GOVERNMENT PROCUREMENT REFORM ACT REPUBLIC ACT NO. 9184
GOVERNMENT PROCUREMENT REFORM ACT
REPUBLIC ACT NO. 9184
An act providing for the modernization, standardization and regulation of the procurement activities of the government and for other purposes.
WHAT IS PROCUREMENT?
Procurement refers to the acquisition of Goods, Consulting Services, and the
contracting for Infrastructure Projects by the Procuring Entity. (Article I, Sec. 5
(n), R.A. 9184)
Procurement means the acquisition by any means of goods, construction or
services.
1. Transparency2. Equal Opportunity(through
standardization)3. Streamlined Process4. Accountability5. Public Monitoring
Governing Principles of Procurement
Coverage:Goods:
ItemsSuppliesMaterialsneeded in
Transaction of public businessPursuit of any government undertaking, project or
activity
Still considered as goods:Services that are not consulting services
General Support Services(e.g. Janitorial, Security, Repair and Maintenance
Services)Related or Analogous Services(e.g. Lease of Office Space)Materials and supplies needed for such services
General Rule (section 10, RA 9184):Competitive Bidding
1. Method of procurement 2. Open to participation by any interested party 3.Consists of the following processes:
advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract,
4. Specific requirements and mechanics of which shall be defined in the IRR to be promulgated under this Act
What is Competitive Bidding?[Section 5 (e), RA 9184]
The General Processes of Competitive Bidding:
AdvertisementPre-bid conference
Eligibility screening of prospective biddersReceipt and opening of bids
Evaluation of bidsPost-qualificationAward of contract
Head of Procuring Entity forbidden as Chairperson or
member of BAC
BAC Composition:
BAC Composition: (for Agencies, GOCCs,
SUCs, GFIs,etc.)Regular Members:1. Chairman- at least third ranking
permanent official of procuring entity2. Member- procurement/legal/
administrative expertise and at least fifth ranking permanent official
3. Member- finance expertise and at least fifth ranking permanent official
BAC Composition:Provisional Members:
1. Member- technical expertise in relevant to the procurement
2. Member- end user unit
One (1) representative each From the regular offices under the office
of the local chief executive (e.g., Office of the Administrator, Budget Office, Legal Office, General Services, Engineering Service)
To be appointed by the local chief executive
BAC Composition: (for LGUs)
BAC Composition:Observers: Two (2)1. At least one (1) shall come from a duly
recognized private group in a sector or discipline relevant to the procurement at hand
2. The other from a non-governmental organization (NGO)
COA Representative
BAC Composition:
No. of Members:At least Five (5) but not more than
Seven (7)
COA Representative & Observers (non-members)
honoraria to the BAC members in an amount not to exceed twenty-five
percent (25%) of their respective basic monthly salary subject to availability of
funds (Section 15)
Prepared by procuring entity Following the standard forms and
manuals prescribed by the GPPB(Government Procurement Policy
Board)
Bid Documents Preparation:
from a pool of technical, financial and/or legal experts assist in the procurement process particularly in the eligibility screening, evaluation of bids and postqualification
Technical Working Group
Standardized Bidding Procedures for Goods
Pre-ProcurementConf. 2-wk advertisement Pre-Bid
Conference
Opening ofEligibility Env. &Eligibility Check
Opening ofTech. Env. &Prel. Exam.
Opening ofFinancial Env.
Submission ofEligibility Req. & Bid
Bid Evaluation& Ranking Postqualification Award of
Contract
Invitation to Bid
1. Publication2. Website3. Posting
Twice:1. Minimum 6 days maximum 14 days in
between publication2. Newspaper of general nationwide
circulation3. Newspaper published at least 2 years
prior to advertisement
Publication:
Posting @ Website
1. Website of the procuring entity2. Website of the service provider of the
procuring entity, if available3. Maximum period of 14 days
1. Conspicuous place2. Reserved for the purpose3. Certified by the BAC Secretariat of the procuring entity
Posting at premises
Procedure:
1. Late bids shall not be accepted2. Opening of Technical Envelopes3. Counter-checking compliance of
Technical Envelope with requirements4. Opening of Financial Envelope5. Counter-checking compliance of
Financial Envelope with requirements
6. Bid Evaluation7. Ranking8. Lowest Calculated Bid
Bids above the ABC are automatically disqualifiedNo Floor PricesIf failed Technical Envelope, cannot open the Financial EnvelopeBid shall include all taxes
Note:
Post-QualificationTo determine whether the
bidder concerned complies with and is responsive to all the requirements and conditions for eligibility, the bidding of the contract, as specified in the bidding documents
Post-Qualification
BAC shall verify, validate and ascertain all statements made and documents submitted by the bidder with the Lowest Calculated Bid/Highest Rated Bid.
Post-QualificationPeriod:
Within seven (7) calendar days from determination of the Lowest Calculated Bid
In exceptional cases, the seven (7) calendar day period may be extended by the GPPB (Government Procurement Policy Board)
Result:
Lowest Calculated Bid becomes
“Lowest Calculated and Responsive Bid”
Recommendation of the Award to the Head of the Procuring Entity
Action of Head on Recommendation:
1. Approve2. Disapprove
Action of Head on Recommendation:
Disapproval based only on valid, reasonable and justifiable grounds to be expressed in writing, copy furnished the BAC. (Bids and Awards Committee)
Republic Act No. 9184
If approval:Head issues the Notice of Award
BAC notifies the losing bidders of the decision
Contract Preparation and Signing
Time Period:
Ten (10) days from receipt of Notice of Award by Winning Bidder
1. No Bids are received2. No bid qualifies as the Lowest
Calculated Responsive Bid or Highest Rated Responsive Bid
3. Refusal of winning bidder to accept the award of contract
Failure of Bidding:
Consequence:
1. Second Bidding Process2. If this still fails, BAC may resort to
negotiated procurement
Alternative Modes of Procurement
Limited Source Bidding Direct Contracting
Repeat OrderShopping
Negotiated Procurement
Alternative Modes of ProcurementLimited Source Bidding or Selective Bidding
A method of procurement of goods and consulting services, that involves direct invitation to bid by the concerned procuring entity from a set of pre-selected suppliers or consultants with known experience and proven capability on the requirements of the particular contract
Alternative Modes of ProcurementLimited Source Bidding or Selective
Bidding
Procurement of highly specialized types of goods and consulting servicesProcurement of major plant components to maintain uniform quality and performance of the plant as a whole
Alternative Modes of ProcurementDirect Contracting or Single Source
Procurement
Applies only to procurement of goodsDoes not require elaborate bidding documentsSupplier is simply asked for a price quotation or a pro-forma invoice with the conditions of saleOffer may be accepted immediately or after some negotiations
Alternative Modes of ProcurementDirect Contracting or Single Source
Procurement
1. Proprietary items2. Critical plant components from a specific
manufacturer3. Sold by an exclusive dealer or
manufacturer with no suitable substitute
Alternative Modes of ProcurementRepeat Order
Need to replenish goods Procured under a contract previously awarded through Competitive Bidding
Alternative Modes of ProcurementRepeat Order
1. Same contract prices2. Not a result of splitting3. Within six (6) months from the date of the
Notice to Proceed of the original contract4. Not to exceed twenty-five percent (25%) of
the quantity of each item in the original contract
Republic Act No. 9184
Alternative Modes of ProcurementShopping
Submission of price quotations Readily available off-the-shelf goods or ordinary/regular equipment Procured directly from suppliers of known qualifications
Republic Act No. 9184Alternative Modes of Procurement
Shopping1. Unforeseen contingency requiring
immediate purchase but not to exceed P50,000.00
2. Ordinary or regular office supplies and equipment not available in the Procurement Service not to exceed P250,000.00
Republic Act No. 9184
Alternative Modes of ProcurementShopping
Not as a result of splittingAmounts subject to periodic review by the GPPB
Republic Act No. 9184
Alternative Modes of ProcurementNegotiated Procurement
Directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant Conditions in law and IRR are exclusive
Republic Act No. 9184Alternative Modes of Procurement
Negotiated Procurement
1. Second Bid Failure2. Imminent danger to life or property during a state
of calamity3. Time is of the essence arising from natural or man-
made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities
Republic Act No. 9184Alternative Modes of Procurement
Negotiated Procurement
4. Take-over of contracts where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities
5. Adjacent or Contiguous contract to an on-going infrastructure project
Republic Act No. 9184
Alternative Modes of ProcurementNegotiated Procurement
6. Inter-agency purchase of goods7. Individual consultants that are highly
technical or primarily confidential8. Major defense equipment for use by
the AFP
Republic Act No. 9184G-EPS
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