FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S. B. No. 2089 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
This bill basically seeks to address three (3) points in the currently existing 
government procurement system embodied in Republic Act No. 9184 in view of 
the anomalous contracts such as the ZIE and Cyber-Ed projects favored and 
concluded by the government. 
Firstly, it puts under the' coverage of RA No. 9184 the procurement of 
infrastructure projects, goods and consulting services funded by loan or credit 
under the Official Development Assistance (ODA) Act, RA No. 8i82,as· 
amended. 
This IS in light of the interpretation that the procurement of certain 
infrastructure projects, goods and services can be made exempt from the 
operation of I~A No. 9184 on the basis of Section 4 of said law which mandates 
the observation of treaties or international or executive agreements affecting 
procurement in relation to Sedion 1 of RA No. 8555 which on the other hand 
empowers the President of the Republic to waive the application of any law in 
deference to the contracting of a loan or credit with a lending institution. 
Secondly, it also proposes to strengthen and advance transparency by 
mandating the posting of the decisions of the J3AC (or the Bids and Awards 
Committee) relative to criteria, ratings and calculations of bids as well as all other 
bids, responsive or otherwise, on the procuring agency's website or that of the 
CI'PB (or the Government Procurement Policy Board). This is envisioned to 
bolster and reinforce accountability of public officials by making public how 
!lAC members decide and why. Thus, if there be any anomaly in the bidding the 
responsible BAC member / s may be identified. 
And thirdly, it lessens the discretion of procuring agencies, specifically in 
the consideration of single calculated/ rated and responsive bid submission, and 
the use of observers. 
On the consideration of single calculated/ rated and responsive bid 
submission, a procuring agency can only do so by, in addition to the current 
requisites provided for in RA No.9184, subjecting it to the approval of the CI'PB. 
It is submitted that in this manner the procuring agency will have the inability to 
rig biddings through a consensus amongst competing contractors or bidders in 
that agency. 


And on the use of observers, the invitation of observers is made strict by 
limiting the number of times an observer can be invited by a procuring agency. 
This is being proposed in consideration of the fact that observers, who become 
regulars of the BAC become friendly, if not, even cohorts in anomalous bid dings 
and transactions. 
In view of the foregoing and if only to address the problems and issues 
that have resulted from the ZTE and Cyber-Ed projects, passage of this bill is 
sought. 
FRANCIS G. ESCUDERO 
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FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHrLIPPINES 
Firsl Regular Session 
) 
) 
) 
SENATE 
S.No. 2089 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
i {J 
JUl 27 Ale :30 
AMENDING REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS THE 
GOVERNMENT PROCUREMENT REFORM ACT 
Be it enllcted by the Senate Ilnd the House of Representati'ues of the Philippines in 
Congress assembled: 
SECTION 1. Section 4 of Republic Act No. 9184 is hereby amended to 
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read as follows: 
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"Section 4. Scope lind Application.- This Act shall apply to the 
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Procurement of Infrastructure Projects, Goods and Consulting 
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Services, regardless of source of funds, whether local or 
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foreign, by all branches and instrumentalities of government, 
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its departments, offices and agencies, including government-
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owned and/ or-controlled corporations and local government 
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units, subject to the provisions of Commonwealth Act No. 138. 
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Any treaty or international or executive agreement affecting 
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the subject matter of' this Act to which the Philippine 
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government is a signatory shall be observed: PROVIDED, 
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HOWEVER, THAT THE PROVISIONS OF THIS ACT 
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SHALL BE MADE TO APPLY IN THE NEGOTIATION OR 
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CONCLUSION OF SUCH TREATY OR INTERNATIONAL 
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OR EXECUTIVE AGREEMENT. 
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ACCORDINGLY, 
NOTWITHST ANDING 
THE 
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PROVISIONS OF SECTION 1 OF REPUBLIC ACT NO. 
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8555, 
THIS 
ACT 
SHALL 
LIKEWISE 
COVER 
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PROCUREMENT 
OF 
INFRASTRUCTURE 
PROJECTS, 
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GOODS AND CONSULTING SERVICES FUNDED BY A 
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LOAN, CREDIT OR INDEBTEDNESS CONTRACTED OR 


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ENTERED INTO BY THE PHILIPPINE GOVERNMENT 
PURSUANT 
TO 
THE 
OFFICIAL 
DEVELOPMENT 
ASSIST ANCE (ODA) .ACT OR REPUBLIC ACT NO. 8182, 
AS AMENDED. 
SEC. 2. 
Section 13 of Republic Act (RA) No. 9184 is also hereby 
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amended to read as follows: 
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"Section 13. Obserl'ers.- To enhance the transparency of the 
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process, the BAC shall, in all stages of the procurement 
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process, invite, in addition to the representative of the 
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Commission on Audit, at least two(2) observers to sit in its 
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proceedings, one (1) from a duly recognized private group in a 
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sector or discipline relevant to the procurement at hand, and 
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the other from a non-government organization: Provided, 
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however, That they do not have any direct or indirect interest 
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in the contract to be bid out. PROVIDED, FURTHER, THAT 
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IN NO CASE THEY SHALL BE INVITED BY THE BAC 
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MORE THAN THREE (3) TIMES A YEAR. The observers 
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should be [duly registered with the Securities and Exchange 
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Commission] MEMBERS IN GOOD STANDING OF THE 
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SECTOR 
OR 
DISCIPLINE OR 
NON-GOVERNMENT 
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ORGANIZATION TO WHICH THEY BELONG AS DULY 
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CERTIFIED 
BY 
THEIR 
PRESIDENT, 
HEAD 
OR 
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CHAIRPERSON and should meet the criteria for observers as 
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set forth in the IRK" 
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SEC. 3. 
Section 38 of Republic Act (RA) No. 9184 is likewise hereby 
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amended to read as follows: 
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"Section 
36. 
Single 
Calculnte/Eated 
and 
l~esponsil'e 
Bid 
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Sub11lz"ssion. - A single calculated/rated and responsive bid 
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shall be considered for award SUBJECT TO THE APPROV AL 
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OF THE GPPB AND if it falls under any of the following 
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circumstances: 


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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, after which it submits a 
bid, which is found to be responsive to the 
bidding requirements; 
b. If after the a'dvertisement, more than one 
prospective bidder applies for eligibility check, 
but only one bidder meets the eligibility 
requirements or criteria, after which in submits a 
bid which is found to be responsive to the 
bidding requirements; or 
c. If after the eligibility check, more than one 
bidder meets the eligibility requirements, but 
only one bidder submits a bid, and its bid is 
found 
to 
be 
responsive 
to 
the 
bidding 
requirements. 
In all instances, the Procuring Entity shall ensure that 
the ABC reflects the most advantageous prevailing price for 
the government." 
SEC. 4. 
Republic Act No. 9184 is further amended to include a new 
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Section 36-A to read as follows: 
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"Section 36-A. Transparency. The calculated ratings of all 
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bidders, their bid prices and the ratings given by each member 
of the HAC as provided for under RA No. 9184 shall be posted 
on the agency or the Government Procurement Policy Board 
(GPPB) website from the end of evaluation to sixty (60) days 
after award of contract.'" 
All bidders shall include all those who submitted bids 
regardless 
of 
completeness 
of 
requirements 
and 
responsiveness." 


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SEC 5. 
Separability Clause. If any provision or part hereof is held 
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invalid or unconstitutional, the remainder of the law or the provision not 
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otherwise affected shall remain valid and subsisting. 
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SEC 6. 
[~epealing Clause. All laws, presidential decrees, executive 
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orders, proclamations and! or administrative regulations which are inconsistent 
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with the provisions of this Act are hereby amended, modified, superseded or 
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repealed accordingly. 
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SEC 7. 
Effectivity Clause. This Act shall take effect fifteen (15) days 
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from its publication in at least two newspapers of national circulation. 
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Approved,