EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
S. No. 2433
‘I ii'
71 OCT
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 in 
determining the gaps in 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 directiy 
negotiates a contract with a technicaliy, iegaliy, and finandaily 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 provisions 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.
OL" N. TOLEIMTINO


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
P3 :07
'21 OCT 11
SENATE
Nn. 2433
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"
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 Section 1. Section 53 of Republic Act No. 9184 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;


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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 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.
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


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issuances, or parts thereof, which are inconsistent with this Act are hereby repealed,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