NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Second Regular Session 
)
SENATE
S.B. No. 2593
Of ;l’C
24 mar-6 P7:52
Prepared and submitted jointly by the Committees on Finance; Sustainable 
Development Goals, Innovation and Futures Thinking; National Defense and 
Security, Peace, Unification and Reconciliation; Local Government; and Civil Service, 
Government Reorganization and Professional Regulation with Senators P. Cayetano, 
Flontiveros, Tolentino, Revilla, Jr., Estrada, Marcos, Angara, Pimentel, Villanueva, 
Gatchalian, M. Villar, and Legarda as authors thereof
AN ACT
REVISING REPUBLIC ACT NO. 9184 OTHERWISE KNOWN AS THE 
"GOVERNMENT PROCUREMENT REFORM ACT" AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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ARTICLE I
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GENERAL PROVISIONS
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Section 1. Short Title. - This Act shall be known as the "New Government
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Procurement Act."
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Sec. 2. Declaration of Policy. - It is the declared policy of the State to
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promote the ideals of good governance with a view towards transparency,
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competitiveness, efficiency, proportionality, accountability, public monitoring,
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procurement professionalization, and sustainability in government procurement.
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Sec. 3. Governing Principles on Government Procurement. -
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Procurements by all branches and instrumentalities of the national government, its
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departments, bureaus, offices and agencies, including state universities and colleges
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(SUCs), government-owned and/or -controlled corporations (GOCCs), government
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financial institutions (GFIs), and local government units (LGUs), shall, in all cases, be
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governed by these principles:


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(a) Transparency in the procurement process by providing access to all related
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information in accordance with open contracting practice that enables the
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disclosure of data and facilitates information sharing related to all stages
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of procurement.
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(b) Competitiveness through ensuring equal opportunity for all eligible and
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qualified suppliers, manufacturers, distributors, contractors, consultants,
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and service providers.
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(c) Efficiency by implementing an organized, uniform, and straightforward
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government procurement process through the use of emerging
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technologies and innovative solutions.
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(d) Proportionality by ensuring that the conditions and parameters in the
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deveiopment of requirements, choice of procurement modality, and
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implementation of contracts shall be reasonably proportional to the needs
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of the Procuring Entity and the nature of the contract or project to be
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procured.
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(e) Accountability where all public officials and personnel directly or indirectly
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involved in the procurement process and in the implementation of contracts
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are investigated and held accountable for their actions when necessary.
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(f) Participatory procurement through public monitoring of the procurement
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process and the implementation of contracts to guarantee that every step
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is in accordance with the provisions of this Act and its implementing rules
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and regulations, and to ensure prudent and judicious use of government
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resources.
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(g) Sustainability in the procurement process which covers the whole lifecycle
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of a property, ensures value for money and maximum benefits to society
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and the economy, and engenders minimal impact to the environment.
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(h) Professionalism in procurement through the development of qualification
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standards, a competency and certification framework, and a code of ethics
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that shall be observed by public procurement professionals.
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Sec. 4. Scope and Application. - This Act shall apply to the Procurement of
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Goods, Infrastructure Projects, and Consulting Services, regardless of source of funds,
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whether local or foreign, by all branches and instrumentalities of the national


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government, its departments, bureaus, offices and agencies, including SUCs, GOCCs,
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GFIs, and LGUs: Provided, That, foreign assisted projects under a treaty or
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international or executive agreement that expressly provides for different procurement
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rules or procedures other than the provisions of this Act shall be observed.
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Sec. 5. Definition of Terms. - For purposes of this Act, the following terms
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or words and phrases shall mean or be understood as follows:
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(a) Approved Budget for the Contract (ABC) - refers to the budget for the
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contract duly approved by the Head of the Procuring Entity, as provided
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for in the General Appropriations Act or other authorized source of funds,
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in the case of National Government Agencies (NGAs); the Corporate Budget
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for the contract approved by the governing Boards, pursuant to Executive
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Order (E.O.) No. 518, series of 1979, in the case of GOCCs, GFIs, and
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SUCs; and the budget for the contract approved by the respective
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Sanggunian, in the case of LGUs.
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(b) Bids and Awards Committee (BAC) - refers to the Committee established
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in accordance with Article V of this Act.
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(c) Beneficiai Owner - refers to a natural person who: (1) ultimately owns or
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dominantly influences the management or policies of the juridical entity;
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or (2) exercises ultimate effective control over the juridical entity.
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(d) Bid - refers to a signed offer or proposal submitted by a supplier,
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manufacturer, distributor, contractor, consultant, and service provider in
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response to the bidding documents.
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(e) Bidder - refers to a supplier, manufacturer, distributor, contractor,
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consultant, and service provider who submits a bid in response to the
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requirements of the bidding documents.
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(f) Bidding Documents - refer to documents issued by the Procuring Entity as
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the basis for Bids, furnishing all information necessary for a prospective
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bidder to prepare a bid for the Goods, Infrastructure Projects, and
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Consulting Services to be provided.
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(g) Biackiisting - refers to an administrative penalty imposed by the Head of
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the Procuring Entity which prohibits a person or an entity including its
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affiliates from participating in all government procurement activities.


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(h) Common-Use Supplies and Equipment (CSE) - refer to goods, materials, 
and equipment included in the electronic catalogue of the Philippine 
Government Electronic Procurement System (PhilGEPS).
(i) 
Consulting Services- refer to services for Infrastructure Projects and other 
types of projects or activities of the government requiring adequate 
external technical and professional expertise that are beyond the capability 
and/or capacity of the government to undertake such as, but not limited 
to: (i) advisory and review services; (ii) pre-investment or feasibility 
studies; (iii) design; (iv) construction supervision; (v) management and 
related services; and (vi) other technical services or special studies.
(j) End-User or Implementing Unit- refers to the employee or organic office 
within the organization of the Procuring Entity that identifies, plans, 
prepares, designs, and implements the procurement project based on the 
requirements or needs of the agency in accordance with its mandate.
(k) Goods - refer to all items, supplies, materials, and general support 
services, except Consulting Services and Infrastructure Projects, which may 
be needed in the transaction of public businesses or in the pursuit of any 
government undertaking, project or activity, whether in the nature of 
equipment, furniture, stationery, materials for construction, or personal 
property of any kind, including non-personal or contractual services such 
as the repair and maintenance of equipment and furniture, as well as 
trucking, hauling, janitorial, security, and related or analogous services, as 
well as procurement of materials and supplies provided by the Procuring 
Entity for such services.
(l) 
GPPB- refers to the Government Procurement Policy Board established in 
accordance with Article XIX of this Act.
(m) Head of the Procuring Entity (HoPE) - refers to: (i) the head of the agency 
or the duly authorized official, for NGAs; (ii) the governing board or its duly 
authorized official, for GOCCs, SUCs, and GFIs; or (iii) the local chief 
executive, for LGUs: Provided, That, in a department, bureau, office, or 
agency where the procurement is decentralized, the Head of each 
decentralized unit shall be considered as the HoPE subject to the limitations


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and authority delegated by the head of the department, bureau, office or 
agency.
(n) Infrastructure Projects - include the construction, improvement, 
rehabilitation, demolition, repair, restoration, or maintenance of roads and 
bridges, railways, airports, seaports, communication facilities, civil works 
components of information technology projects, irrigation, flood control 
and drainage, water supply, sanitation, sewerage and solid waste 
management systems, shore protection, energy/power and electrification 
facilities, national buildings, school buildings, hospital buildings, and other 
related construction projects of the government.
(o) Jury Duty - to a responsibility in which the BAC, Technical Working 
Group (TWG), and Secretariat members, including end-users, give utmost 
priority to procurement assignments over ail the other duties and 
responsibilities until the requirements for the procurement at hand are 
completed.
(p) Lifecycle Cost - refers to the total cost of ownership over the entire life 
span of an asset from its acquisition, operation, maintenance, and disposal.
(q) Multi-Year Contractual Authority (MYCA) - refers to the authority given to 
the Procuring Entity to procure multi-year projects in accordance with the 
form and conditions set by the Department of Budget and Management 
(DBM).
(r) Philippine Government Electronic Procurement System (PhiiGEPS) - refers 
to the single electronic procurement portal managed by the Procurement 
Service (PS-DBM) as provided in Section 18 of this Act.
(s) Philippine Products and Services - refer to local goods, articles, materials, 
supplies, services, and intangible products which may be:
(i) 
unmanufactured goods, articles, materials, or supplies wholly 
obtained or produced in the Philippines;
(ii) 
any good, article, material, and supplies produced, manufactured, 
or assembled in the Philippines which has a minimum local content 
as may be determined by the Department of Trade and Industry 
(DTI);


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(iii) 
services, which refer to the delivery of value or intangible acts or
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uses through high-level skills, expertise, labor, or some form of
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knowledge, technology- or process-intensive activities; or
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(iv) 
intangible products, which refer to properties without physical
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existence including, but not limited to, computer software and
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products of the creative industry.
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(t) Portal- refers to a website that aggregates a wide variety of content for
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the purpose of attracting a large number of users.
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(u) Procurement- refers to the acquisition of Goods and Consulting Services,
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and the contracting for Infrastructure Projects by the Procuring Entity.
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Procurement shall also include the lease of goods and real estate. With
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respect to real property, its procurement 
shall be governed by the
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provisions of Republic Act No. 10752, entitled "The Right-of-Way Act", and
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other applicable laws, rules, and regulations.
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(v) Procuring Entity - refers to any branch, department, bureau, office,
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agency, or instrumentality of the government, including SUCs, GOCCs,
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GFIs, and LGUs procuring Goods, Infrastructure Projects, and Consulting
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Services.
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Sec. 6. Standardization of Procurement Process and Forms. - To
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systematize the procurement process, avoid confusion, and ensure transparency, the
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procurement process, including the forms to be used, shall be standardized insofar as
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practicable.
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For this purpose, the GPPB shall pursue the development of generic
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procurement manuals and standard bidding forms, the use of which once issued shall
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be mandatory upon all Procuring Entities.
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ARTICLE II
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STRATEGIC PROCUREMENT PLANNING
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Sec. 7. Strategic Procurement Pianning and Budgeting Linkage. - All
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procurement shall be undertaken with proper and sufficient planning and preparation
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to ensure sound procurement decisions. This includes the conduct of relevant market
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scoping, supply positioning, analysis of available procurement modalities, risk
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management, and disposal procedures as may be applicable.


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Procuring Entities shall likewise adopt a procurement strategy that includes fit-
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for-purpose and proportional approaches, considers the whole lifecycle of a
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procurement project, and aims to achieve value for money.
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During the planning stage, the Procuring Entity shali ensure that the project
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has minimal economic, social, and environmental risks or negative impact during its
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lifecycle, and that the goods and services are procured with due consideration for
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responsible consumption and production practices, and the national policy.
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Measures, such as, but not limited to, condemnation/destruction of properties,
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transfer of properties to other government agencies, barter, donation, return to
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supplier/vendor, trade-in, sale to government officials/employees of the agency,
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public auction, negotiated sale, sale of junk or scrap and/or recycling, and direct
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negotiation shall be considered by the Procuring Entity in the development of its
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requirements for purposes of disposal at the end of the useful life of the property.
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All procurement should be within the approved budget of the Procuring Entity.
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Consistent with government fiscal discipline measures, only those considered crucial
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to the efficient discharge of governmental functions shall be included in the Annual
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Procurement Plan (APP) to be specified in the IRR.
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No government procurement shall be undertaken unless it is in accordance with
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the approved APP or Indicative APP of the Procuring Entity, as the case may be. The
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APP shall be approved by the HoPE and must be consistent with its duly approved
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yearly budget or proposed budget in the case of the Indicative APP. The APP shall be
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formulated and revised only in accordance with the guidelines set forth in the IRR.
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Sec. 8. Detailed Engineering for the Procurement of Infrastructure
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Projects. - With the exception of an Infrastructure Project under a design-and-build
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scheme, no bidding and award of contract for Infrastructure Projects shall be made
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unless the detailed engineering investigations, surveys, and designs for the project
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have been sufficiently carried out and duly approved in accordance with the standards
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and specifications prescribed by the HoPE concerned or the duly authorized
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representative, and the acquisition of right-of-way pursuant to Republic Act No. 10752
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has been accomplished.
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Sec. 9. Multi-Year Contracting. - NGAs, constitutional offices, and SUCs,
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implementing multi-year programs, projects, or activities shall request the DBM for


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the issuance of a MYCA prior to entering into contracts covering the full contract cost
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for the procurement of multi-year projects.
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In the case of GOCCs and GFIs, they shall secure prior authority from their
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respective governing boards before entering into contracts for multi-year projects and
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proceeding with their procurement. For LGUs, they shall secure any equivalent
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document issued by their respective Sanggunian authorizing them to enter into multi-
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year contracts: Provided, That, the total project cost reflected in the MYCA or its
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equivalent document shall be the basis or reference for the ABC of the procurement
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contract.
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Sec. 10. Market Scoping. - To ensure proper and strategic procurement
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planning, a Procuring Entity shall conduct market scoping as a preliminary undertaking
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in preparing its Project Procurement Management Plan (PPMP), which covers the
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proper cost estimation, project design and specifications, technical and selection
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criteria, delivery lead time, storage or warehousing requirements, related industry
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practices, and other relevant market information.
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Market scoping may include the following activities: consultations with
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suppliers, contractors or consultants, professional associations or groups; participation
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in summits, fora or conferences; evaluation of market reviews; review of product or
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service brochures and marketing materials, industry journals and publications, and
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other related materials and publications; price sourcing for quotations or cost
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estimates from suppliers, contractors or consultants; use of relevant data from the
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PhilGEPS or agency websites to serve as a guide or reference; or any analogous
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activity for the purpose of gathering relevant market information.
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Sec. 11. Specifications. - Specifications for the procurement of goods, as
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well as the goods component of Infrastructure Projects and Consulting Services, shall
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be based on any or a combination of the following: relevant characteristics;
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performance or functionality requirements; or product or service standards specified
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by appropriate government entities or similar international bodies.
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Reference to a brand name shall not be allowed except for reasons of technical
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compatibility, interoperability, servicing, maintenance, or preservation of warranty in
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order to keep the performance, functionality, and useful life of the equipment, in which


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case, the Procuring Entity shall indicate the reasons or justifications for availing of the
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exception.
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Sec. 12. Early Procurement Activities. - In order to ensure the timely
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implementation of projects, Procuring Entities are authorized to undertake early
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procurement activities pending the approval of the funding thereof.
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The conduct of early procurement activities shall be made only upon approval
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of the Indicative APP by the HoPE. No award of contract shall be made until the
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approval and effectivity of the appropriate funding.
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In case of projects requiring acquisition of right-of-way, no award of contract
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shall likewise be made until an authority or permit to enter is issued by the property
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owner; or a notarized deed of sale or deed of donation is executed in favor of the
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government; or a writ of execution is issued by a court of competent jurisdiction, as
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the case may be.
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Sec. 13. Lifecycle Assessment and Lifecycle Cost Analysis. - To further
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support strategic procurement management and ensure smart and prudent use of
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government resources. Procuring Entities shall apply Lifecycle Assessment (LCA) and
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Lifecycle Cost Analysis (LCCA) in project planning, eligibility and selection criteria, or
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contract implementation, as may be applicable.
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Sec. 14. Design-and-Buiid Scheme for Infrastructure Projects. - In
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preparing for a procurement project. Procuring Entities may consider employing the
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design-and-build scheme as a procurement approach whereby a single contractor is
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responsible for both design and construction of the government building, which allows
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quality assurance and effective cost and schedule management.
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Sec. 15. Engagement of a Procurement Agent. - As part of strategic
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procurement planning, the HoPE may authorize the engagement of a government
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procurement agent, which shall undertake the functions of the BAC, if the Procuring
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Entity does not have the capability or proficiency to undertake a particular
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procurement: Provided, That, the Procuring Entity cannot delegate the award of
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contract to the procurement agent and there shall be no transfer of funds to the
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procurement agent, except for the payment of service fee, if applicable.
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The engagement of a procurement agent shall be further subject to the
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following conditions:


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(a) Made on a per procurement project basis;
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(b) Limited to procurement undertaken through competitive bidding: Provided,
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That, in instances where the Procuring Entity lacks sufficient qualified
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personnel to constitute its own BAC, the Procuring Entity may engage a
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procurement agent to undertake other modes of procurement;
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(c) Have at least one representative from the Procuring Entity to be designated
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as a member of the TWG of the procurement agent to ensure that technical
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specifications or terms of reference of the Procuring Entity are properly
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reflected in the bidding documents;
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(d) Have a representative from the Procuring Entity designated as a provisional
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member of the BAC of the procurement agent; and
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(e) Covered by a Memorandum of Agreement (MOA) that is executed between
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the Procuring Entity and the procurement agent, and details the
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procurement project to be procured; the accountabilities and obligations of
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the two parties; the ABC; services fees, if applicable; and such other details
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as may be necessary. The MOA shall be in effect at least six (6) months
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before the end of the validity of the relevant appropriations as authorized
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in the relevant General Appropriations Act, or in the corporate operating
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budgets or appropriations ordinances, in the case of GOCCs, GFIs, and
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LGUS respectively. In no case shall the undertakings of the MOA
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contravene this provision and its IRR to be issued by the GPPB.
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Procuring Entities with existing MOAs with a procurement agent which have not
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yet been implemented upon effectivity of this Act are encouraged to revisit the same
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and amend as may be necessary to conform with this provision.
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Sec. 16. Use of Framework Agreement. - Procuring Entities may use a
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framework agreement as a procurement strategy to expand the pool of prospective
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bidders, take advantage of economies of scale, minimize the administrative burden of
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conducting separate procurement activities, and generate time and money savings.
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The framework agreement shall be in the nature of an option contract between
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the Procuring Entity and the bidder that stipulates the terms and conditions that would
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be applied in subsequent contracts for the procurement of Goods, Infrastructure
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Projects, and Consulting Services with a single or multiple contractor, manufacturer.
10


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supplier, distributor, and/or consultant.
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Sec. 17. Warehousing and Inventory System. - For efficient planning for
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the storage and tracking of procured goods. Procuring Entities shall adopt a general
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system of warehousing and cloud-based inventory of procured items, as may be
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necessary depending on the type, nature and volume of procurement undertaken by
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the Procuring Entity and subject to the availability of funds in accordance with
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applicable budgeting, accounting and auditing rules and regulations.
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ARTICLE III
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PROCUREMENT BY ELECTRONIC MEANS
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Sec. 18. Procurement by Electronic Means. - To promote greater
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transparency, accountability, operational efficiency, and value for money, the
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PhilGEPS shall be the single electronic portal that shall serve as the primary source of
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information and channel in the conduct of all procurement activities of the
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government. The PhilGEPS shall maintain an integrated system that covers
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procurement planning until payment.
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To take advantage of the significant built-in efficiencies of the PhilGEPS and the
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volume discounts inherent in bulk purchasing, through the centralized procurement
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undertaken by the PS-DBM, all Procuring Entities shall utilize the PhilGEPS for the
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procurement of CSEs in accordance with the rules and procedures to be established
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by the GPPB, in consultation with the PS-DBM. The PhilGEPS shall include the following
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innovative features and solutions: electronic bulletin board; registry of suppliers,
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manufacturers, distributors, contractors, consultants, and service providers; electronic
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catalogue; virtual store; electronic marketplace; electronic reverse auction; electronic
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small value procurement; electronic payment; and electronic bidding.
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All Procuring Entities shall register with the PhilGEPS and ensure their access
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to an online network to facilitate open, speedy, and efficient online transmission,
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conveyance, and use of electronic data messages or electronic documents.
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Procuring Entities with established electronic procurement systems shall
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provide for the seamless interface of systems with the PhilGEPS to ensure efficient
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sharing of procurement information.
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Sec. 19. Electronic Payment. - The electronic and uniform payment system
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to be used by the Procuring Entity and suppliers, manufacturers, distributors.
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contractors, or consultants shall be defined in the context of the Integrated Financial
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Management Information System to be developed by the DBM, Commission on Audit
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(COA), and Department of Finance (DOF).
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Sec. 20. Security, Integrity and Confidentiality. - The PhilGEPS shall
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ensure the security, integrity, and confidentiality of documents submitted, stored, and
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managed through the system. It shall include features that provide for an audit trail
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of electronic transactions and allow the COA to verify the security and integrity of the
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system at any time.
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Sec. 21. Systems Interconnectivity between Government Agencies. -
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Notwithstanding the provisions of Republic Act No. 10173, otherwise known as the
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"Data Privacy Act of 2012", the GPPB is hereby authorized to promulgate rules to
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ensure the interconnectivity of the following government databases:
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(a) PhilGEPS in relation to the Government of the Philippines Official
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Merchants Registry (GoP-OMR);
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(b) DTI on its database relating to business registration, list of all ongoing
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projects in public and private sector, and records of priority domestic goods
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and services;
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(c) Construction Industry Authority of the Philippines (CIAP) on the
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Contractor's Performance Evaluation System (CPES) and the Philippine
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Contractors' Association Board (PCAB) on the licensing of contractors;
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(d) All LGUs on their issuance of permits and licenses;
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(e) Bureau of Internal Revenue (BIR) on tax returns and clearance;
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(f) Securities and Exchange Commission (SEC) and Cooperative Development
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Authority (CDA) on mandatory submissions of all registered enterprises and
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beneficial ownership information;
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(g) Insurance Commission (IC) on the list of identified surety companies
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providing callable-on-demand surety contracts;
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(h) Procuring Entities with established electronic procurement systems and
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websites on the status of projects, contracts, and performance of its
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respective winning bidders; and,
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(i) Other relevant government agencies, as may be determined by the GPPB;
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Provided, That, the GPPB shall coordinate with the Department of Information
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and Communications Technology (DICT), PS-DBM, DTI, CIAP, LGUs, BIR, SEC, CDA,
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IC, and other relevant government agencies to ensure the implementation of this
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section: Provided, Further, That at all times, the sharing of information between and
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among government agencies and instrumentalities shall protect trade secrets and
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promote competition.
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Sec. 22. Procurement Data Analytics. - The GPPB, through its Technical
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Support Office (TSO), shall analyze the data obtained from the PhilGEPS and
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submitted procurement reports to ensure disclosure of information related to the
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procurement process. The GPPB shall publish an annual report on its website for the
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following purposes:
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(a) Assist Procuring Entities in the strategic planning of their procurement
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projects;
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(b) Assist oversight bodies in formulating and implementing data-driven
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effective procurement policies and rules pursuant to the State policy under
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Section 2 of this Act;
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(c) Assist government agencies in identifying and detecting patterns that could
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help deter or mitigate fraud and non-competitive practices; and
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(d) Facilitate public awareness, active participation, and monitoring of
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government procurement processes.
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Sec. 23. Maintenance, Update, and Backup. - The PhilGEPS shall
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undertake periodic maintenance and upgrading of all its systems. It shall formulate a
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business continuity plan which shall include features such as, but not limited to, the
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establishment of backup sites, and regular backup of all information to maintain the
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integrity of the system and minimize risks of halts or interruptions in operations.
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ARTICLE IV
MODES OF PROCUREMENT
Sec. 24. Modes of Procurement. - The Procuring Entity shall adopt any of
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the following modes of procurement consistent with the fit-for-purpose procurement
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approach:
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(a) Competitive Bidding;
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(b) Limited Source Bidding;
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(c) Competitive Dialogue;
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(d) Unsolicited Offer with Bid Matching;
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(e) Direct Contracting;
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(f) Direct Acquisition;
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(g) Repeat Order;
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(h) Small Value Procurement;
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(i) Negotiated Procurement;
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(j) Direct Sales; and
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(k) Direct Procurement for Science, Technology and Innovation
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Provided, That, the GPPB is authorized to approve changes in the procurement
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process to adapt to improvements in modern and emerging technologies: Provided,
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further, That such modifications are consistent with the provisions of Section 3 of this
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Act.
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Sec. 25. Competitive Bidding. - A mode of procurement which is open to
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participation by any eligible bidder and which consists of the following processes:
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(a) Publication;
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(b) Pre-bid conference;
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(c) Eligibility screening of prospective bidders;
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(d) Receipt and opening of bids;
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(e) Evaluation of bids;
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(f) Post-qualification; and
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(g) Award of contract.
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The specific requirements and mechanics of which shall be defined in the IRR.
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Notwithstanding the applicability of the other modes of procurement defined
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herein, the Procuring Entity may adopt competitive bidding in its procurement activity.
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Sec. 26. Limited Source Bidding. - A mode of procurement that involves
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direct invitation to bid by the Procuring Entity to a set of pre-selected suppliers or
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consultants with known experience and proven capability relative to the requirements
31 
of a particular contract.
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Limited source bidding may only be resorted to in any of the following
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conditions;
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(a) Procurement of highly specialized types of Goods and Consulting Services
4 
which are known to be obtainable only from a limited number of sources;
5 
or
6 
(b) Procurement of major plant components where it is deemed advantageous
7 
to limit the bidding to known eligible bidders in order to maintain an
8 
optimum and uniform level of quality and performance of the plant as a
9 
whole.
10 
Sec. 27. Competitive Diaiogue. - A mode of procurement where the
11 
Procuring Entity invites suppliers, manufacturers, distributors, contractors,
12 
consultants, and service providers to a dialogue to propose solutions to address its
13 
needs and requirements. Competitive dialogue may be resorted to if any of the
14 
following conditions are present:
15 
(a) The procurement includes innovative design or solutions involving
16 
procurement of complex purchases such as, but not limited to,
17 
sophisticated products, intellectual services, or major information and
18 
communications technology projects;
19 
(b) The contract requires prior negotiations with the suppliers, manufacturers,
20 
distributors, contractors, consultants, and service providers because of
21 
specific circumstances related to the nature, complexity, legal and financial
22 
issues, or risks attached to the procurement; or
23 
(c) The technical specifications cannot be sufficiently established or precisely
24 
defined by the Procuring Entity.
25 
Sec. 28. Unsolicited Offer with Bid Matching. - A mode of procurement
26 
wherein the Procuring Entity may consider unsolicited offers on a negotiated basis for
27 
Goods and Consulting Services: Provided, That, the following conditions are met:
28 
(a) The procurement involves a new concept or technology as determined by
29 
the HoPE; and
30 
(b) The Procuring Entity has invited comparative or competitive bids.
31 
The procedure for bid matching shall be provided in the IRR.
15


1 
The contract shall be awarded to the original offeror if: (i) no comparative or
2 
competitive bid is received within the period prescribed in the IRR; (ii) the bids
3 
submitted by the comparative offerors failed at bid opening; or (iii) the original offeror
4 
matched or submits a lower price proposal against the comparative or competitive bid.
5 
For purposes of this mode of procurement, and when the new concept or
6 
technology is acceptable, the Procuring Entity may secure funds from available
7 
sources, subject to government budgeting, accounting, and auditing rules.
8 
Sec. 29. Direct Contracting. - A mode of procurement wherein the supplier
9 
is required to submit a price quotation or a pro-forma invoice together with the
10 
conditions of sale, which may be accepted immediately or after some negotiations.
11 
Direct contracting, or single source procurement, may only be resorted to in any of
12 
the following conditions:
13 
(a) When the goods are of proprietary nature, which can be obtained only from
14 
the proprietary source, or when patents, trade secrets, and copyrights
15 
prohibit others from manufacturing the same item;
16 
(b) When the procurement of critical components from a specific
17 
manufacturer, supplier, or distributor is a condition precedent to hold a
18 
contractor to guarantee its project performance, in accordance with the
19 
provisions of the contract; or
20 
(c) When it is sold by an exclusive dealer or manufacturer which does not have
21 
sub-dealers selling at lower prices and for which no suitable substitute can
22 
be obtained at more advantageous terms to the government.
23 
Sec. 30. Direct Acquisition. - A mode of procurement wherein, subject to
24 
compliance with the identified legal, technical and financial requirements, a Procuring
25 
Entity may procure directly from any known and reputable source, its required non-
26 
CSEs and services with an ABC not exceeding Two hundred thousand pesos
27 
(P200,000.00). The threshold amount can be adjusted as may be deemed appropriate
28 
by the GPPB to reflect changes in economic conditions and for other justifiable
29 
reasons.
30 
Sec. 31. Repeat Order. - A mode of procurement wherein, when provided
31 
for in the APP, the Procuring Entity may procure goods from the previous winning
32 
bidder whenever there arises a need to replenish the goods procured under a contract
16


1 
previously awarded through competitive bidding. Repeat order shall be subject to the
2 
post-qualification process prescribed in the bidding documents and all the following
3 
conditions:
4 
(a) The unit price must be equal to or lower than that provided in the original
5 
contract;
6 
(b) Except in special circumstances as may be defined in the IRR, the repeat
7 
order shall be availed of only within six (6) months from the date of the
8 
notice to proceed arising from the original contract; and
9 
(c) The repeat order shall not exceed twenty-five percent (25%) of the
10 
quantity of each item in the original contract.
11 
Sec. 32. Small Value Procurement - A mode of procurement whereby the
12 
Procuring Entity requests for the submission of at least three (3) price quotations for
13 
goods not available in the PS-DBM, Infrastructure Projects, and Consulting Services.
14 
The receipt of one (1) quotation is sufficient to proceed with the evaluation of bidders:
15 
Provided, That, the 
amount invoived does not exceed Two 
million 
pesos
16 
(P2,000,000.00) subject to the periodic review of the threshold amount and
17 
adjustments as may be deemed appropriate by the GPPB.
18 
In the case of LGUs, the GPPB is authorized to adjust the threshold amount
19 
based on the LGU income classification.
20 
Sec. 33. Negotiated Procurement. - Negotiated procurement shall be
21 
allowed only in the following instances:
22 
(a) Two Failed Biddings. In case of two (2) failed biddings, as provided in
23 
Section 62 hereof;
24 
(b) Emergency Cases. In case of imminent danger to life or property during a
25 
state of calamity, or when time is of the essence arising from natural or
26 
man-made calamities or other causes where immediate action is necessary
27 
to prevent damage to or loss of life or property, or to restore vital public
28 
services, infrastructure facilities and other public utilities;
29 
(c) Take-over of Contracts. Take-over of contracts which have been rescinded
30 
or terminated for causes provided for in the contract and existing laws,
31 
where immediate action is necessary to prevent damage to or loss of life
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or property, or to restore vital public services, infrastructure facilities and 
other public utilities;
(d) Adjacent or Contiguous. Where the subject contract is adjacent or 
contiguous to an ongoing Infrastructure Project: Provided, That, the 
original contract is the result of a competitive bidding; the subject contract 
to be negotiated has similar or related scopes of work; it is within the 
contracting capacity of the contractor; the contractor uses the same prices 
or lower unit prices as in the original contract less mobilization cost; the 
amount involved does not exceed the amount of the ongoing project; and 
the contractor has no negative slippage: Provided, Further, That 
negotiations for the procurement are commenced before the expiry of the 
original contract. Whenever applicable, this principle shall also govern 
consultancy contracts, where the consultants have unique experience and 
expertise to deliver the required service;
(e) Agency-to-Agency. Purchases of goods from another agency of the 
government, such as the PS-DBM, which is tasked with the centralized 
procurement of CSE for the government in accordance with Letter of 
Instructions (LOI) No. 755, E.O. No. 359, series of 1989, and Administrative 
Order No. 17, series of 2011;
(f) Scientific, Scholarly or Artistic Work, Exclusive Technology and Media 
Services. Where Goods, Infrastructure Projects and Consulting Services can 
be contracted to a particular supplier, contractor or consultant and as 
determined by the HoPE, for any of the following:
i. 
Work of art; commissioned work or services of an artist for a 
specific artist skill;
ii. 
Scientific, academic, scholarly work or research, or legal services;
iii. 
Highly-specialized life-saving medical and biotech equipment and 
devices, medicine, supplies, materials, tools and consumables, as 
certified by the DOH;
iv. 
Scientific, technical, economic, business, trade or legal journal, 
magazine, paper, subscription, or other exclusive statistical 
publications and references; or
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V. Media documentation, advertisement, or announcement through 
television, radio, newspaper, internet, and other communication 
media.
(g) Highly Technical Consultants. In the case of individual consultants hired to 
do work that is (i) highly technical or proprietary; or (ii) primarily 
confidential or policy determining: Provided, That, in both instances, trust 
and confidence are the primary consideration for the hiring of the 
consultant: Provided, however, That the term of the individual consultants 
shall, at the most, be on a yearly basis, renewable at the option of the 
appointing HoPE, but in no case shall exceed the term of the latter;
(h) Defense Cooperation Agreements and Inventory-Based Items. The 
Secretary of National Defense may directly negotiate with an agency or 
instrumentality of another country with which the Philippines has entered 
into a defense cooperation agreement or otherwise maintains diplomatic 
relations when the procurement involves major defense equipment or 
materiel and/or defense-related consultancy services subject to the 
following conditions:
i. 
The Secretary of National Defense has deemed it necessary in 
order to protect the interest of the country;
ii. 
The expertise or capability required is not locally available; and
iii. 
The defense equipment or materiel and/or defense-related 
consultancy services to be procured under this modality is 
included in the Armed Forces of the Philippines Modernization 
Program previously approved by the President of the Philippines. 
In the interest of national security, the Secretary of National
Defense may also directly negotiate with a supplier or manufacturer in 
procuring inventory based items, pertaining to major defense equipment 
or materiel, subject to the following conditions:
i. 
Direct negotiation will address compatibility, interoperability, and 
sustainability;
ii. 
The supplier or manufacturer had fully and satisfactorily 
implemented a contract of the same item with the Department of
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National Defense (DND) or any of its bureaus or attached 
agencies; and
iii. The supplier or manufacturer shall provide a performance security 
in accordance with this Act.
Law enforcement agencies may utilize this mode when the 
aforementioned conditions are met. These agencies are the Philippine 
National Police (PNP), including the PNP Maritime Group (PNP-MG) and 
the PNP Aviation Security Group (PNP-AVSEGROUP), Philippine Drug 
Enforcement Agency (PDEA), Bureau of Immigration (BI), Office for 
Transportation Security (OTS), Bureau of Fire Protection (BFP), National 
Bureau of Investigation (NBI), Presidential Security Group (PSG), 
National Police Commission (NAPOLCOM), Bureau of Jail Management 
and Penology (BJMP), Bureau of Corrections (BuCor), and Philippine 
Coast Guard (PCG).
(i) Lease of Real Property and Venue. Lease of real property and venue for 
official use which shall be in accordance with the IRR;
(j) NGO Participation. When an appropriation law or ordinance earmarks an 
amount to be specifically contracted out to non-governmental 
organizations (NGOs), the Procuring Entity may enter into a MOA with an 
NGO, subject to the guidelines as provided for in the IRR;
(k) Community Participation. The Procuring Entity may directly purchase 
agricultural and fishery products from local farmers and fisherfolk and 
directly negotiate simple Infrastructure Projects from local communities or 
social group or members thereof, subject to the guidelines as provided for 
in the IRR; For this purpose, community or social groups may be classified 
as organized or unorganized. Organized community or social group (OCSG) 
shall refer to a community or social group that has a defined organizational 
structure, identified membership and leadership, and adopts a principle of 
shared responsibility for their actions and shall be registered with the 
appropriate regulatory bodies. It shall include Microenterprises. 
Unorganized community or social group (UCSG) shall refer to a community 
or social group that is not registered in any government regulatory body or
20


1 
a member of a duly recognized private organization, which include, but are
2 
not limited to, community labor groups or "pakyaw" groups, social
3 
enterprises, associations of barangay health workers, farmers, fisherfolk,
4 
women, elderly, indigenous peoples, parent-teacher associations, solo
5 
parents, and persons with disabilities;
6 
(I) United Nations Agencies, International Organizations or International
7 
Financing Institutions. Procurement from specialized agencies of the UN,
8 
international organizations or international financing institutions, of any of
9 
the following:
10 
i. Small quantities of off-the-shelf goods, exclusively used in
11 
education and health;
12 
ii. Specialized products where the number of suppliers is limited,
13 
such as vaccines; or
14 
iii. Goods and Consulting Services involving advanced technologies,
15 
techniques and innovations not locally available as certified by the
16 
DTI, when it is most advantageous to the Procuring Entity;
17 
(m) Direct Retail Purchase of Petroleum Fuel, Oil and Lubricant (POL) Products,
18 
and Online Subscriptions. Direct retail purchase of petroleum fuel, oil and
19 
lubricant (POL) products; and online subscriptions may be made by end-
20 
users delegated to procure the same from identified direct suppliers or
21 
service providers, where goods and services are required by a Procuring
22 
Entity for the efficient discharge of its principal functions or day-to-day
23 
operations. Online subscription includes (i) airline tickets; (ii) electronic
24 
publications, reference materials and journals; (iii) off-the-shelf software
25 
and applications, except internet and cloud computing services; and (iv)
26 
web-based services.
27 
The GPPB, through the IRR, may provide an amendment on the above
28 
enumeration or make an additional type of negotiated procurement subject to the
29 
following conditions:
30 
i. 
The Procuring Entity has requested the GPPB for the use of
31 
negotiated procurement of Goods, Infrastructure Projects or
32 
Consulting Services with utmost necessity and justification;
21


1 
ii. 
The GPPB shall have findings that any of the existing modes of
2 
procurement will be impossible or defeats the purpose of the
3 
procurement;
4 
iii. 
The Goods, Infrastructure Projects or Consulting Services are
5 
better identified by the Procuring Entity on its distinctiveness and
6 
uniqueness to a procurement program, activity or project; and
7 
iv. 
Other circumstances that may be identified by the GPPB.
8 
Sec. 34. Direct Sales. - A mode of procurement of non-CSEs where a
9 
Procuring Entity directly purchases from a supplier that has satisfactorily delivered
10 
non-CSEs to another government agency under a completed contract. Direct sales
11 
may only be resorted to when all of the following conditions are met:
12 
(a) The procurement contract by the original government agency that
13 
procured the non-CSEs was awarded through competitive bidding;
14 
(b)The government agency that originally procured the non-CSEs has
15 
inspected and accepted the same, and has issued a certification that the
16 
supplier has satisfactorily performed its obligations under the contract;
17 
(c) The procurement for the same non-CSEs by the Procuring Entity shall
18 
only be initiated once within six (6) months from the acceptance of the
19 
non-CSEs by the original government agency;
20 
(d)The contract to be executed between the Procuring Entity and the
21 
suppiier must be within the amount of the contract executed with the
22 
original government agency, and that the supplier must offer the non-
23 
CSEs to the Procuring Entity at the same or lower unit price offered to
24 
the original government agency; and
25 
(e) The supplier agreed to the terms offered by the Procuring Entity and
26 
remains legally, technically, and financially capable to undertake the
27 
contract with the Procuring Entity.
28 
For purposes of this provision, the original government agency shall share the
29 
relevant procurement documents and papers with the Procuring Entity for
30 
procurement, budgeting, accounting and auditing purposes.
31 
Sec. 35. Direct Procurement for Science, Technology and Innovation.
32 
- A mode of procurement where the Procuring Entity may procure the following goods
22


1 
and services directly from a legally, technically and financially capable manufacturer
2 
or supplier, or from a qualified startup business:
3 
(a) Supplies, materials, equipment, and related services to be used actually,
4 
exclusively, and directly in the conduct of research and development
5 
projects or activities;
6 
(b) Goods that are the product of a commissioned task by a Procuring Entity
7 
which was processed, developed, and manufactured in satisfaction of its
8 
needs and requirements. These include: (i) pre-commercial goods and
9 
services that involve early market engagement to stimulate the
10 
development of new goods and services that meet specific government
11 
needs; and (ii) goods to be manufactured by qualified startup businesses
12 
alongside the thrust to develop and support new and startup businesses.
13 
The intellectual property rights and ownership over the
14 
commissioned goods developed and manufactured pursuant to this
15 
provision shall belong to the Procuring Entity, and no manufacturing or sale
16 
thereof can be performed by the supplier without the written consent of
17 
the Procuring Entity;
18 
(c) Other analogous goods to the foregoing.
19 
Relevant government agencies shall expedite the release of goods used in and
20 
documents necessary for science, technology, and innovation.
21 
Sec. 36. Video Recording of AH Procurement-Related Conferences for
22 
Competitive Bidding. - To enhance the transparency of the procurement process,
23 
the Procuring Entity shall keep a video recording of all procurement-related
24 
conferences for Competitive Bidding, which includes pre-procurement conference,
25 
pre-bid conference, bid opening, and other meetings of the BAC. All procurement-
26 
related conferences for Competitive Bidding shall not commence without a video
27 
recording initiated by the BAC. The Procuring Entity shall also livestream the
28 
preliminary examination of the bids and the opening of the bids to the public on its
29 
website, social media account, or any other forms of livestreaming services.
30 
The mandatory video recording shall only apply for the procurement of Goods
31 
costing above Twenty million pesos (P20,000,000.00), Infrastructure Projects costing
32 
above Fifty million pesos (P50,000,000.00), and Consulting Services costing above
23


1 
Ten million pesos (PIO,000,000.00) using Competitive Bidding as the mode of
2 
procurement.
3 
The Procuring Entity shall ensure that copies of the video recording shall be
4 
stored for not less than five (5) years and shall be made available to the public upon
5 
request and payment of a fee.
6 
When national security is involved, the HoPE shall decide whether or not to
7 
video record all procurement related conferences taking into consideration the nature,
8 
classification, sensitivity, and confidentiality thereof.
9 
The GPPB is authorized to adjust the threshold amounts and the storage period
10 
as may be deemed appropriate.
11 
Sec. 37. Prohibition on Spiitting of Government Contracts. - In using
12 
any of the modes of procurement under Article IV of this Act, the Procuring Entity
13 
shall ensure that this does not result in splitting of government contracts, which
14 
involves dividing or breaking up of contracts into smaller quantities and amounts, or
15 
dividing contract implementation into artificial phases or sub-contracts for the purpose
16 
of evading or circumventing the requirements of this Act and its IRR: Provided, That,
17 
procurement per unit, by lot or package, is allowed subject to the available budget,
18 
required quantity, product availability, delivery sites, geographical location and market
19 
capacity.
20 
Sec. 38. Procurement of CSE. - All NGAs, GOCCs, GFIs, SUCs, and LGUs
21 
shall only procure their CSE from PS-DBM, subject to its availability.
22 
Due to the efficiency and economy of bulk purchasing, the PS-DBM may deal
23 
directly with manufacturers or exclusive distributors subject to legal, technical and
24 
financial requirements ensuring that products are obtained from reliable sources, of
25 
the best quality, and at the most advantageous price for the whole of government.
26 
Access to goods and equipment in economic lot sizes may likewise be achieved by PS-
27 
DBM through consignment or any appropriate contractual arrangement.
28 
For purposes of this section, consignment shall refer to an arrangement
29 
whereby the consignor gives actual or constructive possession of goods, equipment
30 
and services to the consignee without transfer of ownership and disbursement of
31 
government funds between consignee and consignor, and such goods, equipment and
32 
services are to be sold by the consignee for and on account of the consignor at terms
24


1 
advantageous to the government. The consignee shall remit the proceeds of the sale
2 
to the consignor, net of service fees, if applicable. The PhilGEPS innovative features,
3 
such as the virtual store and electronic marketplace, may be used as consignment
4 
platforms for goods and equipment.
5 
PS-DBM shall develop the parameters in the identification, expansion, and the
6 
definition of requirements and specifications of CSEs through the conduct of market
7 
scoping, market survey and market availability, pursuant to its mandate under
8 
Administrative Order No. 17, series of 2011.
9 
ARTICLE V
10 
BIDS AND AWARDS COMMITTEE
11 
Sec. 39. The BAC and its Composition. - Each Procuring Entity shall
12 
establish one or several Bids and Awards Committees (BACs) as warranted by the
13 
volume and complexity of the procurement projects and to ensure the efficient and
14 
effective conduct of its procurement, as determined by the HoPE.
15 
Each BAC shall have at least five (5) members, but not more than seven (7)
16 
members. It shall be chaired by at least a third ranking permanent official of the
17 
Procuring Entity or in the absence thereof, a permanent official of the next lower rank
18 
other than the duly authorized representative of the HoPE. The members of the BAC
19 
shall be designated by the HoPE. However, in no case shall the HoPE or the approving
20 
authority be a member of the BAC.
21 
Unless sooner removed for a cause, the members of the BAC shall have a fixed
22 
term of one (1) year reckoned from the date of designation, renewable at the
23 
discretion of the HoPE: Provided, That, no member of the BAC shall serve for more
24 
than three (3) consecutive terms, except when allowed by the HoPE. In case of
25 
resignation, retirement, separation, transfer, re-assignment, or removal, the
26 
replacement shall serve only for the unexpired term: Provided, That, in case of leave
27 
or suspension, the replacement shall serve only for the duration of the leave or
28 
suspension. For justifiable causes to be expressed in writing, a member shall be
29 
suspended or removed by the HoPE. For transfer of knowledge and experience,
30 
membership in the BAC shall allow for staggered designations, to be identified in the
31 
IRR.
32 
Sec. 40. Functions of the BAC. - The BAC shall have the following functions:
25


1 
(a) Publish and/or post the invitation to bid;
2 
(b) Conduct pre-procurement and pre-bid conferences;
3 
(c) Determine the eligibility of prospective bidders;
4 
(d) Receive bids;
5 
(e) Conduct the evaluation of bids;
6 
(f) Undertake post-qualification proceedings; and
7 
(g) Recommend award of contracts to the HoPE or the duly authorized
8 
representative
9 
Provided, That, in the event the HoPE shall disapprove such recommendation,
10 
such disapproval shall be based only on valid, reasonable, and justifiable grounds to
11 
be expressed in writing, copy furnished the BAC; recommend the imposition of
12 
sanctions in accordance with Article XX, and perform such other related functions as
13 
may be necessary, including the creation of a TWG from a pool of technical, financial,
14 
and/or legal experts to assist in the procurement process.
15 
In proper cases, the BAC shall also recommend to the HoPE the use of any of
16 
the modes of procurement as provided in Article IV of this Act,
17 
The BAC shall prepare a procurement monitoring report that shall be approved
18 
and submitted by the HoPE to the GPPB on a semestral basis. The contents and
19 
coverage of this report shall be provided in the IRR.
20 
Sec. 41. Observers. - To enhance the transparency of the process, the BAC
21 
shall, in all stages of the procurement process, invite, in addition to the representative
22 
of the COA, at least two (2) observers to sit in its proceedings, one (1) from a duly
23 
recognized private group in a sector or discipline relevant to the procurement at hand,
24 
and the other from a civil society organization (CSO) or people's organization (PO), as
25 
the case may be: Provided, That, they do not have any direct or indirect interest in
26 
the contract to be bid out. The private group or CSO or PO shall be duly registered
27 
with the SEC or the CDA, as the case may be, and the observers therefrom shall meet
28 
the following qualifications;
29 
(a) Knowledge, experience or expertise in procurement or in the subject
30 
matter of the contract bid;
31 
(b) Absence of actual or potential conflict of interest in the contract to be bid
32 
out; and
26


1 
(c) Any other relevant criteria that may be determined by the GPPB under the
2 
IRR.
3 
Provided, further. That, the head of the sector, discipline or organization duly
4 
certifies that the observer is a member in good standing. Each observer shall make a
5 
separate report on the conduct of the public bidding, its procedures, conditions and
6 
problems, if any, which shall be submitted to the HoPE, PhilGEPS and COA. The GPPB
7 
shall prescribe the form of the report.
8 
The GPPB shall maintain a registry or roster of qualified observers for the
9 
benefit of the Procuring Entities and shall have the authority to determine additional
10 
qualifications of the observers.
11 
SEC. 42. Procurement Unit - There shall be a procurement unit, division,
12 
or office in each Procuring Entity which shall serve as Secretariat to the BAG and
13 
perform other functions related to procurement as may be delegated by the HoPE.
14 
The creation of the procurement unit, division, or office shall be subject to the
15 
standards and guidelines prescribed by the DBM.
16 
Sec. 43. Honoraria. - The Procuring Entity may grant payment of honoraria
17 
to all members of the BAG regardless of position, TWG, and ad hoc Secretariat, in an
18 
amount not to exceed thirty percent (30%) of their respective basic monthly salaries,
19 
subject to availability of funds. The DBM shall promulgate the necessary guidelines
20 
for this purpose.
21 
Sec. 44. Professionaiization of Government Procurement
22 
Practitioners. - In order to build a cadre of public procurement professionals, the
23 
DBM shall create procurement positions in the government based on the qualification
24 
standards recommended by the GPPB and approved by the Givil Service Gommission
25 
(GSG). The GPPB shall ensure the professionalization of procurement and for this
26 
purpose, it shall develop the following:
27 
(a) A competency framework to identify the skills, knowledge, and attribute of
28 
each of the procurement positions;
29 
(b) A certification framework to upscale procurement competencies and ensure
30 
continued professional development;
31 
(c) A code of ethics for public procurement professionals; and
32 
(d) An inclusive capacity development program in order to enhance
27


1 
accountability of all procurement practitioners, both from the public and
2 
private sectors, promote supplier diversity, promote competition and
3 
optimize efficiency, and value for money.
4 
Moreover, the Professional Regulation Commission (PRC), in consultation v\/ith
5 
the GPPB, shall establish, administer, and regulate a professional licensing program
6 
and the continuing education of public procurement professionals as a requirement
7 
for the holding of a procurement position in government.
8 
ARTICLE VI
9 
PREPARATION OF BIDDING DOCUMENTS
10 
Sec. 45. Form and Content of Bidding Documents. - The Bidding
11 
Documents shall be prepared by the Procuring Entity following the standard forms and
12 
manuals prescribed by the GPPB. The Bidding Documents shall include the following:
13 
(a) Approved Budget for the Contract;
14 
(b) Invitation to bid/request for expression of interest;
15 
(c) Instructions to Bidders, including criteria for eligibility, bid evaluation and
16 
post-qualification, the weight assigned to each criterion and the quality-
17 
price ratio if awarded to the most economically advantageous responsive
18 
bid (MEARB), as well as the date, time and place of the pre-bid conference
19 
(where applicable), submission of bids and opening of bids;
20 
(d) Terms of Reference;
21 
(e) Scope of work, where applicable;
22 
(f) Eligibility Requirements;
23 
(g) Plans and Technical Specifications;
24 
(h) Form of Bid, Price Form, and List of Goods or Bill of Quantities;
25 
(i) Delivery Time or Completion Schedule;
26 
(j) Form and Amount of Bid Security;
27 
(k) Form and Amount of Performance Security and Warranty;
28 
(I) Form of Contract, and General and Special Conditions of Contract; and
29 
(m) Additional documentary requirements or specifications necessary to
30 
complete the information required for the bidders to prepare and submit
31 
their respective bids.
32 
Based on specific needs, the end-user unit or implementing unit of the
28


1 
Procuring Entity shall be responsible for the preparation of all documents necessary
2 
for the procurement activity including, but shall not be limited to, the technical
3 
specifications, scope of work, or terms of reference.
4 
Sec. 46. Access to Information. - In all stages of the preparation of the
5 
Bidding Documents, the Procuring Entity shall ensure equal access to information.
6 
Prior to their official release, no aspect of the Bidding Documents shall be divulged or
7 
released to any prospective bidder or person having direct or indirect interest in the
8 
project to be procured, or to any party, except those officially authorized in the
9 
handling of the documents.
10 
In procurements involving and affecting national security, the disclosure of the
11 
specific components of the procurement documents, such as, the technical
12 
specifications, requirements, and components, shall be dependent upon the HoPE,
13 
having due regard to the nature, classification, sensitivity, and confidentiality of the
14 
relevant documents vis-a-vis the purpose and reason for the request.
15 
ARTICLE VII
16 
INVITATION TO BID
17 
Sec. 47. Pre-Procurement Conference. - Prior to the issuance of the
18 
invitation to Bid, the BAC is mandated to hold a pre-procurement conference on each
19 
and every procurement, except those contracts below a certain level or amount
20 
specified in the IRR, in which case, the pre-procurement conference is optional.
21 
In procurements involving and affecting national security, the pre-procurement
22 
conference shall be dependent upon the HoPE, having due regard to the nature,
23 
classification, sensitivity, and confidentiality of the Goods, Infrastructure Projects, and
24 
Consulting Services being procured.
25 
The pre-procurement conference shall assess the readiness of the procurement
26 
in terms of confirming the certification of availability of funds, as well as reviewing all
27 
relevant documents in relation to their adherence to the law. This shall be attended
28 
by the BAC, the end-user unit or implementing unit, or officials who prepared the
29 
bidding documents and the draft invitation to Bid. Consultants, if any, may likewise
30 
attend the pre-procurement conference, as necessary.
31 
For the procurement of Goods and Infrastructure Projects, the BAC, based on
32 
the recommendation of the end-user unit, shall determine whether the contract will
29


1 
be awarded to the Lowest Calculated Responsive Bid (LCRB) or the MEARB.
2 
The MEARB, as an award criterion, may be used where the consideration of
3 
assigning weights for the technical and financial aspects of the project is more
4 
appropriate to recognize both the qualitative and economic values of the bid.
5 
The period for the conduct of pre-procurement conference shall be provided in
6 
the IRR.
7 
Sec. 48. Publication and Contents of the Invitation to Bid. - In line with
8 
the principle of transparency and competitiveness and to ensure the widest possible
9 
dissemination thereof, all invitations to Bid for contracts under competitive bidding
10 
shall be published continuously by the Procuring Entity, for seven (7) calendar days in
11 
the PhilGEPS, in any conspicuous place in the premises of the Procuring Entity, and in
12 
the website or social media platforms of the Procuring Entity, if available or such other
13 
channels as may be authorized by the GPPB. For justifiable reasons. Procuring Entities
14 
that cannot publish procurement opportunities in its website, social media platform,
15 
or such other channels authorized by the GPPB shall publish its invitation to bid, at
16 
least once, in a newspaper of general nationwide circulation.
17 
In procurements involving and affecting national security, publication shall be
18 
dependent upon the HoPE, having due regard to the nature, classification, sensitivity,
19 
and confidentiality of the Goods, Infrastructure Projects, and Consulting Services being
20 
procured.
21 
The details and mechanics of implementation shall be provided in the IRR.
22 
The Invitation to Bid shall contain, among others:
23 
(a) A brief description of the subject matter of the Procurement;
24 
(b) A general statement on the criteria to be used by the Procuring Entity
25 
for the eligibility check, the examination and evaluation of Bids, and
26 
post-qualification: Provided, That, in the case of procurement of
27 
consulting services, the invitation to bid shall also contain the criteria for
28 
the shortlisting of prospective bidders;
29 
(c) For the procurement of Goods and Infrastructure Projects, whether the
30 
contract will be awarded to the LCRB or the MEARB;
31 
(d) If the contract is to be awarded to the MEARB, the criteria to be used in
32 
assessing the bid, the weight or score assigned by the Procuring Entity
30


1 
to each criteria, and the quality-price ratio to determine the award;
2 
(e) The date, time and place of the deadline for the submission and receipt
3 
of the eligibility requirements, the pre-bid conference if any, the
4 
submission and receipt of bids, and the opening of bids;
5 
(f) The Approved Budget for the Contract to be bid;
6 
(g) The source of funds;
7 
(h) The period of availability of the Bidding Documents, and the place where
8 
these may be secured;
9 
(i) The contract duration; and
10 
(j) Such other necessary information deemed relevant by the Procuring
11 
Entity.
12 
Sec. 49. Pre-bid Conference. - At least one (1) pre-bid conference shall be
13 
conducted for each procurement, unless otherwise provided in the IRR. Subject to the
14 
approval of the BAC, a pre-bid conference may also be conducted upon the written
15 
request of any prospective bidder.
16 
The pre-bid conference(s) shall be held within twelve (12) calendar days before
17 
the deadline for receipt of bids to allow prospective bidders to adequately prepare
18 
their bids, which shall be specified in the IRR.
19 
For purposes of transparency, efficiency, and competitiveness. Procuring
20 
Entities may guide prospective bidders in the understanding and accomplishment of
21 
the necessary documents to support their participation in the procurement process:
22 
Provided, That, in procurements involving and affecting national security, pre-bid
23 
conference shall be dependent upon the HoPE, having due regard to the nature,
24 
classification, sensitivity, and confidentiality of the Goods, Infrastructure Projects, and
25 
Consulting Services being procured.
26 
ARTICLE VIII
27 
RECEIPT AND OPENING OF BIDS
28 
Sec. 50. Eligibility Requirements for the Procurement of Goods,
29 
Infrastructure Projects, and Consulting Services. - The BAC or, under special
30 
circumstances specified in the IRR, its duly designated organic office shall require the
31 
submission of the prospective bidder's valid and updated PhilGEPS Certificate of
32 
Registration and Membership to ensure that the bidder is technically, legally, and
31


1 
financially capable to undertake the proposed project for the procurement of Goods,
2 
Infrastructure Projects, and Consulting Services within the period set forth in the
3 
Invitation to Bid.
4 
A prospective bidder may be allowed to submit its eligibility requirements
5 
electronically. However, said bidder shall later on certify under oath as to the
6 
correctness of the statements made and the completeness and authenticity of the
7 
documents submitted.
8 
For procurement of Goods and Infrastructure Projects, joint ventures may
9 
participate: Provided, That, the primary purpose of each member of the joint venture
10 
must be similar or related to the requirement of the project to be bidded out; Provided,
11 
further. That each member of the joint venture shall be jointly and severally liable to
12 
the Procuring Entity in cases of breach or failure to comply with the requirements of
13 
the project.
14 
The documents submitted to support the issuance of the PhilGEPS Certificate
15 
of Registration and Membership shall be subject to validation by the BAC during post-
16 
qualification.
17 
The bidder shall ensure that its Certificate of Registration and Membership are
18 
current and updated. The failure to update its Certificate with the current and updated
19 
supporting documents shall result in the automatic suspension of the bidder's
20 
certificate.
21 
Sec. 51. Short-Listing for Consuiting Services. - The eligible prospective
22 
bidders for the procurement of consulting services shall be evaluated using numerical
23 
ratings on the basis of the short-listing requirements prescribed for the Competitive
24 
Bidding concerned, within the period stated in the Invitation to Bid to determine the
25 
short-list of bidders that shall be allowed to submit their respective bids.
26 
Sec. 52. Submission and Receipt of Bids. - A bid shall have two (2)
27 
components, namely the technical and financial components which should be in
28 
separate sealed envelopes, and which shall be submitted simultaneously. The bids
29 
shall be received by the BAC on such date, time, and place specified in the Invitation
30 
to Bid. The deadline for the receipt of bids shall be fixed by the BAC, providing
31 
sufficient time to complete the bidding process and giving the prospective bidders
32


1 
sufficient time to study and prepare their bids. The deadiine shall also consider the
2 
urgency of the procurement involved.
3 
Bids submitted after the deadline shall not be accepted.
4 
Notwithstanding the provisions of this Section and Section 53 of this Act, the
5 
GPPB shall adopt technological advances to enhance the procurement process, and
6 
leverage emerging technologies and innovative procedures for the submission,
7 
receipt, and opening of bids through the PhilGEPS.
8 
Sec. 53. Modification and Withdrawai of Bids. - Bidders may modify their
9 
bids: Provided, That, this is done before the deadiine for the receipt of bids. The
10 
modification shall be submitted in a sealed envelope duly identified as a modification
11 
of the original bid and stamped received by the BAG.
12 
Bidders may, through a letter, withdraw their bids or express their intention not
13 
to participate in the bidding before the deadline for the receipt of bids. In such case,
14 
they shall no longer be allowed to submit another bid for the same contract either
15 
directly or indirectly.
16 
Sec. 54. Bid Security. - All Bids shall be accompanied by a Bid security, which
17 
shall serve as a guarantee that, after receipt of the Notice of Award, the winning
18 
bidder shall enter into contract with Procuring Entity within the stipulated time and
19 
furnish the required performance security. The specific amounts and allowable forms
20 
of the Bid security shall be prescribed in the IRR.
21 
Sec. 55. Bid Vaiidity. - Bids and Bid securities shall be valid for such
22 
reasonable period of time indicated in the Bidding Documents. The duration for each
23 
undertaking shall take into account the time involved in the process of Bid evaluation
24 
and award of contract.
25 
Sec. 56. Bid Opening. - The BAG shall publicly open all bids at the time, date,
26 
and place specified in the bidding documents: Provided, That, it shall be held not later
27 
than one (1) calendar day after the deadline for the submission and receipt of Bids.
28 
The minutes of the bid opening shall be made available to the public upon written
29 
request and payment of a specified fee.
30 
ARTICLE IX
31 
BID EVALUATION
33


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
Sec. 57. Preliminary Examination of Bids. - Prior to Bid evaluation, the 
BAC shall examine first the technical components of the bids using "pass/fail" criteria 
to determine whether all required documents are present. Only bids that are 
determined to contain all the bid requirements of the technical component shall be 
considered for opening and evaluation of their financial component.
Sec. 58. Ceiling for Bid Prices. - The ABC shall be the upper limit or ceiling 
for the Bid prices. Bid prices that exceed this ceiling shall be disqualified outright from 
further participating in the bidding. There shall be no lower limit to the amount of the 
award.
Sec. 59. Bid Evaluation for the Procurement of Goods and 
Infrastructure Projects. - For the procurement of Goods and Infrastructure 
Projects, the BAC shall evaluate the financial component of the bids.
For contracts to be awarded to the LCRB, the bids that passed the preliminary 
examination shall be ranked from lowest to highest in terms of their corresponding 
calculated prices. The bid with the lowest calculated price shall be referred to as the 
Lowest Calculated Bid (LCB).
For contracts to be awarded to the MEARB, the BAC shall evaluate the bid using 
a predetermined quality-price ratio. The quality component shall be assessed on the 
basis of criteria that may include qualitative, environmental, and/or social aspects 
linked to the subject matter of the contract. These may comprise the following:
(a) Quality and technical merit;
(b) Aesthetic and functional characteristics;
(c) Approach and methodology;
(d) Accessibility;
(e) Tools and equipment;
(f) Social, environmental, economic, and innovative characteristics;
(g) Organization, qualification, and experience of employees or staff assigned 
to perform the contract;
(h) On-going contracts and work commitments;
(i) After-sales service and technical assistance;
(j) Delivery conditions, such as delivery period and delivery process;
(k) Disposal measures; or
34


1 
(I) other relevant criteria in relation to the subject Goods or Infrastructure
2 
Projects to be procured.
3 
The BAG shall specify in the invitation to bid the quality-price ratio and the
4 
criteria for assessing the quality component. The bidder with the best overall score
5 
using the quality-price ratio shall be referred to as the Most Economically
6 
Advantageous Bid (MEAB). The quality and price proposals shall be given
7 
corresponding weights. The price proposal shall be given a minimum weight of fifteen
8 
percent (15%) up to a maximum of forty percent (40%).
9 
The entire evaluation process for the procurement of Goods and Infrastructure
10 
Projects shall be completed within seven (7) calendar days from the deadline for
11 
receipt of proposals.
12 
Sec. 60. Bid Evaluation of Short Listed Bidders for Consulting
13 
Services. - For the procurement of Consulting Services under a quality-based
14 
evaluation procedure, the Bids of the short-listed bidders shall be evaluated and
15 
ranked using numerical ratings in accordance with the evaluation criteria stated in the
16 
bidding documents, which shall include factors such as, but not limited to, experience,
17 
performance, quality of personnel, price and methodology. The Bids shall be ranked
18 
from highest to lowest in terms of their corresponding calculated ratings. The Bid with
19 
the highest calculated rating shall be the Highest Rated Bid (HRB). The BAG shall invite
20 
the bidder concerned for negotiation and/or clarification on the following items:
21 
financial proposal submitted by the bidder, terms of reference, scope of services,
22 
methodology and work program, personnel to be assigned to the job,
23 
services/facilities/data to be provided by the Procuring Entity concerned, and
24 
provisions of the contract. When negotiations with the first-in-rank bidder fails, the
25 
financial proposal of the second rank bidder shall be opened for negotiations;
26 
Provided, That the amount indicated in the financial envelope shall be made as the
27 
basis for negotiations and the total contract amount shall not exceed the amount
28 
indicated in the envelope and the ABG. Whenever necessary, the same process shall
29 
be repeated until the bid is awarded to the winning bidder.
30 
ARTICLE X
31 
POST-QUALIFICATION
35


1 
Sec. 61. Objective and Process of Post-qualification. - Post-qualification
2 
is the stage where the bidder with the LCB, or the MEAB, in the case of Goods and
3 
Infrastructure Projects, or the HRB, in the case of Consulting Services, undergoes
4 
verification and validation whether it has passed all the requirements and conditions
5 
as specified in the bidding documents.
6 
If the bidder with the LCB or HRB passes all the criteria for post-qualification,
7 
its Bid shall be considered the LCRB, in the case of Goods and Infrastructure projects
8 
or the Highest Rated Responsive Bid (HRRB), in the case of Consulting Services.
9 
If the bidder with the MEAB passes the verification and validation by the BAC
10 
and TWG of each bid component, to which any weight or score is given during
11 
evaluation, as well as all the criteria for post-qualification, its bid shall be considered
12 
the MEARB. The quality and price components, the corresponding numerical weights,
13 
and the procedures for the determination of the MEARB shall be provided in the IRR.
14 
However, if a bidder fails to meet any of the requirements or conditions, it shall
15 
be post-disqualified and the BAC shall conduct the post-qualification on the bidder
16 
with the second LCB or HRB, or the MEAB with the second highest score. The same
17 
procedure shall be repeated until the LCRB, HRRB, or the MEARB, as the case may
18 
be, is finally determined.
19 
In all cases, the contract shall be awarded only to the bidder with the LCRB,
20 
HRRB, or MEARB, as the case may be.
21 
The post-qualification process shall be completed in not more than twelve (12)
22 
calendar days from the determination of the LCB/HRB/MEAB. In exceptional cases,
23 
the post-qualification period may be extended by the HoPE.
24 
Sec. 62. Failure of Bidding. - There shall be a failure of bidding if:
25 
(a) No bids are received; or
26 
(b) No bid qualifies as the LCRB, HRRB, or MEARB; or
27 
(c) Whenever the bidder with the LCRB, HRRB, or MEARB, as the case may
28 
be, refuses, without justifiable cause, to accept the award of contract.
29 
Linder any of the above instances, the contract shall be re-published or
30 
reposted and re-bid. The BAC shall observe the same process and set the new periods
31 
according to the same rules followed during the first bidding. After the second failed
36


1 
bidding, however, the BAC may resort to negotiated procurement as provided for in
2 
Section 33 of this Act.
3 
Sec. 63. Single Calculated/Rated/Economically Advantageous and
4 
Responsive Bid Submission. - A Single Calculated/Rated/Economically
5 
Advantageous Responsive Bid shall be considered for award if it falls under any of the
6 
following circumstances:
7 
(a) If after publication, only one prospective bidder applies for eligibility check,
8 
and meets the eligibiiity requirements or criteria, after which 
it submits a
9 
bid, which is found to be responsive to the bidding requirements;
10 
(b) If after the publication, more than one prospective bidder applies for
11 
eligibility check, but only one bidder meets the eligibility requirements or
12 
criteria, after which it submits a bid which is found to be responsive to the
13 
bidding requirements; or
14 
(c) If after the eligibility check, more than one bidder meets the eligibility
15 
requirements, but only one bidder submits a bid, and its bid is found to be
16 
responsive to the bidding requirements.
17 
In ail instances, the Procuring Entity shall ensure that the ABC reflects the most
18 
advantageous prevailing price for the government.
19 
ARTICLE XI
20 
AWARD, IMPLEMENTATION, AND TERMINATION OF THE CONTRACT
21 
Sec. 64. Notice and Execution of Award. - Within a period not exceeding
22 
ten (10) calendar days from the determination and declaration by the BAC of the
23 
LCRB, HRRB, or MEARB, as the case may be, and the recommendation of the award,
24 
the Hope or the duly authorized representative shall approve or disapprove the said
25 
recommendation. In case of approval, the HoPE or the duly authorized representative
26 
shall immediately issue the Notice of Award to the bidder with the LCRB, HRRB, or
27 
MEARB.
28 
The winning bidder shall formally enter into contract with the Procuring Entity
29 
within ten (10) calendar days from award of the contract. When further approval of
30 
higher authority is required, the approving authority for the contract shall be given a
31 
maximum period of fifteen (15) calendar days from receipt of the contract to approve
32 
or disapprove it.
37


1 
In the case of GOCCs, the concerned board shall take action on the said
2 
recommendation within twenty (20) calendar days from receipt thereof. The
3 
prescribed periods for execution and/or approval of contracts may be extended for
4 
reasons beyond the control of the Procuring Entity or the approving authority, or for
5 
other justifiable causes.
6 
The Procuring Entity shall issue the Notice to Proceed to the winning bidder not
7 
later than three (3) calendar days from the date of approval of the contract by the
8 
appropriate authority. All notices called for by the terms of the contract shall be
9 
effective only at the time of receipt thereof by the contractor.
10 
Sec. 65. Period of Action on Procurement Activities. - The period from
11 
the opening of bids up to the award of contract shall not exceed sixty (60) days.
12 
The GPPB is authorized to adjust the period as may be deemed appropriate:
13 
provided, further, that such adjustment shall not exceed ninety (90) days.
14 
All members of the BAG shall be on a jury duty type of assignment until the
15 
Notice of Award is issued by the HoPE in order to complete the entire procurement
16 
process at the earliest possible time.
17 
If no action on the contract is taken by the HoPE, or by its duly authorized
18 
representative, or by the concerned board, in the case of GOCCs, within the periods
19 
specified in the preceding paragraph, the contract concerned shall be deemed
20 
approved.
21 
Sec. 66. Performance Security. - Prior to the signing of the contract, the
22 
winning bidder shall, as a measure of guarantee for the faithful performance of and
23 
compliance with its obligations under the contract prepared in accordance with the
24 
bidding documents, be required to post a performance security in such form and
25 
amount as may be specified by the GPPB.
26 
The IC shall identify the surety companies that may be tapped to issue surety
27 
and/or performance bonds. The list of surety companies identified by the IC shall
28 
include only those whose surety business is ready to provide callable-on-demand
29 
surety contracts, where the Procuring Entity can ciaim outright on the surety contract
30 
and receive the proceeds thereof upon default of the bidder. The performance security
31 
posted by the winning bidder must remain effective until final acceptance by the
32 
Procuring Entity.
38


1 
Sec. 67. Failure to Enter into Contract and Post Performance Security.
2 
- If for justifiable causes, the bidder with the LCRB, HRRB, or MEARB, as the case
3 
may be, fails, refuses, or is otherwise unable to enter into contract with the Procuring
4 
Entity, or if the bidder fails to post the required performance security within the period
5 
stipulated in the bidding documents, the BAG shall disqualify the said bidder and shall
6 
undertake post-qualification for the next-ranked LCB, HRB, or MEAB. This procedure
7 
shall be repeated until an award is made. However, if no award is possible, the
8 
contract shall be subjected to a new bidding.
9 
In the case of failure to post the required performance security, the bid security
10 
shall be forfeited without prejudice to the imposition of sanctions prescribed under
11 
Article XX.
12 
Sec. 68. Reservation Clause. - The HoPE reserves the right to reject any
13 
and all Bids, declare a failure of bidding, or not award the contract in the following
14 
situations:
15 
(a) If there is prima facie evidence of collusion between appropriate public
16 
officers or employees of the Procuring Entity, or between the BAG and any
17 
of the bidders, or if the collusion is between or among the bidders
18 
themselves, or between a bidder and a third party, including any act which
19 
restricts, suppresses or nullifies or tends to restrict, suppress or nullify
20 
competition;
21 
(b) If the BAG is found to have failed in following the prescribed bidding
22 
procedures; or
23 
(c) For any justifiable and reasonable ground where the award of the contract
24 
will not redound to the benefit of the government in the following
25 
instances: (i) if the physical and economic conditions have significantly
26 
changed so as to render the project no longer economically, financially, or
27 
technically feasible, as determined by the HoPE; (ii) if the project is no
28 
longer necessary as determined by the HoPE; or (iii) if the source of funds
29 
for the project has been withheld or reduced through no fault of the
30 
Procuring Entity.
39


1 
Sec. 69. Contract Implementation and Termination. - The rules and
2 
guidelines for the implementation and termination of contracts awarded pursuant to
3 
the provisions of this Act shall be prescribed in the IRR.
4 
ARTICLE XII
5 
SUSTAINABLE PUBLIC PROCUREMENT
6 
Sec. 70. Sustainable Public Procurement. - All Procuring Entities shall
7 
establish a sustainable public procurement program to achieve value for money on a
8 
whole life basis not only to meet their specific organizational needs but for the benefit
9 
of the society and the economy, while reducing adverse environmental impact.
10 
Sec. 71. Green Public Procurement Strategy. - Green Public Procurement
11 
is an approach whereby Procuring Entities seek to procure Goods, Infrastructure
12 
Projects, and Consulting Services with reduced environmental impact through their
13 
lifecycle.
14 
As part of strategic procurement planning and in support of the Philippines'
15 
commitment to accelerate climate action and strengthen disaster resilience by
16 
transitioning into a low carbon economy. Procuring Entities shall integrate green
17 
practices, as well as environmentally relevant criteria or requirements, in the design
18 
of their procurement projects in order to achieve broader policy objectives on energy,
19 
water and material efficiency, waste reduction, pollution and emission prevention,
20 
climate change mitigation, local and rural development, greening supply chains,
21 
greening infrastructure and work, industry productivity, innovation and
22 
competitiveness, inclusive business models, green jobs, and circular economy.
23 
To further promote Green Public Procurement, sustainability of products,
24 
materials or structures with green specifications shall be given greater weight in the
25 
evaluation of bids.
26 
Sec. 72. Development of a Green Local Market. - The DTI, in consultation
27 
with relevant government agencies and the private sector, shall develop a cost-
28 
efficient validation and certification program for green products to attract green
29 
investments and improve the competition in government procurement.
30 
Sec. 73. Inclusive Procurement Program. - To provide equal opportunities
31 
to the vulnerable and marginalized sectors, as well as microenterprises, social
32 
enterprises, and startups. Procuring Entities shall encourage active participation of the
40


1 
registered sectors in all procurement activities, giving weight to inclusivity in programs
2 
involving gender and ethnic equity, poverty reduction and respect to fundamental
3 
labor standards.
4 
The GPPB shall develop procurement policies that engender an enabling
5 
environment for meaningful competition across all bidders and incorporate social
6 
considerations and gender parity in the procurement of Goods, Infrastructure Projects,
7 
and Consulting Services. It shall also issue the policy guidelines on how Procuring
8 
Entities can implement gender responsive approaches in public procurement in
9 
relation to project planning, eligibiiity and selection criteria, contract performance, and
10 
grounds for exclusion/suspension/debarment.
11 
Sec. 74. Registration of Certain Sectors. - The GPPB shall maintain a
12 
registry of entities belonging to the following sectors:
13 
(a) Farmers as certified by the Department of Agriculture (DA);
14 
(b) Fisherfolk as certified by the Bureau of Fisheries and Aquatic Resources
15 
(BFAR);
16 
(c) Persons with disabilities as certified by the National Council for Disability
17 
Affairs (NCDA) pursuant to Republic Act No. 7277 otherwise known as the
18 
Magna Carta for Disabled Persons, as amended;
19 
(d) Solo parents as certified by the Department of Social Welfare and
20 
Development (DSWD);
21 
(e) Microenterprises and Social Enterprises as certified by the Micro, Small and
22 
Medium Enterprises Development Council (MSMED Council);
23 
(f) Startups, spin-offs and other form of entity involved in science, technology,
24 
and innovation activities as certified by the DTI, DICT, National Innovation
25 
Council (NIC) or the Department of Science and Technology (DOST), as
26 
may be applicable;
27 
(g) Cooperatives duiy registered with the CDA pursuant to Republic Act No.
28 
6938 otherwise known as the Cooperative Code of the Philippines, as
29 
amended; and
30 
(h) Other relevant sectors as may be determined by the GPPB to ensure
31 
inclusivity and diversity in the procurement process.
41


1 
Sec. 75. Exemptions and Other Forms of Support. - The GPPB, after due
2 
consultation with the DA, BFAR, NCDA, DSWD, MSMED Council, DTI, DICT, NIC,
3 
DOST, and CDA shall prescribe instances for outright exemption and other forms of
4 
support for the sectors mentioned in the preceding section as may be provided for in
5 
the IRR.
6 
Sec. 76. Procurement of Second-hand Goods. - Procurement of second-
7 
hand, refurbished, or reconditioned goods and equipment, including military, defense,
8 
or law enforcement equipment or materiel, may be allowed under any of the applicable
9 
modes of procurement enumerated in Article IV of this Act, subject to considerations
10 
as to durability, remaining useful life, sustainability, maintenance cost, warranty, price,
11 
and such other relevant factors in order to secure a contract that is most advantageous
12 
to the government. Procurement of second-hand motor vehicles shall be in accordance
13 
with the guidelines and circulars issued by the DBM.
14 
ARTICLE XIII
15 
DOMESTIC AND FOREIGN PROCUREMENT
16 
Sec. 77. Procurement of Domestic and Foreign Goods. - Consistent with
17 
the country's obligations under international treaties or agreements, goods may be
18 
obtained from domestic or foreign sources and the procurement thereof shall be open
19 
to all eligible suppliers, manufacturers and distributors.
20 
Sec. 78. Domestic Preference. - Subject to the provisions of Republic Act
21 
No. 11981 or the Tatak Pinoy (Proudly Filipino) Act, the Procuring Entity shall give
22 
priority and preference to Philippine products and services: Provided, That, the
23 
preference and priority for Philippine products shall be guaranteed upon all levels of
24 
the procurement process, including raw materials, ingredients, supplies or fixtures.
25 
The Procuring Entity shall award to the domestic bidder if the bid is not more
26 
than twenty-five percent (25%) in excess of the lowest foreign bid. The margin of
27 
preference provided herein shall be subject to a periodic review and adjustment by
28 
the GPPB, as may be necessary.
29 
The priority and preference established herein may be waived should any of
30 
the following conditions be present:
31 
(a) when domestic production is insufficient or unavailable in the required
32 
commercial quantities;
42


1 
(b) when the specific or desired quality is not met;
2 
(c) when the priority and preference will result in inconsistencies with the
3 
Philippines' obligations under international agreements;and
4 
(d) other analogous circumstances.
5 
ARTICLE XIV
6 
LEASE OF MOVABLE PROPERTIES
7 
Section 79. Lease Contracts. - The lease of movable properties is subject
8 
to the guidelines which shall be provided for in the IRR of this Act. Movable properties
9 
refer to those properties defined under Articles 416, 417, and 418 of the New Civil
10 
Code of the Philippines.
11 
ARTICLE XV
12 
DISCLOSURE OF RELATIONS
13 
Sec. 80. Disclosure of Relations. - In addition to the proposed contents of
14 
the Invitation to Bid as mentioned under Section 48 of this Act, all bidding documents
15 
shall be accompanied by a sworn affidavit of the bidder that he or she, any director,
16 
or any corporate officer of their corporation is not related to the HoPE; the members
17 
of the BAC, the TWG, and the BAC Secretariat, the head of the Project Management
18 
Office or the end-user unit or implementing unit, and the project consultants of the
19 
Procuring Entity, or of the procurement agent, whichever is applicable, by
20 
consanguinity or affinity up to the third civil degree. In order to determine the ultimate
21 
beneficiary and prevent collusion, the ultimate beneficial ownership of an entity shall
22 
be disclosed by the bidder. Failure to comply with the aforementioned provision shall
23 
be a ground for the automatic disqualification of the bid in consonance with Section
24 
57 of this Act. For this reason, relation to the aforementioned persons within the third
25 
civil degree of consanguinity or affinity shall automatically disqualify the bidder from
26 
participating in the procurement of contracts of the Procuring Entity notwithstanding
27 
the act of such persons inhibiting themselves from the procurement process.
28 
Sec. 81. Declaration of Beneficial Ownership. - Notwithstanding the
29 
provisions of Republic Act No. 10173, otherwise known as the Data Privacy Act of
30 
2012, legal entities like corporations, partnerships, private sector organizations,
31 
foundations, and associations that participate in procurement projects shall safeguard
32 
the government from all acts that undermine a transparent, fair and competitive
43


1 
procurement process. The beneficial ownership information of the suppliers,
2 
manufacturers, distributors, contractors or consultants shall be a requirement to
3 
participate in government procurement. The GPPB shall maintain a registry of
4 
beneficial ownership information established for government procurement.
5 
ARTICLE XVI
6 
PROTEST MECHANISM
7 
Sec. 82. Protests on Decisions of the BAG. - Decisions of the BAC in all
8 
stages of procurement may be protested to the HoPE by filing a verified position paper
9 
and paying a non-refundable protest fee. The amount of the protest fee and the
10 
periods during which the protests may be filed and resolved shall be specified in the
11 
IRR.
12 
Sec. 83. Resolution of Protests, - The protests shall be resolved strictly on
13 
the basis of records of the BAC.
14 
The decision of the HoPE shall be final and executory for small procurements:
15 
procurement of Goods costing Twenty million pesos (P20,000,000.00) and below,
16 
procurement of Infrastructure Projects costing Fifty million pesos (P50,000,000.00)
17 
and below, and procurement of Consulting Services costing Ten million pesos
18 
(P10,000,000.00) and below.
19 
In all other cases, the decisions or final orders of the HoPE shall become final
20 
and executory ten (10) days after receipt of a copy thereof by the parties unless,
21 
within the same period, an appeal to the Government Procurement Adjudication
22 
Tribunal has been perfected.
23 
Sec. 84. Non-interruption of the Bidding Process. - In no case shall any
24 
protest taken from any decision treated in this Article stay or delay the bidding process.
25 
Protests must first be resolved before any award is made.
26 
SEC. 85. The Government Procurement Adjudication Tribunal. - An
27 
independent quasi-judicial body is hereby created under the Office of the President,
28 
to be known as the Government Procurement Adjudication Tribunal which shall
29 
exercise exclusive jurisdiction over all decisions of the HoPE on protest cases, as well
30 
as matters related to blacklisting. The decision of the Tribunal shall be rendered within
31 
thirty (30) days from the date the case is submitted for resolution, and shall be
32 
appealable to the Court of Appeals.
44


1 
SEC. 86. Prohibition on the Issuance of Temporary Restraining
2 
Orders, Preiiminary Mandatory Injunctions. - No court, except the Supreme
3 
Court, shall issue any temporary restraining order, preliminary injunction, or
4 
preliminary mandatory injunction against the government, or any of its subdivisions,
5 
officials, or any person or entity, whether public or private acting under the
6 
government direction, to restrain, prohibit or compel the procurement, bidding or
7 
awarding of contracts for Goods, Infrastructure Projects, and Consulting Services of
8 
the government; commencement, execution, implementation, operation of any such
9 
contract; termination or rescission of any such contract; and the undertaking or
10 
authorization of any other lawful activity necessary for such contract.
11 
This prohibition shall apply in all cases, disputes or controversies instituted by
12 
a private party, including but not limited to, cases filed by bidders or those claiming
13 
to have rights through such bidders involving such contract. This prohibition shall not
14 
apply when the matter is of extreme urgency involving a constitutional issue, such
15 
that unless a temporary restraining order is issued, grave injustice and irreparable
16 
injury will arise. The applicant shall file a bond, in an amount to be fixed by the court,
17 
which bond shall accrue in favor of the government if the court should finally decide
18 
that the applicant was not entitled to the relief sought.
19 
ARTICLE XVII
20 
SETTLEMENT OF DISPUTES
21 
Sec. 87. Dispute Resoiution. - Any and all disputes arising from the
22 
implementation of a contract covered by this Act may be submitted to arbitration or
23 
other forms of alternative dispute resolution in the Philippines according to the
24 
provisions of Republic Act No. 9285, otherwise known as the Alternative Dispute
25 
Resolution Act of 2004: Provided, That, disputes that are within the competence of
26 
the Construction Industry Arbitration Commission to resolve shall be referred thereto.
27 
ARTICLE XVIII
28 
CONTRACT PRICES AND WARRANTIES
29 
Sec. 88. Contract Prices. - For the given scope of work in the contract as
30 
awarded, all bid prices shall be considered as fixed prices, and therefore not subject
31 
to price escalation during contract implementation. In the event of an extraordinary
32 
increase in prices of specific components of the Infrastructure Project, price escalation
45


1 
may be considered, subject to prior approval of the GPPB. If the cost of construction
2 
components increases by more than ten percent (10%) of the unit price of work items,
3 
as determined against the prevailing price indices of the Philippine Statistics Authority
4 
(PSA), a price escalation may be authorized at a no loss, no-gain basis, using the
5 
appropriate formula prescribed by the GPPB. For the purpose of this section, the PSA
6 
shall ensure that its price indices are region specific and updated on a monthly basis.
7 
Sec. 89. Warranty. - (a) For the procurement of goods, in order to assure
8 
that manufacturing defects shall be corrected by the supplier, manufacturer, or
9 
distributor, as the case may be, for a specific time after performance of the contract,
10 
a warranty shall be required from the contract awardee for such period of time as may
11 
be provided in the IRR, the obligation for which shall be covered by either retention
12 
money in the amount equivalent to a percentage of every progress payment, or a
13 
special bank guarantee equivalent to a percentage of the total contract price, to be
14 
provided in the IRR. The said amounts shall only be released after the lapse of the
15 
warranty period: Provided, That, the goods supplied are free from defects and all the
16 
conditions imposed under the contract have been fully met.
17 
(b) For the procurement of Infrastructure Projects, the contractor shall assume
18 
full responsibility for the contract work from the time project construction commenced
19 
up to a reasonable period as defined in the IRR taking into consideration the scale
20 
and coverage of the project from its final acceptance by the government and shall be
21 
held responsible for any damage or construction of works except those occasioned by
22 
force majeure. The contractor shall be fully responsible for the safety, protection,
23 
security, and convenience of its personnel, third parties, and the public at large, as
24 
well as the works, equipment, installation and the like to be affected by its construction
25 
work and shall be required to put up a warranty security in the form of cash, bank
26 
guarantee, letter of credit. Government Service Insurance System bond, or callable
27 
surety bond.
28 
The contractor shall undertake the repair works, at its own expense, of any
29 
defect or damage to the Infrastructure Projects on account of the use of materials of
30 
inferior quality within ninety (90) days from the time the HoPE has issued an order to
31 
undertake repair. In case of failure or refusal to comply with this mandate, the
46


1 
government shall undertake such repair works and shall be entitled to full
2 
reimbursement of expenses incurred therein upon demand.
3 
Any contractor who fails to comply with the preceding paragraph shall suffer
4 
perpetual disqualification from participating in any public bidding and its property or
5 
properties shall be subject to attachment or garnishment proceedings to recover the
6 
costs. All payables of government in its favor shall be offset to recover the costs.
7 
ARTICLE XIX
8 
THE GOVERNMENT PROCUREMENT POLICY BOARD
9 
Sec. 90. Organization and Functions. - The GPPB shall be composed of
10 
the: Secretary of the DBM as Chairperson, and the Secretary of the National Economic
11 
and Development Authority (NEDA) as Alternate Chairperson, with the following as
12 
members: the Secretaries of the Departments, Heads of Agencies, or their duly
13 
authorized representatives: Finance, Public Works and Highways, Trade and Industry,
14 
Interior and Local Government, PS-DBM, and a representative from the private sector
15 
to be appointed by the President of the Republic of the Philippines upon the
16 
recommendation of the GPPB.
17 
The GPPB may call upon Secretaries/Heads of Agencies or their duly designated
18 
representatives to assist them in policy determination.
19 
The GPPB shall be supported by a TSO in the performance of its functions under
20 
this Act. The TSO shall be headed by an Executive Director equivalent to the rank of
21 
an Undersecretary and supported by Deputy Executive Directors equivalent to the rank
22 
of an Assistant Secretary, of good moral character, honesty, probity, and
23 
unquestionable integrity, to be appointed by the President of the Republic of the
24 
Philippines, as recommended by the Chairperson of the GPPB. The GPPB shall
25 
determine the organizational structure and staffing pattern of the TSO, subject to the
26 
evaluation and approval of the DBM.
27 
In addition to the powers granted under this Act, the GPPB shall absorb all the
28 
powers, function and responsibilities of the Procurement Policy Board created under
29 
E.O. No. 359, series of 1989. All affected functions of the Infrastructure Committee of
30 
the NEDA Board are hereby transferred to the GPPB.
31 
The GPPB may establish an Inter-agency Technical Working Group/s (lATWG/s)
32 
to provide subject matter expertise to the GPPB in the formulation and review of
47


1 
policies, rules, and regulations related to government procurement. The lATWG/s, in
2 
particular, shall endorse policy recommendations for the GPPB'S consideration and
3 
approval. The lATWG/s shall consist of representatives from the sectoral groups, such
4 
as economic services, social services, agriculture, health, education, construction,
5 
energy, environment, information and communications technology, research and
6 
development, and others as determined by the GPPB, to guarantee that the
7 
procurement policies are inclusive and promote good governance.
8 
ARTICLE XX
9 
CRIMINAL AND CIVIL LIABILITY
10 
Sec. 91. Prohibited Acts. - (a) Without prejudice to the provisions of
11 
Republic Act No. 3019, otherv/ise known as the Anti-Graft and Corrupt Practices Act
12 
and other penal laws, public officers who commit any of the following acts shall suffer
13 
the penalty of imprisonment of not less than six (6) years and one (1) day, but not
14 
more than fifteen (15) years:
15 
i. Open any sealed bid including but not limited to bids that may have been
16 
submitted through the electronic system and any and all documents
17 
required to be sealed or divulging their contents, prior to the appointed
18 
time for the public opening of bids or other documents.
19 
ii. Delaying, without justifiable cause, the screening for eligibility, opening of
20 
bids, evaluation and post evaluation of bids, and awarding of contracts
21 
beyond the prescribed periods of action provided for in the IRR.
22 
iii. Unduly influencing or exerting undue pressure on any member of the BAC
23 
or any officer or employee of the procuring entity to take a particular action
24 
which favors, or tends to favor a particular bidder.
25 
iv. Splitting of contracts which exceed procedural purchase limits and
26 
competitive bidding.
27 
V. When the head of the agency abuses the exercise of his power to reject
28 
any and all bids as mentioned under Section 68 of this Act with manifest
29 
preference to any bidder who is closely related to him in accordance with
30 
Section 80 of this Act.
31 
When any of the foregoing acts is done in collusion with private individuals, the
32 
private individuals shall likewise be liable for the offense.
48


1 
In addition, the pubiic officer invoived shaii aiso suffer the penaity of temporary
2 
disqualification from pubiic office, whiie the private individuai shaii be permanentiy
3 
disquaiified from transacting business with the government.
4 
(b) Private individuals who commit any of the foiiowing acts, inciuding any
5 
pubiic officer, who conspires with them, shaii suffer the penaity of imprisonment of
6 
not iess than six (6) years and one (1) day but not more than fifteen (15) years:
7 
i. When two or more bidders agree and submit different bids as if they were
8 
bona fide, when they knew that one or more of them was so much higher
9 
than the other that it couid not be honestly accepted and that the contract
10 
will surely be awarded to the pre-arranged lowest bid.
11 
ii. When a bidder maiiciousiy submits different bids through two or more
12 
persons, corporations, partnerships or any other business entity in which
13 
he has interest to create the appearance of competition that does not in
14 
fact exist so as to be adjudged as the winning bidder.
15 
iii. When two or more bidders enter into an agreement which caii upon one to
16 
refrain from bidding for procurement contracts, or which caii for withdrawai
17 
of bids already submitted, or which are otherwise intended to secure an
18 
undue advantage to any one of them.
19 
iv. When a bidder, by himseif or in connivance with others, empioys schemes
20 
which tend to restrain the naturai rivalry of the parties or operates to stifle
21 
or suppress competition and thus produce a resuit disadvantageous to the
22 
public.
23 
In addition, the persons invoived shaii also suffer the penalty of temporary or
24 
perpetual disqualification from pubiic office and be permanently disqualified from
25 
transacting business with the Government.
26 
(c) Private individuais who commit any of the foiiowing acts, and any pubiic
27 
officer conspiring with them, shaii suffer the penalty of imprisonment of not less than
28 
six (6) years and one (1) day but not more than fifteen (15) years:
29 
i. Submit eiigibility requirements of whatever kind and nature that contain
30 
false information or falsified documents calcuiated to influence the
31 
outcome of the eligibility screening process or conceai such information in
32 
the eligibiiity requirements when the information wiil lead to a declaration
49


1 
of ineligibility from participating in public bidding.
2 
ii. Submit bidding documents of whatever kind and nature that contain false
3 
information or falsified documents or conceal such information in the
4 
bidding documents, in order to influence the outcome of the public bidding.
5 
iii. Participate in a public bidding using the name of another or allow another
6 
to use one's name for the purpose of participating in a public bidding.
7 
iv. Withdraw a bid, after it shall have qualified as the LCB/HRB/MEAB, or
8 
refuse to accept an award, without just cause or for the purpose of forcing
9 
the Procuring Entity to award the contract to another bidder. This shall
10 
include the non-submission within the prescribed time, or delaying the
11 
submission of requirements such as, but not limited to, performance
12 
security, preparatory to the final award of the contract.
13 
V. When the bidder is a juridical entity, criminal liability and the accessory
14 
penalties shall be imposed on its directors, officers, or employees who
15 
actually commit any of the foregoing acts.
16 
Sec. 92. Jurisdiction. - Jurisdiction over the offenses defined under this
17 
Article shall belong to the appropriate courts, according to laws existing at the time of
18 
the commission of the offenses.
19 
Sec. 93. Preventive Suspension. - The HoPE may preventively suspend any
20 
member of the TWG or the Secretariat, or the BAG if there are strong reasons or prima
21 
facie evidence showing that the officials or employees concerned are guilty of the
22 
charges filed against them under Article XX of this Act or for dishonesty as defined by
23 
the Civil Service Laws. In all cases, procedural and substantive due process as
24 
mandated by the Constitution and Civil Service Laws, rules and regulations, shall be
25 
strictly observed.
26 
Sec. 94. Lifting of Suspension and Removal of Administrative
27 
Disabilities. - Lifting of preventive suspension pending administrative investigation,
28 
as well as removal of administrative investigation, as well as removal of administrative
29 
penalties and disabilities shall be in accordance with the provisions of Sections 52 and
30 
53, Chapter 7 (Civil Service Commission), Book V of E.O. No. 292 otherwise known as
31 
the Administrative Code of 1987.
32 
Sec. 95. Civil Liability in Case of Conviction. - Without prejudice to
50


1 
administrative sanctions that may be imposed in proper cases, a conviction under this
2 
Act or Republic Act No. 3019 shall carry with it civil liability, which may either consist
3 
of restitution for the damage done or the forfeiture in favor of the government of any
4 
unwarranted benefit derived from the act or acts in question or both, at the discretion
5 
of the courts.
6 
Sec. 96. Liquidated Damages. - All contracts executed in accordance with
7 
this Act shall contain a provision on liquidated damages which shall be payable in case
8 
of breach thereof. The amount thereof shall be specified in the IRR.
9 
ARTICLE XXI
10 
SUSPENSION AND BLACKLISTING
11 
Sec. 97. Imposition of Suspension. - (a) In addition to the provisions of
12 
Articles XX of this Act, the HoPE, subject to the authority delegated to the BAG, if any,
13 
shall impose on bidders or prospective bidders, the administrative penalty of
14 
suspension for one (1) year for the first offense, and suspension of two (2) years for
15 
the second offense from participating in the public bidding process, for the following
16 
violations:
17 
(i) 
Submission of eligibility requirements containing false information or
18 
falsified documents.
19 
(ii) 
Submission of bids that contain false information or falsified documents, or
20 
the concealment of such information in the bids in order to influence the
21 
outcome of eligibility screening or any other stage of the pubiic bidding.
22 
(iii) 
Allowing the use of one's name, or using the name of another for purposes
23 
of public bidding.
24 
(iv) 
Withdrawal of a bid, or refusal to accept an award, or enter into contract
25 
with the government without justifiable cause, after he had been adjudged
26 
as having submitted the LCRB, HRRB, or MEARB.
27 
(v) 
Refusal or failure to post the required performance security within the
28 
prescribed time.
29 
(vi) 
Termination of the contract due to the default of the bidder.
30 
Refusal to clarify or validate in writing its bid during post-qualification within a
31 
period of seven (7) calendar days from receipt of the request for clarification.
32 
Any documented unsolicited attempt by a bidder to unduly influence the
51


1 
outcome of the bidding in his favor.
2 
All other acts that tend to defeat the purpose of the competitive bidding.
3 
(b) In addition to the penalty of suspension, the bid security or the performance
4 
security posted by the concerned bidder or prospective bidder shall also be forfeited.
5 
(c) The Hope may delegate to the BAG the authority to impose the
6 
aforementioned administrative penalties.
7 
Sec. 98. Imposition of Biackiisting. - Without prejudice to any criminal or
8 
civil liabilities under applicable laws, the HoPE may impose on bidders or prospective
9 
bidders the penalty of blacklisting at any stage of the integrated procurement process.
10 
Blacklisting perpetually prohibits them from participating in all government
11 
procurement activities, unless otherwise lifted based on reasonable and justifiable
12 
grounds.
13 
Blacklisting shall be imposed against any of the bidders based on any of the
14 
following grounds:
15 
(a) Committing any of the acts provided under Section 97 of this Act three
16 
times or more;
17 
(b) Submitting eligibility requirements and bids containing false information or
18 
falsified documents or the concealment of such information will materially
19 
alter the outcome of eligibility screening or any stage of the competitive
20 
bidding;
21 
(c) Submission of beneficial ownership information containing false entries;
22 
(d) Unauthorized accessing of the contents of any bid submitted to the
23 
Procuring Entity before the opening of bids;
24 
(e) Using force, fraudulent machinations, coercion, undue influence or
25 
pressure on any member of the BAG or any officer or employee of the
26 
Procuring Entity to take a particular action for its own favor or gain, or to
27 
the disadvantage of a particular bidder;
28 
(f) Agreeing with two or more bidders and submitting different bids as if they
29 
were bona fide, when they knew that one or more of them was so much
30 
higher than the other that it could not be honestly 
accepted and that the
31 
contract will surely be awarded to the pre-arranged lowest bid;
52


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
(g) Maliciously submitting different bids through two or more persons, 
corporations, partnerships or any other business entity in which it has 
interest to create the appearance of competition that does not in fact exist 
so as to be declared as the winning bidder;
(h) Entering into an agreement with other bidder/s which call upon one to 
refrain from bidding for procurement contracts, or which call for withdrawal 
of bids already submitted, or which are otherwise intended to secure an 
undue advantage to any of the bidders;
(i) Employing schemes which stifle or suppress competitive bidding;
(j) Failing to faithfully disclose its relationship, regardless of the time of its 
discovery, with any of the members of the BAC, Secretariat, TWG, or HoPE 
in accordance with Section 80 of this Act on disclosure of relations;
(k) Assigning or subcontracting of the contract or any part thereof or 
substitution of key personnel named in the proposal without prior written 
approval by the Procuring Entity;
(l) Willful or deliberate abandonment or non-performance of the project or 
contract by the winning bidder resulting to substantial breach thereof 
without lawful and/or just cause;
(m) 
In case it is determined prima /aaethat the winning bidder has engaged, 
before or during implementation of the contract, in the following unlawful 
deeds and behaviors relative to contract acquisition and implementation:
Corrupt, fraudulent, collusive and coercive practices;
i. 
Drawing up or using forged documents;
ii. 
Using adulterated materials, means or methods, or engaging in 
production contrary to rules of science or the trade; and
iv. Any other act analogous to the foregoing;
(n) Unsatisfactory performance record of contract obligation with three (3) or 
more Procuring Entities in terms of quality of goods or materials, and/or 
implementation of contract of service and work progress: Provided, That, 
all of the foregoing unsatisfactory performance record be solely due to the 
fault of the bidder.
53


1 
Sec. 99. Status of Blacklisted Person. - Before the issuance of a
2 
blacklisting order, the erring bidder may participate in the procurement of any
3 
government project except in the Procuring Entities where it is suspended: Provided,
4 
That, if the blacklisting order is issued prior to the date of the Notice of Award, the
5 
blacklisted person shall not be qualified for award and such contract shall be awarded
6 
to another bidder.
7 
The issuance of a blacklisting order shall not prejudice any contract awarded
8 
prior thereto: Provided, That, the offenses which brought about the blacklisting are
9 
not connected to the awarded contract.
10 
Sec. 100. Initiation of Action. - The BAG or the HoPE may, motu proprio,
11 
commence the proceedings upon prima facie determination that a bidder or
12 
prospective bidder has committed any of the grounds provided for in Sections 97 and
13 
98 of this Act. Any bidder/prospective bidder may initiate the suspension or blacklisting
14 
proceedings.
15 
At the option of the Procuring Entities, a reasonable fee may be required for
16 
initiating the suspension and blacklisting proceedings.
17 
Sec. 101. Extent of Administrative Sanctions. - The penalties of
18 
suspension and blacklisting shall be applied against (a) any entity to which the
19 
suspended or blacklisted person has a controlling interest; and (b) against any
20 
beneficial owner of the suspended or blacklisted person.
21 
ARTICLE XXII
22 
LEGAL ASSISTANCE AND INDEMNIFICATION PACKAGE FOR BAC
23 
MEMBERS AND SUPPORT STAFF
24 
Sec. 102. Private Legal Assistance, - All members of the BAC, TWG, and
25 
Secretariat, are hereby authorized to engage the services of private lawyers or
26 
external counsel immediately upon receipt of court notice that a civil or criminal action,
27 
suit or proceeding is filed against them in connection with the performance of their
28 
functions and duties. The lawyer's fee shall be part of the indemnification package for
29 
the members of the BAC, TWG, and Secretariat, subject to the provisions of Section
30 
103 hereof.
31 
Sec. 103. Indemnification Package. - The GPPB shall establish an
32 
equitable indemnification package for public officials providing services in the BAC,
54


1 
TWG, and Secretariat, which may be in the form of free legal assistance, liability
2 
insurance, and other forms of protection and indemnification for all costs and expenses
3 
reasonably incurred by such persons in connection with any civil or criminal action,
4 
suit or proceeding to which they may be, or have been made, a party by reason of
5 
the performance of their functions or duties, unless they are finally adjudged in such
6 
action or proceeding to be liable for gross negligence or misconduct or grave abuse
7 
of discretion.
8 
In the event of a settlement or compromise, indemnification shall be confined
9 
only on matters covered by the settlement. Provided, That, the public officials to be
10 
indemnified have not committed gross negligence or misconduct in the performance
11 
of their functions and duties.
12 
The members of the BAG, TWG, and Secretariat shall also be entitled to medical
13 
assistance for injuries incurred in the performance of their functions.
14 
ARTICLE XXIII
15 
FINAL PROVISIONS
16 
Sec. 104. Appropriations. - The amount necessary for the initial
17 
implementation of this Act shall be charged against the current year's available
18 
appropriations. Thereafter, such sums as may be necessary for the implementation of
19 
this Act shall be included in the annual General Appropriations Act.
20 
Sec. 105. Whoie-of-Government Approach. - In order to effectively
21 
achieve the objectives of this Act and to scale up professionalization of government
22 
procurement practitioners, the GPPB shall provide sustained training, capacity-
23 
building, and support to stakeholders in the government procurement process in areas
24 
such as modes of procurement, streamlined processes, and digitalization.
25 
Pursuant thereto, all branches and instrumentalities of the government, its
26 
departments, offices and agencies, including SUCs, GOCCS, GFIs, and LGUs shall
27 
allocate a portion of their capacity development funds to send their BAG members,
28 
BAG Secretariats, and TWGs of Procuring Entities to training.
29 
The GPPB may establish partnerships with SUGs or other educational
30 
institutions in providing training programs. It shall establish standards for accreditation
31 
of said institutions
55


1 
The Procuring Entity, through the HoPE, shall submit periodic progress reports
2 
to the GPPB on the status of its capacity development. Reportorial requirements
3 
prescribed under this Act shall take into consideration reports required under other
4 
\a\NS related to procurement, with the view to harmonizing and achieving efficiencies
5 
in the preparation of these reports.
6 
Sec. 106. Oversight Committee. - There is hereby created a Joint
7 
Congressional Oversight Committee to oversee the implementation of this Act for a
8 
period not exceeding five (5) years from the effectivity of this Act. The Committee
9 
shail be composed of the Chairperson of the Senate Committee on Finance,
10 
Chairperson of the Senate Committee on Constitutional Amendments and Revision of
11 
Laws, and two (2) members thereof appointed by the Senate President, and the
12 
Chairperson of the House Committee on Appropriations, the Chairperson of the House
13 
Committee on Revision of Laws and two (2) members thereof to be appointed by the
14 
Speaker of the House of Representatives. It shall submit its report and
15 
recommendation to the Senate President and the Speaker of the House of
16 
Representatives within five (5) years from its organization.
17 
Sec. 107. Mandatory Review. - The Congress shall conduct a mandatory
18 
review of this Act at least once every five (5) years and as often as it may deem
19 
necessary.
20 
Sec. 108. Impiementing Ruies and Reguiations and Standard Forms.
21 
“ Within one hundred eighty (180) days from the promulgation of this Act, the
22 
necessary rules and regulations for the proper implementation of its provisions shall
23 
be formulated by the GPPB for a period not later than ninety (90) days upon the
24 
approval of the IRR, the standard forms for procurement shall be formulated and
25 
approved.
26 
Sec. 109. Transitory Provision. — Prior to the effectivity of the IRR of this
27 
Act, the provisions of Republic Act no. 9184 and its IRR shall remain in force and effect
28 
in order to ensure the continued implementation of programs, activities, and projects.
29 
The GPPB and ail HoPE, Procuring Entities and the BACs, affected by this Act
30 
shall be given three-year (3) transitory period from the effectivity of the IRR, to fully
31 
comply with the requirements of this Act.
32 
Sec. 110. Reportoriai Requirements. - The GPPB shall, upon approval of
56


1 
the IRR and the standard procurement forms, effect the publication of the same, in
2 
accordance with existing laws, rules, and regulations. Upon approval, the same shall
3 
also be posted on the website of the GPPB.
4 
Thereafter, the GPPB, through its TSO, shall send written notices when the said
5 
documents have been posted on its website to the Office of the President, the Senate
6 
of the Philippines, and the House of Representatives.
7 
Sec. 111. Repealing Clause. - Republic Act No. 9184 otherwise known as
8 
the Government Procurement Reform Act and Commonwealth Act No. 138 are hereby
9 
repealed. All other laws, acts, presidential decrees, executive orders, presidential
10 
proclamations, issuances, rules and regulations, or parts thereof which are contrary
11 
to or inconsistent with any of the provisions of this Act are hereby repealed, amended,
12 
or modified accordingly.
13 
Sec. 112. Separability Clause. - If any portion or provision of this Act is
14 
subsequently declared invalid or unconstitutional, other provisions hereof which are
15 
not affected thereby shall remain in full force and effect.
16 
Sec. 113. Effectivity. - This Act shall take effect fifteen (15) days following
17 
its publication in the Official Gazette or in two (2) newspapers of general circulation.
18
19 
Approved,
57


1 
the IRR and the standard procurement forms, effect the publication of the same, in
2 
accordance with existing laws, rules, and regulations. Upon approval, the same shall
3 
also be posted on the website of the GPPB.
4 
Thereafter, the GPPB, through its TSO, shall send written notices when the said
5 
documents have been posted on its website to the Office of the President, the Senate
6 
of the Philippines, and the House of Representatives.
7 
Sec. 111. Repealing Clause. - Republic Act No. 9184 otherwise known as
8 
the Government Procurement Reform Act and Commonwealth Act No. 138 are hereby
9 
repealed. All other laws, acts, presidential decrees, executive orders, presidential
10 
proclamations, issuances, rules and regulations, or parts thereof which are contrary
11 
to or inconsistent with any of the provisions of this Act are hereby repealed, amended,
12 
or modified accordingly.
13 
Sec. 112. Separability Clause. - If any portion or provision of this Act is
14 
subsequently declared invalid or unconstitutional, other provisions hereof which are
15 
not affected thereby shall remain in full force and effect.
16 
Sec. 113. Effectivity. - This Act shall take effect fifteen (15) days following
17 
its publication in the Official Gazette or In two (2) newspapers of general circulation.
18
19 
Approved,
57


1 
the IRR and the standard procurement forms, effect the publication of the same, in
2 
accordance with existing iaws, ruies, and reguiations. Upon approval, the same shall
3 
also be posted on the website of the GPPB.
4 
Thereafter, the GPPB, through its TSO, shall send written notices when the said
5 
documents have been posted on its website to the Office of the President, the Senate
6 
of the Philippines, and the House of Representatives.
7 
Sec. 111. Repealing Clause. - Repubiic Act No. 9184 otherwise known as
8 
the Government Procurement Reform Act and Commonweaith Act No. 138 are hereby
9 
repealed. All other laws, acts, presidential decrees, executive orders, presidential
10 
proclamations, issuances, rules and regulations, or parts thereof which are contrary
11 
to or inconsistent with any of the provisions of this Act are hereby repealed, amended,
12 
or modified accordingiy.
13 
Sec. 112. Separability Clause. - If any portion or provision of this Act is
14 
subsequentiy deciared invaiid or unconstitutional, other provisions hereof which are
15 
not affected thereby shaii remain in fuii force and effect.
16 
Sec. 113. Effectivity. - This Act shall take effect fifteen (15) days foiiowing
17 
its pubiication in the Officiai Gazette or in two (2) newspapers of generai circuiation.
18
19 
Approved,
57