The document provides an overview of the Philippine government procurement system, including problems it previously faced and reforms implemented. Key reforms include enacting the Government Procurement Reform Act (GPRA) in 2003, which established standards and transparency. It created the Government Procurement Policy Board to set procurement policies and required use of the Philippine Government Electronic Procurement System. The GPRA and its implementing rules and regulations now govern procurement of infrastructure, goods, and consulting services for all national and local government agencies and seek to address prior issues like lack of transparency, standards, and oversight.

1. THE PHILIPPINE GOVERNMENT
PROCUREMENT SYSTEM
An Overview

2. PROBLEMS REFORMS
• Confusion caused by
fragmented legal system
• Enactment of the
Government Procurement
Reform Act (GPRA)
• Inconsistent policies, rules,
and regulations due to lack
of standards
• Creation of the
Government Procurement
Policy Board (GPPB)
• Lack of transparency • Use of PhilGEPS
• Lack of check and balance • Participation of civil society
Problem Areas and Reform Measures

3. Implementing
Rules and
Regulations
Executive
Orders
Administrative
Issuances
Memorandum
Circulars
over 100 procurement rules & regulations
Government Procurement
Reform Act
10 January 2003
Goods, Infrastructure,
Consulting Services
Coverage: NGAs and LGUs
Enactment of GPRA

4.  R.A. 9184 Applies to:
a) National Government Agencies (NGAs)
b) State Universities and Colleges (SUCs)
c) Government Owned or Controlled Corporations (GOCCs)
d) Government Financial Institutions (GFIs)
e) Local Government Units (LGUs)
 R.A. 9184 governs the procurement of:
a) Infrastructure Projects
b) Goods (incl. Supplies, Materials, and Related Services)
c) Consulting Services
Application

5.  Section 4, Revised IRR
 All fully domestically-funded procurement activities
 All foreign-funded procurement activities, unless
otherwise provided in a treaty or int’l/executive
agreement
 As may be agreed upon by the GOP and IFI in their
treaty or int’l/executive agreement
 Projects funded from foreign grants
 Projects for International Competitive Bidding
 Consulting Services for National Competitive Bidding
Scope and Coverage

6.  GOP negotiating panels shall:
 Adopt as default position, use of the IRR or selection
through competitive bidding
 Explain in writing if treaty or int’l/executive agreement
states otherwise
Scope and Coverage

7.  Transparency
 Wider dissemination of bid opportunities
 Competitiveness
 Equal opportunity to all eligible bidders
 Streamlined Process
 Uniformly applicable to all government agencies
 Effective and efficient method
 System of Accountability
 “Answerable”
 Public Monitoring
 Awareness and vigilance
Governing Principles

8.  Covers procurement of all government agencies
 General Rule is Public/Competitive Bidding
 Alternative Methods of Procurement allowed in highly exceptional
cases
 Use of the Approved Budget for the Contract (ABC) as ceiling for
the bid price
 Use of transparent, objective, and non-discretionary criteria
 Increased transparency in the procurement process
 Professionalization of procurement officials
 Inclusion of Penal and Civil Liabilities
Key Features of GPRA

9. Identify
Assess Procure
Implement
• Cost-benefit
analysis
• Feasibility study
• Market study
• PPMP
• Review studies
• Consolidate into
APP
• Decide procurement
method
• Approve APP
• Determine
readiness
• Post/Advertise
opportunity
• Open and evaluate
bids
• Post-qualify
• Award and enter
into contract
• Oversee
implementation
• Inspect and accept
deliveries
• Release payment
Philippine Procurement Paradigm

10. Procurement Planning
End User
Budget
Office
BAC Sec /
BAC
Approving
Authority
1 Prepare PPMP
Evaluate
PPMP and
include in
budget
proposal
Review and
consolidate
into APP
Approve
GAA/
Corporate
Budget/
Ordinance
2 Revise PPMP
Finalize
procurement
mode
HOPE or 2nd
in rank
approves APP

11. Procurement Planning
Actions Risks Identified
Needs Assessment,
Planning, and
Budgeting
• Purchase is unnecessary
• Necessary but overestimated
• Unrealistic/Deficient budget
• Not aligned with the overall program
• Interference of high-level officials
• Informal agreement on contract
• Insufficient time frame
Definition of Technical
Requirements and/or
Specifications
• Tailored for one company
• Too vague
• Not based on performance requirements
Choice of Procurement
Procedure
• Abuse of non-competitive procedures on the basis
of legal exceptions through:
a) Contract splitting;
b) Abuse of extreme urgency;
c) Abuse of other exceptions based on a
technicality or exclusive rights, etc.;
d) Untested continuation of existing contracts.
Source: Integrity in Public Procurement: Good Practice from A to Z published by the Organisation for Economic Co-operation and Development on 2007.

12. Procurement Methods
 All Procurement shall be done through competitive
bidding except as provided in R.A. 9184
 Resort to alternative methods shall be made
 Only in highly exceptional cases
 To promote economy and efficiency
 Justified by conditions specified in R.A. 9184 and its
IRR

13. Procurement Methods
Method Goods Infra Cons
1. Competitive Bidding   
2. Limited Source Bidding  
3. Direct Contracting 
4. Repeat Order 
5. Shopping 
6. Negotiated Procurement   

14. Pre-Bid
Conference
Opening of
Technical Proposal
(incl. eligibility docs)
Opening of
Financial Proposal
Bid Evaluation Post-qualification
Pre-
Procurement
Conference
Advertisement
and/or
Posting
Bid
Submission
Contract
Award
Bidding Process

15. THANK YOU