Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Third Regular Session

House Bill Number _ 8539

Introduced by Hon. Dakila Carlo E. Cua

AN ACT ESTABLISHING AN ELECTRONIC AND
EXPRESS MODE FOR GOVERNMENT PROCUREMENT,
AMENDING REPUBLIC ACT NO. 9184, AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

This Bill seeks to improve and streamline government procurement processes by
introducing two alternative methods of procurement.

Presently, most government procurements are done through competitive biddings to let
the Government get the most competitive prices. While there is nothing wrong with ensuring the
most competitive prices, the cumbersome process of competitive bidding often prevents the
responsible government agencies from delivering their services in a timely manner. Moreover, a
huge portion of government procurements are repeat orders and resupplies.

In order to improve the efficiency and effectiveness of public service, this representation
humbly proposes an express mode of procurement that will allow procuring entities to directly
contract with suppliers who have been previously awarded with similar contracts, following a
period allowing better offers to challenge the previously awarded bidder from being re-
contracted.

Additionally, this representation also proposes that the Government modemizes its
procurement processes by utilizing new but tested technologies available. Similar to online
shopping platforms, electronic shopping is being humbly proposed by this representation as an
alternative method of procurement. This technology uses standard sets of rating systems to allow
procurement entities to easily compare prices, quality, and aftersales services of available
suppliers.

In order to ensure the prompt delivery of government services, passage of this measure is
earnestly sought.

DAKILA INRIQUEZ CUA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Third Regular Session

. 9
House Bill Number =

Introduced by Hon. Dakila Carlo E. Cua

AN ACT ESTABLISHING AN ELECTRONIC AND
EXPRESS MODE FOR GOVERNMENT
PROCUREMENT, AMENDING REPUBLIC ACT NO.
9184, AND FOR OTHER PURPOSES

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

SECTION 1. Section 48 of Republic Act 9184 shall be amended to read as follows:

“Sec. 48. Alternative Methods. — Subject to the prior approval of the
Head of the Procuring Entity or his duly authorized representative, and
whenever justified by the conditions provided in this Act, the Procuring Entity
may, in order to promote economy and efficiency, resort to any of the
following alternative methods of Procurement:

XXX

() EXPRESS MODE - A METHOD OF PROCUREMENT
THAT INVOLVES DIRECT PROCUREMENT FROM A PREVIOUS
COMPETITIVE BIDDING WINNING BIDDER, SUBJECT TO
CHALLENGES FROM BETTER OFFERS;

(g) ELECTRONIC SHOPPING - A METHOD OF
PROCUREMENT WHEREBY THE PROCURING ENTITY
REQUESTS THE SUBMISSION OF PRICE QUOTATIONS FOR
RATED PRODUCTS THROUGH AN ONLINE PLATFORM AND
PROCEEDS TO SELECT A SUPPLIER FROM SAID QUOTATIONS.”

SECTION 2. A new section is hereby inserted after Section 51 of Republic Act 9184
to read as follows:

“Sec. 51-A. EXPRESS MODE. - PROCURING ENTITIES WHO
WISH TO PROCURE THE SAME GOODS OR SERVICES FROM A
PREVIOUS WINNING BIDDER MAY DO SO SUBJECT TO A
CHALLENGE PERIOD FOR BETTER OFFERS.


THE PROCURING ENTITY UTILIZING THE EXPRESS
MODE OF PROCUREMENT SHALL POST A NOTICE TO
CHALLEGE, INDICATING THE PRESENT SUPPLIER, THE GOODS
OR SERVICES TO BE PROCURED, THE PRESENT CONTRACT
PRICE OF GOODS OR SERVICES, AN INVITATION TO
CHALLENGE THE EXISTING SUPPLIER, AND A PERIOD FOR
ACCEPTING BETTER OFFERS, WHICH PERIOD SHALL NOT BE
LESS THAN SEVEN (7) DAYS.

IN THE EVENT THAT THERE ARE NO BETTER OFFERS
SUBMITTED, THE PROCURING ENTITY MAY DIRECTLY
PROCURE FROM THE PREVIOUS WINNING BIDDER.

IN THE PRESENCE OF BETTER OFFERS, THE PREVIOUS
WINNING BIDDER SHALL BE GIVEN SEVEN (7) WORKING DAYS
TO MATCH THE BETTER OFFER. IF THE PREVIOUS WINNING
BIDDER MATCHES THE BETTER OFFER, THE PROCURING
ENTITY SHALL BE ALLOWED TO DIRECTLY PROCURE FORM
THE PREVIOUS WINNING BIDDER. OTHERWISE, THE
PROCURING ENTITY DIRECTLY PROCURE FROM THE
SUPPLIER THAT PRODUCED THE BETTER OFFER.

PRIOR TO THE PROCUREMENT, THE PROCURING
ENTITY SHALL PUBLICLY POST THE RESULT OF THE
CHALLENGE.”

SECTION 3. A new section is hereby inserted after Section 52 of Republic Act 9184
to read as follows:

“SEC. 52-A. ELECTRONIC SHOPPING. — PROCURING
ENTITIES MAY PURCHASE GOODS THAT HAVE UNDERGONE
AN ONLINE PLATFORM RATING PROCESS. THE ONLINE
PLATFORM MAY RECEIVE REQUESTS FOR QUOTATIONS FROM
PROCURING ENTITIES. MAKING THEIR REQUEST FOR
QUOTATIONS, THE PROCURING ENTITY SHALL PROVIDE
INFORMATION ON THE DESCRIPTION, QUANTITY, DELIVERY
LOCATION, MINIMUM RATING REQUIREMENT, AND SUCH
OTHER INFORMATION AS IT MAY DEEM NECESSARY.

WITHIN SEVEN (7) DAYS, THE ONLINE PLATFORM SHALL
FURNISH THE PROCURING ENTITY WITH A LIST OF RATED
PRODUCTS, AND THE QUOTATIONS FROM APPLICANT-
SUPPLIERS. FOR PURPOSES OF TRANSPARENCY, A COPY OF
THE LIST AND QUOTATIONS SHALL BE IMMEDIATELY
TRANSMITTED TO THE DEPARTMENT OF BUDGET AND
MANAGEMENT AND THE COMMISSION ON AUDIT.


THE END-USER OF THE GOODS BEING PROCURED SHALL
SELECT FROM AMONG THE QUOTATIONS RECEIVED AND
MAKE A RECOMMENDED PURCHASE TO THE HEAD OF THE
PROCURING ENTITY FOR APPROVAL.

THE PROCURING ENTITY SHALL BE GIVEN A MAXIMUM
OF SEVEN (7) CALENDAR DAYS FROM DATE OF ISSUANCE OF
QUOTATIONS TO ENTER INTO A CONTRACT WITH THE
SELECTED SUPPLIER. PROVIDED THAT, IN NO INSTANCE
SHALL THE CONTRACT PRICE EXCEED THE APPROVED
BUDGET FOR THE CONTRACT OR 120% OF THE LOWEST
QUOTED PRICE, WHICHEVER IS HIGHER.

SEC. 52-B, RATING SYSTEM. - WITHIN ONE YEAR FROM
THE EFFECTIVITY OF THIS ACT, THERE SHALL BE A RATING
SYSTEM FOR GOODS THAT MAY BE PROCURED BY
GOVERNMENT.

THE RATING SYSTEM SHALL BE MADE AVAILABLE TO
THE PROCURING ENTITIES, SUPPLIERS, AND THE GENERAL
PUBLIC THROUGH AN ONLINE PLATFORM THAT SHALL BE
MAINTAINED BY THE DEPARTMENT OF BUDGET AND
MANAGEMENT, OR ITS RELEVANT ATTACHED AGENCY.

FOR PURPOSES OF RATING PRODUCTS, THERE SHALL BE
A TECHNICAL WORKING GROUP HEADED BY THE
GOVERNMENT PROCUREMENT AND POLICY BOARD AND
COMPOSED OF TECHNICAL EXPERTS FROM AT LEAST ONE (1)
GOVERNMENT AGENCY AND END-USERS FROM AT LEAST ONE
(1) GOVERNMENT AGENCY. TO ENSURE TRANSPARENCY, AN
INDUSTRY REPRESENTATIVE FROM THE PRIVATE SECTOR IS
ALLOWED TO OBSERVE AND ACT AS RESOURCE PERSON
DURING THE RATING PROCESS. PROVIDED THAT, IN THE
EVENT THAT THERE IS NO TECHNICAL EXPERT FROM THE
GOVERNMENT, A TECHNICAL EXPERT FROM THE PRIVATE
SECTOR SHALL BE INVITED TO RATE THE PRODUCT.
PROVIDED FURTHER, THAT IN THE PROCUREMENT OF
PRODUCTS THAT WERE NEVER USED BY GOVERNMENT, THE
INTENDED END-USERS FROM THE GOVERNMENT SHALL BE
INVITED TO RATE THE PRODUCT.

END-USERS FROM PROCURING ENTITIES SHALL BE
REQUIRED TO PROVIDE FEEDBACKS ON PRODUCTS
PROCURED THROUGH ELECTRONIC SHOPPING WITHIN
THREE (3) MONTHS FROM DATE OF DELIVERY. SAID
FEEDBACKS SHALL BE USED BY THE SYSTEM TO UPDATE
PRODUCT RATINGS.

THERE SHALL BE A MECHANISM FOR SUPPLIERS AND
INDUSTRY REPRESENTATIVES TO CHALLENGE THE RATING


GIVEN TO PRODUCTS. ANY CHALLENGE TO AN EXISTING
RATING SHALL NOT RESULT IN THE EXCLUSION OF THE
PRODUCT FROM BEING LISTED IN THE ONLINE PLATFORM.

FOR PURPOSES OF RATING SUPPLIERS, THE ONLINE
PLATFORM SHALL ASSIGN BADGES TO PARTICIPATING
SUPPLIERS THAT HAVE ACHIEVED DIFFERENT MILESTONES
SUCH AS PROMPTNESS IN DELIVERY, NUMBER OF CONTRACTS
FULFILLED, VALUE OF CONTRACTS FULFILLED, AND OTHER
CRITERIA THAT WOULD DETERMINE THE WORTHINESS OF A
SUPPLIER.”

SECTION 4. Separability Clause. — If any of the Sections or provisions of this Act is
held invalid or unconstitutional, all other provisions not affected thereby shall remain valid.

SECTION 5. Implementing Rules and Regulations. - The GBBP shall promulgate the
Rules and Regulations to effectively implement this Act.

SECTION 6. Repealing Clause. — All Laws, Decrees, Executive Orders, Rules and
Regulations or parts or provisions thereof which are not inconsistent with this Act are hereby
repealed, amended, or modified accordingly.

SECTION 7. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,