SEVENTEENTH CONGRESS OF THE ]

18 NG-7 P2316

REPUBLIC OF THE PHILIPPINES ]
Third Regular Session 1
SENATE .
s.B. No. 1921 _

Introduced by SEN. WIN GATCHALIAN

AN ACT
AMENDING REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS THE
GOVERNMENT PROCUREMENT REFORM ACT, AND FOR OTHER
PURPOSES

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 to 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, I urge the immediate passage
of this bill.

HALIAN



SEVENTEENTH CONGRESS OF THE ]
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REPUBLIC OF THE PHILIPPINES ] tore Oita
Third Regular Session ] 5 (oe PE
SENATE 7
s.B. No, 1921

Introduced by SEN. WIN GATCHALIAN

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 follows:



CHIYAHSYONH

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“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 THEREOF";
Executive 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.”



CHIYAVSONeH

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,