Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

8621

House Bill No.

Introduced by Representative John Marvin “Yul Servo” C. Nieto

EXPLANATORY NOTE

As a manifestation of support to this timely piece of legislation, this
representation respectfully refiles this bill, which has constantly been receiving
support from the past and present Congress.

The proposed measure seeks to improve and streamline government
procurement processes by introducing two alternative methods of procurement.

This representation strongly advocates the adoption of new but tested
technologies available to enhance the service delivery in the government.
Technology-enabled procurement processes will surely increase the efficiency
and effectiveness in the government as processes will be streamlined.
Antiquated and unnecessary practices will be replaced with a more responsive
and more accessible way of doing things. Moreover, a huge portion of
government procurements are repeat orders and resupplies. Properly providing
for a system that can easily and effectively provide a means to address such
activity can surely help government agencies deliver their services in a timely
manner.

In this light, the passage of this bill is earnestly sought.

JOHN M, IN “WOL SERVO” C. NIETO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 8621

Introduced by Representative John Marvin “Yul Servo” C. Nieto

AN ACT ESTABLISHING AN ELECTRONIC AND EXPRESS MODE FOR
GOVERNMENT PROCUREMENT, AMENDING REPUBLIC ACT NO. 9184,
AND FOR OTHER PURPOSES

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

SECTION 1. Section 48 of Republic Act 9184 shall be amended to read as
follows:

"Sec. 48. Alternative Methods. - Subject to the prior approval of the
Head of the Procuring Entity or 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:

XXX

(f) EXPRESS MODE - A METHOD OF PROCUREMENT THAT
INVOLVES DIRECT PROCUREMENT FROM A_ PREVIOUS
COMPETITIVE BIDDING WINNING BIDDER, SUBJECT TO
CHALLENGES FROM BETTER OFFERS;

(g) ELECTRONIC SHOPPING - A METHOD OF PROCUREMENT
WHEREBY THE PROCURING ENTITY REQUESTS THE SUBMISSION
OF PRICE QUOTATIONS FOR RATED PRODUCTS THROUGH AN
ONLINE PLATFORM AND PROCEEDS TO SELECT A SUPPLIER FROM
SAID QUOTATIONS.”

SECTION 2. A new section is hereby inserted after Section 51 of Republic Act
9184 to read as follows:


“Sec. 51-A. EXPRESS MODE. - PROCURING ENTITIES WHO WISH
TO PROCURE THE SAME GOODS OR SERVICES FROM A PREVIOUS
WINNING BIDDER MAY DO SO SUBJECT TO A CHALLENGE PERIOD
FOR BETTER OFFERS.

THE PROCURING ENTITY UTILIZING THE EXPRESS MODE OF
PROCUREMENT SHALL POST A NOTICE TO CHALLENGE,
INDICATING THE PRESENT SUPPLIER, THE GOODS OR SERVICES
TO BE PROCURED, THE PRESENT CONTRACT PRICE OF GOODS OR
SERVICES, AN INVITATION TO CHALLENGE THE EXISTING
SUPPLIER, AND A PERIOD FOR ACCEPTING BETTER OFFERS,
WHICH PERIOD SHALL NOT BE LESS THAN SEVEN (7) DAYS.

IN THE EVENT THAT THERE ARE NO BETTER OFFERS SUBMITTED,
THE PROCURING ENTITY MAY DIRECTLY PROCURE FROM THE
PREVIOUS WINNING BIDDER.

IN THE PRESENCE OF BETTER OFFERS, THE PREVIOUS WINNING
BIDDER SHALL BE GIVEN SEVEN (7) WORKING DAYS TO MATCH
THE BETTER OFFER. IF THE PREVIOUS WINNING BIDDER
MATCHES THE BETTER OFFER, THE PROCURING ENTITY SHALL BE
ALLOWED TO DIRECTLY PROCURE FORM THE PREVIOUS WINNING
BIDDER. OTHERWISE, PROCURING ENTITY DIRECTLY PROCURE
FROM THE SUPPLIER THAT PRODUCED THE BETTER OFFER.

PRIOR TO THE PROCUREMENT, THE PROCURING ENTITY SHALL
PUBLICLY POST THE RESULT OF THE CHALLENGE.”

SECTION 3. A new section is hereby inserted after Section 52 of Republic Act
9184 to read as follows:

“SEC. 52-A. ELECTRONIC SHOPPING. - PROCURING ENTITIES MAY
PURCHASE GOODS THAT HAVE UNDERGONE AN ONLINE
PLATFORM RATING PROCESS. THE ONLINE PLATFORM MAY
RECEIVE REQUESTS FOR QUOTATIONS FROM PROCURING
ENTITIES. IN MAKING THEIR REQUEST FOR QUOTATIONS, THE
PROCURING ENTITY SHALL PROVIDE INFORMATION ON THE
DESCRIPTION, QUANTITY, DELIVERY LOCATION, MINIMUM
RATING REQUIREMENT, AND SUCH OTHER INFORMATION AS IT
MAY DEEM NECESSARY.

WITHIN SEVEN (7) DAYS, THE ONLINE PLATFORM SHALL
FURNISH THE PROCURING ENTITY WITH A LIST OF RATED
PRODUCTS, AND THE QUOTATIONS FROM APPLICANT-SUPPLIERS.
FOR PURPOSES OF TRANSPARENCY, A COPY OF THE LIST AND
QUOTATIONS SHALL BE IMMEDIATELY TRANSMITTED TO THE


DEPARTMENT OF BUDGET AND MANAGEMENT AND THE
COMMISSION ON AUDIT.

THE END-USER OF THE GOODS BEING PROCURED SHALL SELECT
FROM AMONG THE QUOTATIONS RECEIVED AND MAKE A
RECOMMENDED PURCHASE TO THE HEAD OF THE PROCURING
ENTITY FOR APPROVAL.

THE PROCURING ENTITY SHALL BE GIVEN A MAXIMUM OF SEVEN
(7) CALENDAR DAYS FROM DATE OF ISSUANCE OF QUOTATIONS
TO ENTER INTO A CONTRACT WITH THE SELECTED SUPPLIER.
PROVIDED THAT, IN NO INSTANCE SHALL THE CONTRACT PRICE
EXCEED THE APPROVED BUDGET FOR THE CONTRACT OR 120% OF
THE LOWEST QUOTED PRICE, WHICHEVER IS HIGHER.

SEC. 52-B. RATING SYSTEM. - WITHIN ONE YEAR FROM THE
EFFECTIVITY OF THIS ACT, THERE SHALL BE A RATING SYSTEM
FOR GOODS THAT MAY BE PROCURED BY GOVERNMENT.

THE RATING SYSTEM SHALL BE MADE AVAILABLE TO THE
PROCURING ENTITIES, SUPPLIERS, AND THE GENERAL PUBLIC
THROUGH AN ONLINE PLATFORM THAT SHALL BE MAINTAINED BY
THE DEPARTMENT OF BUDGET AND MANAGEMENT, OR ITS
RELEVANT ATTACHED AGENCY.

FOR PURPOSES OF RATING PRODUCTS, THERE SHALL BE A
TECHNICAL WORKING GROUP HEADED BY THE GOVERNMENT
PROCUREMENT AND POLICY BOARD AND COMPOSED OF
TECHNICAL EXPERTS FROM AT LEAST ONE (1) GOVERNMENT
AGENCY AND END-USERS FROM AT LEAST ONE (1) GOVERNMENT
AGENCY. TO ENSURE TRANSPARENCY, AN INDUSTRY
REPRESENTATIVE FROM THE PRIVATE SECTOR IS ALLOWED TO
OBSERVE AND ACT AS RESOURCE PERSON DURING THE RATING
PROCESS. PROVIDED THAT, IN THE EVENT THAT THERE IS NO
TECHNICAL EXPERT FROM THE GOVERNMENT, A TECHNICAL
EXPERT FROM THE PRIVATE SECTOR SHALL BE INVITED TO RATE
THE PRODUCT. PROVIDED FURTHER, THAT IN THE PROCUREMENT
OF PRODUCTS THAT WERE NEVER USED BY GOVERNMENT, THE
INTENDED END-USERS FROM THE GOVERNMENT SHALL BE
INVITED TO RATE THE PRODUCT.

END-USERS FROM PROCURING ENTITIES SHALL BE REQUIRED TO
PROVIDE FEEDBACKS ON PRODUCTS PROCURED THROUGH
ELECTRONIC SHOPPING WITHIN THREE (3) MONTHS FROM DATE
OF DELIVERY. SAID FEEDBACKS SHALL BE USED BY THE SYSTEM
TO UPDATE PRODUCT RATINGS.


THERE SHALL BE A MECHANISM FOR SUPPLIERS AND INDUSTRY
REPRESENTATIVES TO CHALLENGE THE RATING GIVEN TO
PRODUCTS. ANY CHALLENGE TO AN EXISTING RATING SHALL NOT
RESULT IN THE EXCLUSION OF THE PRODUCT FROM BEING
LISTED IN THE ONLINE PLATFORM.

FOR PURPOSES OF RATING SUPPLIERS, THE ONLINE PLATFORM
SHALL ASSIGN BADGES TO PARTICIPATING SUPPLIERS THAT
HAVE ACHIEVED DIFFERENT MILESTONES SUCH AS PROMPTNESS
IN DELIVERY, NUMBER OF CONTRACTS FULFILLED, VALUE OF
CONTRACTS FULFILLED, AND OTHER CRITERIA THAT WOULD
DETERMINE THE WORTHINESS OF A SUPPLIER."

SECTION 4. Separability Clause. - If any of the Sections or provisions of this
Act is held invalid or unconstitutional, all other provisions not affected thereby
shall remain valid.

SECTION 5. Implementing Rules and Regulations. - The GBBP shall
promulgate the Rules and Regulations to effectively implement this Act.

SECTION 6. Repealing Clause. - All Laws, Decrees, Executive Orders, Rules
and Regulations or parts or provisions thereof which are not inconsistent with
this Act are hereby repealed, amended, or modified accordingly.

SECTION 7. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,