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Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
First Regular Session

House Bill No4’790

Introduced by Representative GLORIA MACAPAGAL ARROYO

AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 9184,
OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT REFORM ACT

EXPLANATORY NOTE

The governing principles of Republic Act No. 9184 are anchored on
transparency, competitiveness, streamed processes, accountability, and public
monitoring, The law further prescribed several rules and requirements which effectively
make procurement and bidding available only to legitimate suppliers and bidders after
a stringent selection process.

Although the law's objective is novel, real life application of its provisions results
to a slow-paced process which significantly impacts revenue-generating/proprietary
government-owned and controlled corporations .

In view of the foregoing, amendment to certain sections of the law is eafnestly
sought.

Rep. GLORIA MACAPAGAL ARROYO
2" District, Pampanga



Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
First Regular Session

House’ Bill No, 47790

Introduced by Representative GLORIA MACAPAGAL ARROYO

AN ACT AMENDING CERTAIN SECTIONS 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:

SECTION1. Section 18 of Republic Act No. 9184, is hereby amended to
read as follows:

"Section 18. Reference to Brand Names. Specifications for the
Procurement of Goods shall be based on relevant characteristics and/or
performance requirements. Reference to brand names shall not be allowed;
PROVIDED, THAT REFERENCE TO BRAND NAMES CAN BE MADE BY
PROCURING ENTITIES WHICH ARE CONSTITUTED PRIMARILY FOR
PROPRIETARY OR BUSINESS FUNCTION.”

Sec. 2. Section 23 of Republic Act No. 9184 is hereby amended to read as
follows:

"Section 23. Eligibility Requirements for the Procurement of Goods,
Infrastructure Projects AND LEASE OF REAL PROPERTY. The BAC or, under
special circumstances specified in IRR, its duly designated organic office shall
determine the eligibility of prospective bidders for the procurement of Goods,
Infrastructure Projects AND LEASE OF REAL PROPERTY, based on the
bidders’ compliance with the eligibility requirements within the period set forth
in the Invitation to Bid. The eligibility requirements shall provide for fair and
equal access to all prospective bidders. The documents submitted in
satisfaction of the eligibility requirements shall be made under oath by the
prospective bidder or by his duly authorized representative certifying to the
correctness of the statements made and the completeness and authenticity of
the documents submitted.”

Sec. 3. Section 32 of Republic Act No. 9184 is hereby amended to read as
follows:

“Section 32. Bid for the Procurement of Goods, Infrastructure Projects
AND LEASE OF REAL PROPERTY. For the procurement of Goods,
Infrastructure Projects AND LEASE OF REAL PROPERTY, the BAC shall
evaluate the financial component of the bids. The bids that passed the
preliminary examination shall be ranked from lowest to highest in terms of their
corresponding calculated price which shall be referred to as the Lowest
Calculated Bid.”

Sec. 4. Section 34 of Republic Act No. 9184 is hereby amended to read as
follows:


“Section 34. Objective and Process of Post-Qualification. Post-
Qualification is the stage where the bidder with the Lowest Calculated Bid, in
the case of Goods, Infrastructure Projects AND LEASE OF REAL PROPERTY,
or the Highest Rated Bid, in the case of Consulting Services, undergoes
verification and validation whether it has passed all the requirements and
conditions as specified in the Bidding Documents.

If the bidder with the Lowest Calculated Bid or Highest Rated Bid
passes all the criteria for post-qualification, hid Bid shall be considered the
“Lowest Calculated Responsive Bid”, in the case of Goods, Infrastructure
Projects AND LEASE OF REAL PROPERTY or the “Highest Rated
Responsive Bid’, in the case of Consulting Services. However, if a bidder fails
to meet any of the requirements or conditions, he shall be “post-disqualified”
and the BAC shall conduct the post-qualification on the bidder with the second
Lowest Calculated Bid of Highest Rated Bid. If the bidder with the second
Lowest Calculated Bid or Highest Rated is post-disqualified, the same
procedure shall be repeated until the Lowest Calculated Responsive Bid or
Highest Rated Responsive Bid is finally determined.”

Sec. 5. Section 37 of Republic Act No. 9184 is hereby amended to read as
follows:

“Section 37. Notice and Executive of Award. — within a period not
exceeding fifteen (15) calendar days xxxxx

Within TWENTY (20) CALENDAR DAYS from receipt of the Notice of
Award, the Winning bidder shall formally enter into contract with the Procuring
Entity. When further approval of higher authority is required, the approving
authority for the contracts shall be given a maximum of twenty (20) calendar
days to approve or disapprove it.”

Sec. 6. Section 48 of Republic Act No. 9184 is hereby amended to read as
follows:

“Section 48. Alternative Methods. Subject to the prior approval of the
Head of the Procuring Entity of 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

XXXXX

In all instances, the Procuring Entity shall ensure that the most
advantageous price for the government is obtained. THE PROCEDURAL
GUIDELINES FOR EVERY = ALTHERNATIVE METHODS. OR
PROCUREMENT, INCLUDING DOCUMENTARY REQUIREMENTS SHALL
BE PROVIDED IN THE IMPLEMENTING RULES AND REGULATIONS.

NOTWITHSTANDING EXECUTIVE ORDER NO. 398 SERIES OF 2005,
AFFIDAVIT OF NO TAX LIABILITY SHALL BE SUBMITTED IN LIEU OF TAX
CLEARANCE IN CASES FALLING UNDER THIS PROVISION.”

Sec. 7. Section 50 of Republic Act No. 9184 is hereby amended to read as
follows:

“Section 50. Direct Contracting. Direct Contracting may be resorted to
only in any of the following conditions:


a) Procurement of Goods of proprietary nature, which can be obtained
only from the proprietary source, i.e. when patents, trade secrets and
copyrights prohibit others from manufacturing the same items;

b}

When the Procurement of critical components from a specific
manufacturer, supplier, or distributor is a condition precedent to hold
a contractor to guarantee its project performance, in accordance with
the provisions in the contract;

°

Those sold by an exclusive dealer or manufacturer, which does not
have sub-dealers selling at lower prices and for which no suitable
substitute can be obtained at more advantageous terms to the
government; or

d

FOOD, BEVERAGE AND HOTEL ACCOMMODATIONS, WHEN
THE PROCURING ENTITY IS A GOVERNMENT OWEND AND.
CONTROLLED CORPORATIONS ENGAGED PRIMARILY IN
PROPRIETARY OR BUSINESS FUNCTIONS SUCH AS
ENTERTAINMENT AND GAMING INDUSTRY.

Sec. 8. Section 51 of Republic Act No. 9184 is hereby amended to read as
follows:

“Section 51. Repeat Order. When provided for in the Annual
Procurement Plan, Repeat Order may be allowed wherein the Procuring Entity
directly procures Goods from the previous winning bidder whenever there
arises a need to replenish goods procured under a contract previously awarded
through Competitive Bidding, subject to post-qualification process prescribed in
the Bidding Documents and provided all the following conditions are present:

a) The unit price must be equal to or lower than that provided in the
original contract. IN CASE OF PROCUREMENT OF RAW AND
PERISHABLE GOODS AND COMMODITIES, PRICE INCREASE
SHALL NOT EXCEED TWENTY-FIVE PER CENT (25%) OF THE
ORIGINAL CONTRACT:”

XXXKKK
Sec. 9. All laws, decrees, executive orders, proclamations and administrative
regulations, or parts thereof inconsistent herewith are hereby repealed or modified
accordingly.

Sec. 10. This Act shall take effect fifteen (15) days after its publication in at
least two (2) national papers of general circulation

Approved.