Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

4142

House Bill No.

Introduced by Representative GLORIA MACAPAGAL ARROYO

AN ACT

AUTHORIZING REFERENCE TO BRAND NAMES IN THE
SPECIFICATIONS FOR THE PROCUREMENT OF GOODS BY THE
GOVERNMENT AND ALLOWING FOR THE EXTENSION OFA
WINNING BIDDER’S PERIOD TO ENTER INTO CONTRACT WITH
THE PROCURING ENTITY, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS "THE
GOVERNMENT PROCUREMENT REFORM ACT”

EXPLANATORY NOTE

This bill seeks to authorize the reference to brand names in the
specifications for certain types of procurement of goods by the
government and allow the extension of the winning bidder's period to
enter into contract with the procuring entity, amending for the purpose
Republic Act No. 9184, otherwise known as the Government
Procurement Reform Act.

The Government Procurement Reform Act applies to all
procurement by the national government and its instrumentalities,
including government-owned and controlled corporations (GOCCs).
Unfortunately, the blanket or absolute prohibition against reference to
brand names found in Section 18 of the law has proven impractical, if
not counter-productive, to certain entities, such as GOCCs catering to
certain clientele with specialized requirements. For example, the
Philippine Amusement and Gaming Corporation (PAGCOR) can attract
more clients only if it tailors its services and offerings to the latter's
specific tastes, which could mean submitting to the latter's brand


preferences for such items as tobacco products, wines and liquors. In
terms of promotional activities, PAGCOR’s success also depends on the
attractiveness of its prizes, which means brand-specific choices in luxury
cars or other high-end items. PAGCOR, however, is hindered by Section
18, which bars brand reference in all government procurement of goods.
PAGCOR's competitors in the gaming industry are not similarly limited
by such restrictions.

Further, the ten-day period within which a winning bidder is
required to enter into contract with the procuring agency, under Section
37 of the law, has proven too short in certain instances. These include
instances when the bidder chooses to post a bond through surety, which
entails the submission of certain documents including certifications from
the Insurance Commission which take time to obtain. Another instance is
when the project involves prototypes, which must first be submitted,
tested and approved before mass production can proceed.

To address these concerns, this bill allows exceptions to the
otherwise absolute restriction against brand reference in the
procurement of goods done by government entities, including GOCCs
With this bill, the Government Procurement Policy Board (GPPB) is
given the authority to list certain entities or procurement activities that
will be exempt from the restriction of Section 18, based on its
assessment that the application of the restriction on the entity or the
procurement will ultimately be detrimental to the interest of the said
entity, the government or the general public. The bill also allows the
GPPB to provide for a period longer than ten (10) days for certain
winning bidders to enter into contract with the procuring entity or agency.

In view of the foregoing, the approval of this bill is highly

recommended
GLORI IACAPAGAL ARROYO.

2" District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No._4142

Introduced by Representative GLORIA MACAPAGAL ARROYO

AN ACT

AUTHORIZING REFERENCE TO BRAND NAMES IN THE
SPECIFICATIONS FOR THE PROCUREMENT OF GOODS BY THE
GOVERNMENT AND ALLOWING FOR THE EXTENSION OFA WINNING
BIDDER’S PERIOD TO ENTER INTO CONTRACT WITH THE
PROCURING ENTITY, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 9184, OTHERWISE KNOWN AS "THE GOVERNMENT
PROCUREMENT REFORM ACT".

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

SECTION 1. Section 18 of Republic Act No. 9184 is hereby amended
to read as follows

SEC. 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, EXCEPT IN INSTANCES OF PROCUREMENT
WHICH SHALL BE DETERMINED BY THE GPPB AND

SPECIFIED IN THE IRR OF THIS ACT.


SEC. 2. Section 37 of the same Act is hereby amended to read as
follows:

SEC. 37. Notice and Execution of Award. — Within a
period not exceeding fifteen (15) calendar days from the
determination and declaration by the BAC of the Lowest
Calculated Responsive Bid or Highest Rated Responsive
Bid, and the recommendation of the award, the Head of
the Procuring Entity or his duly authorized representative
shall approve or disapprove the said recommendation. In
case of approval, the Head of the Procuring Entity or his
duly authorized representative shall immediately issue
the Notice of Award to the bidder with the Lowest
Calculated Responsive Bid or Highest Rated Responsive
Bid.

Within ten (10) calendar days from receipt of the
Notice of Award, the winning bidder shall formally enter
into contract with the Procuring Entity, EXCEPT WHEN A
LONGER PERIOD IS ALLOWED BY THE GPPB FOR
CERTAIN TYPES OF PROCUREMENT AND WHICH
SHALL BE SPECIFIED IN THE IRR OF THIS ACT. When
further approval of higher authority is required, the
approving authority for the contract shall be given a

maximum of twenty (20) calendar days to approve or


disapprove it. In the case of government owned and/or
controlled corporations, the concerned board shall take
action on the said recommendation within thirty (30)
calendar days from receipt thereof.

The Procuring Entity shall issue the Notice to
Proceed to the winning bidder not later than seven (7)
calendar days from the date of approval of the contract by
the appropriate authority. All notices called for by the
terms of the contract shall be effective only at the time of

receipt thereof by the contractor.

SEC.2. Within ninety (90) days from the approval of this Act, the
GPPB shall promulgate a revised IRR of RA 9184 enumerating the types of
procurement or procurement entities exempt from the restriction against
reference to brand names under Section 18 of RA 9184 and procurement
instances wherein the winning bidders are entitled to a period longer than
ten (10) days from receipt of the Notice of Award within which they shall

enter into contract with the procuring entities under Section 37 of RA 9184

SEC. 3. This Act shall take effect after fifteen (15) days from its
publication in the Official Gazette or in a national newspaper of general
circulation.

Approved,