RA 9184-Procurement Act

8/13/2019 RA 9184-Procurement Act

1/22

REPUBLIC ACT No. 9184 January 10, 2003

AN ACT PROVIDING FOR THE MODERNIZATION, STANDARIZATION AND REGULATION OFTHE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES

Republic of the Philippines

Congess of the PhilippinesMetro Manila

T!elfth Congess"econ# Regul$ "ession

Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand two.

Republic Act No. 9184 %$nu$& 1'( )''*

AN ACT PR+,I-IN /+R T0E +-ERNI2ATI+N( "TAN-ARI2ATI+N AN- REULATI+N+/ T0E PR+CUREENT ACTI,ITIE" +/ T0E +,ERNENT AN- /+R +T0ERPURP+"E"

Be it enacted by te Senate and H!"e !# Re$%e"entati&e" !# te Pi'i$$ine" in C!n(%e""a""e)b'ed:

ARTICLE 1ENERAL PR+,I"I+N"

"ection 1.S!%t Tit'e*+This act shall be nown as the ! "o#ern$ent %rocure$ent refor$ &ct.!

"ection ).Dec'a%ati!n !# P!'icy*+'t is the declared (olicy of the )tate to (ro$ote the ideals of

good go#ernance in all its branches, de(art$ents, agencies, subdi#isions, and instru$entalities,including go#ern$ent-owned and*or -controlled cor(orations and local go#ern$ent units.

"ection *.G!&e%nin( P%inci$'e" !n G!&e%n)ent P%!c%e)ent*

&ll (rocure$ent of the national go#ern$ent, its de(art$ents, bureaus, offices and agencies,including state uni#ersities and colleges, go#ern$ent -owned and*or-controlled cor(orations,go#ern$ent financial institutions and local go#ern$ent units, shall, in all cases, be go#erned bythese (rinci(les:

+a Trans(arency in the (rocure$ent (rocess and in the i$(le$entation of (rocure$entcontracts.

+b o$(etiti#eness by etending e/ual o((ortunity to enable (ri#ate contracting (artieswho are eligible and /ualified to (artici(ate in (ublic bidding.

+c )trea$lined (rocure$ent (rocess that will unifor$ly a((ly to all go#ern$ent(rocure$ent. The (rocure$ent (rocess shall si$(le and $ade ada(table to ad#ances in$odern technology in order to ensure an effecti#e and efficient $ethod.


2/22

+d )yste$ of accountability where both the (ublic officials directly or indirectly in#ol#ed inthe (rocure$ent (rocess as well as in the i$(le$entation of (rocure$ent contracts andthe (ri#ate (arties that deal with go#ern$ent are, when warranted by circu$stances,in#estigated and held liable for their actions relati#e thereto.

+e %ublic $onitoring of the (rocure$ent (rocess and the i$(le$entation of awarded

contracts with the end in #iew of guaranteeing that these contracts are awarded (ursuantto the (ro#isions of this &ct and its i$(le$enting rules and regulations, and that all thesecontracts are (erfor$ed strictly according to s(ecifications.

"ection 4. Sc!$e and A$$'icati!n*+This act shall a((ly to the %rocure$ent of 'nfrastructure%roects, "oods and onsulting )er#ices, regardless of source of funds, whether local of foreign,by all branches and instru$entalities of go#ern$ent, its de(art$ents, offices and agencies,including go#ern$ent-owned and*or-controlled cor(orations and local go#ern$ent units, subectto the (ro#isions of o$$onwealth &ct o. 13. &ny treaty or international or eecuti#eagree$ent affecting the subect $atter of this &ct to which the %hili((ine go#ern$ent is signatoryshall be obser#ed.

"ection 3. De#initi!n !# Te%)"*+ or (ur(oses of this &ct, the following ter$s or words and

(hrases shall $ean or be understood as follows:

+a &((ro#ed Budget for the ontract +&B - refers to the budget for the contract dulya((ro#ed by the 4ead of the %rocuring 5ntity, as (ro#ided for in the "eneral

&((ro(riations &ct and*or continuing a((ro(riations, in the ational "o#ern$ent&gencies6 the or(orate Budget for the contract a((ro#ed by the go#erning Boards,(ursuant to 5.7.o.81, series of 199, in the case of "o#ern$ent inancial 'nstitutionsand )tate ;ni#ersities and olleges6 and the Budget for the contract a((ro#ed by theres(ecti#e )anggunian, in the case of


3/22

+h "oods - refer to all ite$s, su((lies, $aterials and general su((ort ser#ices, ece(tconsulting ser#ices and infrastructure (roects, which $ay be needed in the transaction ofthe (ublic businesses or in the (ursuit of any go#ern$ent undertaing, (roect or acti#ity,whether in the nature of e/ui($ent, furniture, stationery, $aterials for construction, or(ersonal (ro(erty of any ind, including non - (ersonal or contractual ser#ices such asthe re(air and $aintenance of e/ui($ent and furniture, as well as trucing, hauling,

anitorial, security, and related or analogous ser#ices, as well as (rocure$ent of $aterialsand su((lies (ro#ided by the (rocuring entity or such ser#ices.

+i "%%B - refers to the "o#ern$ent %rocure$ent %olicy Board established inaccordance with &rticle @ of this &ct.

+ 4ead of the %rocuring 5ntity- refers to: +' the head of the agency or his dulyauthoriAed official, for national go#ern$ent agencies6 +ii the go#erning board or its dulyauthoriAed official, for go#ern$ent-owned and*or-controlled cor(orations6 or +iii the localchief eecuti#e, for local go#ern$ent units. %ro#ided, That in a de(art$ent, office oragency where the (rocure$ent is decentraliAed, the 4ead of each decentraliAed unitshall be considered as the 4ead of the %rocuring 5ntity subect to the li$itations andauthority delegated by the head of the de(art$ent, office or agency.

+ 'nfrastructure %roects - include the construction, i$(ro#e$ent, rehabilitation,de$olition, re(air, restoration or $aintenance of roads and bridges, railways, air(orts,sea(orts, co$$unication faci9lities, ci#il wors co$(onents of infor$ation technology(roects, irrigation, flood control and drainage, water su((ly, sanitation, sewerage andsolid waste $anage$ent syste$s, shore (rotection, energy*(ower and electrificationfacilities, national buildings, school buildings and other related construction (roects of thego#ern$ent.

+l '?? - refer to the i$(le$enting rules and regulations to be (ro$ulgated in accordancewith )ection 8 of this &ct.

+$ %ortal - refers to a website that aggregates a wide #ariety of content for the (ur(ose

of attracting a large nu$ber of users.

+n %rocure$ent - refers to the ac/uisition of "oods, onsulting )er#ices, and thecontracting for 'nfrastructure %roects by the %rocuring 5ntity. %rocure$ent shall alsoinclude the lease of goods and real estate. ith res(ect to real (ro(erty, its (rocure$entshall be go#erned by the (ro#isions of ?e(ublic &ct o.9C, entitled !&n &ct to acilitatethe &c/uisition of ?ight-of -ay )ite or


4/22

ARTICLE IIPR+CUREENT PLANNIN

"ection 5.P%!c%e)ent P'annin( and Bd(etin( Lin.a(e+&ll (rocure$ent should be within thea((ro#ed budget of the %rocuring 5ntity and should be $eticulously and udiciously (lanned bythe %rocuring 5ntity concerned. onsistent with go#ern$ent fiscal disci(line $easures, only

those considered crucial to the efficient discharge of go#ern$ental functions shall be included inthe &nnual %rocure$ent %lan t o be s(ecified in the '??.

o go#ern$ent %rocure$ent shall be undertaen unless it is in accordance with the a((ro#ed&nnual %rocure$ent %lan of the %rocuring 5ntity. The &nnual %rocure$ent %lan shall bea((ro#ed by the 4ead of the %rocuring 5ntity and $ust be consistent with its duly a((ro#edyearly budget. The &nnual %rocure$ent %lan shall be for$ulated and re#ised only in accordancewith the guidelines set forth in the '??. 'n the case of 'nfrastructure %roects, the %lan shallinclude engineering design and ac/uisition of right-of-way.

ARTICLE IIIPR+CUREENT B6 ELECTR+NIC EAN"

"ection 8. P%!c%e)ent By E'ect%!nic Mean"*+ To (ro$ote trans(arency and efficiency,infor$ation and co$$unications technology shall be utiliAed in the conduct of (rocure$ent(rocedures. &ccordingly, there shall be single (ortal that shall ser#e as the (ri$ary source ofinfor$ation on all go#ern$ent (rocure$ent. The "-5%) shall ser#e as the (ri$ary and definiti#esource of infor$ation on go#ern$ent (rocure$ent. urther, the "%%B is authoriAed to a((ro#echanges in the (rocure$ent (rocess to ada(t to i$(ro#e$ents in $odern technology, (ro#idedthat such $odifications are consistent with (ro#isions of )ection 3 of this &ct.

To tae ad#antage of the significant built-in-efficiencies of the "-5%) and the #olu$e discountsinherent in bul (urchasing, all %rocuring 5ntities shall utiliAe the "-5%) for the (rocure$ent ofco$$on su((lies in accordance with the rules and (rocedures to be established by the "%%B.ith regard to the (rocure$ent of non-co$$on use ite$s, infrastructure (roects and consultingser#ices, agencies $ay hire ser#ice (ro#iders to undertae their electronic (rocure$ent (ro#ided

these ser#ice (ro#iders $eet the $ini$u$ re/uire$ents set by the "%%B.

"ection 9.Sec%ity, Inte(%ity and C!n#identia'ity*+The "-5%) shall ensure the security, integrityand confidentiality of docu$ents sub$itted through the syste$. 't shall include feature that(ro#ides for an audit trail for on-line transactions and allow the o$$ission on &udit to #erify thesecurity and integrity of the syste$s at any ti$e.

ARTICLE I,C+PETITI,E BI--IN

"ection 1'.C!)$etiti&e Biddin(*+&ll %rocure$ent shall be done through o$(etiti#e Bidding,ece(t as (ro#ided for in &rticle @=' of this &ct.

ARTICLE ,BI-" AN- A7AR-" C+ITTEE

"ection 11.Te BAC and it" C!)$!"iti!n*+5ach (rocuring entity shall establish a single B& forits (rocure$ent. The B& shall ha#e at least fi#e +8 $e$bers, but not $ore than se#en +$e$bers. 't shall be chaired by at least a third raning (er$anent official of the (rocuring entityother than its head, and its co$(osition shall be s(ecified in the '??. &lternati#ely, as $ay bedee$ed fit by the head of the (rocuring entity, there $ay be se(arate B&s where the nu$berand co$(leity of the ite$s to be (rocured shall so warrant. )i$ilar B&s for decentraliAed and


5/22

lower le#el offices $ay be for$ed when dee$ed necessary by the head of the (rocuring entity.The nu$bers of the B& shall be designated by the 4ead of %rocuring 5ntity. 4owe#er, in nocase shall the a((ro#ing authority be a $e$ber of the B&.

;nless sooner re$o#ed for cause, the $e$bers of the B& shall ha#e a fied ter$ of one +1year reconed fro$ the date of a((oint$ent, renewable at the discretion of the 4ead of the

%rocuring 5ntity. 'n case of resignation, retire$ent, se(aration, transfer, re-assign$ent, re$o#al,the re(lace$ent shall ser#e only for the une(ired ter$: %ro#ided, That in case of lea#e orsus(ension, the re(lace$ent shall ser#e only for the duration of the lea#e or sus(ension. or

ustifiable causes, a $e$ber shall be sus(ended or re$o#ed by the 4ead of the %rocuring 5ntity.

"ection 1).Fncti!n" !# te BAC*+shall ha#e the following functions: ad#ertise and*or (ost thein#itation to bid, conduct (re-(rocure$ent and (re-bid conferences, deter$ine the eligibility of(ros(ecti#e bidders, recei#e bids, conduct the e#aluation of bids, undertae (ost-/ualification(roceedings, reco$$end award of contracts to the 4ead of the %rocuring 5ntity of his dulyauthoriAed re(resentati#e: %ro#ided, That in the e#ent the 4ead of the %rocuring shall disa((ro#esuch reco$$endation, such disa((ro#al shall be based only on #alid, reasonable and ustifiablegrounds to be e(ressed in writing, co(y furnished the B&6 reco$$end the i$(osition ofsanctions in accordance with &rticle @@''', and (erfor$ such other related functions as $ay

necessary, including the creation of a Technical oring "rou( fro$ a (ool of technical, financialand*or legal e(erts to assist in the (rocure$ent (rocess.

'n (ro(er cases, the B& shall also reco$$end to the 4ead of the %rocuring 5ntity the use of&lternati#e Methods of %rocure$ent as (ro#ided for in &rticle @=' hereof.

The B& shall be res(onsible for ensuring that the %rocuring 5ntity abides by the standards setforth by this &ct and the '??, and it shall (re(are a (rocure$ent $onitoring re(ort that shall bea((ro#ed and sub$itted by the 4ead of the %rocuring 5ntity to the "%%B on a se$estral basis.The contents and co#erage of this re(ort shall be (ro#ided in the '??.

"ection 1*.Ob"e%&e%"*+To enhance the trans(arency of the (rocess, the B& shall, in all stagesof the (rocure$ent (rocess, in#ite, in addition to the re(resentati#e of the o$$ission on &udit,

at least two+2 obser#ers to sit in its (roceedings, one+1 fro$ a duly recogniAed (ri#ate grou( ina sector or disci(line rele#ant to the (rocure$ent at hand, and the other fro$ a non-go#ern$entorganiAation: %ro#ided, howe#er, That they do not ha#e any direct or indirect interest in thecontract to be bid out. The obser#ers should be duly registered with the )ecurities and 5changeo$$ission and should $eet the criteria for obser#ers as set forth in the '??.

"ection 14.BAC Sec%eta%iat*+To assist the B& in the conduct of its functions, the 4ead of the%rocuring 5ntity shall create a )ecretariat that will ser#e as the $ain su((ort unit of the B&. The4ead of the %rocuring 5ntity $ay also designate an eisting organic office within the agency toser#e as the )ecretariat.

"ection 13.H!n!%a%ia !# BAC Me)be%"*+The %rocuring 5ntity $ay grant (ay$ent of honorariato the B& $e$bers in an a$ount not to eceed twenty fi#e (ercent +28D of their res(ecti#e

basic $onthly salary subect to a#ailability of funds. or this (ur(ose, the >e(art$ent of Budgetand Manage$ent +>BM shall (ro$ulgate the necessary guidelines.

"ection 1. P%!#e""i!na'i-ati!n !# BAC, BAC Sec%eta%iat and Tecnica' /!%.in( G%!$Me)be%"*+The "%%B shall establish a sustained training (rogra$ for de#elo(ing the ca(acity ofthe B&Es, B& )ecretariats and technical oring "rou(s of %rocuring 5ntities, and(roffessionaliAe the sa$e.


6/22

ARTICLE ,IPREPARATI+N +/ BI--IN -+CUENT"

"ection 15. F!%) and C!ntent" !# Biddin( D!c)ent"*+ The Bidding >ocu$ents shall be(re(ared by the %rocuring 5ntity following the standard for$s and $anuals (rescribed by the"%%B. The Bidding >ocu$ents shall include the following:

+a &((ro#ed Budget for the ontract6

+b 'nstructions to Bidders, including criteria for eligibility, bid e#aluation and (ost-/ualification, as well as the date, ti$e and (lace of the (re-bid onference +wherea((licable, sub$ission of bids and o(ening of bids6

+c Ter$s of ?eference6

+d 5ligibility ?e/uire$ents6

+e %lans and Technical )(ecifications6

+f or$ of Bid, %rice or$, and


7/22

the draft 'n#itation to Bid, as well as consultants hired by the agency concerned and there(resentati#e of the end -user.

"ection )1.Ad&e%ti"in( and C!ntent" !# te In&itati!n t! Bid* + 'n line with the (rinci(le oftrans(arency and co$(etiti#eness, all 'n#itations to Bid contracts under co$(etiti#e bidding shallbe ad#ertised by the %rocuring 5ntity in such $anner and for such length of ti$e as $ay be

necessary under the circu$stances, in order to ensure the widest (ossible disse$ination thereof,such as, but not li$ited to, (osting in the %rocuring 5ntityEs (re$ises, in news(a(ers of generalcirculation, the "-5%) and the website of the %rocuring 5ntity, if a#ailable. The details and$echanics of i$(le$entation shall be (ro#ided in the '?? to be (ro$ulgated under this &ct.

The 'n#itation to Bid shall contain, a$ong others:

+a & brief descri(tion of the subect $atter of the %rocure$ent6

+b & general state$ent on the criteria to be used by the %rocuring entity for the eligibilitychec, the short listing of (ros(ecti#e bidders, in the case of the %rocure$ent ofonsulting )er#ices the ea$ination and e#aluation of Bids, and (ost-/ualification6

+c The date, ti$e and (lace of the deadlines for the sub$ission and recei(t of theeligibility re/uire$ents, the (re-bid conference if any, the sub$ission and recei(t of bids,and the o(ening of bids6

+d The &((ro#ed Budget for the ontract to be bid6

+e The source of funds6

+f The (eriod of a#ailability of the Bidding >ocu$ents, and the (lace where these $ay besecured and6

+g The contract duration6 and

+h )uch other necessary infor$ation dee$ed rele#ant by the %rocuring 5ntity.

"ection )).P%e+bid C!n#e%ence* +&t least one (re-bid conference shall be conducted for each(rocure$ent, unless otherwise (ro#ided in the '??. )ubect to the a((ro#al of the B&, a (re-bidconference $ay also be conducted u(on the written re/uest of any (ros(ecti#e bidder.

The %re-bid conference+s shall be held within a reasonable (eriod before the deadline for recei(tof the bids to allow (ros(ecti#e bidders to ade/uately (re(are their bids, which shall be s(ecifiedin the '??.

ARTICLE ,IIIRECEIPT AN- +PENIN +/ BI-"

"ection )*.E'i(ibi'ity Re0i%e)ent" #!% te P%!c%e)ent !# G!!d" and In#%a"t%ct%e P%!1ect"*+The B& or, under s(ecial circu$stances s(ecified in '??, its duly designated organic office shalldeter$ine the eligibility of (ros(ecti#e bidders for the (rocure$ent of "oods and 'nfrastructure%roects, based on the biddersE co$(liance with the eligibility re/uire$ents within the (eriod setforth in the 'n#itation to Bid. The eligibility re/uire$ents shall (ro#ide for fair and e/ual access toall (ros(ecti#e bidders. The docu$ents sub$itted in satisfaction of the eligibility re/uire$entsshall be $ade under oath by the (ros(ecti#e bidder or by his duly authoriAed re(resentati#e


8/22

certifying to the correctness of the state$ents $ade and the co$(leteness and authenticity of thedocu$ents sub$itted.

& (ros(ecti#e bidder $ay be allowed to su$$it his eligibility re/uire$ent s electronically.4owe#er, said bidder shall later on certify under oath as to correctness of the state$ents $adeand the co$(leteness and authenticity of the docu$ents sub$itted.

"ection )4.E'i(ibi'ity %e0i%e)ent" and S!%t Li"tin( #!% C!n"'tin( Se%&ice"*+ The 5ligibility of(ros(ecti#e bidders for the %rocure$ent of onsulting )er#ices shall be deter$ine by theirco$(liance with the eligibility re/uire$ents (rescribed for the co$(etiti#e Bidding concerned,within the (eriod stated in the 'n#itation to bid. The eligibility re/uire$ents shall (ro#ide for fairand e/ual access to all (ros(ecti#e bidders. The (ros(ecti#e bidder shall certify under oath as tothe correctness of the state$ents $ade, and the co$(leteness and authenticity of the docu$entssub$itted.

& (ros(ecti#e bidder $ay be allowed to sub$it his eligibility re/uire$ents electronically.4owe#er, said bidder shall later on certify under oath as to correctness of the state$ents $adeand the co$(leteness and authenticity of the docu$ents sub$itted.

The eligible (ros(ecti#e bidders shall then be e#aluated using nu$erical ratings on the basis ofthe short listing re/uire$ents (rescribed for the o$(etiti#e Bidding concerned, within the (eriodstated in the 'n#itation to Bid to deter$ine the short list of bidders who shall be allowed to sub$ittheir res(ecti#e bids.

"ection )3.Sb)i""i!n and Recei$t !# Bid"*+& bid shall ha#e two+2 co$(onents, na$ely thetechnical and financial co$(onents which should be in se(arate sealed en#elo(es, and whichshall be sub$itted si$ultaneously. The bids shall be recei#ed by the B& on such date, ti$e and(lace s(ecified in the in#itation to bid. The deadline for the recei(t of bids shall be fied by theB&, gi#ing the (ros(ecti#e bidders sufficient ti$e to study and (re(are their bids. The deadlineshall also consider the urgency of the (rocure$ent in#ol#ed.

Bids sub$itted after the deadline shall not be acce(ted.

otwithstanding the (ro#isions of this )ection and )ection 2G of this &ct, the "%%B $ay(rescribe inno#ati#e (rocedure for the sub$ission, recei(t and o(ening of bids through the "-5%).

"ection ).M!di#icati!n and /itd%a2a' !# Bid"* +& bidder $ay $odify his bid, (ro#ided that thisis done before the deadline for the recei(t of bids. The $odification shall be sub$itted in a sealeden#elo(e duly identified as a $odification of the original bid and sta$(ed recei#ed by the B&.

& bidder $ay, through a letter, withdraw his bid or e(ress his intention not to (artici(ate in thebidding before the deadline for the recei(t of bids. 'n such case, he shall no longer be allowed tosub$it another Bid or the sa$e contract either directly or indirectly.

"ection )5.Bid Sec%ity* +&ll Bids shall be acco$(anied by a Bid security, which shall ser#e asguarantee that, after recei(t of the otice of &ward, the winning bidders shall enter into contractwith the %rocuring 5ntity within the sti(ulated ti$e and furnish the re/uired (erfor$ance security.The s(ecific a$ounts and allowable for$s of the Bid security shall be (rescribed in the '??.

"ection )8.Bid Va'idity* +Bids and Bid securities shall be #alid for such reasonable (eriod ofti$e indicated in the Bidding >ocu$ents. The duration for each undertaing shall tae intoaccount the ti$e in#ol#ed in the (rocess of Bid e#aluation and award of contract.


9/22

"ection )9. Bid O$enin(* + the B& shall (ublicly o(en all bids at the ti$e, date, and (laces(ecified in the bidding docu$ents. The $inutes of the bid o(ening shall be $ade a#ailable to the(ublic u(on written re/uest and (ay$ent of a s(ecified fee.

ARTICLE IBI- E,ALUATI+N

"ection *'.P%e'i)ina%y E3a)inati!n !# Bid"* +%rior to Bid e#aluation, the B& shall ea$ine firstthe technical co$(onents of the bids using !(ass*fail! criteria to deter$ine whether all re/uireddocu$ents are (resent. 7nly bids that are deter$ined to contain all the bid re/uire$ents of thetechnical co$(onent shall be considered for o(ening and e#aluation of their financial co$(onent.

"ection *1.Cei'in( #!% Bid P%ice"* +The &B shall be the u((er li$it or ceiling for the Bid (rices.Bid (rices that eceed this ceiling shall be dis/ualified outright fro$ further (artici(ating in thebidding. There shall be no lower li$it to the a$ount of the award.

"ection *).Bid #!% te P%!c%e)ent !# G!!d" and In#%a"t%ct%e P%!1ect"* +or the (rocure$entof "oods and 'nfrastructure %roects, the B& shall e#aluate the financial co$(onent of the bids.The bids that (assed the (reli$inary ea$ination shall be raned fro$ lowest to highest in ter$s

of their corres(onding calculated (rice shall be referred to as the !


10/22

or 4ighest ?ated Bid is (ost-dis/ualified, the sa$e (rocedure shall be re(eated until the


11/22

'n the case of go#ern$ent-owned and*or -controlled cor(orations, the concerned board shall taeaction on the said reco$$endation within thirty +30 calendar days fro$ recei(t thereof.

The %rocuring 5ntity shall issue the otice to %roceed to the winning bidder not later than se#en+ calendar days fro$ the date of a((ro#al of the contract by the a((ro(riate authority. &llnotices called for by the ter$s of the contract shall be effecti#e only at the ti$e of recei(t thereof

by the contractor.

"ection *8. Pe%i!d !# Acti!n !n P%!c%e)ent Acti&itie"* +The (rocure$ent (rocess fro$ theo(ening of bids u( to the award of contract shall not eceed three +3 $onths, or a sho0rter(eriod to be deter$ined by the (rocuring entity concerned. ithout (reudice to the (ro#isions ofthe (receding section, the different (rocure$ent acti#ities shall be co$(leted within reasonable(eriods to be s(ecified in the '??.

'f no action on the contract is taen by the head of the (rocuring entity or by his duly authoriAedre(resentati#e, or by the concerned board, in the case of go#ern$ent-owned and*or -controlledcor(orations, within the (eriods s(ecified in the (receding (aragra(h, the contract concernedshall be dee$ed a((ro#ed.

"ection *9.Pe%#!%)in( Sec%ity* +%rior to the signing of the contract, the winning bidder shall, asa $easure of guarantee for the faithful (erfor$ance of an co$(liance with his obligations underthe contract (re(ared in accordance with the Bidding >ocu$ents, be re/uired to (ost a(erfor$ance security in such for$ and a$ount as s(ecified in the Bidding >ocu$ents.

"ection 4'. Fai'%e t! Ente% int! C!nt%act and P!"t Pe%#!%)ance Sec%ity* + 'f, for ustifiablecauses, the bidder with the ocu$ents, the B& shall dis/ualify the said bidder and shall undertae (ost-/ualification for thenet-raned


12/22

be (rescribed in the '??. The rules and guidelines shall include standard general and s(ecialconditions for contracts.

ARTICLE II-+E"TIC AN- /+REIN PR+CUREENT

"ection 4*. P%!c%e)ent !# D!)e"tic and F!%ei(n G!!d"* + onsistent with the countryEsobligations under international treaties or agree$ents, "oods $ay be obtained for do$estic orforeign sources and the (rocure$ent thereof shall be o(en to all eligible su((liers, $anufacturersand distributors. 4owe#er, in the interest of a#ailability, efficiency and ti$ely deli#ery of "oods,the %rocuring 5ntity $ay gi#e (reference to the (urchase of do$estically-(roduced and$anufacturer goods, su((lies and $aterials that $eet the s(ecified or desired /uality.

ARTICLE IIIBI--IN +/ PR+,INCIAL PR+%ECT"

"ection 44.Biddin( !# P%!&incia' P%!1ect"* +%riority (rogra$s and infrastructure (roects fundedout of the annual "eneral &((ro(riations &ct which are intended for i$(le$entation within the(ro#ince shall be subect to the sa$e (ublic bidding and to the (rocure$ent (rocesses(rescribed under this &ct. or (ur(oses of this &rticle, 5ngineering >istrict ci#il wors (roects,subect to consultation with the concerned Me$bers of ongress, are included and subsu$ed inthe ter$ !(ro#incial (roects! and shall be go#erned by this )ection and )ection C8 hereof.

"ection 43.P%!&incia' Bidde%"* +ithin fi#e +8 years fro$ the effecti#ity of this &ct, contractorwho (artici(ates in the bidding of (ro#incial (riority (rogra$s and infrastructure (roects, whose(rinci(al office is within the sa$e (ro#ince, and who sub$its the lowest bid a$ong the (ro#incialbidders which is higher than the lowest bid $ade by a contractor with (rinci(al office outside thesaid (ro#ince shall be granted the (ri#ilege to $atch the bid $ade by the latter: %ro#ided,howe#er, That the release of funds for said (roects shall be (ublished in a local news(a(er withthe widest circulation and the website of the >BM, the $echanis$s of which shall be s(elled-outin the '??.

ARTICLE I,LEA"E +/ C+PUTER"( C+UNICATI+N"( IN/+RATI+N AN- +T0ER E:UIPENT

"ection 4.Lea"e C!nt%act"* +


13/22

ARTICLE ,IALTERNATI,E ET0+-" +/ PR+CUREENT

"ection 48.A'te%nati&e Met!d"* +)ubect to the (rior a((ro#al of the 4ead of the %rocuring5ntity or his duly authoriAed re(resentati#e, and whene#er ustified by the conditions (ro#ided inthis &ct, the %rocuring 5ntity $ay, in order to (ro$ote econo$y and efficiency, resort to any of

the following alternati#e $ethods of %rocure$ent:

a. Li)ited S!%ce Biddin(, !te%2i"e .n!2n a" Se'ecti&e Biddin( + a $ethod of%rocure$ent that in#ol#es direct in#itation to bid by the %rocuring 5ntity fro$ a set of (re-selected su((liers or consultants with nown e(erience and (ro#en ca(ability relati#e tothe re/uire$ents of a (articular contract6

b. Di%ect C!nt%actin(, !te%2i"e .n!2n a" Sin('e S!%ce P%!c%e)ent + a $ethod of%rocure$ent that does not re/uire elaborate Bidding >ocu$ents because the su((lier issi$(ly ased to sub$it a (rice /uotation or a (ro-for$a #oice together with the conditionsof sale, which offer $ay be acce(ted i$$ediately or after so$e negotiations6

c. Re$eat O%de%* +a $ethod of %rocure$ent that in#ol#es a direct %rocure$ent of "oods

fro$ the (re#ious winning bidder, whene#er there is a need to re(lenish "oods (rocuredunder a contract (re#iously awarded through o$(etiti#e Bidding6

d. S!$$in( +a $ethod of %rocure$ent whereby the %rocuring 5ntity si$(ly re/uests forthe sub$ission of (rice /uotations for readily a#ailable off-the-shelf "oods orordinary*regular e/ui($ent to be (rocured directly fro$ su((liers of nown /ualification6or

e. Ne(!tiated P%!c%e)ent +a $ethod of %rocure$ent that $ay be resorted under theetraordinary circu$stances (ro#ided for in )ection 83 of this &ct and other instancesthat shall be s(ecified in the '??, whereby the %rocuring 5ntity directly negotiates acontract with a technically, legally and financially ca(able su((lier, contractor orconsultant.

'n all instances, the %rocuring 5ntity shall ensure that the $ost ad#antageous (rice for thego#ern$ent is obtained.

"ection 49.Li)ited S!%ce Biddin(* +


14/22

b. hen the %rocure$ent of critical co$(onents fro$ a s(ecific $anufacturer, su((lier,or distributor is a condition (recedent to hold a contractor to guarantee its (roect(erfor$ance, in accordance with the (ro#isions his contract6 or,

c. Those sold by an eclusi#e dealer or $anufacturer, which does not ha#e sub-dealersselling at lower (rices and for which no suitable substitute can be obtained at $ore

ad#antageous ter$s to the go#ern$ent.

"ection 31.Re$eat O%de%* +hen (ro#ided for in the &nnual %rocure$ent %lan, ?e(eat 7rder$ay be allowed wherein the %rocuring 5ntity directly (rocures "oods fro$ the (re#ious winningbidder whene#er there arises a need to re(lenish goods (rocured under a contract (re#iouslyawarded through o$(etiti#e Bidding, subect to (ost-/ualification (rocess (rescribed in theBidding >ocu$ents and (ro#ided all the following conditions are (resent:

a. The unit (rice $ust be e/ual to or lower than that (ro#ided in the original contract6

b. The re(eat order does not result in s(litting of re/uisitions or (urchase orders6

c. 5ce(t in s(ecial circu$stances defined in the '?? the re(eat order shall be a#ailed of

only within si +G $onths fro$ the date of the otice to %roceed arising fro$ the originalcontract6 and,

d. The re(eat order shall not eceed twenty-fi#e (ercent +28D of the /uantity of eachite$ of the original contract.

"ection 3).S!$$in(* +sho((ing $ay be resorted to under any of the following instances:

a. hen there is an unforeseen contingency re/uiring i$$ediate (urchase: %ro#ided,howe#er, That the a$ount shall not eceed ifty thousand (esos +%80,0006 or

b. %rocure$ent of ordinary or regular office su((lies and e/ui($ent not a#ailable in the

%rocure$ent )er#ice in#ol#ing an a$ount not eceeding Two hundred fifty thousand(esos +%280,000: %ro#ided, howe#er, That the %rocure$ent does not result in )(littingof ontracts: %ro#ided, further, That at least three +3 (rice /uotations fro$ bona fidesu((liers shall be obtained.

The abo#e a$ounts shall be subect to a (eriod re#iew by the "%%B. or this (ur(ose, the "%%Bshall be authoriAed to increase or decrease the said a$ount in order to reflect changes inecono$ic conditions and for other ustifiable reasons.

"ection 3*. Ne(!tiated P%!c%e)ent* +egotiated %rocure$ent shall be allowed only in thefollowing instances:

a. 'n case of two +2 failed bidding as (ro#ided in )ection 38 hereof6

b. 'n case of i$$inent danger to life or (ro(erty during a state of cala$ity, or when ti$eis of the essence arising fro$ natural or $an-$ade cala$ities or other causes wherei$$ediate action is necessary to (re#ent da$age to or loss of life or (ro(erty, or torestore #ital (ublic ser#ices, infrastructure facilities and other (ublic utilities6

c. Tae-o#er of contracts, which ha#e been rescinded or ter$inated for causes (ro#idedfor in the contract and eisting laws, where i$$ediate action is necessary to (re#ent


15/22

da$age to or loss of life or (ro(erty, or to restore #ital (ublic ser#ices, infrastructurefacilities and other (ublic utilities6

d. here the subect contract is adacent or contiguous to an on-going infrastructure(roect, as defined in the '??: %ro#ided, howe#er, That the original contract is the resultof a o$(etiti#e Bidding6 the subect contract to be negotiated has si$ilar or related

sco(es of wor6 it is within the contracting ca(acity of the contractor6 the contractor usesthe sa$e (rices or lower unit (rices as in the original contract less $obiliAation cost6 thea$ount in#ol#ed does not eceed the a$ount of the ongoing (roect6 and, the contractorhas no negati#e sli((age: %ro#ided, further, That negotiations for the (rocure$ent areco$$enced before the e(iry of the original contract. here#er a((licable, the (rinci(leshall also go#ern consultancy contract, where the consultants ha#e uni/ue e(erienceand e(ertise to deli#er the re/uired ser#ice6 or,

e. )ubect to the guidelines s(ecified in the '??, (urchases of "oods fro$ anotheragency of the go#ern$ent, such as the %rocure$ent )er#ice of the >BM, which is tasedwith a centraliAed (rocure$ent of co$$only used "oods for the go#ern$ent inaccordance with ecisions of the B& in all stages of(rocure$ent $ay be (rotested to the head of the (rocuring entity and shall be in writing.>ecisions of the B& $ay be (rotested by filing a #erified (osition (a(er and (aying a non-refundable (rotest fee. The a$ount of the (rotest fee and the (eriods during which the (rotests$ay be filed and resol#ed shall be s(ecified in the '??.

"ection 3.Re"!'ti!n !# P%!te"t"* +The (rotest shall be resol#ed strictly on the basis of recordsof the B&. ;( to a certain a$ount to be s(ecified in the '??, the decisions of the 4ead of the%rocuring 5ntity shall be final.

"ection 35.N!n+inte%%$ti!n !# te Biddin( P%!ce""*+'n no case shall any (rotest taen fro$ anydecision treated in this &rticle stay or delay the bidding (rocess. %rotests $ust first be resol#edbefore any award is $ade.

"ection 38.Re$!%t t! Re('a% C!%t"5 Ce%ti!%a%i*+ourt action $ay be resorted to only after the(rotests conte$(lated in this &rticle shall ha#e been co$(leted. ases that are filed in #iolationof the (rocess s(ecified in this &rticle shall be dis$issed for lac of urisdiction. The regional trialcourt shall ha#e urisdiction o#er final decision of the head of the (rocuring entity. ourt actionsshall be go#erned by ?ule G8 of the 199 ?ules of i#il %rocedure.

This (ro#ision is without (reudice to any law conferring on the )u(re$e court the sole urisdictionto issue te$(orary restraining orders and inunctions relating to 'nfrastructure %roects of"o#ern$ent.

ARTICLE ,III"ETTLEENT +/ -I"PUTE"


16/22

"ection 39.A%bit%ati!n* +&ny and all dis(utes arising fro$ the i$(le$entation of a contractco#ered by this &ct shall be sub$itted to arbitration in the %hili((ines according to the (ro#isionsof ?e(ublic &ct o. G, otherwise nown as the !&rbitration


17/22

subect to attach$ent or garnish$ent (roceedings to reco#er the costs. &ll (ayables ofgo#ern$ent in his fa#or shall be offset to reco#er the costs.

ARTICLE T0E +,ERNENT PR+CUREENT P+LIC6 B+AR-

"ection *.O%(ani-ati!n and Fncti!n"* +& "o#ern$ent %rocure$ent %olicy Board +"%%B ishereby established to: +a. (rotect national interest in all $atters affecting (ublic %rocure$ent,ha#ing due regard to the countryEs regional and international obligations6 +b. for$ulate anda$end, whene#er necessary, the '?? and the corres(onding standard for$s for %rocure$ent6 +censure that %rocuring 5ntities regularly conduct %rocure$ent training (rogra$s and (re(are a%rocure$ent o(erations $anual for all offices and agencies of go#ern$ent6 and +d conduct anannual re#iew of the effecti#eness of this &ct and reco$$end any a$end$ents thereto, as $aybe necessary.

The "%%B shall con#ene within fifteen +18 days fro$ the effecti#ity of this &ct for$ulate the '??and for other related (ur(oses. The "%%B shall be su((orted by a technical su((ort office.

'n addition to the (owers granted under this &ct, the "%%B shall absorb all the (owers, function

and res(onsibilities of the %rocure$ent %olicy Board created under 5ecuti#e 7rder o. 389,series of 199. &ll affected functions of the 'nfrastructure o$$ittee of the ational 5cono$icand >e#elo($ent &uthority Board are hereby transferred to the "%%B.

"ection 4.Me)be%"i$* +The "%%B shall be co$(osed of the )ecretary of the >e(art$ent ofBudget and Manage$ent, as hair$an, the >irector-"eneral of the ational 5cono$ic and>e#elo($ent &uthority, as &lternate hair$an, with the following as Me$bers6 the )ecretaries ofthe >e(art$ents of %ublic ors and 4ighways, inance, Trade and 'ndustry, 4ealth, ational>efense, 5ducation, 'nterior and


18/22

C. )(litting of contracts which eceed (rocedural (urchase li$its and co$(etiti#ebidding.

8. hen the head of the agency abuses the eercise of his (ower to reect anyand all bids as $entioned under )ection C1 of this &ct with $anifest (referenceto any bidder who is closely related to hi$ in accordance with )ection C of this

&ct.

hen any of the foregoing acts is done in collusion with (ri#ate indi#iduals, the (ri#ateindi#iduals shall liewise be liable for the offense.

'n addition, the (ublic officer in#ol#ed shall also suffer the (enalty of te$(orarydis/ualification fro$ (ublic office, while the (ri#ate indi#idual shall be (er$anentlydis/ualified fro$ transacting business with the go#ern$ent.

+b %ri#ate indi#iduals who co$$it any of the following acts, including any (ublic officer,who cons(ires with the$, shall suffer the (enalty of i$(rison$ent of not less than si +Gyears and one +1 day but not $ore than fifteen +18 years:

1. hen two or $ore bidders agree and sub$it different Bids as if they werebona fide, when they new that one or $ore of the$ was so $uch higher thanthe other that it could not be honestly acce(ted and that the contract will surelybe awarded to the (re-arranged lowest Bid.

2. hen a bidder $aliciously sub$its different Bids through two or $ore (ersons,cor(orations, (artnershi(s or any other business entity in which he has interest ofcreate the a((earance of co$(etition that does not in fact eist so as to beadudged as the winning bidder.

3. hen two or $ore bidders enter into an agree$ent which call u(on one torefrain fro$ bidding for %rocure$ent contracts, or which call for withdrawal ofbids already sub$itted, or which are otherwise intended to secure as unduead#antage to any one of the$.

C. hen a bidder, by hi$self or in conni#ance with others, e$(loy sche$eswhich tend to restrain the natural ri#alry of the (arties or o(erates to stifle orsu((ress co$(etition and thus (roduce a result disad#antageous to the (ublic.

'n addition, the (ersons in#ol#ed shall also suffer the (enalty of te$(orary or (er(etualdis/ualification fro$ (ublic office and be (er$anently dis/ualified fro$ transactingbusiness with the go#ern$ent.

+c %ri#ate indi#iduals who co$$it any of the following acts, and any (ublic officercons(iring with the$, shall suffer the (enalty of i$(rison$ent of not less than si +G

years and one +1 day but $ore than fifteen +18 years:

1. )ub$it eligibility re/uire$ents of whate#er ind and nature that contain falseinfor$ation or falsified docu$ents calculated to influence the outco$e of theeligibility screening (rocess or conceal such infor$ation in the eligibilityre/uire$ents when the infor$ation will lead to a declaration of ineligibility fro$(artici(ating in (ublic bidding.


19/22

2. )ub$it Bidding >ocu$ents of whate#er ind and nature than contain falseinfor$ation or falsified docu$ents or conceal such infor$ation in the Bidding>ocu$ents, in order to influence the outco$e of the (ublic bidding.

3. %artici(ate in a (ublic bidding using the na$e of another or allow another touse oneEs na$e for the (ur(ose of (artici(ating in a (ublic bidding.

C. ithdraw a Bid, after it shall ha#e /ualified as the


20/22

C. ithdrawal of a Bid, or refusal to acce(t an award, or enter into contract withthe go#ern$ent without ustifiable cause, after he had been adudged as ha#ingsub$itted the


21/22

'n the e#ent of settle$ent or co$(ro$ise, inde$nification shall be confined only on $attersco#ered by the settle$ent, as to which the %rocuring 5ntity had been ad#ised by countset that the(ublic officials to be inde$nified ha#e not co$$itted gross negligence or $isconduct in the(erfor$ance of their functions and duties.

The $e$bers of the B& and the B& )ecretariat shall also be entitled to $edical assistance for

inuries incurred in the (erfor$ance of their functions.

ARTICLE ,/INAL PR+,I"I+N"

"ection 54. O&e%"i(t C!))ittee* +There is hereby created a Joint ongressional 7#ersighto$$ittee to o#ersee the i$(le$entation of this &ct for a (eriod not eceeding fi#e +8 yearsfro$ the effecti#ity of this &ct. The o$$ittee shall be co$(osed of the hair$an of the )enateo$$ittee on onstitutional &$end$ents and ?e#ision of ecree o. 189C dated June 11,19, entitled !%rescribing%olicies, "uidelines, ?ule and regulations for "o#ern$ent 'nfrastructure ontracts.! This lawa$ends Title )i, Boo Two of ?e(ublic &ct o. 1G0, otherwise nown as the !


22/22

&((ro#ed,

/RAN;LIN -RIL+N%resident of the )enate

%+"E -E ,ENECIA %R.)(eaer of the 4ouse of

?e(resentati#es

This &ct, which is a consolidation of 4ouse Bill o.C09 and )enate Bill o. 22C was finally(assed by the 4ouse of ?e(resentati#es and the )enate on >ece$ber 1, 2002.

+"CAR . 6ABE")ecretary of )enate

R+BERT+ P. NA2AREN+)ecretary "eneral

4ouse of ?e(resenati#es

&((ro#ed: January 10, 2003

L+RIA ACAPAALARR+6+P%e"ident !# te Pi'i$$ine"

IPLEENTIN RULE" AN- REULATI+N +/ REPUBLIC ACT 9184 +T0ER7I"E ;N+7NA"

T0E +,ERNENT PR+CUREENT RE/+R ACT

The

RA 9184-Procurement Act

Documents