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

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILL. NO.__ 9386

Introduced by ATTY. MAGTANGGOL T. GUNIGUNDO |

EXPLANATORY NOTE

The main thrust of this bill is to improve the procurement system by requiring a
3rd party to help evaluate the eligibility of bidders and technica! specifications imposed
by the bid documents prepared by the Project Management Team (PMT), and the
compliance of the bid with said technical specifications. The 3rd party acts as a check
and balance of the Bids and Awards Committee (BAC) - PMT in the Department of
National Defense (OND), Armed Forces of the Philippines (AFP) and the Philippine
National Police (PNP).

In the procurement of sophisticated air, army and naval assets including
weaponry and radio communication and Information Technology (IT) equipment,
technical specifications are not easily comprehensible by laymen. The PMT who wrote
the bid specifications and eligibility requirements are usually headed by @ senior or
ranking officer who can easily influence junior officers of the PMT who are forced into
silence in the evaluation of the technical specifications of the items being affered in the
bidding. The collegiality of the decisions of PMT is jeopardized. The presence of
observers who have no technical expertise do not deter the senior officer of PMY from
imposing on junior officers.

The presence of a third party with the necessary technical expertise will stop the
practice of senior ranking officers in the BAC-PMT from imposing their preferences on
junior officers. The BAC-PMT can now arrive at collegial decision in its truest sense.

“Third Party” can be any competent academic institution (preferably a state
university or college) or another government agency that is not part of the organizational
structure of the procuring entity. The Government Procurement Policy Board (GPPB)
shall be mandated to draw up the list of third parties and tap said third party.

Also, by this amendment, we can enhance transparency in the bidding process

and rectify the situation where the aggrieved bidder resorts to court proceedings to
question the bidding process and thereby slow down the AFP Modemization Program.

Immediate approval of this bill is eamestly sought.

~
ATTY. MAGTANGGOL T. GUNIGUNDO |


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

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILLNO,__ 9308

Introduced by ATTY. MAGTANGGOL T. GUNIGUNDO |

AN ACT
STRENGTHENING THE BIDDING PROCESS BY AMENDING ARTICLE
V OF REPUBLIC ACT 9184 OR THE GOVERNMENT PROCUREMENT
REFORM ACT, AND FOR OTHER PURPOSES

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

Section 1. Short Title, - This Act shall be known as “Bidding Process
Strengthening Act of 2011”.

Section 2. Article V (Bids and Awards Committee) is hereby amended to read as
follows:

ARTICLE V
BIDS AND AWARDS COMMITTEE

Section 11. The 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 procunng 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 numbers of the BAC shail 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 cause, the members of the BAC shall have 2
fixed term of one (1) 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, re-assignment, removal. the
replacement shalt serve only for the unexpired term: Provided. That in
case of leave or suspension, the replacement shail serve only for the
duration of the leave or suspension. For justifiable causes, a member shalt
be suspended or removed by the Head of the Procuring Entity

Section 11-A. Third Party to Conduct Evaluation of the Procurement
of Armed Forces of the Philippines (AFP) and Philippine National
Police (PNP) Highly Technical Equipment. - The AFP and PNP. in
procuring sophisticated air, army and naval assets including
weaponry, radio communication equipment and the like, shall ensure



that a third party, possessing the necessary technical knowledge
shall be appointed to conduct evaluation of the eligibility
requirements and technical specifications found in the bid
documents prepared by the PMT.

The third party will come from either a recognized academic
institution or from a government office that is not part of the
organizational structure of the procuring entity.

The Head of the Procuring Entity shall choose the Third Party from a
list of candidates to be provided by the Government Procurement
Policy Board (GPPB).

Section 12. Functions of 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 of his duly authorized representative: Provided, That in the event the
Head of the Procuring 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 XXII. and perform
such other related functions as may 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 shali also recommend to the Head of the
Procuring Entity the use of Altemative Methods of Procurement as
provided for in Article XVI 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.

Section 12-A. Functions of the Third Party - The Third Party shall
ensure that the writing of the technical specifications are clear and
unbiased not favoring any specific supplier, manufacturer or even a
rand.

The Third Party shall evaluate the bidders’ compliance with the
technical specifications as imposed by the bid documents and give
advice and recommendation accordingly.

Section 13. 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 (1) from a duly racagnized 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
and should meet the criteria for observers as set forth in the IRR.


Section 14. BAC Secretariat.-To assist the BAC in the conduct of its
functions, the Head of the Procuring Entity shall create a Secretariat that
will serve as the main support unit of the BAC. The Head of the Procuring
Entity may also designate an existing organic office within the agency to
serve as the Secretariat.

Section 15. 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 (DBM) shall promulgate the necessary guidelines

Section 16. Professionalization of BAC, BAC Secretariat and Technical
Working Group Members.- The GPPB shall establish a sustained training
program for developing the capacity of the BAC’s, BAC Secretariats and
technical Working Groups of Procuring Entities, and professionalize the
same.

Section 3. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, implementing rules and regulations or parts thereof, inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

Section 4. Effectivity. - This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in at least two (2) newspapers of general circulation

Approved,