FOURTEENTH CONGRESS OF THE 1 
REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
S. No. "196 3 
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Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
This bill basically seeks to address three (3) points in the currently 
existing government procurement system embodied in Republic Act No. 9184 
in view of the anomalous contracts such as the ZTE and Cyber-Ed projects 
recently favored and concluded by the government. 
Firstly, it puts under the coverage of RA No. 9184 the procurement of 
infrastructure projects, goods and consulting services funded by loan or credit 
under the Official Development Assistance (ODA) Act, RA No. 8182, as 
amended. 
This is in light of the interpretation that the procurement of certain 
infrastructure projects, goods and services can be made exempt from the 
operation of RA No. 9184 on the basis of Section 4 of said law which mandates 
the observation of treaties or international or executive agreements affecting 
procurement in relation to Section 1 of RA No. 8555 which on the other hand 
empowers the President of the Republic to waive the application of any law in 
deference to the contracting of a loan or credit with a lending institution. 
Secondly, it also proposes to strengthen and advance transparency by 
mandating the posting of the decisions of the BAC (or the Bids and Awards 
Committee) relative to criteria, ratings and calculations of bids as well as all 
other bids, responsive or otherwise, on the procuring agency's website or that 
of the GPPB (or the Government Procurement Policy Board). This is 
envisioned to bolster and reinforce accountability of public officials by 
making public how BAC members decide and why. Thus, if there be any 
anomaly in the bidding the responsible BAC member/s may be identified. 
And thirdly, it lessens the discretion of procuring agencies, specifically 
in the consideration of 
single calculated/rated and responsive bid 
submission, and the use of observers. 


On the consideration of single calculated/rated and responsive bid 
submission, a procuring agency can only do so by, in addition to the current 
requisites provided for in RA No.9184, subjecting it to the approval of the 
GPPB. It is submitted that in this manner the procuring agency will have the 
inability to rig biddings through a consensus amongst competing contractors 
or bidders in that agency. 
And on the use of observers, the invitation of observers is made strict 
by limiting the number of times an observer can be invited by a procuring 
agency. This is being proposed in consideration of the fact that observers who 
become regulars of the BAC become friendly, if not, even cohorts in 
anomalous biddings and transactions. 
In view of the foregoing and if only to address the problems and issues 
that have resulted from the ZTE and Cyber-Ed projects, passage of this bill is 
sought. 
FRANCIS G. ESCUDERO 


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FOURTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
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S. No. 1 9 6  
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
AMENDING REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS THE 
GOVERNMENT PROCUREMENT REFORM ACT 
Be it enacted by the Senate and the 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: 
"Section 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 corporations 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: PROVIDED, HOWEVER, THAT 
THE PROVISIONS OF THIS ACT SHALL BE MADE TO 
APPLY IN THE NEGOTIATION AND CONCLUSION OF 
SUCH TREATY OR INTERNATIONAL OR EXECUTIVE 
AGREEMENT. 


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ACCORDINGLY, 
NOTWITHSTANDING 
THE 
PROVISIONS OF SECTION 1 OF REPUBLIC ACT NO. 8555, 
THIS ACT SHALL LIKEWISE COVER PROCUREMENT OF 
INFRASTRUCTURE 
PROJECTS, 
GOODS 
AND 
CONSULTING SERVICES FUNDED BY A LOAN, CREDIT 
OR INDEBTEDNESS CONTRACTED OR ENTERED INTO 
BY THE PHILIPPINE GOVERNMENT PURSUANT TO THE 
OFFICIAL DEVELOPMENT ASSISTANCE (ODA) ACT OR 
REPUBLIC ACT NO. 8182, AS AMENDED. 
SEC. 2. 
Section 13 of Republic Act (RA) No. 9184 is also hereby 
amended to read as follows: 
"Section 13. 0bsewers.- To enhance the transparency of the 
process, the BAC shall, in all stages of the procurement process, 
invite, in addition to the representative of the Commission on 
Audit, at least two(2) observers to sit in its proceedings, one(1) 
from a duly recognized private group in a sector or discipline 
relevant to the procurement at hand, and the other from a non- 
government organization: Provided, however, That they do not 
have any direct or indirect interest in the contract to be bid out. 
PROVIDED, FURTHER, THAT IN NO CASE SHALL BE 
INVITED BY THE BAC MORE THAN THREE (3) TIMES A 
YEAR. The observers should be [duly registered with the 
Securities and Exchange Commksion] MEMBERS IN GOOD 
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STANDING OF THE SECTOR OR DISCIPLINE OR NON- 
GOVERNMENT ORGANIZATION TO WHICH THEY 
BELONG AS DULY CERTIFIED BY THEIR PRESIDENT, 
HEAD OR CHAIRPERSON and should meet the criteria for 
observers as set forth in the IRR." 


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SEC. 3. 
amended to read as follows: 
Section 36 of Republic Act (RA) No. 9184 is likewise hereby 
“Section 36. Single Calculateflated and Responsive Bid Submission. 
- A single calculated/rated and responsive bid shall be 
considered for award SUBJECT TO THE APPROVAL OF THE 
GPPB AND if it falls under any of the following circumstances: 
a. If after advertisement, only one prospective 
bidder submits a Letter of Intent and/or applies 
for eligibility check, and meets the eligibility 
requirements or criteria, after which it submits a 
bid, which is found to be responsive to the bidding 
requirements; 
b. If after the advertisement, more than one 
prospective bidder applies for eligibility check, but 
only one bidder meets the eligibility requirements 
or criteria, after which in submits a bid which is 
found 
to 
be 
responsive to the 
bidding 
requirements; or 
c. If after the eligibility check, more than one 
bidder meets the eligibility requirements, but only 
one bidder submits a bid, and its bid is found to be 
responsive to the bidding requirements. 
In all instances, the Procuring Entity shall ensure that the 
ABC reflects the most advantageous prevailing price for the 
government.” 
SEC. 4. 
36-A to read as follows: 
Republic Act No. 9184 is further amended to include a new Section 


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“Section 36-A. Transparency. The calculated ratings of all 
bidders, their bid prices and the ratings given by each member 
of the BAC as provided for under RA No. 9184 shall be posted 
on the agency or the Government Procurement Policy Board 
(GPPB) website from the end of evaluation to sixty (60) days 
after award of contract.” 
All bidders shall include all those who submitted bids 
regardless 
of 
completeness 
of 
requirements 
and 
responsiveness.” 
SEC. 5. 
Separability Clause. If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting. 
SEC. 6. 
Repealing Clause. All laws, presidential decrees, executive orders, 
proclamations and/or administrative regulations which are inconsistent with the 
provisions of this Act are hereby amended, modified, superseded or repealed 
accordingly. 
SEC. 7. 
publication in at least two newspapers of national circulation. 
Efictiuify Clause. This Act shall take effect fifteen (15) days from its 
Approved,