1
2
3
4
5
6
7
8 
9
10
11
12
13
14
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE
2527
'iSffir’af ;i: 
■ 'f V’
24 JAN 25 All 52
'ii-ar- ■
S. No.
Introduced by Senator Aquilino “Koko” Pimentel HI
AN ACT
PROVIDING FOR A VALUE FOR MONEY PROCUREMENT, 
AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 9184, 
OTHERWISE KNOWN AS “THE GOVERNMENT 
PROCUREMENT REFORM ACT,” AND FOR OTHER
PURPOSES
EXPLANATORY NOTE
Philippine Government procurement is replete with reports of 
poor quality of goods acquired, as well as infrastructure projects that 
are not completed within the specified period, are defective, or below 
internationally recognized standards.
Notably, former President Rodrigo R. Duterte, on various 
occasions, made the pronouncement that the “lowest bidder policy” in 
government procurement is a cause of these substandard goods and 
infrastructures, as well as a source of corruption in government.
The current system ties the hands of our procurement personnel 
to award the contract to bidders who may have offered the lowest bid 
and made it appear that they will comply with the minimum 
specifications, when in reality, they will not.


15 
This system cripples the government from achieving the best
16 
value for taypayers’ money. This should therefore be revisited and
17 
improved accordingly.
18 
Hence, this bill introduces a way to shift from cost-based
19 
procurements towards value-based procurement through the principle
20 
of Value for Money (VfM) procurement, where procurement for
21 
Goods and Infrastructure Projects should yield the best return for
22 
every peso spent in terms of price, but more importantly in terms of
23 
quality, quantity, timeliness, and source.
24 
To realize this, VfM procurement allows for performance-based
25 
specifications or the fltness-for-purpose proposal, which simply
26 
means the contractor agrees to meet the procuring entity’s (PE)
27 
identified needs, and that the project would actually work as intended.
28 
Implementation of some projects by phases has been shown to
29 
be prone to abuse and result in splitting of contracts. This enables PEs
30 
to do away with competitive bidding for the succeeding phases,
31 
resulting in overpricing and awarding of contracts to favoured
32 
contractors. To prevent this, the bill mandates that for projects to be
33 
implemented by phases, the PEs shall ensure that the total project cost
34 
is already reflected in the annual procurement plan, and that for each
35 
phase, there is a clear and structurally sound delineation of work.
36 
As the country adopts VfM procurement and other international
37 
trends in procurement, procurement officials and employees need to
38 
be equipped with adequate training and tools to improve their
39 
capacity in planning, procurement, contract implementation, and asset
40 
management. They also need to be protected from frivolous and
41 
baseless suits, and other threats that tend to impede full performance
42 
of their functions.
43 
Thus, in addition to strengthening the capacity building program
44 
for them, this bill requires key procurement personnel to complete a
45 
procurement certification program and pass its examinations. As
46 
regard to legal protection, this bill now clearly includes the members


47 
of the BAC secretariat, technical working group, and the head of the
48 
procuring entity as those entitled to engage the services of private
49 
lawyers and indemnification for injuries incurred in the performance
50 
of their functions.
51 
In view of the foregoing, the immediate passage of this bill is
52 
earnestly sought.
AQU
KOKO
ENTEL III


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE 
s. No. 2527
j . (©fficr of Hi.'
24 JAN 25 All 52
RHCEIVlD bv
Introduced by Senator Aquilino “Koko” Pimentel III
AN ACT
PROVIDING FOR A VALUE FOR MONEY PROCUREMENT, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9184, 
OTHERWISE KNOWN AS “THE GOVERNMENT 
PROCUREMENT REFORM ACT,” AND FOR OTHER
PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
1 
SECTION 1. SHORT TITLE. - THIS ACT SHALL BE
2 
KNOWN AS THE “VALUE FOR MONEY PROCUREMENT
3 
ACT.”
4
5
6
7
8 
9
SEC. 2. DECLARATION OF POLICY. - IT IS HEREBY 
DECLARED THE POLICY OF THE STATE TO SHIFT FROM 
A COST-BASED PROCUREMENT TO A VALUE-BASED 
PROCUREMENT, THAT WILL ENSURE THE BEST VALUE 
FOR THE PUBLIC’S MONEY, HAVING DUE REGARD TO 
PROPRIETY AND REGULARITY.


1 
SEC. 3. Section 3 of R.A. 9184 is hereby amended to read as
2 
follows:
3 
SEC. 3. Governing 
Principles on Government
4 
Procurement.
5
6
7
8 
9
10
11
12
13
14
15
16 
17
XXX
XXX
XXX
(b) Competitiveness by extending equal opportunity to 
enable private contracting parties who are eligible and 
qualified to participate in public bidding, WITHOUT 
COMPROMISING ON QUALITY, DELIVERY, AND 
OTHER PRICE AND NON-PRICE FACTORS.
(c) Streamlined procurement process that will uniformly 
apply to all government procurement. The procurement 
process shall be simple YET THOROUGHLY 
EVALUATED AND RATIONALIZED, and made 
adaptable to advances in [modem] technology in order to 
ensure an effective and efficient method.
18
19
20 
21 
22
23
24
XXX
XXX
XXX
(F) VALUE FOR MONEY BY TAKING INTO 
ACCOUNT THE LIFE CYCLE COSTS AND 
QUALITY OF THE GOODS AND SERVICES TO 
MEET THE END-USER’S REQUIREMENTS AND 
OBJECTIVES.
25 SEC. 4. Section 5 is hereby amended to read as follows:
26
SEC. 5. Definition of Terms.
27
28
XXX
XXX
XXX


1
2
3
4
5
(E) BLACKLISTING - REFERS TO AN 
ADMINISTRATIVE PENALTY DISQUALIFYING A 
PERSON OR AN ENTITY FROM PARTICIPATING 
IN ANY GOVERNMENT PROCUREMENT FOR A 
GIVEN PERIOD.
8
9
(F) 
[(e)] Competitive Bidding - xxx
(G) [(f)] Consulting Services - xxx
[(g) G-EPS - refers to the Government Electronic 
Procurement System as provided in Section 8 of this Act.]
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
(h) 
Goods - xxx
(i) 
GPPB - xxx
(j) 
Head of the Procuring Entity (HOPE) - xxx
(k) 
Infrastructure Projects - xxx
(l) 
IRR- xxx
(M) LIFE CYCLE COST - ALSO KNOWN AS 
WHOLE-LIFE COST, IS THE TOTAL COST OF 
OWNERSHIP OF A GOOD, INCLUDING ITS COST 
OF ACQUISITION, OPERATION, MAINTENANCE, 
AND DISPOSAL.
(N) PERFORMANCE-BASED SPECIFICATIONS -
REFERS TO A SPECIFICATION DESCRIBING THE 
DESIRED OUTCOMES OR RESULTS IN TERMS OF 
FUNCTIONAL 
OR 
PERFORMANCE
REQUIREMENTS RATHER THAN IN TERMS OF 
TECHNICAL DETAILS. THIS SPECIFICATION IS 
USED IN CASES WHEN THE PROCURING ENTITY


1
2
3
4
5
6
7
8 
9
IS UNCERTAIN OF THE BEST PROCESS OR 
METHOD TO DELIVER THE REQUIREMENTS, 
WHEN HIGH-LEVEL TECHNOLOGY IS 
REQUIRED, WHEN SUPPLIERS ARE KNOWN TO 
HAVE THE CAPABILITY TO DESIGN FIT FOR 
PURPOSE SOLUTIONS, OR WHEN PAST 
PERFORMANCE OR OTHER NON-FINANCIAL 
CONSIDERATIONS MAY BE BENEFICIAL IN THE 
PROCUREMENT.
10
11
12
13
(O) PHILGEPS - REFERS TO THE PHILIPPINE 
GOVERNMENT ELECTRONIC PROCUREMENT 
SYSTEM AS PROVIDED IN SECTION 8 OF THIS 
ACT.
14
(P) 
[(m)] Portal - xxx
15
(Q) [(n)l Procurement - xxx
16
17
18
19
20 
21 
22
23
24
25
26
(S) 
[(o)] Procuring Entity - xxx
(T) VALUE FOR MONEY (VFM) - REFERS TO 
THE PRINCIPLE OF EFFECTIVE, EFFICIENT, 
ECONOMIC, AND ETHICAL USE OF RESOURCES, 
WHICH REQUIRES THE EVALUATION OF 
RELEVANT COSTS AND BENEFITS, ALONG WITH 
AN ASSESSMENT OF RISKS, NON-PRICE 
ATTRIBUTES, AND/OR LIFE CYCLE COSTS, AS 
APPROPRIATE. IN THE APPLICATION OF THIS 
PRINCIPLE, PRICE ALONE MAY NOT 
NECESSARILY REPRESENT VFM.
27 SEC. 5. Section 7 is hereby amended to read as follows:
28
29
SEC. 7. Procurement Planning and Budgeting 
Linkage. -


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
(A) All procurement should be within the approved 
budget of the Procuring Entity and should be meticulously 
and judiciously planned by the Procuring Entity concerned. 
Consistent with government fiscal discipline measures, only 
those considered crucial to the efficient discharge of 
governmental functions shall be included in the Annual 
Procurement Plan (APP) to be specified in the IRR.
(B) No government Procurement shall be undertaken 
unless it is in accordance with the approved APP of the 
Procuring Entity. The APP shall be approved by the [Head 
of the Procuring Entity] HOPE and must be consistent with 
its duly approved yearly budget. The APP shall be 
formulated and revised only in accordance with the 
guidelines set forth in the IRR. In the case of Infrastructure 
Projects, the APP shall include engineering design and 
acquisition of right-of-way.
(C) IN CASES OF INFRASTRUCTURE PROJECTS 
WITH A TOTAL PROJECT COST OF AT LEAST 
ONE HUNDRED MILLION PESOS (P100,000,000), 
VALUE ENGINEERING SHALL BE CONDUCTED 
ACCORDING TO ACCEPTED STANDARDS AND 
PRACTICES AND GUIDELINES TO BE ISSUED BY 
THE GPPB.
VALUE ENGINEERING IS DEFINED AS THE 
SYSTEMATIC AND ORGANIZED PROCESS OF 
REVIEWING AND ASSESSING A PROJECT, 
DURING THE PLANNING, DEVELOPMENT, AND 
DESIGN PHASES, IN ORDER TO ACHIEVE ANY OF 
THE FOLLOWING OBJECTIVES:
30
31
32
1. PROVIDE THE NEEDED PROJECT 
FUNCTIONS SAFELY, RELIABLY, 
EFFICIENTLY, AND AT THE LOWEST


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
OVERALL LIFE CYCLE COST OF THE 
PROJECT;
2. IMPROVE THE QUALITY AND ENSURE THE 
BEST VALUE FOR THE PROJECT; AND
3. REDUCE THE TIME TO COMPLETE THE 
PROJECT.
THE THRESHOLD VALUE OF ONE HUNDRED 
MILLION PESOS (P100,000,000) SHALL BE 
ADJUSTED BY THE NATIONAL ECONOMIC 
DEVELOPMENT AUTHORITY (NEDA), 
WHENEVER NECESSARY, TO ITS PRESENT 
VALUE USING THE CONSUMER PRICE INDEX 
(CPI) AS PUBLISHED BY THE PHILIPPINE 
STATISTICS AUTHORITY (PSA).
THE ABOVE AMOUNT SHALL BE SUBJECT TO A 
PERIODIC REVIEW BY THE GPPB, WITH THE 
ASSISTANCE OF THE NEDA, TO DETERMINE IF 
THERE IS A NEED TO INCREASE OR DECREASE 
THE SAID AMOUNT IN ORDER TO REFLECT 
CHANGES IN ECONOMIC CONDITIONS AND FOR 
OTHER JUSTIFIABLE REASONS.
(D) IN CASE THE INFRASTRUCTURE PROJECT 
SHALL BE DONE BY PHASES, THE PROCURING 
ENTITY SHALL INDICATE IN THE APP OR AN 
ATTACHED DOCUMENT TO BE PROVIDED IN 
THE IRR:
1. THE TOTAL PROJECT COST;
2. THE DESCRIPTION OF THE WHOLE 
PROJECT;


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
3. THE PROGRAM OF WORKS FOR EACH OF 
THE PHASES; AND
4. THE APPROVED BUDGET FOR THE 
CONTRACT THEREOF.
THE PROCURING ENTITY SHALL ENSURE THAT 
EACH PHASE IS USABLE AND FUNCTIONAL 
UPON COMPLETION OF SUCH PHASE.
(E) IN CASES OF PROJECTS REQUIRING 
PERFORMANCE-BASED SPECIFICATIONS OR 
WHEN IT IS IN THE BEST INTEREST OF THE 
PROCURING ENTITY, AS DETERMINED BY THE 
END-USER UNIT AND SUBJECT TO THE 
APPROVAL OF THE HOPE, THE PROCURING 
ENTITY SHALL HAVE THE OPTION TO UTILIZE 
VFM CONTRACTING IN THE PROCUREMENT OF 
GOODS OR INFRASTRUCTURE PROJECTS. THE 
PROCURING ENTITY SHALL STATE THE SAME 
IN THE APP.
WHEN CONDUCTING A VFM PROCUREMENT, 
THE PROCURING ENTITY SHALL CONSIDER 
THE RELEVANT FINANCIAL AND NON- 
FINANCIAL FACTORS OF EACH SUBMISSION 
INCLUDING, BUT NOT LIMITED TO:
1. THE QUALITY OF THE GOODS AND 
SERVICES;
2. FITNESS FOR PURPOSE OF THE PROPOSAL;
3. THE POTENTIAL BIDDER’S RELEVANT 
EXPERIENCE AND PERFORMANCE 
HISTORY;
4. FLEXIBILITY OF THE PROPOSAL,
INCLUDING 
INNOVATION 
AND


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
ADAPTABILITY OVER THE LIFE CYCLE OF 
THE PROCUREMENT;
5. ENVIRONMENTAL SUSTAINABILITY OF 
THE PROPOSED GOODS AND 
INFRASTRUCTURES, SUCH AS ENERGY 
EFFICIENCY AND ENVIRONMENTAL 
IMPACT;
6. LIFE CYCLE COSTS, INCLUDING 
MAINTENANCE COSTS, UTILITY COSTS, 
DISPOSAL COSTS, LICENSING COSTS 
(WHEN APPLICABLE), THE COST OF 
ADDITIONAL FEATURES PROCURED AFTER 
THE INITIAL PROCUREMENT, AND 
CONSUMABLE COSTS;
7. TIMELINESS;
8. COST OF NECESSARY TRAINING;
9. QUALIFICATIONS OF TECHNICAL
PERSONNEL INVOLVED IN 
THE
PROCUREMENT OF GOODS 
AND
INFRASTRUCTURE SERVICES;
10. REALISTIC RISK ASSESSMENT OF THE 
PROPOSED SOLUTION; AND
11. AVAILABILITY AND COST OF TECHNICAL 
SUPPORT.
THE 
PROCUREMENT 
PLANNING
DOCUMENTATION SHALL PROVIDE ACCURATE 
AND CONCISE INFORMATION ON:
1. THE REQUIREMENT FOR 
THE
PROCUREMENT; AND


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
2. A STATEMENT OR EXPLANATION ON HOW 
VFM CONTRACTING WAS CONSIDERED 
AND ACHIEVED.
(G) NATIONAL GOVERNMENT AGENCIES, 
LOCAL 
GOVERNMENT 
UNITS,
CONSTITUTIONAL OFFICES, AND STATE 
UNIVERSITIES AND COLLEGES SHALL 
REQUEST THE DEPARTMENT OF BUDGET AND 
MANAGEMENT (DBM) FOR THE ISSUANCE OF A 
MULTI-YEAR CONTRACTUAL AUTHORITY 
(MYCA) PRIOR TO ENTERING INTO CONTRACTS 
TO COVER THE TOTAL PROJECT COSTS OF 
MULTI-YEAR PROJECTS, WHETHER LOCALLY- 
FUNDED OR FOREIGN-ASSISTED. IN THE CASE 
OF 
GOVERNMENT-OWNED 
AND/OR
CONTROLLED CORPORATIONS (GOCCS), THEY 
SHALL SECURE PRIOR AUTHORITY FROM 
THEIR RESPECTIVE GOVERNING BOARDS 
BEFORE ENTERING INTO MULTI-YEAR 
PROJECTS AND PROCEEDING WITH THEIR 
PROCUREMENT.
MULTI-YEAR PROJECT REFERS TO THE 
PROGRAM OR PROJECT WHICH WILL TAKE 
MORE THAN ONE (1) YEAR TO COMPLETE THAT 
REQUIRES MULTI-YEAR APPROPRIATIONS.
THE DBM OR GOVERNING BOARD, AS THE CASE 
MAY BE, SHALL IDENTIFY THE REQUIREMENTS 
AND/OR PRESCRIBE GUIDELINES BEFORE 
PROCURING ENTITIES MAY ENTER INTO 
MULTI-YEAR CONTRACTS AND THE ISSUANCE 
OF A MYCA.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21
ALL EXISTING MULTI-YEAR OBLIGATIONAL 
AUTHORITY (MYOA) SHALL BE UNDERSTOOD 
TO REFER TO THE MYCA.
(H) TO ENSURE FULL BUDGET UTILIZATION, 
TIMELY CONTRACT IMPLEMENTATION, AND 
EFFICIENT DELIVERY OF SERVICES, THE 
PROCURING ENTITIES ARE AUTHORIZED TO 
UNDERTAKE PROCUREMENT ACTIVITIES 
FROM PRE-PROCUREMENT CONFERENCE 
UNTIL POST-QUALIFICATION OF BIDS BASED 
ON THEIR PROPOSED BUDGET IN THE 
NATIONAL EXPENDITURE PROGRAM (NEP), 
CORPORATE OPERATING BUDGETS, OR 
APPROPRIATIONS ORDINANCE.
THE PROCURING ENTITIES SHALL PROCEED 
WITH THE AWARDING OF CONTRACT ONLY 
UPON APPROVAL OR ENACTMENT OF THEIR 
RESPECTIVE APPROPRIATIONS OR BUDGET 
AUTHORIZATION DOCUMENT, AS THE CASE 
MAY BE, AND ON THE BASIS OF THE AMOUNT 
AUTHORIZED THEREIN.
22 SEC. 6. Section 8 is hereby amended to read as follows:
23
24
25
26
27
28
29
30
31
32
SEC 8. Procurement by Electronic Means.
To promote transparency and efficiency, information and 
communications technology shall be utilized in the conduct 
of procurement procedures. Accordingly, there shall be 
single portal that shall serve as the primary source of 
information on all government procurement. The [G-EPS] 
PHILGEPS shall serve as the primary and definitive source 
of information on government procurement. Further, the 
GPPB is authorized to approve changes in the procurement 
process to adapt to improvements in modem technology.
10


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16 
17
provided that such modifications are consistent with 
provisions of Section 3 of this Act.
[To take advantage of the significant built-in-efficiencies of 
the G-EPS and the volume discounts inherent in bulk 
purchasing, all Procuring Entities shall utilize the G-EPS for 
the procurement of common supplies in accordance with the 
rules and procedures to be established by the GPPB. With 
regard to the procurement of non-common use items, 
infrastructure projects and consulting services, agencies 
may hire service providers to undertake their electronic 
procurement provided these service providers meet the 
minimum requirements set by the GPPB.]
ALL PROCURING ENTITIES SHALL UTILIZE THE 
PHILGEPS FOR THE PROCUREMENT OF GOODS 
AND SERVICES IN ACCORDANCE WITH THE 
RULES AND PROCEDURES TO BE ESTABLISHED 
BY THE GPPB.
18 SEC. 7. Section 9 is hereby amended to read as follows:
19
20 
21 
22
23
24
25
26
27
28
29
30
31
SEC. 9. [Security, Integrity and Confidentiality.]
PROCUREMENT OF REPEATEDLY PROCURED 
SUPPLIES AND EQUIPMENT IN THE 
BUREAUCRACY.
[The G-EPS shall ensure the security, integrity and 
confidentiality of documents submitted through the system. 
It shall include feature that provides for an audit trail for on­
line transactions and allow the Commission on Audit to 
verify the security and integrity of the systems at any time.)
TO TAKE ADVANTAGE OF THE VOLUME 
DISCOUNTS INHERENT IN BULK PURCHASING, 
ALL PROCURING ENTITIES SHALL UTILIZE 
FRAMEWORK AGREEMENTS FOR THE
11


1 
PROCUREMENT OF REPEATEDLY PROCURED
2 
SUPPLIES AND EQUIPMENT IN ACCORDANCE
3 
WITH THE RULES AND PROCEDURES TO BE
4 
ESTABLISHED BY THE GPPB.
5 
SEC. 8. Section 12 is hereby amended to read as follows:
6 
SEC 12. Functions of the BAC - The BAC shall have the
7 
following functions:
XXX
XXX
XXX
9
10
11
12
13
14
15
16
17
18
19
20 
21
22
23
24
25
26
27
28
29
30
XXX and perform such other related functions as may be 
necessary, including the creation of a Technical Working 
Group (TWG) from a pool of technical, financial and/or 
legal experts to assist in the procurement process,
SUBJECT TO THE APPROVAL OF THE HOPE.
SEC. 9. Section 16 is hereby amended to read as follows:
SEC 16. Professionalization of BAC, BAC Secretariat 
and Technical Working Group Members. - The GPPB shall 
establish a sustained training program for developing the 
capacity of the BACs, BAC Secretariats, Technical 
Working Groups, AND THE PROCUREMENT UNITS 
OF PROCURING ENTITIES, and professionalize the
same.
FOR THIS PURPOSE, THE GPPB SHALL DEVELOP 
A PROCUREMENT CERTIFICATION PROGRAM 
FOR THE MAJORITY OF THE BAC AND THE 
PERSONNEL IN THE PROCUREMENT UNITS OF 
PROCURING ENTITIES—OR FOR ANYONE 
INTERESTED TO WORK AS SUCH IN THE 
GOVERNMENT, TO GAIN NATIONALLY 
RECOGNIZED QUALIFICATIONS AND 
CERTIFICATIONS AND TO MEET THE
12


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16 
17
REQUIREMENTS OF QUALIFICATION 
STANDARDS FOR PROCUREMENT POSITIONS IN 
THE GOVERNMENT TO BE PRESCRIBED BY THE 
CIVIL SERVICE COMMISSION.
THE PERSONNEL OF THE PROCUREMENT UNITS 
OF PROCURING ENTITIES SHOULD 
SATISFACTORILY COMPLETE SUCH PROGRAM 
AND PASS THE EXAMINATIONS THEREOF, 
CONDUCTED, AUTHORIZED, OR ACCREDITED 
BY THE GPPB.
THE GPPB SHALL PROVIDE GUIDANCE AND 
POLICY DIRECTIONS IN RELATION TO THE 
CONDUCT OF TRAINING, THE PREPARATION OF 
CERTIFICATION EXAMINATIONS, AND THE 
CREATION OF TRAINING INSTITUTE(S) AND/OR 
ACCREDITATION OF TRAINING INSTITUTIONS, 
INCLUDING TRAINING OF TRAINERS.
18 SEC. 10. Section 17 is hereby amended to read as follows:
19
SEC. 17. Form and Contents of Bidding Documents. -
20
21
22
23
24
25
26
27
28 
29
(j) Form of Contract, xxx
XXX
xxx
FOR VFM CONTRACTING, PROCURING 
ENTITIES SHALL INCLUDE THE RELEVANT 
FINANCIAL AND NON-FINANCIAL EVALUATION 
CRITERIA IN THE BIDDING DOCUMENTS AND 
THE INVITATION TO BID TO ENABLE THE 
PROPER IDENTIFICATION, ASSESSMENT, AND 
COMPARISON OF SUBMISSIONS ON A FAIR, 
EQUITABLE, AND REASONABLY TRANSPARENT 
BASIS.
30
The Procuring Entity xxx
xxx
xxx
13


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
SEC. 11. Section 18 is hereby amended to read as follows:
SEC. 18. Reference to Brand Names.— Specifications 
for the Procurement of Goods, AND GOODS 
COMPONENT OF INFRASTRUCTURE PROJECTS 
AND CONSULTING SERVICES, shall be based on 
relevant characteristics and/or performance requirements. 
Reference to brand names shall [not be allowed] BE 
AVOIDED. IN CASES WHERE IT IS NECESSARY 
TO QUOTE A BRAND NAME OF A PARTICULAR 
MANUFACTURER, THE PHRASE “OR 
EQUIVALENT” SHALL BE ADDED AFTER SUCH 
REFERENCE. THE SPECIFICATIONS SHALL 
PERMIT THE ACCEPTANCE OF OFFERS WHICH 
HAVE SIMILAR CHARACTERISTICS AND WHICH 
PROVIDE PERFORMANCE AND QUALITY 
EQUIVALENT TO THAT SPECIFIED.
REFERENCE TO BRAND NAMES SHALL BE 
ALLOWED FOR GOODS THAT ARE COMPATIBLE 
WITH THE PROCURING ENTITY’S EXISTING 
FLEET OR EQUIPMENT OF THE SAME MAKE 
AND BRAND, AND TO MAINTAIN THE 
PERFORMANCE, FUNCTIONALITY, AND USEFUL 
LIFE OF THE EQUIPMENT.
SEC. 12. Section 31 is hereby amended to read as follows:
SEC. 31. Ceiling AND FLOOR For Bid Prices. - The ABC shall 
be the upper limit or ceiling for the Bid prices. Bid prices that 
exceed this ceiling OR ARE LOWER THAN FIFTY (50%) 
OF THE ABC shall be disqualified outright from further 
participating in the bidding.
30 SEC. 13. Section 32 is hereby amended to read as follows:
14


1
2
SEC. 32. Bid for the Procurement of Goods and 
Infrastructure Projects.
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
33
XXX
XXX
XXX
FOR VFM CONTRACTING, THE TECHNICAL 
PROPOSAL SHALL BE CONSIDERED IN THE 
EVALUATION OF PROJECTS. THE TECHNICAL 
PROPOSALS SHALL BE EVALUATED USING THE 
CRITERIA SET OUT IN THE BIDDING 
DOCUMENTS.
THE BAC SHALL RANK THE BIDDERS IN 
DESCENDING ORDER BASED ON THEIR 
TECHNICAL PROPOSALS AND IDENTIFY THE 
HIGHEST RANKING BIDDER, WHICH SHALL BE 
CONSIDERED AS THE “MOST ADVANTAGEOUS 
PROPOSAL”. AFTER APPROVAL BY THE HOPE 
OF THE MOST ADVANTAGEOUS PROPOSAL, THE 
FINANCIAL PROPOSAL SHALL THEN BE 
OPENED.
THE BAC SHALL INVITE THE BIDDER 
CONCERNED FOR NEGOTIATION AND/OR 
CLARIFICATION ON THE FOLLOWING ITEMS: 
(1) FINANCIAL PROPOSAL SUBMITTED BY THE 
BIDDER, (2) TERMS OF REFERENCE, (3) SCOPE 
OF SERVICES, (4) METHODOLOGY AND WORK 
PROGRAM, (5) PERSONNEL TO BE ASSIGNED TO 
THE JOB, (6) SERVICES/FACILITIES/DATA TO BE 
PROVIDED BY THE PROCURING ENTITY 
CONCERNED, AND (7) PROVISIONS OF THE 
CONTRACT. WHEN NEGOTIATIONS WITH THE 
FIRST-IN-RANK BIDDER FAILS, THE FINANCIAL 
PROPOSAL OF THE SECOND RANK BIDDER 
SHALL BE OPENED FOR NEGOTIATIONS;
15


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
33
PROVIDED, THAT THE AMOUNT INDICATED IN 
THE FINANCIAL ENVELOPE SHALL BE MADE AS 
THE BASIS FOR NEGOTIATIONS AND THE 
TOTAL CONTRACT AMOUNT SHALL NOT 
EXCEED THE AMOUNT INDICATED IN THE 
ENVELOPE AND THE ABC. WHENEVER 
NECESSARY, THE SAME PROCESS SHALL BE 
REPEATED UNTIL THE BID IS AWARDED TO THE 
WINNING BIDDER.
FOR VFM CONTRACTING, THE BAG’S DECISION 
SHALL BE BASED ON A COMPARATIVE 
ASSESSMENT OF PROPOSALS AGAINST ALL 
CRITERIA STATED IN THE INVITATION TO BID 
AND THE BIDDING DOCUMENTS. THE DECISION 
SHALL BE DOCUMENTED, AND THE 
DOCUMENTATION OF THE BAC DECISION 
SHALL INCLUDE THE RATIONALE FOR ANY 
BUSINESS JUDGMENTS AND TRADEOFFS MADE 
OR RELIED UPON BY THE BAC. THE DECISION 
SHALL REPRESENT EACH OF THE BAC 
MEMBER’S INDEPENDENT JUDGMENT.
UPON APPROVAL BY THE HOPE IN 
ACCORDANCE WITH SECTION 37 OF THIS ACT, 
THE BAG’S DECISION SHALL BE POSTED IN THE 
PROCURING ENTITY’S PREMISES AND 
WEBSITE, IF ANY.
SEC. 14. Section 34 is hereby amended to read as follows:
SEC. 34. Objective and Process of Post-qualification. - 
Post-qualification is the stage where the bidder with the 
Lowest Calculated Bid, OR MOST ADVANTAGEOUS 
PROPOSAL, in the case of Goods and Infrastructure 
Projects, or the Highest Rated Bid, in the case of Consulting 
Services, undergoes verification and validation AND/OR
16


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
INSPECTION AND TESTING whether [he] THE 
BIDDER has passed all the requirements and conditions as 
specified in the Bidding Documents.
If the bidder with the Lowest Calculated Bid, OR MOST 
ADVANTAGEOUS PROPOSAL, or Highest Rated Bid 
passes all the criteria for post-qualification, SUCH Bid shall 
be considered the “Lowest Calculated Responsive Bid, OR 
MOST ADVANTAGEOUS RESPONSIVE 
PROPOSAL in the case of Goods and Infrastructure or the 
Highest Rated Responsive Bid, in the case of Consulting 
Services. However, if a bidder fails to meet any of the 
requirements or conditions, [he] THE BIDDER shall be 
“post-disqualified” and the BAC shall conduct the post­
qualification on the bidder with the second Lowest 
Calculated Bid, OR MOST ADVANTAGEOUS 
PROPOSAL, or Highest Rated Bid. If the bidder with the 
second Lowest Calculated Bid, OR MOST 
ADVANTAGEOUS PROPOSAL, or Highest Rated Bid 
is post-disqualified, the same procedure shall be repeated 
until the Lowest Calculated Responsive Bid, OR MOST 
ADVANTAGEOUS RESPONSIVE PROPOSAL, or 
Highest Rated Responsive Bid is finally determined.
In all cases, the contract shall be awarded only to the bidder 
with the Lowest Calculated Responsive Bid, OR MOST 
ADVANTAGEOUS RESPONSIVE PROPOSAL, or 
Highest Rated Responsive Bid.
28 SEC. 15. Section 35 is hereby amended to read as follows:
29
30
31
32
33
SEC. 35. Failure of Bidding. - There shall be a failure of 
bidding if:
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.
17


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
after which it submits a bid, which is found to be 
responsive to the bidding requirements;
b. No bid qualifies as the Lowest Calculated Responsive 
Bid, OR MOST ADVANTAGEOUS RESPONSIVE 
PROPOSAL, or Highest Rated Responsive Bid;
c. Whenever the bidder with the highest rated/lowest 
calculated/MOST ADVANTAGEOUS responsive bid 
refuses, without justifiable cause to accept the award of 
contract, as the case may be;
D. 
NON-COMPLIANCE WITH THE 
REQUIREMENTS FOR THE AWARD OF 
CONTRACT; OR
E. FAILURE TO ENTER INTO CONTRACT AND 
POST-PERFORMANCE SECURITY
17
18
20
21
22
23
24
25
26 
27
XXX
XXX
XXX
19 SEC. 16. Section 36 is hereby amended to read as follows:
XXX
XXX
a. XXX
XXX
XXX
xxx; AND
[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 it 
submits a bid which is found to be responsive to the bidding 
requirements; or]
18


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
33
XXX
XXX
XXX
SEC. 17. Section 37 is hereby amended to read as follows:
SEC. 37. Notice and Execution of Award. - Within a 
period not exceeding fifteen (15) [calendar] WORKING 
days from the determination and declaration by the BAC of 
the Lowest Calculated Responsive Bid, OR MOST 
ADVANTAGEOUS RESPONSIVE PROPOSAL, or 
Highest Rated Responsive Bid, and the recommendation of 
the award, the [Head of the Procuring Entity] HOPE or 
[his] A duly authorized representative OF SUCH HEAD 
shall approve or disapprove the said recommendation. In 
case of approval, the [Head of the Procuring Entity] HOPE 
or [his] A duly authorized representative OF SUCH HEAD 
shall immediately issue the Notice of Award to the bidder 
with the SINGLE/Lowest Calculated Responsive Bid, OR 
MOST ADVANTAGEOUS RESPONSIVE 
PROPOSAL, or SINGLE/Highest Rated Responsive Bid.
DEBRIEFINGS, WHICH PROVIDES FOR A 
HELPFUL AND PROFESSIONAL FEEDBACK, 
SHALL BE MADE AVAILABLE UPON REQUEST 
TO UNSUCCESSFUL BIDDERS, OUTLINING THE 
REASONS FOR THE UNSUCCESSFUL 
SUBMISSION, AS PROVIDED FOR IN THE RULES.
Within ten (10) [calendar] WORKING days from receipt 
of the Notice of Award, the Winning bidder shall formally 
enter into contract with the Procuring Entity. When further 
approval of higher authority is required, the approving 
authority for the contracts shall be given a maximum of 
twenty (20) [calendar] WORKING days to approve or 
disapprove it.
In the case of government-owned and/or -controlled 
corporations, the concerned board shall take action on the
19


1
2
3
4
5
6
7
8 
9
10
11
12
14
15
16
17
18
19
20 
21 
22
23
24
25
26 
27
29
30
31
32
33
said recommendation within thirty (30) [calendar] 
WORKING days from receipt thereof.
The Procuring Entity shall issue the Notice to Proceed to the 
winning bidder not later than seven (7) [calendar] 
WORKING days from the date of approval of the contract 
by the appropriate authority. All notices called for by the 
terms of the contract shall be effective only at the time of 
receipt thereof by the contractor.
XXX
XXX
XXX
13 SEC. 18. Section 40 is hereby amended to read as follows:
SEC. 40. Failure to Enter into Contract and Post 
Performance Security. - If, for justifiable causes, the bidder 
with the Lowest Calculated Responsive Bid, OR MOST 
ADVANTAGEOUS RESPONSIVE PROPOSAL, or 
Highest Rated Responsive Bid fails, refuses or is otherwise 
unable to enter into contract with the Procuring Entity, or if 
the bidder fails to post the required performance security 
within the period stipulated in the Bidding Documents, the 
BAC shall disqualify the said bidder and shall undertake 
post-qualification for the next-ranked Lowest Calculated 
Bid, OR MOST ADVANTAGEOUS PROPOSAL, or 
Highest Rated Bid. This procedure shall be repeated until 
an award is made. However, if no award is possible, the 
contract shall be subjected to a new bidding.
28 SEC. 19. Section 42 is hereby amended to read as follows:
SEC. 42. Contract Implementation and Termination. -
(A) THE PROCURING ENTITY OR ITS 
REPRESENTATIVE SHALL HAVE THE RIGHT TO 
INSPECT AND/OR TEST THE GOODS IN ORDER 
TO CONFIRM THEIR COMPLIANCE WITH THE
20


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
33
34
TECHNICAL SPECIFICATIONS. THE CONTRACT 
SHALL SPECIFY KEY PERFORMANCE 
INDICATORS (KPI), THE REQUIRED 
INSPECTIONS AND/OR TESTS, AND WHERE 
THEY ARE TO BE CONDUCTED. THE 
PROCURING ENTITY SHALL BEAR ALL THE 
COSTS AND EXPENSES THAT IT WILL INCUR TO 
ATTEND THE TESTS AND/OR INSPECTIONS 
INCLUDING, BUT NOT LIMITED TO, TRAVELING 
AND BOARD AND LODGING EXPENSES.
THE PROCURING ENTITY MAY REJECT ANY 
GOODS OR ANY PART THEREOF THAT FAIL TO 
PASS ANY TEST AND/OR INSPECTION OR DO 
NOT CONFORM TO THE SPECIFICATIONS. THE 
SUPPLIER SHALL EITHER RECTIFY OR 
REPLACE SUCH REJECTED GOODS OR PARTS 
THEREOF OR MAKE ALTERATIONS NECESSARY 
TO MEET THE SPECIFICATIONS, AT NO COST 
TO, AND AS MAY BE REASONABLY 
DETERMINED BY, THE PROCURING ENTITY. 
THE SUPPLIER SHALL REPEAT THE TEST 
AND/OR INSPECTION, AT NO COST TO THE 
PROCURING ENTITY.
NEITHER THE EXECUTION OF A TEST AND/OR 
INSPECTION OF THE GOODS OR ANY PART 
THEREOF, NOR THE ATTENDANCE BY THE 
PROCURING ENTITY OR ITS REPRESENTATIVE 
THEREIN, SHALL RELEASE THE SUPPLIER 
FROM ANY WARRANTIES OR OTHER 
OBLIGATIONS UNDER THE CONTRACT.
(B) FAILURE OF THE SUPPLIER, CONTRACTOR, 
OR CONSULTANT TO DELIVER THE QUALITY 
REQUIRED UNDER THE CONTRACT SHALL 
CONSTITUTE THE CRIME OF ESTAFA,
21


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
33
34
35
PUNISHABLE UNDER THE PROVISIONS OF 
ARTICLE 315, PARAGRAPH 1 (a) OF ACT NO. 3815, 
OTHERWISE KNOWN AS THE REVISED PENAL 
CODE. IF THE VIOLATION OR OFFENSE IS 
COMMITTED BY A CORPORATION, 
PARTNERSHIP, ASSOCIATION, OR OTHER 
JURIDICAL ENTITIES, THE PENALTY SHALL BE 
IMPOSED UPON THE DIRECTORS, OFFICERS, 
EMPLOYEES, OR OTHER OFFICIALS OR 
PERSONS THEREIN RESPONSIBLE FOR THE 
CRIME, WITHOUT PREJUDICE TO THE CIVIL 
LIABILITIES ARISING FROM THE CRIMINAL 
OFFENSE AND OTHER ADMINISTRATIVE 
LIABILITIES.
(C) 
TO PROMOTE TRANSPARENCY AND
EFFICIENCY, 
INFORMATION 
AND
COMMUNICATIONS TECHNOLOGY, SUCH AS 
BUT NOT LIMITED TO, GEO-TAGGING AND 
AUTOMATED PROJECT MONITORING SYSTEM, 
SHALL BE UTILIZED BY THE PROCURING 
ENTITY IN THE IMPLEMENTATION OF 
CONTRACTS, REGARDLESS OF THE AMOUNT, 
AND SHALL BE POSTED IN THE WEBSITE OF THE 
PROCURING ENTITY.
(D) TO ENSURE THE ACTUAL PERFORMANCE OF 
PROJECTS AND THE DELIVERY OF GOODS AND 
INFRASTRUCTURE PROJECTS, THE PROCURING 
ENTITY SHALL INVITE MONITORS FROM A 
DULY RECOGNIZED PRIVATE GROUP OR A NON­
GOVERNMENT ORGANIZATION IN A SECTOR 
OR DISCIPLINE RELEVANT TO THE PROJECT AT 
HAND DURING THE IMPLEMENTATION OF 
CONTRACTS EXCEPT THOSE PROCURED 
THROUGH NEGOTIATED PROCUREMENT IN 
EMERGENCY CASES, SHOPPING, OR SMALL-
22


1
2
3
4
5
6
7
8 
9
10
11
VALUE PROCUREMENT AS DEFINED IN THE 
RULES: PROVIDED, HOWEVER, THAT BOTH THE 
INVITED ENTITY AND/OR THE INDIVIDUALS DO 
NOT HAVE ANY DIRECT OR INDIRECT 
INTEREST IN THE CONTRACT BEING 
IMPLEMENTED. THE MONITORS SHOULD BE 
DULY REGISTERED WITH THE SECURITIES AND 
EXCHANGE COMMISSION (SEC) AND SHOULD 
MEET THE CRITERIA FOR CONTRACT 
IMPLEMENTATION MONITORS AS SET FORTH 
IN THE RULES.
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
(E) ALL PROCURING ENTITIES IMPLEMENTING 
GOVERNMENT INFRASTRUCTURE PROJECTS 
ARE MANDATED TO EVALUATE THE 
PERFORMANCE OF THEIR CONTRACTORS 
USING THE NEDA-APPROVED CONSTRUCTORS 
PERFORMANCE EVALUATION SYSTEM (CPES) 
GUIDELINES FOR THE TYPE OF PROJECT BEING 
IMPLEMENTED. CPES EVALUATION SHALL BE 
UNDERTAKEN DURING CONSTRUCTION AND 
UPON COMPLETION OF EACH GOVERNMENT 
PROJECT. TO ENSURE CONTINUOUS 
IMPLEMENTATION OF CPES, ALL PROCURING 
ENTITIES CONCERNED ARE REQUIRED TO 
INCLUDE IN THEIR PROJECTS’ ENGINEERING 
AND ADMINISTRATIVE OVERHEAD COST THE 
BUDGET FOR THE IMPLEMENTATION OF CPES 
PURSUANT TO THE NEDA GUIDELINES.
29
30
31
32
33
34
35
FOR GOODS AND CONSULTING SERVICES, THE 
PROCURING ENTITIES ARE MANDATED TO 
EVALUATE THE PERFORMANCE OF THEIR 
SUPPLIERS AND CONSULTANTS USING THE 
CONTRACT PERFORMANCE ASSESSMENT 
REPORT SYSTEM (CPARS) PURSUANT TO THE 
GUIDELINES TO BE ISSUED BY THE GPPB.
23


1
2
3
4
5
6
7
8 
9
10
11
12
PURSUANT TO SECTION 8 OF R.A. 9184, THE 
PHILGEPS SHALL HAVE A CENTRALIZED 
ELECTRONIC DATABASE OF ALL 
MANUFACTURERS, SUPPLIERS, DISTRIBUTORS, 
CONTRACTORS, AND CONSULTANTS, WITH 
THEIR CORRESPONDING REGISTRATION 
NUMBERS WITH CONTRACTS WITH THE 
GOVERNMENT FOR FEEDBACK MECHANISM 
AND PERFORMANCE TRACKING. THE 
REGISTRATION NUMBER SHALL BE A PRE­
REQUISITE FOR PARTICIPATION IN ANY 
GOVERNMENT PROCUREMENT.
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
THE GPPB SHALL PROVIDE THE DETAILS AND 
MECHANICS FOR THE IMPLEMENTATION OF 
THE FEEDBACK MECHANISM WHICH SHALL BE 
FAIR AND EQUITABLE. AFTER PROPER 
VERIFICATION, THE RESULTS THEREOF SHALL 
BE MADE AVAILABLE TO OTHER GOVERNMENT 
AGENCIES TO ENSURE THAT THE 
GOVERNMENT ONLY DOES BUSINESS WITH 
MANUFACTURERS, SUPPLIERS, DISTRIBUTORS, 
CONTRACTORS, AND CONSULTANTS THAT 
PROVIDE QUALITY PRODUCTS AND SERVICES 
IN A TIMELY MANNER.
(F) The OTHER rules and guidelines for the 
implementation and termination of contracts awarded 
pursuant to the provisions of this Act shall be prescribed in 
the IRR. The rules and guidelines shall include standard 
general and special conditions for contracts.
SEC. 20. Sections 44 and 45 of R.A. 9184 on Bidding of Provincial
Projects are hereby repealed.
32 SEC. 21. Section 48 is hereby amended to read as follows:
24


SEC. 48. Alternative Methods. -
2
3
4
5
6
7
8
9
10 
11 
12 
13
XXX 
XXX
XXX
e. Negotiated Procurement - xxx
THE APPROVAL OF THE HOPE OR THE DULY 
AUTHORIZED REPRESENTATIVE IN THE APP 
SHALL CONSTITUTE AS CERTIFICATION BY 
THE HOPE THAT THE CONTRACT FALLS 
WITHIN THE EXCEPTIONS FROM PUBLIC 
BIDDING, IS BEING ENTERED INTO IN FAITHFUL 
COMPLIANCE WITH ALL APPLICABLE LAWS 
AND REGULATIONS, AND IS ADVANTAGEOUS 
TO THE GOVERNMENT.
14
XXX
xxx
xxx
15
16
17
18
19
20 
21
22
23
24
25
26
27
28 
29
SEC. 22. Section 52 is hereby amended to read as follows:
SEC. 52. Shopping. - Shopping may be resorted to under 
any of the following instances:
(a) When there is an unforeseen contingency requiring 
immediate purchase: Provided, however, That the amount 
shall not exceed [Fifty Thousand Pesos (P50,000)] TWO
HUNDRED THOUSAND PESOS (P200,000); or
(b) Procurement of ordinary or regular office supplies and 
equipment not available in the Procurement Service 
involving an amount not exceeding [Two Hundred Fifty 
Thousand Pesos (P250,000)] ONE MILLION PESOS 
(P1,000,000): Provided, however. That the Procurement 
does not result in Splitting of Contracts: Provided, further. 
That at least three (3) price quotations from bona fide 
suppliers shall be obtained. IN CASE THE REQUIRED
25


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
NUMBER OF QUOTATIONS FROM BONA FIDE 
SUPPLIERS ARE NOT RECEIVED, THE 
PROCURING ENTITY, AFTER EXTENDING THE 
DEADLINE FOR SUBMISSION OF QUOTATIONS 
AT LEAST ONCE, MAY CANVASS ON ITS OWN 
FOR THE ITEM TO BE PROCURED FROM AT 
LEAST THREE (3) SUPPLIERS, INCLUDING 
THOSE WHO MAY HAVE ALREADY SUBMITTED 
THEIR QUOTATIONS, WHO ARE KNOWN TO BE 
CONSISTENTLY SUPPLYING QUALITY GOODS 
AT ACCEPTABLE AND REASONABLE PRICE. THE 
PROCURING ENTITY IS ALSO TASKED TO KNOW 
THE REASONS WHY NOT ENOUGH SUPPLIERS 
SUBMITTED QUOTATIONS IN ORDER FOR THE 
PROCURING ENTITY, IN COORDINATION WITH 
THE GPPB, TO ADDRESS THE PROBLEM(S), IF 
ANY, FOR ITS FUTURE PROCUREMENTS.
PROCUREMENT OF GOODS INVOLVING AN 
AMOUNT NOT EXCEEDING FIVE THOUSAND 
PESOS (P5,000) UNDER THE PETTY CASH FUND IN 
ACCORDANCE WITH THE RULES AND 
REGULATIONS OF THE COMMISSION ON AUDIT 
SHALL NOT REQUIRE ANY QUOTATION OR 
CANVASS: PROVIDED, HOWEVER, THAT THE 
OFFICIAL RECEIPT SHALL BE SUBMITTED AS 
PROOF OF PAYMENT AND SUCH OTHER 
REQUIREMENTS AS MAY BE REQUIRED IN THE 
IRR UNDER THIS ACT; PROVIDED, 
FURTHER,THAT THE PROCUREMENT DOES NOT 
RESULT IN SPLITTING OF CONTRACTS.
XXX
XXX
XXX
32 SEC. 23. Section 53 is hereby amended to read as follows:
33
34
35
SEC. 53. Negotiated Procurement. - Negotiated 
Procurement shall be allowed only in the following 
instances:
26


XXX
XXX
XXX
2
3
4
5
6
7
8
(b) In case of imminent danger to life or property 
BEFORE, during, OR AFTER, a state of calamity, or 
when time is of the essence arising from natural or man­
made calamities or other causes where immediate action is 
necessary to prevent damage to or loss of life or property, 
or to restore vital public services, infrastructure facilities 
and other public utilities;
XXX
XXX
XXX
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
(d) Where the subject contract is adjacent or contiguous 
to an on-going infrastructure project [, as defined in the 
IRR]: Provided, however, 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, TAKING INTO 
ACCOUNT THE SUM OF THE VALUE OF THE 
REMAINING WORKS FOR THE EXISTING 
CONTRACT AND THE APPROVED BUDGET FOR 
THE CONTRACT OF THE CONTIGUOUS OR 
ADJACENT WORK; 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: 
PROVIDED, FINALLY, THAT IN
INFRASTRUCTURE PROJECTS, THE PHRASE 
“ADJACENT OR CONTIGUOUS” REFERS TO 
PROJECTS THAT ARE IN ACTUAL PHYSICAL 
CONTACT WITH EACH OTHER OR IN THE
27


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
31
32
33
IMMEDIATE VICINITY, SUCH THAT THE 
REQUIRED EQUIPMENT AND OTHER 
RESOURCES CAN EASILY BE MOBILIZED; 
WHILE IN CONSULTING SERVICES, THE PHRASE 
“ADJACENT OR CONTIGUOUS” REFERS TO THE 
LINKAGE OR RELATIONSHIP OF THE SUBJECT 
MATTERS, OUTPUTS, OR DELIVERABLES 
REQUIRED. WHENEVER THERE IS A NECESSITY 
TO INTRODUCE NEW ITEMS THAT ARE 
RELATED TO THE SCOPE OF WORK OF THE 
ORIGINAL CONTRACT, THE PROCURING 
ENTITY SHALL ENSURE THAT THE UNIT PRICES 
OF THE NEW ITEMS ARE EQUAL TO OR LOWER 
THAN THE PREVAILING MARKET PRICES;
(e) Subject to the guidelines specified in the IRR, purchases 
of Goods from another agency of the Government, such as 
the Procurement Service of the DBM, which is tasked with 
a centralized procurement of commonly used Goods for the 
government in accordance with Letters of Instruction No. 
755 and Executive Order No. 359, series of 1989. THE PS- 
DBM OR SUCH OTHER GOVERNMENT 
AGENCIES SHALL CREATE A CUSTOMER 
SATISFACTION METRIC AS A TOOL IN 
MONITORING AND MANAGING THE 
EXPECTATIONS OF THE END-USERS, ANALYZE 
THE RESULTS THEREOF, MAKE 
RECOMMENDATIONS FOR IMPROVEMENT TO 
PREVENT REPEATED FUTURE PROBLEMS, AND 
IMPLEMENT NECESSARY CHANGES.
30 SEC. 24. Section 56 is hereby amended to read as follows:
SEC. 56. Resolution of Protests and Non-Interruption of 
the Bidding Process.
The protest shall be resolved xxx xxx
28


1
2
3
4
5
6
8
9
10
11
12
13
14
15
IN NO CASE SHALL ANY REQUEST FOR 
RECONSIDERATION AND PROTEST STAY OR 
DELAY THE BIDDING PROCESS. REQUEST FOR 
RECONSIDERATIONS AND PROTESTS MUST 
FIRST BE RESOLVED BEFORE ANY AWARD IS 
MADE.
SEC. 25. Section 57 is hereby amended to read as follows:
SEC. 57. [In no case shall any protest taken from any 
decision treated in this Article stay or delay the bidding 
process. Protests must first be resolved before any award is
made.] INDEPENDENT PROCUREMENT REVIEW 
BODY (IPRB). - DECISIONS OF THE HOPE ON 
PROTESTS MAY BE BROUGHT TO AN 
INDEPENDENT PROCUREMENT REVIEW BODY 
TO BE ESTABLISHED BY THE GPPB.
16 SEC. 26. Section 58 is hereby amended to read as follows:
17
18
19
20 
21 
22
23
24
25
26
27
28 
29
SEC. 58 RESORT [Report] to Regular Courts; 
Certiorari. - Court action may be resorted to only after the 
protests contemplated in this Section shall have been 
completed. Cases that are filed in violation of the process 
specified in this Article shall be dismissed for lack of 
jurisdiction. The regional trial court shall have jurisdiction 
over final decisions of the [head of the procuring entity] 
IPRB OR HOPE. THE REGIONAL TRIAL COURTS 
DESIGNATED AS COMMERCIAL COURTS BY THE 
SUPREME COURT SHALL HAVE JURISDICTION 
OVER FINAL DECISIONS OF THE IPRB OR HOPE. 
Court actions shall be governed by Rule 65 of the 1997 Rules 
of Civil Procedure.
30
XXX
XXX
XXX
31
29


1 SEC. 27. Section 62 (b) is hereby amended to read as follows:
SEC. 62. Warranty
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
XXX
XXX
XXX
b. For the procurement of infrastructure projects, the 
contractor shall assume full responsibility for the contract 
work from the time project construction commenced up to 
a reasonable period as defined in the IRR and taking into 
consideration the scale and coverage of the project, from its 
final acceptance by the government, and shall be held 
responsible for any damage or construction of works except 
those occasioned by force majeure. The contractor shall be 
fully responsible for the safety, protection, security, and 
convenience of his personnel, third parties, and the public 
at large, as well as the works, equipment, installation and 
the like to be affected by his construction work and shall be 
required to put up a warranty security FOR ONE YEAR in 
the form of cash, bank guarantee, letter of credit. 
Government Service Insurance System bond, or callable 
surety bond.
BUT IN NO CASE SHALL THE WARRANTY 
AGAINST STRUCTURAL DEFECTS AND 
FAILURES BE LESS THAN TEN (10) YEARS FOR 
SEMI-PERMANENT STRUCTURES AND FIFTEEN 
(15) YEARS FOR PERMANENT STRUCTURES. 
DURING THIS PERIOD, THE CONTRACTOR, 
CONSULTANT, 
PROCURING 
ENTITY
REPRESENTATIVES, THIRD PARTIES, AND/OR 
USERS MAY BE HELD RESPONSIBLE.
XXX
XXX
XXX
30


SEC. 28. Section 69 is hereby amended to read as follows:
SEC. 69. Imposition of Administrative Penalties.
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
(a) XXX
XXX
XXX
XXX
Refusal to clarify or validate in writing its Bid during post­
qualification within a period of seven (7) [calendar] 
WORKING days from receipt of the request for 
clarification.
(b) XXX 
XXX
(C) [The Head of the Procuring Entity may delegate to the 
BAC the authority to impose the aforementioned 
administrative penalties.] ANY SUPPLIER, 
CONTRACTOR, OR CONSULTANT THAT IS 
BLACKLISTED BY A PROCURING ENTITY 
AND/OR INCLUDED IN THE GPPB 
CONSOLIDATED BLACKLISTING REPORT 
SHALL NOT BE ALLOWED TO PARTICIPATE IN 
THE BIDDING OF ALL GOVERNMENT PROJECTS 
DURING THE PERIOD OF DISQUALIFICATION.
A JOINT VENTURE OR CONSORTIUM WHICH IS 
BLACKLISTED OR WHICH HAS BLACKLISTED 
MEMBER(S) AND/OR PARTNER(S) AS WELL AS A 
PERSON/ENTITY WHO IS A MEMBER OF A 
BLACKLISTED JOINT VENTURE OR 
CONSORTIUM ARE, LIKEWISE, NOT ALLOWED 
TO PARTICIPATE IN ANY GOVERNMENT 
PROCUREMENT DURING THE PERIOD OF 
DISQUALIFICATION.
IN THE CASE OF CORPORATIONS, A SINGLE 
STOCKHOLDER, TOGETHER WITH HIS/HER
31


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
RELATIVES UP TO THE THIRD (3RD) CIVIL 
DEGREE OF CONSANGUINITY OR AFFINITY, 
AND THEIR ASSIGNEES, HOLDING AT LEAST 
TWENTY PERCENT (20%) OF THE SHARES 
THEREIN, ITS CHAIRMAN OR PRESIDENT 
REGARDLESS OF THE NUMBER OF SHARES 
THEY HOLD IN SUCH CORPORATION OF WHICH 
THEY ARE CHAIRMAN OR PRESIDENT, SHALL 
BE BLACKLISTED AFTER THEY HAVE BEEN 
DETERMINED TO HOLD THE SAME 
CONTROLLING INTEREST IN ANOTHER 
BLACKLISTED 
CORPORATION. 
THE
CORPORATIONS OF WHICH THEY ARE PART 
SHALL ALSO BE BLACKLISTED.
15
16
17
18
19
20
21
22
BIDDERS BLACKLISTED OR BARRED FROM 
BIDDING 
BY 
OTHER FOREIGN
GOVERNMENT/FOREIGN OR INTERNATIONAL 
FINANCING INSTITUTION ARE ALSO NOT 
ALLOWED TO PARTICIPATE IN THE BIDDING OF 
ALL GOP AGENCIES.
THE GPPB SHALL ISSUE THE NECESSARY 
GUIDELINES FOR THIS PURPOSE.
23
24
26
27
28
29
30
31
32
XXX
XXX
XXX
25 SEC. 29. Section 72 is hereby amended to read as follows:
SEC. 72. Private Legal Assistance. - All the members of 
the BAG, INCLUDING ITS SUPPORT STAFF, SUCH 
AS THE BAC SECRETARIAT, TWG, 
PROCUREMENT SERVICE/UNIT AND THE HOPE, 
are hereby authorized to engage the services of private 
lawyers or extend counsel immediately upon receipt of 
court notice that a civil or criminal action, suit or proceeding
32


1
2
3
is filed against them. The lawyer's fee shall be part of the 
indemnification package for the BAC members, subject to 
the provisions of Section 73 hereof”
4 
SEC. 30. Section 73 is hereby amended to read as follows;
5 
SEC. 73. Indemnification of BAC Members.
6
7
8 
9
10
11
12
13
XXX
XXX
XXX
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
The members of the BAC, [and the BAC Secretariat], 
INCLUDING ITS SUPPORT STAFF, SUCH AS THE 
BAC SECRETARIAT, TWG, PROCUREMENT 
SERVICE/UNIT AND THE HOPE, shall also be entitled 
to medical assistance for injuries incurred in the 
performance of their functions.
14 SEC. 31. Section 74 is hereby amended to read as follows:
SEC. 74. Oversight Committee. - There is hereby created a 
Joint Congressional Oversight Committee to oversee the 
implementation of this Act for a period not exceeding five 
(5) years from ITS [the] effectivity AND UNDERTAKE 
A MANDATORY REVIEW of this Act AT LEAST 
ONCE EVERY FIVE (5) YEARS AND AS OFTEN AS 
IT MAY DEEM NECESSARY, WITH THE END IN 
VIEW OF PROVIDING A PROCUREMENT 
PROCESS THAT IS SIMPLE AND REASONED AND 
ALLOWS FOR EFFECTIVE, EFFICIENT, 
ECONOMIC, AND ETHICAL USE OF 
GOVERNMENT RESOURCES. The Committee shall be 
composed of the Chairman of the Senate Committee on 
FINANCE [Constitutional Amendments and Revision of 
Laws] and two (2) members thereof appointed by the Senate 
President, and the Chairman of the House Committee on
33


1 
Appropriations, and two (2) members thereof to be
2 
appointed by the Speaker of the House of Representatives.
3 
SEC. 32. Implementing Rules and Regulations and Standard
4 
Forms. - Within sixty (60) days from the promulgation of this
5 
Act, the necessary rules and regulations for the proper
6 
implementation of its provisions shall be formulated by the
7 
GPPB. For a period not later than thirty (30) days upon the
8 
approval of the implementing rules and regulations the standard
9 
forms for Procurement shall be formulated and approved.
10 
SEC. 33. Separability Clause. - If any provision of this Act is declared
11 
invalid or unconstitutional, the other provisions not affected by such
12 
declaration shall remain in full force and effect.
13 
SEC. 34. Repealing Clause. - All laws, executive and administrative
14 
orders, rules and regulations inconsistent with the foregoing provisions
15 
are hereby repealed or modified accordingly.
16 
SEC. 35. Effectivity. - This Act shall take effect fifteen (15) days after
17 
its publication in the Official Gazette or in two (2) newspaper of general
18 
circulation.
Approved,
34