SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. B. No. 1029 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
EXPLANATORY NOTE 
A common practice in government procurement, guided by Philippine procurement 
laws, is to consider price as the major criterion for awarding government purchases and 
contracts. However, given the current social climate, there is now a need to consider other 
factors that enable a product or service to deliver adequate or even added value to both the 
purchaser and to the community at large. 
Thus, we wish to introduce the concept of "social value" as an additional criterion 
governing Philippine government procurement. 
"Social value," as we define it in this measure, "refers to the additional benefit to, 
society of procuring a good or service, over and above the direct benefit and value of the good 
or service to the procuring entity. Additional benefits may include support for poor 
communities or marginalized grqups, advan.cement of puman rights and social jUstice" 
protection of the environment, and community development." 
At the root of this concept is the recognition that government funds should be allocated 
to products, services, and programs that offer the greatest good, at the best value. Therefore, 
when evaluating suppliers for government purchases, contracts, and projects, purchasers must 
look beyond price and also consider such factors as quality, production practices, and even the 
impact that these practices have on a larger community. 
Legislature is thus urged to pass this proposed "Social Value Act". By redefining the 
concept of "social value" and "value for money," we can enable the State to maximize benefits 
for society and also drive up service quality and inciUSiv~e 
growth. 
~ 
.-
U4'~ 
Sen 
aolo Benigno" am" A. Aquino IV 


SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. B. No< 1029 
lVf< 
------------------------------------------------------
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
THE PHILIPPINE SOCIAL VALUE ACT 
Section 1. Title. This Act shall be also known as the "Social Value Act of 2013." 
Section 2. Declaration of Policy. The State shall declare its commitment to promote social 
responsibility and accountability in the use of public funds. It shall recognize the importance of 
utilizing government resources not only efficiently but also effectively to derive the greatest 
collective benefit to the community. This Act aims to integrate social value in the public 
procurement process as a key strategy to addressing social inequities and promoting national 
development. 
Section 3. Definition of Terms. 
"Social Value" refers to the additional benefit to sOciety of procuring a good or service, over 
and above the direct benefit and value of the good or service to the procuring entity. Additional 
benefits may include support for poor communities or marginalized groups, advancement of 
human rights and social justice, protection of the environment, and community development. 
"Competitive Bidding" - refers to a method of procurement which is open to participation by 
any interested party and which consist of the following processes: advertisement, pre-bid 
conference, eligibility screening of bids, evaluations of bids, post - qualification, and award of 
contract, the specific requirements and mechanics of which shall be defined in the IRR to be 
promulgated under this Act. 
"Procurement" - refers to the acquisition of Goods, Consulting Services, and the contracting for 
infrastructure projects by the Procuring Entity. 
"Procuring Entity" refers to any branch, department, office, agency, or instrumentality of the 
, 
' 
,. 
government, including state universities and colleges, government-owned and/or - controlled 
corporations, government financial institutions, and local government units procuring Goods, 
Consulting Services and Infrastructure Projects. 
"Bids and Awards Committee" is the committee established by each Procuring Entity to 
undertake the procurement process including advertising and/or posting the invitation to bid, 
conducting pre-procurement and pre-bid conferences, determining the eligibility of prospective 
1 


bidders, receiving bids, conducting the evaluation of bids, undertaking post-qualification 
proceedings, and recommending award of contracts to the Head of the Procuring Entity. 
"Government Procurement Policy Board" refers to the Board established to: (a) protect national 
interest in all matters affecting public Procurement, having due regard to the country's regional 
and international obligations; (b) formulate and amend, whenever necessary, the IRR and the 
corresponding standard forms for Procurement; (c) ensure that Procuring Entities regularly 
conduct Procurement training programs and prepare a Procurement operations manual for all 
offices and agencies of government; and (d) conduct an annual review of the effectiveness of 
this Act and recommend any amendments thereto, as may be necessary. 
Section 4. Public Procurement for Social Value 
(a) The government shall include social value in the competitive bidding criteria and 
requirements for the public procurement of goods, services and projects. 
(b) The Government Procurement Policy Board (GPPB) shall set the standards and 
guidelines to be followed by procuring entities and the Bids and Awards Committees for 
measuring and assessing social value alongside the technical and financial components 
of each bid. 
(c) Procuring entities shall include social value in their annual procurement planning and 
budgeting considerations, and to identify social requirements in their bidding 
specifications according to guidelines provided by the GPPB. 
(d) The Bids and Awards Committees (BAC) shall be responsible for undertaking the 
procurement process and ensuring that the Procuring Entity abides by the standards set 
forth by the GPPB in fulfillment of this Act. 
SECTION 4. Implementing Rules or Regulations. The Government Poverty Policy Board (GPPB) 
shall formulate the necessary rules and regulations to implement the provisions of this Act 
within ninety (90) days after its approval. The rules and regulations issued pursuant to this Act 
shall take effect fifteen (15) days after its publication in a newspaper of general circulation. 
SECTION 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. 
SECTION 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. 
SECTION 7. Effectivity Clause. This Act shall take effect fifteen (15) days 12 from its publication 
in at least two newspapers of national circulation. 
2