The document defines and discusses public procurement in the Philippines. It begins by defining procurement as the purchase of goods, services, and works by governments and state-owned enterprises from the private sector. It then discusses key aspects of Philippines' procurement system including: - The scope and key principles of Republic Act No. 9184, also known as the Government Procurement Reform Act, which standardizes and regulates government procurement. - Important definitions related to procurement like Approved Budget for the Contract, Bids and Awards Committee, bidding documents, and goods, services, and infrastructure projects. - The roles and responsibilities of organizations involved in procurement like the Bids and Awards Committee, Technical Working Groups, and Head of the Pro

2. is the action of obtaining
or procuring something.
What is Procurement?

3. Public procurement refers to the purchase by
governments and state-owned enterprises of goods,
services, and works. Procurement is the purchase
by the government of the following from the private
sector, charities, and other organizations:
1. goods – items such as pens, paper, laptops, desks,
hospital beds, and medicines
2. works – the construction, repair, and maintenance of
assets such as roads, hospitals, and military equipment
3. services – the delivery of functions such as adult social
care, IT support, human resources, and consultancy.

4. Republic Act No. 9184 also known as the
“Government Procurement Reform Act.”
- An act providing for the modernization,
standardization, and regulation of the
procurement activities of the government and
for other purposes.

5. Scope and Applications
Must be used for all procurement activities by
the Government of the Philippines and all its
branches and instrumentalities including GOCCs,
GFIs, SUCs, and LGUs.
It shall apply to the procurement of goods and
services, infrastructure projects, and consulting
services, regardless of the source of funds, whether
local or foreign

6. Definition of Terms
(a) Approved Budget for the Contract (ABC) – refers to the budget for the contract duly
approved by the Head of the Procuring Entity
(b) BAC – refers to the Bids and Awards Committee established in accordance with
Article V of this Act.
(c) Bidding Documents – refers to documents issued by the Procuring Entity as the
basis for Bids, furnishing all information necessary for a prospective bidder to prepare a
bid for the Goods, Infrastructure Projects, and Consulting Services to be provided.
(d) Bid – refers to a signed offer or proposal submitted by a supplier, manufacturer,
distributor, contractor or consultant in response to the Bidding Documents.
(e) Competitive Bidding – refers to a method of procurement that is open to
participation by any interested party and which 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, the
specific requirements, and mechanics of which shall be defined in the IRR to be
promulgated under this Act.

7. (f) Consulting Services – refer to services for Infrastructure Projects and other types of
projects or activities of the Government requiring adequate external technical and
professional expertise that are beyond the capability and/or capacity of the
government to undertake such as, but not limited to: (i) advisory and review services;
(ii) pre-investment or feasibility studies; (iii) design; (iv) construction supervision; (v)
management and related services; and (vi) other technical services or special studies.
(g) G-EPS – refers to the Government Electronic Procurement System as provided in
Section 8 of this Act.
(h) Goods – refer to all items, supplies, materials, and general support services, except
consulting services and infrastructure projects, which may be needed in the transaction
of public businesses or in the pursuit of any government undertaking, project or
activity, whether in the nature of equipment, furniture, stationery, materials for
construction, or personal property of any kind, including non-personal or contractual
services such as the repair and maintenance of equipment and furniture, as well as
trucking, hauling, janitorial, security, and related or analogous services, as well as
procurement of materials and supplies provided by the procuring entity for such
services.

8. (i) GPPB – refers to the Government Procurement Policy Board established in
accordance with Article XX of this Act.
(j) Head of the Procuring Entity – refers to: (i) the head of the agency or his duly
authorized official, for national government agencies; (ii) the governing board or its
duly authorized official, for government-owned and/or -controlled corporations; or (iii)
the local chief executive, for local government units. Provided, That in a department,
office or agency where the procurement is decentralized, the Head of each decentralized
unit shall be considered as the Head of the Procuring Entity subject to the limitations
and authority delegated by the head of the department, office or agency.
(k) Infrastructure Projects – include the construction, improvement, rehabilitation,
demolition, repair, restoration or maintenance of roads and bridges, railways, airports,
seaports, communication facilities, civil works components of information technology
projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and
solid waste management systems, shore protection, energy/power and electrification
facilities, national buildings, school buildings, hospital buildings and other related
construction projects of the government.

9. (l) IRR – refer to the implementing rules and regulations to be promulgated in
accordance with Section 75 this Act.
(m) Portal – refers to a website that aggregates a wide variety of content for the
purpose of attracting a large number of users.
(n) Procurement – refers to the acquisition of Goods, Consulting Services, and the
contracting for Infrastructure Projects by the Procuring Entity. Procurement shall also
include the lease of goods and real estate.
(o) Procuring Entity - refers to any branch, department, office, agency, or
instrumentality of the government, including state universities and colleges,
government-owned and/or controlled corporations, government financial institutions,
and local government units procuring Goods, Consulting Services and Infrastructure
Projects.

10. Governing Principles on Government
Procurement
1. Transparency
2. Competitiveness
3. Streamlined Process
4. System of Accountability
5. Public Monitoring

11. Procurement Organization
Composition
The BAC shall have at least five (5) members, but not more than
seven (7) members
Responsibilities
Recommend Method of Procurement
Create TWG
Advertise/Post Invitation to Bid
Pre-Procurement & Pre-Bid Conferences
Eligibility Check
Receive & Open Bids
Evaluate Bids (with the assistance of TWG)
Post-Qualification
Resolve Motions for Reconsideration
Recommend Award of Contract
Recommend Imposition of Sanctions

12. Technical Working Group created by the BAC
from a pool of technical, financial and/or legal
experts.
Responsibilities of the Technical Working Group:
Assist BAC in preparing bidding documents
Assist BAC in eligibility check/short-listing
Assist BAC in bid evaluation and preparation of reports
Assist BAC in post-qualification and prepare
the post qualification summary report
Assist BAC and BAC Secretariat prepare
Resolution Recommending Award, with regard
to the technical aspect, if necessary

13. Head of the Procuring Entity
(HOPE)
the head of the Agency

15. Procurement, Planning and Budgeting (Rule II – Section 7)
All procurement should be within the approved budget of
the procuring entity and should be meticulously and
judiciously planned by the procuring entity concerned.
No government procurement shall be undertaken
unless it is in accordance with an approved Annual
Procurement Plan (APP)
Annual Procurement Plan (APP) or it is a
consolidation of all Procurement Project Management
Plans (PPMP) for a procuring entity that is scheduled for
procurement for a calendar year.

16. Approved Budget for the Contract (ABC)
Refers to budget for the contract duly approved by
the Head of the Procuring Entity
The approved Budget is CEILING for bid prices
Invitation to Bid should specify the APPROVED
BUDGET for the contract and the source of funding
In determining ABC, consider:
Appropriation for the project/procurement
Market price
Inflation and cost of money directly related to the
timetable

17. Procurement Project Management Plan ( PPMP)
It is a procurement plan for goods, infrastructure
projects and consulting services
Shall specify the type of contract to be employed,
extent/size of contract, scope/packages, the procurement
methods to be adapted, (indicating if the procurement task
is to be “outsourced”), time schedule for each procurement
activity and the estimated Budget for each procurement.
The preparation and updating of the PPMPs shall be
the responsibility of the respective Project Management
Offices (PMOs) or end-user units of the procuring entities

18. Annual Procurement Plan (APP) should
consider the following factors:
1. The APP should include all procurement activities
planned for the year
2. The APP shall include only those procurements
that are considered crucial to the efficient discharge
of governmental functions.
3. The APP shall include provisions for foreseeable
emergencies based on historical records
4. It is paramount that project implementation
timelines are met.

21. 1. Difference in calendar days between Pre-bid
Conference and the Submission and Opening of Bids
is less than twelve (12) calendar days
The pre-bid conference shall be held at least twelve (12) calendar
days before the deadline for the submission and receipt of bids, or in
case a longer period for the preparation of bids is necessary, pre-bid
conference shall be held at least thirty (30) calendar days before the
deadline for the submission and receipt of bids.
The identified timeline between the pre-bid conference and the
day of the opening of bids must be complied with to allow the
prospective bidders to study and review the requirement of the Entity,
and for them to be able to submit a responsive bid.

22. 2. Legality of stopping the issuance of bid
documents before the pre-bid conference.
The issuance or sale of the bidding documents
should not be stopped or withheld before the pre-bid
conference but should continue, without any
interruption, from the time the Invitation to Bid is first
advertised/posted until the deadline for the
submission and receipt of bids in accordance with
Section 17.3 of the IRR of RA 9184.

23. Details to be prepared by the end user (PPMP form)

24. Summary to be prepared by College/Unit (PPMP form)

25. Summary to be prepared by College/Unit (APP form)

26. Penal Clause (Rule XXI)
Offenses
Any Public Officers and Private Individuals committed
any acts or violations as provided in Rule XXI of RA 9184
Penalties:
Not less than 6 years and one (1) day but not more than
fifteen (15) years imprisonment
Cover all types of procurement whether than manually or
electronically.

27. References:
https://www.gmpgov.com/what-is-government-
procurement/
Republic Act No. 9184. "Government Procurement Reform
Act." “Released July 22, 2002. Retrieved October 8, 2022,
from https://boi.gov.ph/sdm_downloads/ra-9184-
government-procurement-reform-act/
https://assignmentpoint.com/government-procurement/