EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENAT*=
S.B. No. 2388
T HE
E-FILEO
Im r^A TP!. Sept- 6' 2021 m 
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Introduced by SENATOR IMEE R. MARCOS
GlLtSwi^fOEX
AN ACT ABOLISHING THE DEPARTMENT OF BUDGET AND MANAGEMENT -
PROCUREMENT SERVICE (DBM-PS), AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 27, Article II of the 1987 Constitution provides that, "The State shall 
maintain honesty and integrity in the public service and take positive and effective 
measures against graft and corruption."
The Procurement Service of the Department of Budget and Management (PS- 
DBM) was created on October 18, 1978 through Letter of Instruction (LOI) No. 755, 
and thereafter amended by Executive Order No. 285 and 359. Its primary mandate is 
to establish an integrated procurement system for the national government in order 
to take advantage of economies-of-scale in procurement. The PS-DBM acts as a 
procurement arm of other government agencies for the procurement of common-use 
supplies, equipment, and infrastructure projects. To avail of this service, government 
agencies remit in advance to the PS-DBM such funds needed for its procurement.
In addition to procuring common-use supplies, among others, for other national 
government agencies, the PS-DBM also does trading by buying stocks of common-use 
supplies for resale to other government agencies using its own budgetary 
appropriation.
However, the passage of RA No. 9184 or the "Government Procurement Reform 
Act" undermines the mandate of the DBM-PS through the inclusion of relevant 
provisions that seeks to strengthen the procurement service of national government 
agencies. Section 11 Article 5 of RA 9184 states that" all procurement agencies shall


establish a single BAC (Bids and Awards Committee) for its procurement." Section 63 
(c) further tasks the Government Procurement Policy Board (GPPB) to strengthen the 
said BACs by ensuring " that Procuring Entities regularly conduct procurement training 
programs and prepare a procurement operation manual for all offices and agencies of 
government."
In addition to its mandate being affected by changes in national policies and 
legislation, the DBM-PS have dealt with issues regarding the exercise of their mandate 
in the previous years. In August 2021, the Senate Committee on Accountability of 
Public Officers and Investigations have conducted a series of investigations on the 
transfer of PhP 42 billion by the Department of Health (DOH) to the DBM-PS for the 
procurement of face shields, face masks, personal protective equipment, and other 
pandemic-related purchases.
This bill seeks to address the systemic corruption in the DBM-PS by abolishing 
the said agencies. The passage of the 1987 Constitution and RA No. 9184 has made 
the mandate of the DBM-PS archaic and irrelevant in these current times. The DBM- 
PS has become a fertile breeding ground of graft and corruption and, as such, should 
be abolished as it has outlived its functions to the National Government.
In view of the foregoing, the approval of this bill is earnestly sought.
IMEER. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
S.B. No.
SENATF2388
Introduced by SENATOR IMEE R. MARCOS
E-FILED
Sept. 6. 2021 m
CO
date:
7tnF;. 06:19pm
ey: ¥I nOE X
SILLS
AN ACT ABOLISHING THE DEPARTMENT OF BUDGET AND MANAGEMENT - 
PROCUREMENT SERVICE (DBM-PS), AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Declaration of Policy. - The State shall maintain honesty and
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integrity in the delivery of public service and take positive and effective measures
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against graft and corruption. Thus, the State shall maintain accountability and
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responsibility among its public officials and employees and shall take appropriate
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measures to prevent unlawful and ineffectual acts and practices, therefore promoting
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efficiency and transparency in the conduct of its business.
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Sec. 2. Abolition of the Department of Budget and Management - Procurement
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Service (DBM-PS). - The Department of Budget and Management - Procurement
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Service (DBM-PS) created under Letter of Instruction No. 755 and other laws, rules,
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and regulations shall be abolished.
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In lieu of the abolition of the DBM-PS, the respective Departments, Agencies,
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Government Owned and/or Controlled Corporations (GOCCs), State Universities and
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Colleges (SUCs), and Local Government Units (LGUs) shall, thereafter, undertake the
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procurement of common-use supplies, materials and equipment.
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Sec. 3. Separation and Retirement from Service. - Employees affected by the
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abolition of DBM-PS shall receive separation benefits under the Government


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Reorganization Law and other existing laws, rules, and regulations. Provided that, 
those who are qualified to retire and receive retirement benefits under existing 
retirement laws shall be allowed to retire under existing laws, rules, and regulations.
Sec. 4. Reversion of Funds. - In coordination with the concerned Departments, 
Agencies, GOCCs, SUCs, and LCDs, all prior year's and current year's advances for the 
purchase of supplies, materials, and equipment not available in the DBM-PS inventory 
shall be reverted to the National Treasury.
Sec. 5. Transition Period. - One (1) year upon effectivity of this Act, the DBM- 
PS, in coordination and under direct supervision of the Department of Budget and 
Management (DBM), shall undertake an inventory of all the supplies, materials, and 
equipment under their custody for use of the different Departments, Agencies, GOCCs, 
SUCs, and LGUs. The DBM-PS shall continue to service the requirements for common- 
use supplies, materials, and equipment until the inventories of such are fully 
consumed. Provided that, no additional procurement shall be undertaken by the DBM- 
PS during such period.
Sec. 6. Repeating Ciause. - All laws, decrees, orders, rules and regulations or 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
Sec. 7. Separabiiity Ciause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
Sec. 8. Effectivity. - This Act shall take effect after fifteen (15) days following 
the completion of its publication either in the Official Gazette or in a newspaper of 
general circulation in the Philippines.
Approved,