Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS.
First Regular Session

429

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

Often, the contract for the procurement of a supplier, contractor or consultant entered
into by the government are complained to be tainted with anomalies and irregularities which are
usually attributed to the commission of corruption by concemed government officials or officers.
To avert the incidence of corruption in procurement contracts, Republic Act No. 9184, also
known as the Government Procurement Reform Act, was enacted specially to promote
transparency in the procurement process, to afford all private contracting parties equal
‘opportunities, and to ensure that the government officials or officers involved are made
accountable to the people.

To grant the govemment flexibility in exceptional circumstances such as during a state of
calamity, altemative methods of procurement are provided by the law. Among these altemative
methods is the negotiated procurement. A negotiated procurement, among other alternative
methods, is allowed whenever there is a natural or man-made calamity 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 utilities.

It is, however, regrettable that some government officials and officers, make use of such
leeway to engage in anomalous or irregular procurement. To further reduce, if not totally put an
end to abuses of government officials and officers, this author included a few more limitations
on the availment of a negotiated contract. Some of the conditions set in this bill are already
Provided in the implementing rules and regulations of the Act. To reinforce the same, this
author decided to incorporate it in the bill, along with other reasonable conditions, which to the
mind of the author, are necessary to prevent any possibilty of abuse.

In view of the foregoing, passage of this bill is eamestly recommended

ee
JUAN EDG: “SONNY” M. ANGARA

Representative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE +)
REPUBLIC OF THE PHILIPPINES —_—)
First Regular Session )

H.B.No,__429

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
AMENDING SECTIONS 53 AND 54, ARTICLE XVI REPUBLIC ACT NO. 9184,
OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT REFORM ACT

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

SECTION 1. Section 53 is hereby amended to read as follows:

SECTION 53. Negotiated Procurement. Negotiated Procurement shall be
allowed only in the following instances:

(a) xxx;

(b) In case of imminent danger to life or property during 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: | PROVIDED, THE FOLLOWING
CONDITIONS ARE OBSERVED:

(1) THE PROCURING ENTITY SHALL DRAW UP A LIST OF AT LEAST
THREE (3) SUPPLIERS, CONTRACTORS OR CONSULTANTS
WHICH WILL BE INVITED TO SUBMIT BIDS, OR

(2) THE NEGOTIATION SHALL BE MADE WITH A PREVIOUS SUPPLIER,
CONTRACTOR OR CONSULTANT OF GOOD STANDING OF THE
PROCURING ENTITY CONCERNED, OR A SUPPLIER, CONTRACTOR
OR CONSULTANT OF GOOD STANDING SITUATED WITHIN THE
VICINITY WHERE THE CALAMITY OR EMERGENCY OCCURRED;
AND

(3) THE PROCEDURES FOR THE CONDUCT OF PUBLIC BIDDING SHALL
BE CLOSELY OBSERVED;


(4) THE PROCURING ENTITY SHALL ENSURE THAT THE MOST
ADVANTAGEOUS PRICE FOR THE GOVERNMENT IS OBTAINED;

(5) THE PRICES AGREED UPON SHALL BE CONSIDERED AS FIXED
PRICES, HENCE, NOT SUBJECT TO PRICE ESCALATION DURING
THE CONTRACT IMPLEMENTATION, EXCEPT UNDER
EXTRAORDINARY CIRCUMSTANCES AND UPON APPROVAL OF
THE GOVERNMENT PROCUREMENT POLICY BOARD (GPPB);

(6) THE RESORT TO NEGOTIATED PROCUREMENT AND THE
PREFERRED SUPPLIER(S) AND/OR CONTRACTOR(S) SHALL BE
PUBLISHED IN TWO NEWSPAPERS OF GENERAL CIRCULATION
BEFORE THE CONCLUSION OF THE CONTRACT;

(7) ALL BIDDING DOCUMENTS SHALL BE READILY MADE AVAILABLE
TO THE PUBLIC DURING OFFICE HOURS.

(©) Take over of contracts, which have been rescinded or terminated for causes
provided for in the contract and existing laws, where immediate action is
necessary to prevent damage to or loss of life or property, or to restore vital
public services, intrastructure facilities and other public facilities:
PROVIDED, THAT THE CONDITIONS SET IN PRECEDING PARAGRAPH
ARE OBSERVED;

(d) xx
(e) xxx
SEC. 2. Section 54 shall be amended to read as follows:

SECTION 54. Terms and Conditions for the use of Alternative Methods.
THE PROCEDURAL REQUIREMENTS UNDER SECTION 17 (A), (C), (D), (E), (F), (G),
(), (J). AND SECTIONS 39, AND 40 OF THIS ACT SHALL SPECIALLY APPLY TO
THE ABOVE ALTERNATIVE METHODS OF PROCUREMENT. The specific terms and
Conditions, including the limitations and restrictions, for the application of each of the
alternative methods mentioned in this Article shall be specified in the IRR.

SEC. 3. Repealing Clause. All laws, presidential decrees or issuances, executive
orders, rule or regulations contrary to, or inconsistent with the provisions of this Act are
hereby are repealed, modified, or amended accordingly.


SECTION 4. Effectivity. This Act shall take effect fifteen (15) days following its
complete publication in the Official gazette or in at least two (2) newspapers of general

circulation.

Approved,