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RECEIVE

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18® Congress
First Regular Session

2350

HOUSE BILL NO.

Introduced by Rep. Evelina G. Escudero

EXPLANATORY NOTE,

This bill seeks to enhance and expedite the government procurement process, amending for the
Purpose Republic Act (RA) No. 9184, otherwise known as the “Government Procurement Reform Act
(GPRA).”

RA 9184 was passed into law to modernize, standardize and streamline the procurement process. It
Was envisioned to be a powerful tool to promote transparency and competition, eradicate graft and corruption
and lessen the delays in the procurement process. However, despite the reforms and the recognition of GPR A
by multilateral institutions such as the World Bank as a world class legislation, several issties continue to
plague the government procurement system!

The World Bank identified the combination of weak budget allocation process, intricate and non.
transparent budget execution and the predominance of patron-client relationships in politics and the
bureaucracy as factors that facilitate corruption in government procurement? Other problems of the present

This bill aims to further improve the government procurement system by providing additional
‘measures that will shorten the present bureaucratic intricacies of the system and expediting the procurement
Process through mandatory inclusion of the procurement plan and purchase priority in the annual
development plan, inclusion of the list requirements in the posting and publication of the invitation to bid.
upgrading of G-EPS and establishment of electronic bidding process. In addition, this bill prescribes specific
Periods for the accomplishment of and compliance with procurement processes and practices to prevent
delays in the procurement proceedings. This proposed measure also intends to strengthen and advance
transparency by enhancing the role of the observers in the procurement process

Likewise, the proposed measure will enable the Government Procurement Policy Board to upgrade
the electronic bidding system that will allow electronic payment to Bids and Awards Committee This
innovation will further hasten the procurement process and enhance transparency

{In view of the foregomg, immediate approval of this bill is earnestly sought

ectdthd

EVELINA G. ESCUDERO

Da
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public of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18" Congress
First Regular Session

2350

HOUSE BIEL NO.

Introduced by Rep. Evelina G. Escudero

AN ACT
ENHANCING AND EXPEDITING THE GOVERNMENT PROCUREMENT PROCESS,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS THE
“GOVERNMENT PROCUREMENT REFORM ACT”

Be w enacted by the Senate and House of Representatives of the Philippines in Congress assembled.

SECTION. |. Section 7 of Republic Act (RA) No. 9184 is hereby amended to read as follows
“SEC. 7. Procurement Planning and Budgeting Linkage — 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 to be specified in the IRR
Xxx XXX XXX

THE ANNUAL PROCUREMENT PLAN OF THE NATIONAL GOVERNMENT
AGENCIES SHALL CONFORM WITH THE NATIONAL DEVELOPMENT PLAN
AND, IN THE CASE OF THE LOCAL GOVERNMENT UNIT, WITH THE LOCAL
DEVELOPMENT PLAN.

THE PROCURING ENTITIES SHALL MAKE A LIST OF THEIR PURCHASE
PRIORITY WHICH SHALL BE INCLUDED IN THEIR ANNU
PLAN AND BUDGET.”

PROCUREMENT

SEC 2 Section 13 of the same Act is hereby amended to read as follows

“SEC. 13. Observers. ~ To enhance the transparency of the process, the BAC shall. in


iges 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
Fecognized private group in a sector or discipline relevant to the procurement at hand, and the
other from @ non-govemment organization: Provided, however, That they do not have any
direct or indirect interest in the contract to be bid out. The observers should be duly registered
with the Securities and Exchange Commission, MEMBERS IN GOOD STANDING OF
THE SECTOR, DISCIPLINE OR NON-GOVERNMENT ORGANIZATION THEY
REPRESENT AS DULY CERTIFIED BY THE HEAD OF THE SECTOR, DISCIPLINE
OR ORGANIZATION TO WHICH THEY BELONG, and should meet the criteria for
observers as set forth in the IRR

EACH OBSERVER SHALL MAKE A SEPARATE REPORT ON THE
CONDUCT OF THE PUBLIC BIDDING, ITS PROCEDURES, CONDITIONS AND
PROBLEMS, IF ANY, WHICH SHALL BE SUBMITTED TO THE PROCURING
ENTITY, THE GOVERNMENT PROCUREMENT POLICY BOARD (GPPB) AND
THE COMMISSION ON AUDIT.

IN CASE OF UNAVAILABILITY OF THE OBSERVERS FROM THE NON-
GOVERNMENT ORGANIZATION OR PRIVATE SECTOR, THE GPPB SHALL
PROVIDE QUALIFIED OBSERVERS TO THE BAC. FOR THIS PURPOSE, THE
GPPB SHALL MAINTAIN A REGISTRY OF PROCUREM
QUALIFIED TO BE OBSERVERS TO THE BAC,

THE ABSENCE OF ANY OF THE OBSERVERS AND CORRESPONDING
REPORTS SHALL NULLIFY THE BIDDING PROC:

‘T PROFESSIONALS.

SEC 3. Section 21 of the same Act is hereby amended to read as follows

“Sec. 21. Advertising and Contents of the Invitation to Bid. ~ In line with the
Principle of transparency and competitiveness, all Invitations to Bid for contracts under
competitive bidding shall BE POSTED ON THE ENTITY'S WEBSITE AND be advertised
by the procuring entity in such manner and for such length of time as may be necessary under
the circumstances, in order to ensure the widest possible dissemination thereof. | such as, but
not limited to posting, | THE INVITATION TO BID, INCLUDING THE oF
REQUIREMENTS, CONDITIONS, CONTACT DETAILS AND REQUIRED TAX
CLEARANCES AND LICENSES, SHALL BE PO:
Premises, in newspapers of general circulation, the G-EPS and the website of the Procuring

Entity], if available | AT LEAST SIXTY DAYS BEFORE DEADLINE FOR

Din the Procuring Entity’s



SUMBISSION OF BIDS The details and mechanics of implementation shall be provided in
the IRR to be promulgated under this Act.
XXX XXX Xxx."

SEC. 4. Section 22 of the same Act is hereby amended to read as follows

“Sec 22. Pre-bid Conference. ~ At least one pre-bid conference shall be conducted
for each procurement, unless otherwise provided in the IRR. Subject to the approval of the
BAC, a pre-bid conference may also be conducted upon the written request of any prospective
bidder.

‘The pre-bid conference(s) shall be held within THIRTY (30) DAYS AFTER THE
LAST DAY OF POSTING OF THE INVITATION TO BID AND WITHIN a reasonable
Period before the deadline for receipt of bids to allow prospective bidders to adequately prepare
their bids, which shall be specified in the IRR.”

SEC 5. Section 25 of the same Act is hereby amended to read as follows

“See. 25. Submission and Receipt of Bids A bid shall have two (2) components,
namely the technical and financial components which should be in separate sealed envelopes,
and which shall be submitted simultaneously The bids shall be received by the BAC on such
date, time and place specified in the invitation to bid The deadline for the receipt of bids shall
be fixed by the BAC, giving it sufficient time to complete the bidding process and giving the
Prospective bidders sufficient time to study and prepare their bids The deadline shall also
consider the urgency of the procurement involved

Bids submitted after the deadline shall not be accepted

Notwithstanding the provisions of this Section and Section 26 of this Act. the GPPB
may prescribe innovative procedures for the submission, receipt and opening of bids through
the G-EPS. THE GPPB SHALL UPGRADE THE ELECTRONIC BIDDING SYSTEM
IN THE G-EPS THAT FACILITATES THE SUBMISSION OF — BIDS,
QUOTATION, DOCUMENTS AND PAYMENT TO THE BAC THROUGH AN
ELECTRONIC DEVICE. THE GPPB MAY PRESCRIBE OTHER INNOVATIVE
PROCEDURES THAT EXPEDITE THE PROCUREMENT PROCESS.”

SEC 6. Section 29 of the same Act is hereby amended to read as follows:

“Sec. 29. Bid Opening. — The BAC shall publicly open all bids at the time, date and
place specified in the bidding documents WHICH SHALL NOT BE MORE THAN FIVE
(5) DAYS AFTER THE DEADLINE OF THE SUBMISSION OF THE BIDS The



minutes of the bid opening shall be made available to the public upon written request and
Payment of a specified fee.”

SEC. 7. Section 35 of the same Act is hereby amended to read as follows
“See 35. Failure of Bidding. — xxx
xxx
Under any of the above instances, the contract shall be re-advertised and re-bid The
BAC shall observe the same process and set the new periods according to the same rules
followed during the first bidding. After the second failed bidding, however. the BAC may
resort to negotiated procurement as provided for in Section 53 of this Act
THE BAC OF THE PROCURING ENTITY SHALL INFORM IN WRITING
‘THE GPPB OF THE FAILURE OF BIDDING AND THE REASON THEREOF. THE
BAC OF THE PROCURING ENTITY SHALL SECURE THE APPROVAL OF GPPB
FOR RE-BIDDING OR NEGOTIATED PROCUREMENT.”

SEC 8. Implementing Rules and Regulations. — Within ninety (90) days from the approval of this
Act. the Government Procurement Policy Board shall issue the necessary rules and regulations for the
effective implementation of this Act. The implementing rules and regulations shall be published in the
Official Gazette or in a newspaper of general circulation

SEC. 9. Repealing Clause — All laws, decrees, orders, rules and regulations and other issuances

Part thereof, which are inconsistent with the provisions of this Act are hereby repealed or mod)

accordingly

SEC, 10. Separability Clause. ~ If any provision of this Act is declared unconstitutional or invalid
the other provisions not otherwise affected shall remain in full force and effect

SEC 1. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in the Official

Gazente or in a newspaper of general circulation

Approved,