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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
17 CONGRESS
Third Regular Session
8173

House Bill No.

Introduced by Representative Wes Gatchalian

EXPLANATORY NOTE

One of the governing principles embodied in Republic Act No. 9184, also
known as the Government Procurement Reform Act (GPRA), is competitiveness.
‘The GPRA describes competitiveness as extending equal opportunities to eligible
and qualified private contracting parties in all government procurements,
without any mention on the nationality of said parties.

However, the GPRA’s adoption of a domestic preference policy as
embodied under Commonwealth Act No. 138 ~ otherwise known as “The Flag
Law” - and which is similarly adopted in Republic Act No. 5183 has reduced the
principle of competitiveness in government procurements. For the last 78 years,
such domestic preference policy has confined competition in government
procurements within our territorial boundaries and has discriminated against
foreign suppliers. The supposed benefits that have been produced by such
domestic preference policy should have been apparent and largely felt by the
public through an efficient and effective government procurement after 78 years.
But that is not the case. Instead, such policy has largely promoted limited
choices, high prices and aging capacities and has discouraged innovation and
reduced competitive pressure to the local industries.

Accordingly, this bill should be considered in the context of promoting
competition among domestic and foreign suppliers and attracting new and much
needed investments to enable the Government to deliver public services that
would support the country’s initiatives in providing a business climate conducive
to investments in the country. Thus, | urge the immediate passage this bill.

Representative
First District, Yalenzuela City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
17% CONGRESS

‘Third Regular Seqiny 3

House Bill No.

Introduced by Representative Wes Gatchalian
eee

AN ACT
AMENDING 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:

SECTION 1. Section 4 of Republic Act No. 9184 is hereby amended to read as
follows:

"Sec. 4. Scope and Application. - This act shall apply to the Procurement of
Infrastructure Projects, Goods and Consulting Services, regardless of
source of funds, whether local or foreign, by all branches and
instrumentalities of government, its departments, offices and agencies,
including government-owned and/or controlled corporation and local
government units [, subject to the provisions of Commonwealth Act No.
138]. Any treaty or international or executive agreement affecting the
subject matter of this Act to which the Philippine government is a signatory
shall be observed.”

SECTION 2. Section 76 of Republic Act No. 9184 is hereby amended to read as

sec. 76. Repealing Clause. - This law repeals COMMONWEALTH ACT NO.
138, ENTITLED “AN ACT TO GIVE NATIVE PRODUCTS AND DOMESTIC
ENTITIES THE PREFERENCE IN THE PURCHASE OF ARTICLES FOR THE
GOVERNMENT"; REPUBLIC ACT NO. 5183, ENTITLED “AN ACT
REGULATING THE AWARD OF CONTRACTS FOR THE SUPPLY TO, OR
PROCUREMENT BY, ANY GOVERNMENT-OWNED OR CONTROLLED
CORPORATION, COMPANY, AGENCY OR MUNICIPAL CORPORATION OF
MATERIALS, EQUIPMENT, GOODS AND COMMODITIES, AND PROVIDING
PENALTY FOR THE VIOLATION THEREO! xecutive Order No. 40, series
of 2001, entitled “Consolidating Procurement Rules and Procedures for all
National Government Agencies, Government-Owned-or-Controlled
Corporations and/or Government Financial Institutions, and requiring the
Use of the Government Electronic Procurement System"; Executive Order
No. 262, series of 2000, entitled “Amending Executive Order No. 302,
series of 1996, entitled “Providing Policies, Guidelines, Rules and
Regulations for the Procurement of Goods/Supplies by the National
Government” and Section 3 of Executive Order No. 201, series of 2000,
entitled “Providing Additional Policies and Guidelines in the Procurement



of Goods/Supplies by the National Government”; Executive Order No. 302,
series of 1996 entitled “Providing Policies, Guidelines, Rules and
Regulations for the Procurement of Goods/Supplies by the National
Government” and Presidential Decree No. 1594 dated June 11, 1978,
entitled “Prescribing Policies; Guidelines, Rule and Regulations for
Government Infrastructure Contracts.” This law amends Title Six, Book
Two of Republic Act No. 7160, otherwise known as the “Local Government
Code of 1991"; the relevant provisions of Executive Order No. 164, series of
1987, entitled “Providing Additional Guidelines in the Processing and
Approval of Contracts of the National Government;” and the relevant
provisions of Republic Act No. 7898 dated February 23, 1995, entitled “An
‘Act Providing for the Modernization of the Armed Forces of the Philippines
and for Other Purposes.” Any other law, presidential decree or issuance,
executive order, letter of instruction, administrative order, proclamation,
charter, rule or regulation and/or parts thereof contrary to or inconsistent
with the provisions of this Act is hereby repealed, modified or amended
accordingly.”

SECTION 3. Separability Clause. ~ If any portion of this Act is declared invalid or
unconstitutional, the portions or provisions which are not affected shall remain valid
and subsisting,

SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,