Section 3.
Governing Principles on procurement;
Section 1. Short Title
Government Procurement
(b) Competitiveness
● This Act shall be known as the “New
● Procurement by all branches and ● Competitiveness through ensuring equal
Government Procurement Act”.
instrumentalities of the national government, opportunity for all eligible and qualified:
its:
a. departments, ○ suppliers,
Section 2. Declaration of Policy
b. bureaus,
● It is the declared policy of the State to c. offices and agencies, ○ manufacturers,
promote the ideals of good governance with ● including:
a view towards: ACE P^3 STV a. state universities and colleges (SUCs), ○ distributors,
○ transparency, b. government-owned and/or
○ competitiveness, -controlled corporations (GOCCs), ○ contractors,
○ efficiency, c. government financial institutions
○ proportionality, (GFIs), and ○ consultants, and
○ accountability, d. local government units (LGUs),
○ public monitoring, ● shall, in all cases, be governed by these ○ service providers;
○ procurement, principles:
○ professionalization, a. Transparency (c) Efficiency
○ sustainability, and ● Transparency in the ● Efficiency by implementing an organized,
○ value for money procurement process by uniform, and straightforward government
● in government procurement. providing access to all related procurement process
information
● in accordance with open ● through the use of emerging technologies
contracting practice and innovative solutions;
● that enables the disclosure of
data and facilities information (d) Proportionality
sharing related to all stages of
● Proportionality by ensuring that the ● Participatory procurement through public economy, and
conditions and parameters in: monitoring of:
○ engenders minimal impact to the
○ the development of requirements, ○ the procurement process, and environment; and
○ choice of procurement modality, and ○ the implementation of contracts (h) Professionalism
● Professionalism in procurement through the
○ implementation of contracts ● to guarantee that every step is in accordance development of:
with:
● shall be reasonably proportional to: ○ qualification standards,
○ the provisions of this Act, and
○ the needs of the Procuring Entity, and ○ a competency and certification
○ its implementing rules and regulations framework, and
○ the nature of the contract or project to (IRR),
be procured; ○ a code of ethics
● and to ensure prudent and judicious use of
(e) Accountability government resources; ● that shall be observed by public procurement
● Accountability where all public officials and professionals.
personnel directly or indirectly involved: (g) Sustainability
● Sustainability in the procurement process
○ in the procurement process, and which:
Section 4. Scope and Application
○ in the implementation of contracts ○ covers the whole lifecycle of a
● This Act shall apply to the Procurement of:
property,
● are investigated and held accountable for
○ Goods,
their actions when necessary; ○ ensures value for money and
maximum benefits to society and the
○ Infrastructure Projects, and
(f) Participatory Procurement
○ Consulting Services, ○ to which the Philippine government is a ○ the budget for the contract approved
signatory by the Sanggunian through an
● regardless of source of funds, whether local ○ shall be observed. appropriations ordinance in the case
or foreign, of LGUs;
Section 5. Definition of Terms
● by all branches and instrumentalities of the (b) Beneficial Owner
● For purposes of this Act, the following terms
national government, its: ● refers to a natural person who:
or words and phrases shall mean or be
understood as follows:
○ departments, ○ (1) ultimately owns or dominantly
influences the management or policies
(a) Approved Budget for the Contract (ABC)
○ bureaus, of the juridical entity;
● refers to the budget for the contract duly
approved by the Head of the Procuring Entity,
○ offices and agencies, (c) Bid
as provided for:
● refers to a signed offer or proposal submitted
● including: by a:
○ in the General Appropriations Act or
other authorized source of funds, in the
○ SUCs, ○ supplier,
case of National Government Agencies
(NGAs);
○ GOCCs, ○ manufacturer,
○ the corporate budget for the contract
○ GFIs, and ○ distributor,
approved by the governing Boards,
pursuant to Executive Order (E.O.) No.
○ LGUs. ○ contractor,
518, series of 1979, in the case of
GOCCs, GFIs, and Republic Act No.
● Any treaty or international or executive ○ consultant, and
8292, or the “Higher Education
agreement affecting the subject matter of
Modernization Act of 1997”, in the case
this Act ○ service provider
of SUCs; and
● in response to the bidding documents; ○ Goods, Electronic Procurement System (PhilGEPS);
(d) Bidder ○ Infrastructure Projects, and (i) Consulting Services
● refers to a: ● refer to services for Infrastructure Projects
○ Consulting Services and other types of projects or activities of the
○ supplier, government requiring adequate external
● to be provided. technical and professional expertise
○ manufacturer,
(f) Bids and Awards Committee (BAC) ● that are beyond the capability and/or
○ distributor, ● refers to the Committee established in capacity of the government to undertake
accordance with Article V of this Act; such as, but not limited to:
○ contractor,
(g) Blacklisting ○ (1) advisory and review services;
○ consultant, and ● refers to an administrative penalty imposed
by the Head of the Procuring Entity ○ (2) pre-investment or feasibility
○ service provider studies;
● which prohibits a person or an entity
● who submits a bid in response to the including its affiliates from participating in all ○ (3) design;
requirements of the bidding documents; government procurement activities;
○ (4) construction supervision;
(e) Bidding Documents (h) Common-Use Supplies and Equipment (CSE)
● refer to documents issued by the Procuring ● refer to goods, materials, and equipment that ○ (5) management and related services;
Entity as the basis for Bids, are used respectively in the day-to-day and
operations of Procuring Entities in the
● furnishing all information necessary for a performance of their functions ○ (6) other technical services or special
prospective bidder to prepare a Bid for the: studies;
● which are included in the electronic
catalogue of the Philippine Government (j) End-User or Implementing Unit
● refers to the employee or organic office ● being procured; ○ the repair and maintenance of
within the organization of the Procuring Entity equipment and furniture,
that: (l) Goods
● refer to all items, supplies, materials, and ○ trucking,
○ identifies, general support services, except Consulting
Services and Infrastructure Projects, ○ hauling,
○ plans,
● which may be needed in the transaction of ○ janitorial,
○ prepares, public businesses or in the pursuit of any
government undertaking, project or activity, ○ security, and
○ designs, and
● whether in the nature of: ○ related or analogous services,
○ implements
○ equipment, ● as well as procurement of materials and
● the procurement project based on the supplies provided by the Procuring Entity for
requirements or needs of the agency in ○ furniture, such services;
accordance with its mandate;
○ stationery, (m) GPPB
(k) Financial Eligibility ● refers to the Government Procurement Policy
● refers to having the financial capacity to ○ materials for construction, or Board established in accordance with Article
manufacture, distribute, or deliver the: XIX of this Act;
○ personal property of any kind,
○ Goods, (n) Head of the Procuring Entity (HoPE)
● including non-personal or contractual ● refers to:
○ Infrastructure Projects, and services such as:
○ (1) the head of the agency or the duly
○ Consulting Services authorized official, for NGAs;
○ (2) the governing board or its duly ○ seaports, ○ other related construction projects of
authorized official for GOCCs, SUCs, the government;
and GFIs; or ○ communication facilities,
(p) Jury Duty
○ (3) the local chief executive, for LGUs: ○ civil works components of information ● refers to a responsibility in which the:
technology projects,
● Provided, That in a department, bureau, ○ BAC,
office, or agency where the procurement is ○ irrigation,
decentralized: ○ Technical Working Group (TWG), and
○ flood control and drainage,
○ the Head of each decentralized unit ○ Secretariat members, including
shall be considered as the HoPE ○ water supply, end-users,
○ subject to the limitations and authority ○ sewerage and solid waste ● give utmost priority to procurement
delegated by the head of the management systems, assignments over all the other duties and
department, bureau, office or agency; responsibilities
○ shore protection,
(o) Infrastructure Projects ● until the requirements for the procurement at
● include the construction, improvement, ○ energy/power and electrification hand are completed;
rehabilitation, demolition, repair, restoration, facilities,
or maintenance of: (q) Legal Eligibility
○ national buildings, ● refers to having the legal capacity to act as
○ roads and bridges, an entity
○ school buildings,
○ railways, ● as evidenced by permits, licenses, and/or
○ hospital buildings, and registrations required by law
○ airports,
● to engage in the business of manufacturing, ● in accordance with the form and conditions ○ (3) services, which refer to the delivery
distributing, or delivering the: set by the Department of Budget and of value or intangible acts or uses
Management (DBM); through high-level skills, expertise,
○ Goods, labor, or some form of knowledge,
(t) Philippine Government Electronic Procurement technology, or process-intensive
○ Infrastructure Projects, and System (PhilGEPS) activities; or
● refers to the single electronic procurement
○ Consulting Services portal managed by the Procurement Service ○ (4) intangible products, which refer to
(PS-DBM) properties without physical existence
● being procured; including, but not limited to, computer
● as provided in Section 20 of this Act; software and products of the creative
(r) Lifecycle Cost industry;
● refers to the total cost of ownership over the (u) Philippine Product and Services
entire life span of an asset from: ● refer to local goods, articles, materials, (v) Portal
supplies, services, and intangible products ● refers to a website that aggregate a wide
○ its acquisition, which may be: variety of content for the purpose of
attracting a large number of users;
○ operation, ○ (1) unmanufactured goods, articles,
materials, or supplies wholly obtained (w) Procurement
○ maintenance, and or produced in the Philippines; ● refers to the acquisition of:
○ disposal; ○ (2) any good, article, materials, and ○ Goods and Consulting Services, and
supplies produced, manufactured, or
(s) Multi-Year Contractual Authority (MYCA) assembled in the Philippines which has ○ the contracting for Infrastructure
● refers to the authority given to the Procuring a minimum local content as may be Projects
Entity to procure multi-year projects determined by the Department of
Trade and Industry (DTI); ● by the Procuring Entity;
● Procurement shall also include the lease of (y) Technical Eligibility ○ the procurement process, including
goods and real property; ● refers to having the experience or expertise to the forms to be used,
undertake the services, manufacturing,
● With respect to real property: distribution, or delivery of the: ○ shall be standardized insofar as
practicable.
○ its procurement shall be governed by ○ Goods,
the provisions of Republic Act No. ● For this purpose, the GPPB shall pursue:
10792, or “The Right-of-Way Act”, and ○ Infrastructure Projects, and
○ the development of generic
○ other applicable laws, rules and ○ Consulting Services procurement manuals, and
regulations;
● being procured; and ○ standard bidding forms,
(x) Procuring Entity
● refers to any branch, department, bureau, (z) Value for Money ● the use of which, once issued, shall be
office, agency, or instrumentality of the ● refers to the optimum combination of quality mandatory upon all Procuring Entities.
government, including: and cost
● However, whenever necessary, to suit the
○ SUCs, ● to meet the requirements and objectives of particular needs of the Procuring Entity:
the end-user.
○ GOCCs, ○ modifications may be made
particularly for major and specialized
○ GFIs, and procurement,
Section 6. Standardization of
○ LGUs ○ subject to the approval of the GPPB.
Procurement Process and Forms
● To systematize the procurement process,
● procuring Goods, Infrastructure Projects, and ● In addition, the GPPB shall develop:
avoid confusion, and ensure transparency:
Consulting Services;
○ a decision-tree to be included in the ○ which mode of procurement is the
IRR, most fit for their desired purpose.
● that shall guide Procuring Entities on: