NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
s. No. 2402
of tljc i&.T
23 AUG 10 P6-43
RECEIVtO BV:__ _
Introduced by Senator Loren B. Legarda
AN ACT
INSTITUTIONALIZING THE PREFERENTIAL TREATMENT IN THE 
PROCUREMENT OF MATERIALS AND SUPPLIES PRODUCED, MADE, AND 
MANUFACTURED IN THE PHILIPPINES AMENDING SECTIONS 4 AND 43 
OF REPUBLIC ACT NO. 9184 ENTITLED "AN ACT PROVIDING FOR THE 
MODERNIZATION, STANDARDIZATION AND REGULATION OF THE 
PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER
PURPOSES"
EXPLANATORY NOTE
Pursuant to the mandate of the State to ensure that Filipinos are given 
preference in all areas of development. Article II, Section 19 of the 1987 Constitution 
provides that: "The State shall develop a self-reliant and independent national 
economy effectively controlled by Filipinos."
Further, in order to promote the growth and development of Filipino 
entrepreneurs. Article XII, Section 2 of the 1987 Constitution states that: "The State 
shall promote the preferential use of Filipino labor, domestic materials and locally 
produced goods, and adopt measures that help make them competitive."
The preferential treatment given to Filipino-made and produced products in 
the Philippines serves several significant purposes, such as economic growth and 
employment, industrial development, self-sufficiency, and environmental 
considerations.


Prioritizing locally made products helps stimulate economic growth by 
supporting local industries and businesses, and by creating jobs and reducing 
unemployment rates. According to the IBON Foundation, labor productivity has been 
a significant factor in driving economic growth over the past ten years. The Philippine 
Statistics Authority recently released data indicating that labor productivity, 
measured at constant 2018 prices, has increased by 28.9% from Php330,035 per worker 
in 2012 to Php425,511 in 2022. Further, providing preferential treatment to Filipino 
products promotes the development of local industries. It encourages domestic 
producers to invest in research and development, technological advancements, and 
innovation.
Promoting local products reduces dependence on foreign goods. It strengthens 
the country's self-sufficiency by fostering the production and availability of essential 
goods within the domestic market. It is also necessary to align sustainable practices 
and environmental protection efforts with locally made goods, which tend to have a 
lower carbon footprint due to reduced transportation distances, contributing to the 
reduction of greenhouse gas emissions.
In view of the foregoing, the early passage of this bill is earnestly sought.
LOREN LEGARDA


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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Second Regulnr Session 
)
SENATE
s. No. 2402
of Ilje rf-TP
23 AUG 10 P6 :43
RECEIVED BY;
Introduced by Senator Loren B. Legarda
AN ACT
INSTITUTIONALIZING THE PREFERENTIAL TREATMENT IN THE 
PROCUREMENT OF MATERIALS AND SUPPLIES PRODUCED, MADE, AND 
MANUFACTURED IN THE PHILIPPINES AMENDING SECTIONS 4 AND 43 
OF REPUBLIC ACT NO. 9184 ENTITLED "AN ACT PROVIDING FOR THE 
MODERNIZATION, STANDARDIZATION AND REGULATION OF THE 
PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER
PURPOSES"
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled:
Section 1, Short Title - This Act shall be known as the "Buy Local Act."
Sec. 2. Declaration of Policy - It is the policy of the State to promote the 
preferential use of Filipino domestic materials and locally produced goods and adopt 
measures that help make them competitive. For this purpose, there shall be 
preferential treatment to domestically produced and manufactured goods or supplies 
that meet the required quality and standard.
Sec. 3. Coverage. - All heads of departments, bureaus, offices, and agencies of 
the National Government, including local government units, government-owned or - 
controlled corporations, government financial institutions, and state universities and 
colleges authorized to requisition, purchase, contract, or make disbursements for 
articles, materials, and supplies for public use, public biddings or public works, shall 
give preference in the procurement of materials, supplies, produced, made and 
manufactured in the Philippines that meet the specified or desired quality in


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accordance with the provisions of existing laws and treaties or international 
agreements.
Sec. 4. Section 4 of Republic Act No. 9184, otherwise known as the Government 
Procurement Reform Act, is hereby amended to read as follows:
"SEC 4. Scope and Application. - This act shall apply to the Procurement of 
Infrastructure Projects, Goods, and Consulting Services, regardless of the source of 
funds, whether local or foreign, by all branches and instrumentalities of government, 
its departments, offices, and agencies, including government-owned and/or 
controlled corporations and local government units, subject to the provisions of 
Commonwealth Act No. 138. THE GOVERNMENT OR ANY OF ITS 
INSTRUMENTALITIES SHALL GIVE PREFERENCE TO MATERIALS AND 
SUPPLIES MADE AND MANUFACTURED IN THE PHILIPPINES IN THE 
PROCUREMENT OF GOODS AND INFRASTRUCTURE PROJECTS. Any treaty or 
international or executive agreement affecting the subject matter of this Act to which 
the Philippine government is signatory shall be observed."
Sec. 5. Section 43 of Republic Act No. 9184, otherwise known as the 
Government Procurement Reform Act, is hereby amended to read as follows:
"SEC. 43. Procurement of Domestic and Foreign Goods. - Consistent with the 
country's obligations under international treaties or agreements, goods may be 
obtained from domestic or foreign sources, and the procurement thereof shall be open 
to all eligible suppliers, manufacturers, and distributors. However, in the interest of 
availability, efficiency, and timely delivery of Goods, the Procuring Entity [may] 
SHALL give preference to the purchase of domestically-produced and manufactured 
goods, supplies, and materials that meet specified or desired quality."
Sec. 6. Implementing Rules and Regulations - Within sixty (60) days after the 
approval of this Act, the Government Procurement Policy Board (GPPB) created by 
Republic Act No. 9184 shall formulate the necessary rules and regulations, including 
the standard forms for government procurement for the proper implementation of 
this Act.
Sec. 7. Separability Clause - If any portion or provision of the Act is declared 
void or unconstitutional, the remaining portions or provisions hereof shall not be 
affected by such declaration.


Sec. 8. Repealing Clause. - Sections 4 and 43 of Republic Act No. 9184, 
otherwise known as the "Government Procurement Reform Act," and all other laws, 
decrees, rules and regulations inconsistent with the provisions of this Act are hereby 
modified or amended accordingly.
Sec. 9. Effectivity Clause - This Act shall take effect after fifteen (15) days 
following its publication in the Official Gazette or in any newspaper of general 
circulation.
Approved,