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HOUSE BILL No. 10731 © INDEX

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
AMENDING SECTION 53 OF REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS
THE “GOVERNMENT PROCUREMENT REFORM ACT"

This bill seeks to amend the provisions on negotiated procurement to require the
presentation of documentation that will prove bidders’ financial capacity to fulfill the
requirements of the government.

Based on Section 53 of RA 9184, 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.

In order to promote transparency and equality, the law should provide the determination
of the financial and technical capacity of a supplier, contractor, or consultant to perform
their contractual obligation.

In view of the foregoing, the immediate passage of the bill is earnestly sought. |

LUIS RAYMUND “ . VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 10731

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
AMENDING SECTION 53 OF REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS
THE “GOVERNMENT PROCUREMENT REFORM ACT"

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

Section 1. Section 53 of Republic Act No. 9184 is hereby amended to read as follows:

"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c. Take-over of contracts, which have been rescinded or terminated for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 facilites and other public
utilities;

d. Where the subject contract is adjacent or contiguous to an ongoing
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,
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.

2

IN 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."

Section 2. Separability Clause. — If any provision of this Act is declared invalid or
unconstitutional, such parts not affected by such declaration shall remain in full force and
effect.

Section 3. Repealing Clause. — All laws, orders, rules and regulations and other
issuances, or parts thereof, which are inconsistent with this Act are hereby repealed,
amended or modified accordingly.

Section 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,