Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL no4306

Introduced by Representative Florida P. Robes

EXPLANATORY NOTE

Ina decided case, the Supreme Court has acknowledged that the problem of
corruption in government procurement created a bad public perception and image as
it discovered that there is an evident manipulation or collusion in the bidding process
even though Republic Act No. 9184, otherwise known as “The Government
Procurement Reform Act", clearly prohibits collusion and other attempts to subvert
the public bidding process. However, this does not imply that officials of the agency
tasked to implement these projects are involved in the alleged corrupt practices.

This representation believes that to effectively eliminate or dim
corruption in procurement, there is a need to look into the criteria of selecting
bidders and contractors because corruption goes beyond the actual bidding process.
Secret agreements are usually forged before the start of the bidding as there could be
a possible connivance between bidders and members of Bids and Awards Committee.
Hence, the purpose of requiring that a bidder or a contractor must be operating
within the area or region where the project is supposed to be realized is to avert ghost
deliveries, under-delivery, or delivery of inferior quality materials, ‘There may be
more ways to make the bidder accountable to the public, but if he is operating within
the locality, this will ascertain that he will not evade from religiously complying with
the conditions of the contract. They will be ashamed if they fail to deliver because
they live within the area or region and hence, they might not like to face the rage of
the people. This is in addition to existing eligibility requirements imposed upon them
to ensure that people get maximum benefits and quality services from the contracts
and to prevent the practice known as “sahuran’,

With these said, the passage of this proposal into law is earnestly sought.

FLO} 1A P. ROBES:



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

4306

HOUSE BILL NO.

Introduced by Representative Florida P. Robes

AN ACT PRESCRIBING ADDITIONAL ELIGIBILITY REQUIREMENTS
FOR BIDDERS AND CONTRACTORS TO PARTICIPATE IN THE
PROCUREMENT PROCESS

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

SECTION 1. Declaration of Policy — It is hereby a declared policy of the
State to uphold transparency and accountability in the procurement process and in
the implementation of procurement contracts by making the procurement process
simple, effective and efficient and by instituting practicable and reasonable
mechanisms to curtail corrupt, fraudulent, collusive and coercive practices in the
delivery of services.

SEC. 2. Objective.- It is the aim of this Act to streamline the procurement
process by allowing only eligible and qualified parties to participate in the public
bidding in order to prevent excessive bureaueracy or what is popularly known as,
“Red Tape” and in strict observance of the highest standard of ethics prescribed
under existing laws.

SEC. 3. 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.

SEC 4. Implementing Rules and Regulations. — The Department of
Public Works and Highways and the Department of Budget and Management, in
coordination with concerned stakeholders, shall formulate the guidelines to fally
implement the provisions of this Act.

SEC. 5. Separability Clause. - If, for any reason, any part or provision of
this Act is declared invalid or unconstitutional, the remaining parts or provisions not
affected thereby shall remain in full force and effect.

SEC. 6. Repealing Clause. - All laws, presidential decrees, executive orders,
rules and regulations contrary to or inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SEC. 7. Effectivity.- This Act shall take effect fifteen (15) days after its
publication in two (2) newspapers of general circulation.

Approved,