadline for the receipt of bids. 
In such a case, bidder shall no longer be allowed to submit another bid or the same 
contract either directly or indirectly. 
 
SEC. 48. Bid Security. — All bids shall be accompanied by a bid security, 
which shall serve as a guarantee that, after receipt of the notice of award, the 
winning bidder shall enter into contract with the procuring entity within the 
stipulated time and furnish the required performance security, the specific amounts 
and allowable forms of the bid security shall be prescribed in the IRR. 
 
SEC. 49. Bid Validity. — Bids and bid securities shall be valid for such 
reasonable period of time indicated in the bidding documents the duration for each 
undertaking shall take into account the time involved in the process of bid evaluation 
and award of contract. 
 
SEC. 50. Bid Opening. - The BAC shall publicly open all bids at the time, 
date, and place specified in the bidding documents, which in no case shall be more 
than five (5) working days after the deadline of the submission of bids. The minutes 
of the bid opening shall be made available to the public through the PhilGEPS. 
 
C. BID EVALUATION 
 
SEC. 51. Oral Presentations and Demonstrations. — To provide top-ranked 
bidders an opportunity to highlight the strengths of their proposal and provide 
answers regarding their bids, a procuring entity may have the option to schedule an 
oral presentation of their respective proposals that shall be conducted in a fair 
manner not later than five (5) calendar days after the opening of bids in best value 
procurements. Provided, That the bidders shall not be allowed to submit new 
information or modify their bids. 


SEC. 52. Final Offer. — After the oral presentation and demonstration, the 
procuring entity may give bidders up to two (2) opportunities to improve their bids 
in order to receive a more favorable evaluation. The bidders shall be requested to 
submit their final offers not later than ten (l O) working days after the oral 
presentation or demonstration. Procuring entities may evaluate the final offers as an 
addition to the scores already received by the bidders on their original bid or may 
develop a new evaluation process based entirely on the final offers. 
 
Bidders may opt not to submit a final offer and respond in writing to the 
procuring entity that their response remains as originally submitted. During the final 
offer process, the lowest price during the original responses may be disclosed but 
not the identity of the bidder as well as the current rank of the bidders. 
 
SEC. 53. Preliminary Examination of Bids. — Prior to bid evaluation, the 
BAC shall examine first the technical components of the bids using "pass or fail" 
criteria to determine whether all required documents are present. Only bids that are 
determined to contain all the bid requirements of the technical component shall be 
considered for opening and evaluation of their financial component. 
 
SEC. 54. Ceiling for Bid Prices. — The ABC shall be the upper limit or ceiling 
for the bid prices. Bid prices that exceed this ceiling shall be disqualified outright 
from further participating in the bidding. There shall be no lower limit to the amount 
of the award. 
 
SEC. 55. Bid Evaluation for the Procurement of Goods and Infrastructure Projects. 
 For the procurement of goods and infrastructure projects, the BAC shall evaluate 
the financial component of the bids. The bids that passed the preliminary 
examination shall be ranked from lowest to highest in terms of their corresponding 
calculated price in lowest bid procurement or overall performance rating based on 
evaluation criteria shall be referred to as the "Most Advantageous Bid." 
 
The most advantageous bid under best value procurement shall be understood 
as the one that offers the best public value over the whole life of the goods and 
infrastructure projects as proposed by the bidder that fully understands and has the 
capability to deliver the requirements and meet the contract conditions. 
 
SEC. 56. Bid Evaluation of Shortlisted Bidders for Consulting Services. — For 
the procurement of consulting services, the bids of the shortlisted bidders shall be 
evaluated and ranked using numerical ratings in accordance with the evaluation 
criteria stated in the bidding documents, which shall include factors such as, but not 


limited to, experience, performance, quality of personnel, price and methodology. 
The bids shall be ranked from highest to lowest in terms of their corresponding 
calculated ratings. The bid with the highest calculated rating shall be the "Most 
Advantageous Bid." After approval by the head of the procuring entity of the Most 
Advantageous Bid, the BAC shall invite the bidder concerned for negotiation or 
clarification on the following items: financial proposal submitted by the bidder, 
terms of reference, scope of services, methodology and work program, personnel to 
be assigned to the job, services, or facilities, or data to be provided by the procuring 
entity concerned, and provisions of the contract. When negotiations with the first-
in-rank bidder fails, the financial proposal of the second rank bidder shall be opened 
for negotiations: Provided, That the amount indicated in the financial envelope shall 
be made as the basis for negotiations and the total contract amount shall not exceed 
the amount indicated in the envelope and the ABC. Whenever necessary, the same 
process shall be repeated until the bid is awarded to the winning bidder. 
 
D. POST-QUALIFICATION 
 
SEC. 57. Objective and Process of Post-qualification. — Post-qualification is 
the stage where the bidder with the most advantageous bid (MAB) undergoes 
verification and validation whether the bidder has passed all the requirements and 
conditions as specified in the bidding documents. 
 
If the bidder with the MAB passes all the criteria for post-qualification, the 
bid shall be considered the most advantageous and responsive bid (MARB). 
However, if a bidder fails to meet any of the requirements or conditions, the bidder 
shall be "post-disqualified" and the BAC shall conduct the post-qualification on the 
bidder with the second MARB. If the bidder with the second MARB is post-
disqualified, the same procedure shall be repeated until the MARB is finally 
determined. 
 
In all cases, the contract shall be awarded only to the bidder with the MARB. 
 
In Best Value Procurements, the procuring entity is not required to 
automatically select a bidder based upon the lowest cost or the highest qualifications 
unless these were the primary criteria for selection. 
 
SEC. 58. Debriefing of Unsuccessful Bidders. — Upon the request of any 
unsuccessful bidder, the procuring entity shall conduct a debriefing in order to give 
them an opportunity to improve their future proposals. Requests may be made 
within twenty (20) days after giving the notice of award. The procuring entity shall 


state the reasons their proposal was not selected, their relative strengths and 
weaknesses, and address other concerns. In no case shall the procuring entity 
disclose another bidder's confidential or commercially sensitive information. 
 
SEC. 59. Failure of Bidding. — There shall be a failure of bidding if: 
(a) 
No bids are received; 
(b) 
No bid qualifies as the MARB; 
(c) 
Whenever the bidder with the MARB refuses, without justifiable cause 
to accept the award of contract, as the case may be; 
(d) 
Non-compliance with the requirements for the award of contract; or 
(e) 
Failure to enter into contract and post-performance security. 
 
Under any of the above instances, the contract shall be re-advertised and re-
bid. The BAC shall observe the same process and set the new periods according to 
the same rules followed during the first bidding. After the second failed bidding, 
however, the BAC may resort to negotiated procurement as provided for in Section 
89 of this Act. 
 
The BAC of the procuring entity shall inform in writing the GPPB of the 
failure of bidding and the reason thereof. The BAC of the procuring entity shall 
secure the approval of GPPB for re-bidding or negotiated procurement. 
 
SEC. 60. Single Advantageous Responsive Bid Submission. — A single 
advantageous responsive bid shall be considered for award if it falls under of the 
following circumstances: (a) If after advertisement, only one prospective bidder 
submits a letter of intent or applies for eligibility check, and meets the eligibility 
requirements or criteria, after which it submits a bid, which is found to be responsive 
to the bidding requirements; 
(b) 
If after the advertisement, more than one prospective bidder applies for 
eligibility check, but only one bidder meets the eligibility requirements or criteria, 
after which it submits a bid which is found to be responsive to the bidding 
requirements; or 
(c) 
If after the eligibility check, more than one bidder meets the eligibility 
requirements, but only one bidder submits a bid, and its bid is found to be responsive 
to the bidding requirements. In all instances, the procuring entity shall ensure that 
the ABC reflects the most advantageous prevailing price for the government. 
 
ARTICLE X 
IMPLEMENTATION STAGE 


A.  AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT 
 
SEC. 61. Notice and Execution of Award. — Within a period not exceeding 
seven (7) calendar days from the determination and declaration by the BAC of the 
most advantageous and responsive bid and the recommendation of the award, the 
head of the procuring entity or the duly authorized representative shall approve or 
disapprove the said recommendation. In case of approval, the head of the procuring 
entity or the duly authorized representative shall immediately issue the notice of 
award to the bidder with the most advantageous and responsive bid. In case of 
disapproval, the head of the procuring entity shall state the reasons thereof and 
return the documents to the BAC on the same day, which shall take action thereon 
within five (5) working days. 
 
In case the head of the procuring entity disapproves the recommendation of 
the BAC to award the contract to the bidder with the lowest calculated responsive 
bid or the highest rated responsive bid, the head of the procuring entity shall state 
the specific reasons for the disapproval and return the same to the BAC immediately 
on the day of the disapproval. 
 
Within five (5) calendar days from receipt of the notice of award, the winning 
bidder shall formally enter into contract with the procuring entity. Otherwise, the 
contract shall be deemed approved by the head of the procuring entity or the 
authorized representative. 
 
In case the head of the procuring entity disapproves the contract, the reason or 
reasons for the disapproval shall be stated in clear and unmistakable terms and the 
disapproved contract shall be returned immediately on the day the contract is 
disapproved to the implementing unit of the project which shall take action thereon 
within two (2) days from its receipt of the disapproved contract. 
 
The head of the procuring entity or the authorized representative shall issue 
the notice to proceed to the winning bidder on the day immediately following the 
approval of the contract and shall cause the service of the notice to proceed through 
the fastest means of communication recognized as valid mode of service of 
implementing unit of the project notice under existing law. 
 
In the case of government-owned and/or -controlled corporations, the 
concerned board shall take action on the said recommendation within thirty (30) 
calendar days from receipt thereof. 


The procuring entity shall issue the notice to proceed to the winning bidder not 
later than five (5) working days from the date of approval of the contract by the 
appropriate authority. All notices called for by the terms of the contract shall be 
effective only at the time of receipt thereof by the contractor. The other bidders shall 
likewise be promptly notified by the decision of the BAC. The notice of award and 
the notice to proceed shall be published in PhilGEPS. 
 
SEC. 62. Period of Action on Procurement Activities. — The procurement 
process from the opening of bids up to the award of contract shall not exceed three 
(3) months, or a shorter period to be determined by the procuring entity concerned. 
Without prejudice to the provisions of the preceding Section, the different 
procurement activities shall be completed within reasonable periods to be specified 
in the IRR. 
 
If no action on the contract is taken by the head of the procuring entity or by the 
duly authorized representative, or by the concerned board, in the case of 
government-owned and/or -controlled corporations, within the periods specified in 
the preceding paragraph, the contract concerned shall be deemed approved, without 
prejudice to the appropriate administrative sanctions that may be imposed against 
responsible officials. 
 
The procurement process, starting from the date of the publication of the 
invitation to bid, which shall be published only once in a newspaper of national 
circulation for projects costing Fifteen million pesos and above up the issuance of 
the notice to proceed shall not exceed three (3) months or a shorter period as may 
be warranted for justifiable cause to be determined by the head of the procuring 
entity. 
 
For contracts wherein there is only one bidder, the procurement process 
starting from the date of submission and opening of bids up to issuance of the notice 
to commence or proceed shall not exceed fifteen (15) days. 
 
No project shall be included for funding in the General Appropriations Act 
unless the detailed plans and specifications therefor have been duly completed and 
approved by the head of the procuring entity and the right-of-way or site for the 
project have been acquired by the procuring entity either through negotiated sale or 
by expropriation. 
 
The chairperson of the BAC, its members and the members of the secretariat 
or technical working group shall give first priority to the discharge of their duties 


and functions as BAC members and members of the secretariat or technical working 
group, to ensure that the timelines for procurement activities are attained. 
 
SEC. 63. Performance Security. — Prior to the signing of the contract, the 
winning bidder shall, as a measure of guarantee for the faithful performance of and 
compliance with the obligations under the contract prepared in accordance with the 
bidding documents, be required to post a performance security in such form and 
amount as specified in the bidding documents. 
 
SEC. 64. Failure to Enter into Contract and Post Performance Security. — If, 
for justifiable causes, the bidder with the most advantageous and responsive bid 
fails, refuses, or is otherwise unable to enter into contract with the procuring entity, 
or if the bidder fails to post the required performance security within the period 
stipulated in the bidding documents, the BAC shall disqualify the said bidder and 
shall undertake post-qualification for the next-ranked most advantageous and 
responsive bid. This procedure shall be repeated until an award is made. However, 
if no award is possible, the contract shall be subjected to a new bidding or be 
cancelled. 
 
In the case of a failure to post the required performance security, the bid 
security shall be forfeited without prejudice to the imposition of sanctions 
prescribed under Article XXIV. 
 
SEC. 65. Reservation Clause. — The head of the agency reserves the right to 
reject any and all bids, declare a failure of bidding, or not award the contract in the 
following situations: (a) If there is prima facie evidence of collusion between 
appropriate public officers or employees of the procuring entity, or between the 
BAC and any of the bidders, or if the collusion is between or among the bidders 
themselves, or between a bidder and a third party, including any act which restricts, 
suppresses or nullifies or tends to restrict, suppress or nullify competition; (b) If the 
BAC is found to have failed in following the prescribed bidding procedures; or (c) 
For any justifiable and reasonable ground where the award of the contract will not 
redound to the benefit of the government as defined in the IRR. 
 
SEC. 66. Contract Implementation and Termination. — The rules and 
guidelines for the implementation and termination of contracts awarded pursuant to 
the provisions of this Act shall be prescribed in the IRR. The rules and guidelines 
shall include standard general and special conditions for contracts. 
 
 


B. MONITORING AND EVALUATION 
 
SEC. 67. Managing Relationship With Winning Bidder. — The procuring 
entity through the end-user shall actively manage the contractual relationship with 
the winning bidder to ensure that key performance indicators are met through 
regular communication. 
 
SEC. 68. Periodic Updates. — The end-user shall make periodic updates on 
the compliance of the winning bidder not longer than three (3) months apart. 
 
SEC. 69. Satisfaction Metric. — The procuring entity shall rate the 
performance of the winning bidder before a contract is terminated using a metric to 
be formulated by the GPPB accompanied by detailed observations that shall be 
reflected in the profile of the bidder in PhilGEPS. 
 
The winning bidder shall also be given the opportunity to rate the procuring 
entity after the termination of the contract. 
 
The GPPB shall collate these ratings and any recommendations for 
improvement of bidders and the procurement process itself. 
 
SEC. 70. Blacklisting. — Blacklisting of non-compliant suppliers, contractors, 
and consultants as well as whitelisting or recognizing compliant and exemplary 
suppliers, contractors, and consultants shall be allowed upon release of guidelines 
or ratings system by the GPPB. These shall be easily viewable in the PhilGEPS 
website. Blacklisted persons and entities shall be automatically barred from 
participating in any PhilGEPS activity. 
 
An information technology infrastructure that can accommodate the uploading 
of proceedings and transactions in PhilGEPS shall be provided. This shall be 
accessible to everyone, especially for government watchdogs. 
 
C. DISPOSAL 
 
SEC. 71. Disposal Procedure. The procuring entities shall follow the 
established government disposal procedures. 
 
 
 
 


ARTICLE XI 
DOMESTIC AND FOREIGN PROCUREMENT 
 
SEC. 72. Procurement of Domestic and Foreign Goods. — Consistent with the 
country's obligations under international treaties or agreements, goods may be 
obtained from domestic or foreign sources and the procurement thereof shall be 
open to all eligible suppliers, manufacturers and distributors. However, the purchase 
of domestically-produced and manufactured goods, supplies and materials that meet 
the specified or desired quality in accordance with the provisions of existing laws 
and treaties or international agreements must be prioritized or given preference. 
Foreign bidders may only be eligible to participate under any of the following 
circumstances: 
A. 
When the goods sought to be procured are not available from local 
suppliers; or 
B. 
When the foreign supplier, manufacturer or distributor is a citizen, 
corporation or association of a country the laws or regulations of which grant 
reciprocal rights or privileges to citizens, corporations or associations of the 
Philippines, irrespective of the availability of goods from local suppliers; or 
C. 
When provided for under any treaty or international or executive 
agreement. SEC. 73. Local Added Value. — All government-sponsored or 
government-issued supplies to beneficiaries shall have at least seventy 
percent (70%) local added value. 
 
For purposes of this Act, supplies refer to materials and equipment necessary in 
the transaction of the official business of the procuring entity and used in its day to 
day operations. 
 
SEC. 74. Certification Requirement. — In order to be qualified to participate 
in the bidding process, suppliers are required to show proof of compliance to the 
requirement mentioned in Section 73 of this Act. 
 
The Department of Trade and Industry shall issue the certification to qualified 
suppliers or vendors who want to participate in the procurement process. 
 
SEC. 75. Availability of Local Materials. — The materials needed to produce 
the government-sponsored or government-issued supplies shall be locally sourced. 
In case of non-availability of materials locally, it is required that a certification from 
the Department of Trade and Industry stating that locally made and sourced 


materials are not available, before a supplier can participate in any government 
procurement bidding. 
 
SEC. 76. Domestic and Foreign Bids. — Whenever several domestic and 
foreign bidders shall participate in the bidding to supply articles, materials and 
equipment, the award shall be given to the domestic bidder offering the lowest bid, 
provided the amount of the bid is not more than twenty-five percent (25%) in excess 
of the lowest bid offered by a foreign bidder. 
 
SEC. 77. Procurement of Imported Goods. — The procurement of imported 
goods may be allowed if local products, materials and supplies are not manufactured 
domestically in sufficient quantity or comparable quality and at reasonable prices. 
 
SEC. 78. Prioritization of Domestically Manufactured Vehicles in Public 
Procurement. — In all public procurement involving the purchase of motor vehicles, 
the government shall be required to procure only those manufactured domestically 
and, also, in public procurement involving lease or rental of vehicles the government 
shall be required to procure from service providers at least 50 percent (50%) of 
whose fleets are composed of domestically-manufactured vehicles acquired in the 
five (5) years preceding the date of procurement, unless no such vehicles meeting 
the required specifications or possessing the required capabilities are manufactured 
or produced within the Philippines. 
 
ARTICLE XII 
BIDDING OF PROVINCIAL PROJECTS 
 
SEC. 79. Bidding of Provincial — Priority programs and infrastructure 
projects funded out of the General Appropriations Act which are intended for 
implementation within the province shall be subject to the same public bidding and 
to the procurement processes prescribed under this Act. For purposes of this Article, 
engineering district civil works projects, subject to consultation with the concerned 
Members of Congress, are included and subsumed in the term "provincial projects" 
and shall be governed by this Section and Section 82 hereof. 
 
SEC. 80. Provincial Bidders. — Within five (5) years from the effectivity of 
this Act, a contractor who participates in the bidding of provincial priority programs 
and infrastructure projects, whose principal office is within the same province, and 
who submits the lowest bid among the provincial bidders which is higher than the 
lowest bid made by a contractor with principal office outside the said province shall 
be granted the privilege to match the bid made by the latter: Provided, however, 


That the release of funds for said projects shall be published in a local newspaper 
with the widest circulation and the website of the Department of Budget and 
Management, the mechanisms of which shall be spelled-out in the IRR. 
 
ARTICLE XIII 
LEASE OF COMPUTERS, COMMUNICATIONS, INFORMATION 
AND OTHER EQUIPMENT 
 
SEC. 81. Lease Contracts. — Lease of construction and office equipment, 
including computers, communication and information technology equipment are 
subject to the same public bidding and to the processes prescribed under this Act. 
 
ARTICLE XIV 
DISCLOSURE OF RELATIONS 
 
SEC. 82. Disclosure of Relations. — In addition to the proposed contents of 
the invitation to bid as mentioned under Section 23 of this Act, all bidding 
documents shall be accompanied by a sworn affidavit, that the bidder, or any officer 
of their corporation, is not related to the head of the procuring entity by 
consanguinity or affinity up to the third civil degree. Failure to comply with the 
aforementioned provision shall be a ground for the automatic disqualification of the 
bid in consonance with Section 55 of this Act. 
 
ARTICLE XV 
ALTERNATIVE METHODS OF PROCUREMENT 
 
SEC. 83. Alternative Methods. — Subject to the prior approval of the head 
of the procuring entity or the duly authorized representative, and whenever justified 
by the conditions provided in this Act, the procuring entity may, in order to promote 
economy and efficiency, resort to any of the following alternative methods of 
procurement: 
(a) 
Limited Source Bidding, otherwise known as Selective Bidding — a 
method of procurement that involves direct invitation to bid by the procuring entity 
from a set of preselected suppliers or consultants with known experience and proven 
capability relative to the requirements of a particular contract; 
(b) 
Direct Contracting, otherwise known as Single Source Procurement — 
a method of procurement that does not require elaborate bidding documents because 
the supplier is simply asked to submit a price quotation or a pro-forma invoice 
together with the conditions of sale, which offer may be accepted immediately or 
after some negotiations; 


(c) 
Repeat Order — a method of procurement that involves a direct 
procurement of goods from the previous winning bidder, whenever there is a need 
to replenish goods procured under a contract previously awarded through 
competitive bidding; 
(d) 
Shopping — a method of procurement whereby the procuring entity 
simply requests for the submission of price quotations for readily available off-the-
shelf goods or ordinary or regular equipment to be procured directly from suppliers 
of known qualification; or 
(e) 
Negotiated Procurement — a method of procurement that may be 
resorted under the extraordinary circumstances provided for in Section 89 of this 
Act and other instances that shall be specified in the IRR, whereby the procuring 
entity directly negotiates a contract with a technically, legally and financially 
capable supplier, contractor or consultant. In all instances, the procuring entity shall 
ensure that the most advantageous price for the government is obtained. 
(f) 
Express Mode - a method of procurement that involves direct 
procurement from a previous competitive bidding winning bidder, subject to 
challenges from better offers; 
(g) 
Electronic Shopping - a method of procurement whereby the procuring 
entity requests the submission of price quotations for rated products through an 
online platform and proceeds to select a supplier from said quotations. 
 
SEC. 84. Limited Source Bidding. — Limited source bidding may be resorted 
to only in any of the following conditions: 
a. 
Procurement of highly specialized types of goods and consulting 
services which are known to be obtainable only from a limited number of sources 
or for technical reasons there is no real competition; or 
b. 
Procurement of major plant components where it is deemed 
advantageous to limit the bidding to known eligible bidders in order to maintain an 
optimum and uniform level of quality and performance of the plant as a whole 
 
SEC. 85. Express Mode. - Procuring entities who wish to procure the same 
goods or services from a previous winning bidder may do so subject to a challenge 
period for better offers. 
 
The procuring entity utilizing the express mode of procurement shall post a 
notice to challenge, indicating the present supplier, the goods or services to be 
procured, the present contract price of goods or services, an invitation to challenge 
the existing supplier, and a period for accepting better offers, which period shall not 
be less than seven (7) days. 


In the event that there are no better offers submitted, the procuring entity may 
directly procure from the previous winning bidder. 
 
In the presence of better offers, the previous winning bidder shall be given 
seven (7) working days to match the better offer. If the previous winning bidder 
matches the better offer, the procuring entity shall be allowed to directly procure 
form the previous winning bidder. 
Otherwise, procuring entity directly procure from the supplier that produced the 
better offer. Prior to the procurement, the procuring entity shall publicly post the 
result of the challenge. 
 
SEC. 86. Shopping. Shopping may be resorted to under any of the following 
instances: 
a. 
When there is an unforeseen contingency requiring immediate 
purchase: Provided, 
That the amount shall not exceed Two hundred thousand pesos (P200,OOO.00); or 
b. 
Procurement of ordinary or regular office supplies and equipment not 
available in the procurement service involving an amount not exceeding One million 
pesos (P1
.00) 
 
Provided, however, That the procurement does not result in splitting of 
contracts: Provided, further, That at least three (3) price quotations from bona fide 
suppliers shall be obtained. In case the required number of quotations are not 
received, the procuring entity may canvass on its own from at least three (3) 
reputable suppliers. 
 
The above amounts shall be subject to a period review by the GPPB. For this 
purpose, the GPPB shall be authorized to increase or decrease the said amount in 
order to reflect changes in economic conditions and for other justifiable reasons. 
 
SEC. 87. Electronic Shopping. Procuring entities may purchase goods that 
have undergone an online platform rating process. The online platform may receive 
requests for quotations from procuring entities. In making their request for 
quotations, the procuring entity shall provide information on the description, 
quantity, delivery location, minimum rating requirement, and such other 
information as it may deem necessary. 
 
Within seven (7) days, the online platform shall furnish the procuring entity 
with a list of rated products, and the quotations from applicant-suppliers. For 
purposes of transparency, a copy of the list and quotations shall be immediately 


transmitted to the Department of Budget and Management and the Commission on 
Audit. 
 
The end-user of the goods being procured shall select from among the 
quotations received and make a recommended purchase to the head of the procuring 
entity for approval. 
 
The procuring entity shall be given a maximum of seven (7) calendar days 
from date of issuance of quotations to enter into a contract with the selected supplier: 
Provided, That in no instance shall the contract price exceed the approved budget 
for the contract or 120% of the lowest quoted price, whichever is higher. 
 
SEC. 88. Rating System. — Within one year from the effectivity of this Act, 
there shall be a rating system for goods that may be procured by government. 
 
The rating system shall be made available to the procuring entities, suppliers, 
and the general public through an online platform that shall be maintained by the 
Department of Budget and Management, or its relevant attached agency. 
 
For purposes of rating products, there shall be a technical working group 
headed by the GPPB and composed of technical experts from at least one (l) 
government agency and end-users from at least one (l) government agency. To 
ensure transparency, an industry representative from the private sector is allowed to 
observe and act as resource person during the rating process: Provided, That in the 
event that there is no technical expert from the government, a technical expert from 
the private sector shall be invited to rate the product: Provided, further, That in the 
procurement of products that were never used by government, the intended end-
users from the government shall be invited to rate the product. 
 
End-users from procuring entities shall be required to provide feedbacks on 
products procured through electronic shopping within three (3) months from date of 
delivery. Said feedbacks shall be used by the system to update product ratings. 
 
There shall be a mechanism for suppliers and industry representatives to 
challenge the rating given to products. Any challenge to an existing rating shall not 
result in the exclusion of the product from being listed in the online platform. 
 
For purposes of rating suppliers, the online platform shall assign badges to 
participating suppliers that have achieved different milestones such as promptness 


in delivery, number of contracts fulfilled, value of contracts fulfilled, and other 
criteria that would determine the worthiness of a supplier. 
 
SEC. 89. Negotiated Procurement. Negotiated procurement shall be allowed 
only in the following instances: 
(a) 
In case of two (2) failed bidding as provided in Section 61 hereof; 
(b) 
In case of imminent danger to life or property before, during, or after a 
state of calamity, or when time is of the essence arising from natural or man-
made calamities or other causes where immediate action is necessary to prevent 
damage to or loss of life or property, or to restore vital public services, 
infrastructure facilities and other public utilities; 
(c) 
Take-over of contracts, which have been rescinded or terminated for 
causes provided for in the contract and existing laws, where immediate action is 
necessary to prevent damage to or loss of life or property, or to restore vital public 
services, infrastructure facilities and other public utilities; 
(d) 
Where the subject contract is adjacent or contiguous to an on-going 
infrastructure project, as defined in the IRR: Provided, however, That the original 
contract is the result of a competitive bidding; the subject contract to be negotiated 
has similar or related scopes of work; it is within the contracting capacity of the 
contractor; the contractor uses the same prices or lower unit prices as in the original 
contract less mobilization cost; the amount involved does not exceed the amount of 
the ongoing project; and, the contractor has no negative slippage: Provided, further, 
That negotiations for the procurement are commenced before the expiry of the 
original contract. Whenever applicable, this principle shall also govern consultancy 
contracts, where the consultants have unique experience and expertise to deliver the 
required service; or, 
(e) 
Subject to the guidelines specified in the IRR, purchases of goods from 
another agency of the government, such as the procurement service of the 
Department of Budget and Management, which is tasked with a centralized 
procurement of commonly used goods for the government in accordance with 
Letters of Instruction No. 755 and Executive Order No. 359, Series of 1989. 
 
         SEC. 90. Terms and Conditions for the Use of Alternative Methods. — The 
specific terms and conditions, including the limitations and restrictions, for the 
application of each of the alternative methods mentioned in this Article shall be 
specified in the IRR. 
 
ARTICLE XVI 
SUSTAINABLE PUBLIC PROCUREMENT 


SEC. 91. Environment-Friendliness Criterion in Procurement. — 
Infrastructure projects, the sustainability of materials to be procured shall be given 
greater weight in the evaluation of bids. 
 
SEC. 92. Inter-Agency Task Force on Sustainable Public Procurement Task 
Force.  an Inter-Agency Task Force on Sustainable Public Procurement (IATF-
SPP) is hereby created to be headed by the Secretary of Environment and Natural 
Resources, with the Secretaries of Trade and Industry, Public Works and Highways, 
Science and Technology, and Education, and a representative from environmental 
organizations, as members. 
 
The IATF-SPP shall be recommend to the GPPB the sustainable procurement 
policy that shall be applicable to the all government agencies and insfrumentalities 
including, but not limited to, the criteria to be used in the assessment of 
sustainability of products and services and their corresponding certification. 
 
SEC. 93. Promotion of Certified Sustainable Products. — Certified sustainable 
products shall be promoted in PhilGEPS. 
 
Green products certified by the PGPTF shall be organized by product names 
to promote the use of green products in the government. 
 
ARTICLE XVII 
INCLUSIVE PUBLIC PROCUREMENT 
 
SEC. 94. Registration of Priority Enterprises. — The PhilGEPS shall maintain 
a registry of priority enterprises: Provided, That prior to registration, a priority 
enterprise shall first have been duly certified as such by the national council for 
disability affairs, the cooperative development authority, or the micro, small and 
medium enterprises development council as the case may be. These agencies shall 
likewise exert efforts to have priority enterprises registered in the PhilGEPS. 
 
Information concerning registered priority enterprises in the PhilGEPS, as 
defined in the IRR, shall be included in order to facilitate their patronage in 
accordance with the alternative methods of procurement in Article XV of this Act. 
 
SEC. 95. Prioritization of Enterprises. — The BAC, upon review of the 
technical and financial components of participating bidders during bid evaluation, 
shall favor a priority enterprise over a non-priority enterprise and shall accordingly 
award to the former the confract in the event both such entities display comparably 


equal competence when analyzed using parameters defined by the GPPB in the 
IRRR, which shall include a permissible margin which shall still be in favor of 
priority enterprises. 
 
This prioritization does not apply when there is an enterprise, priority or not, 
clearly more capable than the rest of those involved. 
 
SEC. 96. Hierarchy of Priority Enterprises. — The parameters and the 
permissible margin mentioned in the next preceding Section for the IRR shall reflect 
the following hierarchy from the most prioritized enterprise to the least: (i) sheltered 
workshops, (ii) cooperatives, (iii) micro enterprises, (iv) small enterprises, and (v) 
medium enterprises. In case two priority enterprises are found to be of comparably 
equal competence, the one more prioritized shall be awarded the contract. 
 
   
SEC. 97. Ceilings, Reductions, or Exemptions on Bid and Performance 
Securities, Warranties, and Other Guarantees. — The GPPB, after due consultation 
with the National Council For Disability Affairs, the Cooperative Development 
Authority, and the Micro, Small And Medium Enterprises Development Council, 
shall prescribe instances wherein a reduction of or outright exemption from bid and 
performance securities, warranties, and other guarantees shall be extended to a 
priority enterprise, especially when the BAC determines that the priority enterprise 
has difficulty accessing credit or capital for such securities but is otherwise 
technically competent and financially capable to fulfill the contract. The GPPB shall 
likewise prescribe in the IRR ceilings for such securities for priority agencies. 
 
SEC. 98. Reserved Transactions and Earmarking for Priority Enterprises. — 
Twenty five percent (25%) of a procuring entity's procurements every fiscal year 
shall be allotted to priority enterprises: Provided, That such limit shall only apply to 
transactions ordinarily within the capacity of priority enterprises as shall be defined 
in the IRR. Procuring entities shall exert earnest efforts to meet the above percentage 
but shall not be faulted if no priority enterprise is available, competent, and capable 
to meet a procuring entity's contracts. 
 
Procurements of relatively small value, the amounts of which shall be 
prescribed in the IRR, and which may be coursed through the alternative methods 
of procurement as provided in Article XI, shall be earmarked to priority enterprises. 
 
SEC. 99. Prohibition on Exclusion. — It shall be unlawful for procuring 
entities to outright exclude or otherwise limit the participation of priority enterprises 


during the determination of qualified bidders, eligibility screening, or in any other 
phase of the procurement process. 
 
ARTICLE XVIII 
GRIEVANCE MECHANISM 
 
SEC. 100. Decisions of the BAC; Deviations in Bidding Process. — 
Decisions of the BAC in all stages of procurement as well as any observed 
deviations from proper bidding procedure or practice may be questioned via a 
motion for reconsideration or submitted, as the case may be, to the BAC within five 
(5) working days from notice of the decision or the occurrence of the deviation in 
The BAC shall have five (5) working days to decide on the motion or act on the 
observation and shall furnish copies thereof to all parties involved in the motion or 
submission. 
 
SEC. 101. Appeal to the Head of the Procuring Entity; Motion for 
Reconsideration. Decisions or actions and inactions of the BAC in accordance with 
the next preceding Section may be protested to the head of the procuring entity by 
filing a verified position paper and paying a non-refundable protest fee, which shall 
in no case exceed one4enth percent (0.1%) of the approved budget for contract. The 
head of procuring entity shall render a decision within five (5) working days from 
receipt of the position paper. Decisions of the head of the procuring entity may be 
questioned via a motion for reconsideration which shall be filed within five (5) 
working days from notice of the decision. Decisions of the head of the procuring 
entity, which shall be rendered within five (5) working days from the receipt of the 
motion for reconsideration, shall be final and executory. No second motion for 
reconsideration shall be allowed. Decisions of the head of the procuring entity shall 
be final and executory. 
 
SEC. 102. Publication of Decisions. - Decisions of the BAC and the head of 
the procuring entity shall be kept and be made publicly available and accessible 
through the PhilGEPS. 
 
SEC. 103. Non-interruption of the Bidding Process. — In no case shall any 
protest taken from any decision treated in this Article stay or delay the bidding 
process. Protests must first be resolved before any award is made. 
 
SEC. 104. Resort to Regular Courts; Certiorari - Court action may be resorted 
to only after the protests contemplated in this Article shall have been completed and 
shall be based only upon grave abuse of discretion amounting to lack or excess of 


jurisdiction on the part of the head of the procuring entity. Cases that are filed in 
violation of the process specified in this Article shall be dismissed for lack of 
jurisdiction. The Regional Trial Court shall have jurisdiction over final decisions of 
the head of the procuring entity. Court actions shall be governed by Rule 65 of the 
1997 Rules of Civil Procedure. 
 
This provision is without prejudice to any law conferring on the Supreme 
Court the sole jurisdiction to issue temporary restraining orders and injunctions 
relating to infrastructure projects of government. 
 
ARTICLE XIX 
SETTLEMENT OF DISPUTES 
 
SEC. 105. Arbitration. - Any and all disputes arising from the implementation 
of a contract covered by this Act shall be submitted to arbitration in the Philippines 
according to the provisions of Republic Act No. 876, otherwise known as the 
"Arbitration Law": Provided, That disputes that are within the competence of the 
Construction Industry Arbitration Commission to resolve shall be referred thereto. 
The process of arbitration shall be incorporated as a provision in the contract that 
will be executed pursuant to the provisions of this Act: Provided, That by mutual 
agreement, the parties may agree in to resort to alternative modes of dispute 
resolution, in accordance with Republic Act No. 9285. 
 
SEC. 106. Appeals. - The arbitral award and any decision rendered in 
accordance with the foregoing Section shall be appealable by way of a petition for 
review to the Court of Appeals. The petition shall raise only pure questions of law 
and shall be governed by the Rules of Court. 
 
ARTICLE XX 
CONTRACT PRICES AND WARRANTIES 
 
SEC. 107. Contract Prices. - For the given scope of work in the contract as 
awarded, all bid prices shall be considered as fixed prices, and therefore not subject 
to price escalation during contract implementation, except under extraordinary 
circumstances and upon prior approval of the GPPB, or when a treaty or 
international agreement otherwise provides. 
 
For purposes of this Section, "extraordinary circumstances" refer to events 
that may be determined by the National Economic and Development Authority in 


accordance with the Civil Code of the Philippines, and upon the recommendation 
of the procuring entity concerned. 
 
SEC. 108. Warranty. — (a) For the procurement of goods, in order to assure 
that manufacturing defects shall be corrected by the supplier, manufacturer, or 
distributor, as the case may be, for a specific time after performance of the contract, 
a warranty shall be required from the contract awardee for such period of time as 
may be provided in the IRR, the obligation for which shall be covered by either 
retention money in the amount equivalent to a percentage of every progress 
payment, or a special bank guarantee equivalent to a percentage of the total contract 
price, to be provided in the IRR. The said amounts shall only be released after the 
lapse of the warranty period, provided that the goods supplied are free from defects 
and all the conditions imposed under the contract have been fully met. 
(b) For the procurement of infrastructure projects, the contractor shall assume 
full responsibility for the contract work from the time project construction 
commenced up to a reasonable period as defined in the IRR taking into 
consideration the scale and coverage of the project from its final acceptance by the 
government and shall be held responsible for any damage or construction of works 
except those occasioned by force majeure. The contractor shall be fully responsible 
for the safety, protection, security, and convenience of the contractor's personnel, 
third parties, and the public at large, as well as the works, equipment, installation 
and the like to be affected by the construction work and shall be required to put up 
a warranty security in the form of cash, bank guarantee, letter of credit, Government 
Service Insurance System bond, or callable surety bond. 
 
The contractor shall undertake the repair works, at contractor's own expense, 
of any defect or damage to the infrastructure projects on account of the use of 
materials of inferior quality within ninety (90) days from the time the head of the 
procuring entity has issued an order to undertake repair. In case of failure or refusal 
to comply with this mandate, the government shall undertake such repair works and 
shall be entitled to full reimbursement of expenses incurred therein upon demand. 
 
Any contractor who fails to comply with the preceding paragraph shall suffer 
perpetual disqualification from participating in any public bidding and contractor's 
property or properties shall be subject to attachment or garnishment proceedings to 
recover the costs. All payables of government in contractor's favor shall be offset to 
recover the costs. 
 
ARTICLE XXI 
GOVERNMENT PROCUREMENT POLICY BOARD 


SEC. 109. Organization and Functions. — A Government Procurement 
Policy Board (GPPB) is hereby established to: (a) protect national interest in all 
matters affecting public procurement, having due regard to the country's regional 
and international obligations; (b) formulate and amend, whenever necessary, the 
IRR and the corresponding standard forms for procurement; (c) ensure that 
procuring entities regularly conduct procurement training programs and prepare a 
procurement operations manual for all offices and agencies of government; and (d) 
conduct an annual review of the effectiveness of this Act and recommend any 
amendments thereto, as may be necessary. The GPPB shall convene within fifteen 
(15) days from the effectivity of this Act to formulate the IRR and for other related 
purposes. The GPPB shall be supported by a technical support office. In addition to 
the powers granted under this Act, the GPPB shall absorb all the powers, functions 
and responsibilities of the Procurement Policy Board created under Executive Order 
No. 359, Series of 1989. All affected functions of the Infrastructure Committee of 
the National Economic and Development Authority Board are hereby transferred to 
the GPPB. 
 
SEC. 110. Membership. — The GPPB shall be composed of the Secretary of 
Budget and Management, as chairperson, the Director-General of the National 
Economic and Development Authority, as alternate Chairperson, with the following 
as members; the 
Secretaries of the Public Works and Highways, Finance, Trade and Industry, 
Health, National Defense, Education, Interior and Local Government, Science and 
Technology, Transportation and Communications, and Energy, or their duly 
authorized representatives and a representative from the private sector to be 
appointed by the President upon the recommendation of the GPPB. The GPPB may 
invite a representative from the Commission on Audit to serve as a resource person. 
 
ARTICLE XXII 
PENAL CLAUSE 
 
SEC. 111. Offenses and Penalties. — (a) Without prejudice to the provisions 
of Republic Act No. 3019, otherwise known as the "Anti-Graft and Corrupt 
Practices Act" and other penal laws, public officers who commit any of the 
following acts shall suffer the penalty of imprisonment of not less than six (6) years 
and one (1) day, but not more than fifteen (15) years: 
 
(1) Unauthorized access to the content of any bid submitted to the procuring 
entity, including, but not limited to bids that have been submitted through an 
electronic procurement system and any and all documents required under a 


confidentiality clause prior to the appointed time for the public opening of bids or 
other documents. 
(2) 
Delaying, without justifiable cause, the screening for eligibility, 
opening of bids, evaluation and post evaluation of bids, and awarding of contracts 
beyond the prescribed periods of action provided for in the IRR. 
(3) 
Unduly influencing or exerting undue pressure on any member of the 
BAC or any officer or employee of the procuring entity to take a particular action 
which favors, or tends to favor a particular bidder. 
(4) 
Splitting of contracts which exceed procedural purchase limits and 
competitive bidding. 
(5) 
When the head of the procuring entity agency abuses the exercise of 
power to reject any and all bids as mentioned under Section 67 of this Act with 
manifest preference to any bidder who is closely related to the head of the procuring 
entity agency or who has an agent or shareholder related to the head of the procuring 
entity in accordance with Section 82 of this Act. 
(6) 
Outright excluding or otherwise limiting the participation of priority 
enterprises in the procurement process. 
 
When any of the foregoing acts is done in collusion with private individuals, 
the private individuals shall likewise be liable for the offense. 
 
In addition, the public officer involved shall also suffer the penalty of 
temporary disqualification from public office, while the private individual shall be 
permanently disqualified from transacting business with the government. 
 
(b) Private individuals who commit any of the following acts, including any 
public officer, who conspires with them, shall suffer the penalty of imprisonment of 
not less than six (6) years and one (1) day but not more than fifteen (15) years: 
 
(l) When two or more bidders agree and submit different bids as if they were 
bonafide, when they knew that one or more of them was so much higher than the 
other that it could not be honestly accepted and that the contract will surely be 
awarded to the pre-arranged lowest bid. 
(2) 
When a bidder maliciously submits different bids through two or more 
persons, corporations, partnerships or any other business entity in which a bidder 
has interest to create the appearance of competition that does not in fact exist so as 
to be adjudged as the winning bidder. 
(3) 
When two or more bidders enter into an agreement which call upon one 
to refrain from bidding for procurement contracts, or which call for withdrawal of 


bids already submitted, or which are otherwise intended to secure an undue 
advantage to any one of them. 
(4) 
When a bidder, by himself or in connivance with others, employ 
schemes which tend to restrain the natural rivalry of the parties or operates to stifle 
or suppress competition and thus produce a result disadvantageous to the public. 
 
In addition, the persons involved shall also suffer the penalty of temporary or 
perpetual disqualification from public office and be permanently disqualified from 
transacting business with the government. 
 
(c) 
Private individuals who commit any of the following acts, and any 
public officer conspiring with them, shall suffer the penalty of imprisonment of not 
less than six (6) years and one (l) day but not more than fifteen (15) years: 
 
(l) Submit eligibility requirements of whatever kind and nature that contain 
false information or falsified documents calculated to influence the outcome of the 
eligibility screening process or conceal such information in the eligibility 
requirements when the information will lead to a declaration of ineligibility from 
participating in public bidding. 
(2) 
Submit bidding documents of whatever kind and nature that contain 
false information or falsified documents or conceal such information in the bidding 
documents, in order to influence the outcome of the public bidding. 
(3) 
Participate in a public bidding using the name of another or allow 
another to use one's name for the purpose of participating in a public bidding. 
(4) 
Withdraw a bid, after it shall have qualified as the lowest calculated bid 
or highest rated bid, or refuse to accept an award, without just cause or for the 
purpose of forcing the procuring entity to award the contract to another bidder. This 
shall include the non-submission within the prescribed time, or delaying the 
submission of requirements such as, but not limited to, performance security, 
preparatory to the final award of the contract. 
(d) 
When the bidder is a juridical entity, criminal liability and the accessory 
penalties shall be imposed on its directors, officers or employees who actually 
commit any of the foregoing acts. 
 
SEC. 112. Jurisdiction. — Jurisdiction over the offenses defined under this 
Article shall belong to the appropriate courts, according to laws existing at the time 
of the commission of the offenses. 
 
ARTICLE XXIII 
CIVIL LIABILITY 


SEC. 113. Civil Liability in Case of Conviction. — Without prejudice to 
administrative sanctions that may be imposed in proper cases, a conviction under 
this Act or Republic Act No. 3019 shall carry with it civil liability, which may either 
consist of restitution for the damage done or the forfeiture in favor of the 
government of any unwarranted benefit derived from the act or acts in question or 
both, at the discretion of the courts. 
 
SEC. 114. Liquidated Damages. — All contracts executed in accordance with 
this Act shall contain a provision on liquidated damages which shall be payable in 
case of breach thereof. The amount thereof shall be specified in the IRR. 
 
ARTICLE XXIV 
ADMINISTRATIVE SANCTIONS 
 
SEC. 115. Imposition of Administrative Penalties. — (a) In addition to the 
provisions of Articles XXII and XXIII of this Act, the head of the procuring entity, 
subject to the authority delegated to the BAC, if any, shall impose on bidders or 
prospective bidders, the administrative penalty of suspension for one (1) year for 
the first offense, and suspension of two (2) years for the second offense from 
participating in the public bidding process, for the following violations: 
(l) Submission of eligibility requirements containing false information or 
falsified documents. 
(2) 
Submission of bids that contain false information or falsified 
documents, or the concealment of such information in the bids in order to influence 
the outcome of eligibility screening or any other stage of the public bidding. 
(3) 
Allowing the use of one's name, or using the name of another for 
purposes of public bidding. 
(4) 
Withdrawal of a bid, or refusal to accept an award, or enter into contract 
with the government without justifiable cause, after he had been adjudged as having 
submitted the lowest calculated responsive bid or highest rated responsive bid. 
(5) 
Refusal or failure to post the required performance security within the 
prescribed time. 
(6) 
Termination of the contract due to the default of the bidder. 
Refusal to clarify or validate in writing its bid during post-qualification within 
a period of seven (7) calendar days from receipt of the request for clarification. 
Any documented unsolicited attempt by a bidder to unduly influence the 
outcome of the bidding in said bidder's favor. 
 
All other acts that tend to defeat the purpose of the competitive bidding. 


(b) 
In addition to the penalty of suspension, the bid security or the 
performance security posted by the concerned bidder or prospective bidder shall 
also be forfeited. 
(c) 
The head of the procuring entity may delegate to the BAC the authority 
to impose the aforementioned administrative penalties. 
 
SEC. 116. Preventive Suspension. — The head of the procuring entity may 
preventively suspend any member of the technical working group or the secretariat, 
or the BAC if there are strong reasons or prima facie evidence showing that the 
officials or employees concerned are guilty of the charges filed against them under 
Articles and XXIII of this Act or for dishonesty as defined by the civil service laws. 
In all cases, procedural and substantive due process as mandated by the Constitution 
and civil service laws, rules and regulations, shall be strictly observed. 
 
SEC. 117. Lifting of Suspension and Removal of Administrative Disabilities. 
- Lifting of preventive suspension pending administrative investigation, as well as 
removal of administrative penalties and disabilities shall be in accordance with the 
provisions of Sections 52 and 53, Chapter 6 (Civil Service Commission), Book V 
of Executive Order No. 292, the Administrative Code of 1987. 
 
ARTICLE XXV 
MISCELLANEOUS PROVISIONS 
 
SEC. 118. Lease Contracts. - Lease of construction and office equipment, 
including computers, communication and information technology equipment are 
subject to the same public bidding and to the processes prescribed under this Act. 
 
SEC. 1 19. Additional Eligibility Requirements for Bidders and Contractors. 
- In order for bidders and contractors to participate in the public bidding or to deal 
with the government in the implementation of infrastructure projects, they must be 
operating within the area or region where the project is to be implemented and must 
secure an authority to participate from the regional director and the Undersecretary 
for Operations of the Department of Public Works and Highways. 
 
ARTICLE XXVI 
LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS 
 
SEC. 120. Private Legal Assistance. — All the members of the BAC are 
hereby authorized to engage the services of private lawyers or extend counsel 
immediately upon receipt of court notice that a civil or criminal action, suit or 


proceeding is filed against them. The lawyer's fee shall be part of the 
indemnification package for the BAC members, subject to the provisions of Section 
121 hereof. 
 
SEC. 121. Indemnification of BAC Members. — The GPPB shall establish 
an equitable indemnification package for public officials providing services in the 
BAC, which may be in the form of free legal assistance, liability insurance, and 
other forms of protection and indemnification for all costs and expenses reasonably 
incurred by such persons in connection with any civil or criminal action, suit or 
proceeding to which they may be, or have been made, a party by reason of the 
performance of their functions or duties, unless they are finally adjudged in such 
action or proceeding to be liable for gross negligence or misconduct or grave abuse 
of discretion. 
 
In the event of a settlement or compromise, indemnification shall be confined 
only on matters covered by the settlement, as to which the procuring entity had been 
advised by counsel that the public officials to be indemnified have not committed 
gross negligence or misconduct in the performance of their functions and duties. 
 
The members of the BAC and the BAC Secretariat shall also be entitled to 
medical assistance for injuries incurred in the performance of their functions. 
 
ARTICLE XXVII 
FINAL PROVISIONS 
 
SEC. 122. Oversight Committee. — A Joint Congressional Oversight 
Committee is hereby created to oversee the implementation of this Act for a period 
not exceeding five (5) years from the effectivity of this Act. The Committee shall 
be composed of the Chairperson of the Senate Committee on Finance and two 
members thereof appointed by the Senate President, and the Chairperson of the 
House Committee on Appropriations, and two members thereof to be appointed by 
the Speaker of the House of Representatives. 
 
SEC. 123. Appropriations. — The amount necessary to carry out the 
provisions of this Act shall be included in the annual General Appropriations Act. 
 
SEC. 124. Implementing Rules and Regulations. - The GPPB shall formulate 
the IRR of this Act within ninety (90) days from its promulgation. 
 


SEC. 125. Transitory Provision. - Procurement transactions commenced 
before the effectivity of this Act shall continue to be governed by Republic Act No. 
9184. Government agencies and instrumentalities affected by this Act shall be given 
one (1) year transitory period from the effectivity of the IRR to comply with the 
requirements of this Act. 
 
SEC. 126. Separability Clause. - If any provision or part hereof is held invalid 
or unconstitutional, the remainder of the law or the provision not otherwise affected 
shall remain valid and subsisting. 
 
SEC. 127. Repealing Clause. - Republic Act No. 9184, otherwise known as 
the "Government Procurement Reform Act" is hereby repealed. Except as otherwise 
expressly provided in this Act, all other laws, decrees, executive orders, 
proclamations and administrative regulations or parts thereof inconsistent herewith 
are hereby repealed or modified accordingly. 
 
SEC. 128. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) national newspapers of general circulation. 
 
Approved,