Government Procurement Policy Board – Technical Support Office’s Proposed Amendments to the Republic Act No. 9184

The following proposals from the GPPB-TSO have been adopted in the NGPA:

  1. FIT-FOR-PURPOSE MODALITIESSeveral provisions are introduced that aim to achieve value for money, procurement efficiency, and quality public services through fit-for-purpose modalities.
    1. Value for MoneyA critical focus of the Act is on achieving value for money, defined as the optimum combination of quality and cost to meet end-user requirements. This principle encourages procuring entities to consider not just the lowest bid but also the overall quality and effectiveness of the goods and services procured.
    2. Selection based on Quality Criteria:The NGPA introduces the selection of winning bidders based on quality, in addition to cost. The Procuring Entity is allowed to give weight to quality factors based on a rated criteria to ensure that government projects are awarded to the bidder that can deliver the best value and quality, thereby improving project outcomes.
    3. Flexibility in Procurement MethodsThe Act provides procuring entities with the flexibility to select the most appropriate procurement methods based on specific needs and objectives, supporting efficient execution of procurement processes and delivery of quality public services.
  2. STRATEGIC PROCUREMENT PLANNINGThe Act emphasizes the need for proper and purposeful planning in procurement processes, which includes conducting relevant market scoping and analyzing available procurement modalities to ensure informed decisions tailored to specific project needs.
    1. Mandatory Market ScopingThe Act requires procuring entities to conduct market scoping as a preliminary step in preparing their Project Procurement Management Plan (PPMP) and gathering relevant market information to inform procurement decisions effectively.
    2. Early Procurement ActivitiesEarly Procurement Activities are encouraged to improve planning and execution of procurement projects, allowing for the identification of potential challenges and opportunities.
    3. Life Cycle Assessment (LCA) and Life Cycle Costing (LCC) AnalysisThe Act mandates consideration of the entire lifecycle of procurement projects, emphasizing LCA and LCC as essential tools for evaluating long-term costs and benefits, ensuring sustainable consumption.
    4. Engagement of a Procurement AgentThe Act allows for the engagement of procurement agents to assist in complex projects, ensuring access to expertise and resources that enhance procurement effectiveness.
    5. Use of Framework AgreementsFramework agreements are introduced as a strategic modality allowing for long-term relationships with suppliers, leading to more efficient procurement processes and better pricing.
    6. Design and Build SchemeThe Act supports the design and build scheme for infrastructure projects, streamlining project delivery and enhancing collaboration between designers and builders, since there is a single point of responsibility for quality, cost, and scheduling of activities, including risks related to design.
    7. Pooled ProcurementPooled procurement encourages multiple entities to collaborate in procuring goods or services, leading to economies of scale and improved bargaining power.
    8. Renewal of Regular and Recurring ServicesThe Act provides for the renewal of regular and recurring services as part of strategic procurement planning, ensuring effective management of ongoing regular and recurring services.
  3. MODERNIZING PROCUREMENT PROCESSESThe new Government Procurement Act aims to modernize procurement processes through the use of emerging technologies and integrated systems among relevant government agencies.

    A. Streamlining Procurement through Integrated Systems

    1. Enhanced Efficiency PrincipleThe Act emphasizes efficiency as a key principle, aiming for an organized, uniform, and straightforward procurement process through innovative solutions and emerging technologies.
    2. Procurement Planning to PaymentAn integrated system covering the entire procurement process, from planning to payment, is established to streamline operations and enhance efficiency.
    3. Interconnected DatabaseThe Act authorizes the establishment of a single portal for procuring entities to access an interconnected database of ongoing projects, licenses, permits, and other relevant information.

    B. Leveraging Emerging Technologies

    1. Electronic PaymentThe Act mandates the use of electronic payment systems to streamline the procurement process and reduce administrative burdens.
    2. Procurement Data AnalyticsThe GPPB is empowered to analyze data from PhilGEPS and submitted reports to assist procuring entities in strategic planning and policy formulation.
  4. INSTITUTIONALIZING SUSTAINABLE PUBLIC PROCUREMENTThe new Government Procurement Act embeds economic, environmental, and social considerations into procurement projects.
    1. Sustainability PrincipleThe Act states that sustainability should guide the procurement process, minimizing environmental impacts and promoting social equity.
    2. Green Public Procurement (GPP)The Act promotes environmentally friendly practices, aligning public procurement with sustainable development goals.
    3. Inclusive Procurement ProgramsThe Act supports initiatives ensuring marginalized groups have equal opportunities to participate in government procurement.
    4. Development of a Gender-Responsive Procurement FrameworkA gender-responsive procurement framework is mandated to integrate gender considerations into procurement processes.
    5. Green Local Market DevelopmentThe Act encourages the development of a Green Local Market, promoting local products and services that adhere to sustainable practices.
  5. ENHANCING TRANSPARENCY AND ACCOUNTABILITYThe new Government Procurement Act enhances transparency and accountability through measures promoting open contracting standards and public monitoring.
    1. Open Government and Open ContractingThe Act mandates open access to the procurement process, ensuring all related information is publicly available.
    2. Beneficial Ownership DeclarationThe Act requires bidders to declare beneficial ownership information, preventing corruption and ensuring transparency in public contracts.
    3. Public Monitoring and Observer ParticipationThe Act institutionalizes the role of Civil Society Organizations (CSOs) in monitoring procurement activities, enhancing public trust and accountability.
    4. Development of a Gender-Responsive Procurement FrameworkA gender-responsive procurement framework is mandated to integrate gender considerations into procurement processes.
    5. Participatory ProcurementThe Act emphasizes participatory procurement as a governing principle, ensuring public monitoring is integral to the procurement process.
  6. PROFESSIONALIZATION OF PUBLIC PROCUREMENTThe New Government Procurement Act emphasizes the professionalization of public procurement in the Philippines.
    1. Professionalization as a Declaration of PolicyThe Act promotes procurement professionalization, highlighting the importance of qualified personnel in the procurement process.
    2. Development of Qualification StandardsThe Act mandates the establishment of qualification standards for procurement positions to outline necessary skills and competencies.
    3. Certification FrameworkA competency and certification framework will be developed to assess and certify procurement professionals.
    4. Code of Ethics for Procurement ProfessionalsThe Act includes the creation of a code of ethics for procurement professionals to promote integrity and accountability.
    5. Licensing of Procurement PractitionersThe Act introduces licensing for procurement practitioners to ensure only qualified individuals perform procurement functions.
  7. OTHER KEY PROVISIONS
    1. Adoption of a simpler mechanism for price escalation.
    2. Amplification of the three major roles of the GPPB: formulation of the IRR, establishment of a Professionalization Program, and implementation of a Strategic Procurement Monitoring Program.
    3. Establishment of the Inter-Agency Technical Working Group (IATWG) to provide expertise in policy formulation.
    4. Clarification of prioritization for domestic bids with DTI Domestic Bid Certificate while allowing foreign bids.
    5. Strengthening sanction mechanisms against private entities, including suspension for procurement violations and blacklisting for fraud or collusion. As a rehabilitative action, appropriate corrective measures may also be imposed, subject to the guidelines issued by the GPPB.