NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 619
V - ‘ J'/
of t!)C ^r ictarp
*22 JUL14 P2:16
RFCEiVtD BY.
Introduced by SENATOR FRANCIS "TOL" N. TOLENTINO
AN ACT
AMENDING SECTION 53 OF REPUBLIC ACT NO. 9184, OTHERWISE
KNOWN AS THE "GOVERNMENT PROCUREMENT REFORM ACT"
EXPLANATORY NOTE
The emergence of the COVID-19 pandemic served as a wake-up call because 
it exposed the gaps in our current laws. The pandemic laid bare disparities in our 
laws, particularly those related to health care, travel, transportation, and 
procurement, among others. Republic Act No. 9184, or the "Government 
Procurement Reform Act," is one such law. It should be amended in order for 
procurement to be more efficient and to promote and sustain good governance.
Section 2 of RA 9184 provides that "[i]t 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." Transparency should always be 
promoted in all aspects of the procurement process. Equal opportunity should be 
extended to all who are eligible and: qualified to participate in such procurement 
process.
To do this, it is vital that the law is able to provide in sufficient detail what is


expected of implementing agencies. One of those provisions that should be updated 
is Section 53 of RA 9184 on negotiated procurement. A negotiated procurement 
may be had in case of extraordinary circumstances whereby the government directly 
negotiates a contract with a technically, legally, and financially capable supplier, 
contractor, or consultant.
However, the law fails to provide how to determine whether a supplier, 
contractor, or consultant is financially capable. This is important since the 
government and Its instrumentalities should make sure that those that they choose 
to enter into contract with have the financial capability to fulfill their contractual 
obligations.
This bill seeks to update the provision of RA 9184 on negotiated 
procurement to require the presentation of documentation that will prove bidders' 
financial capacity to fulfill the requirements of the government.
The immediate enactment of this proposed legislation is earnestly sought.
FilANcS^L" N. TOLENTINO


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 619
jil-'««v/;; a
of tlic
72 JUL14 P2:16
ai:c£!v;:DBv
Introduced by SENATOR FRANCIS "TOL" N. TOLENTINO
AN ACT
AMENDING SECTION 53 OF REPUBLIC ACT NO. 9184f OTHERWISE 
KNOWN AS THE "GOVERNMENT PROCUREMENT REFORM ACT"
Be it enacted by the Senate and the House of Representatives of the Phiiippines in 
Congress assembled:
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Section 1. Section 53 of Republic Act No. 9184, otherwise known as the
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"Government Procurement Reform Act/' is hereby amended to read as follows:
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"Section 53. Negotiated Procurement - Negotiated 
Procurement shall be allowed only in the following instances:
(a) 
In cases of two (2) failed biddings, as provided in 
Section 35 hereof;
(b) 
In case of imminent danger to life or property during 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
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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. Wherever 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 DBM, 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.
ir^ ALL CASES OF NEGOTIATED PROCUREMENT, ALL 
SUPPLIERS CONTRACTORS, AND CONSULTANTS ARE 
MANDATED TO SUBMIT DOCUMENTS TO PROVE THEIR 
FINANCIAL CAPACITY. THE PROCURING ENTITY SHALL 
ASCERTAIN THE FINANCIAL, TECHNICAL, AND LEGAL 
CAPACITY OF SUPPLIERS, CONTRACTORS, OR 
CONSULTANTS."


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Section 2. Separability Clause, - If any part or portion of this Act is deciared
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invalid or unconstitutional, such parts or portions not affected by such declaration
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shall remain in full force and effect.
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Section 3. Repealing Clause. - All laws, orders, rules and regulations, and
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other issuances, or parts thereof, which are inconsistent with this Act are hereby
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repealed, amended or modified accordingly.
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Section 4. Effectivity. - This Act shaii take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,