Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Reqular Session

5069

House Bill No.

Introduced by Representatives John Marvin “Yul Servo” C. Nieto, Edward
Vera Perez Maceda, Dale “Along” R. Malapitan, Eric M. Martinez, and
Rolando M. Valeriano

EXPLANATORY NOTE

As a manifestation of support to this timely piece of legislation, this representation
respectfully refiles this bill, which has constantly been receiving support from the

past and present Congress.

The proposed measure seeks to improve and streamline government procurement

processes by introducing two alternative methods of procurement.

This representation strongly advocates the adoption of new but tested
technologies available to enhance the service delivery in the government.
Technology-enabled procurement processes will surely increase the efficiency and
effectiveness in the government as processes will be streamlined. Antiquated and
unnecessary practices will be replaced with a more responsive and more accessible
way of doing things. Moreover, a huge portion of government procurements are
repeat orders and resupplies. Properly providing for a system that can easily and
effectively provide a means to address such activity can surely help government

agencies deliver their services in a timely manner.


In this light, the passage of this bill is earnestly sought.

Jol Irviy/“ Yul Servo” C. Nieto

Nab ic M. Martinez
Edward Vera Perez Maceda "A ( x p) hw
‘olando M. Valeriano

Dale La an el


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
5069
HOUSE BILL NO.

Introduced by Hon. John Marvin “Yul Servo” C. Nieto

AN ACT ESTABLISHING AN ELECTRONIC AND EXPRESS MODE FOR
GOVERNMENT PROCUREMENT, AMENDING REPUBLIC ACT NO. 9184, AND
FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 48 of Republic Act 9184 shall be amended to read as follows:

“Sec. 48. Alternative Methods. - Subject to the prior approval of the Head
of the Procuring Entity or his 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:

XXX

(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.”

SECTION 2. A new section is hereby inserted after Section 51 of Republic Act
9184 to read as follows:

"Sec. 51-A. 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.”

SECTION 3. A new section is hereby inserted after Section 52 of Republic Act
9184 to read as follows:

“SEC. 52-A. 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. 52-B. 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 GOVERNMENT
PROCUREMENT AND POLICY BOARD AND COMPOSED OF TECHNICAL
EXPERTS FROM AT LEAST ONE (1) GOVERNMENT AGENCY AND END-
USERS FROM AT LEAST ONE (1) 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."

SECTION 4. Separability Clause. - If any of the Sections or provisions of this
Act is held invalid or unconstitutional, all other provisions not affected thereby

shall remain valid.

SECTION 5. Implementing Rules and Regulations. - The GBBP shall
promulgate the Rules and Regulations to effectively implement this Act.


SECTION 6. Repealing Clause. - All Laws, Decrees, Executive Orders, Rules and
Regulations or parts or provisions thereof which are not inconsistent with this Act
are hereby repealed, amended, or modified accordingly.

SECTION 7. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,