Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

House Bill No.__4955

Introduced by HON. ERICO B. AUMENTADO

EXPLANATORY NOTE

This bill seeks to restore the privilege of provincial bidders to undertake provincial
projects in accordance with the provisions of Section 45 of Republic Act No. 9184, otherwise
known as “Government Procurement Reform Act”.

Section 45 on Provincial Bidders provides, to wit:

“Within five (5) years from the effectivity of this Act, a contractor who participates in
the bidding of provincial programs and infrastructure projects, whose principal office is within
the same province, and who submits the lowest bid among the provincial bidders which is
higher than the lowest bid made by a contractor with principal office outside the said province
shall be granted the privilege to match the bid made by the latter: Provided, however, that the
release of funds for said projects shall be published in a local newspaper with the widest
circulation and the website of the DBM, the mechanisms of which shall be spelled out in the
IRR.”

It is thus evident from the foregoing that the provincial bidder's privilege to match the
lowest calculated bid made by a contractor with a principal office outside the province is
limited to five years from the effectivity of R.A. 9184 on January 10, 2003. Consequently, that
privilege ended effectively on January 10, 2008.

It has been observed that a qualified provincial bidder performs much better than an
outsider in the implementation of projects within his province as his logistics, equipment and
manpower are on place therein. The provincial bidder has advantage of mobilizing his
manpower and equipments faster than an outside bidder who must bring his logistics into the
province where the project is located.

In fact, in more cases than not, outside bidder resorts to rent equipment from a local
contractor which hampers the efficiency and effectiveness of his work. Normally, the latter
would satisfy first the requirements of his own contracted project, and thus either delay the
outsider’s project or provide the borrower with the less efficient equipments

The provincial bidder normally performs well in his place because of fear and
apprehension that his work will be scrutinized closely by the local officials and residents.
Another reason is for avoiding criticisms and rebuke from his provincemate for a bad work.


On the economic front, the provincial bidder utilizes local labor and qualified local
materials. The funds for the provincial projects circulate in the province and the profit, if any,
is being retained in the province by the provincial bidder thereby stimulating the local
economy.

The matching privilege granted to provincial contractors shall not apply to contracts
the coverage of which includes more than one (1) province, consulting services, projects for
implementation within Metro Manila, and foreign-assisted projects.

In the light of the foregoing, it is urged most respectfully of this House of
Representatives for the approval of this bill.

IENTADO

 ERICO B. A\
2” District, Boho!


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

4955

House Bill No.

Introduced by HON. ERICO B. AUMENTADO

‘AN ACT

RESTORING THE PROVINCIAL BIDDERS PRIVILEGE ON PROVINCIAL PROJECTS,

AMENDING FOR THE PURPOSE SECTION 45 OF REPUBLIC ACT NO. 9184,

OTHERWISE KNOWN AS THE “GOVERNMENT PROCUREMENT REFORM ACT”, AND
FOR OTHER PURPOSES

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

Congress assembled:

Section 1. Section 45 of Republic Act No. 9184 is hereby amended to read as follows:

“A CONTRACTOR WHO PARTICIPATES IN THE BIDDING OF PROVINCIAL
PRIORITY PROGRAMS AND INFRASTRUCTURE PROJECTS, WHOSE PRINCIPAL
OFFICE IS WITHIN THE SAME PROVINCE, AND WHO SUBMITS THE LOWEST BID
AMONG THE PROVINCIAL BIDDERS WHICH IS HIGHER THAN THE LOWEST
CALCULATED BID MADE BY A CONTRACTOR WITH PRINCIPAL OFFICE OUTSIDE THE
SAID PROVINCE SHALL BE GIVEN FORTY-EIGHT (48) HOURS FROM RECEIPT OF
WRITTEN ADVICE FROM THE BIDS AND AWARDS COMMITTEE (BAC) TO MATCH IN
WRITING THE LOWEST CALCULATED BID. MATCHING SHALL BE MADE THROUGH
APPROPRIATE ADJUSTMENTS IN HIS UNIT BID PRICES WITHOUT CHANGING THE
SCOPE OF WORK AND WORK ITEMS PRESCRIBED BY THE PROCURING ENTITY IN
THE BIDDING DOCUMENTS. SHOULD THE SAID PROVINCIAL BIDDER FAIL TO MATCH
THE LOWEST CALCULATED BID WITHIN THE SPECIFIED PERIOD, THE CONTRACT
SHALL BE AWARDED TO THE BIDDER WITH THE LOWEST CALCULATED BID. IF THE
PROVINCIAL BIDDER, IS ABLE TO MATCH THE SUBMITTED LOWEST CALCULATED
BID WITHIN THE SPECIFIED PERIOD, HE SHALL BE AWARDED THE CONTRACT
PROVIDED HE PASSES THE POST-QUALIFICATION. PROVIDED HOWEVER, THAT THIS
SECTION SHALL NOT APPLY TO CONTRACTS THE COVERAGE OF WHICH INCLUDES
MORE THAN ONE PROVINCE: PROVIDED, FURTHER, THAT THIS SECTION SHALL NOT
COVER THE PROCUREMENT OF CONSULTING SERVICES: PROVIDED. FINALLY, THAT
THIS SECTION SHALL NOT APPLY TO PROJECTS WITHIN METRO MANILA, AND.
FOREIGN-ASSISTED PROJECTS.

Section 2. This act shall take effect immediately upon its approval

APPROVED.