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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The recently signed New Government Procurement Act Republic Act (R.A.) No. 12009 is a major piece of legislation which aims to enhance existing government procurement systems in the Philippines. Among its salient provisions and important governing principles is the principle of “[e]fficiency by implementing an organized, uniform, and straightforward government procurement process through the use of emerging technologies and innovative solutions” (Sec. 3(c), R.A. No. 12009).
This principle on efficiency through emerging technologies and innovative solutions is reflected in various parts of the Act, including, among others, the provisions on Procurement by Electronic Means; the functions and features of the Philippine Government Electronic Procurement System (PhilGEPS); Modes of Procurement especially on Competitive Bidding; and Video Recording during Competitive Bidding.
The recently signed New Government Procurement Act (NGPA) or Republic Act (R.A.) No. 12009 had been one of the highlighted measures cited by President Ferinand Marcos, Jr. during his State of the Nation Address on July 22, 2024. According to President Marcos, Jr., the NGPA had been enacted to the end that the country’s government procurement will become “modern and innovative, more streamlined and efficient, and truly at par with global best practices.” (State of the Nation Address, 22 July 2024).
Accordingly, the declaration of policy under the NGPA states, to wit:
It is the declared policy of the State to promote the ideals of good governance with a view towards transparency, competitiveness, efficiency, proportionality, accountability, public monitoring, procurement, professionalization, sustainability, and value for money in government procurement. (Sec. 2, R.A. No. 12009)
“Procurement” refers to the acquisition of Goods and Consulting Services, and the contracting for Infrastructure Projects by the Procuring Entity. Procurement shall also include the lease of goods and real property (Sec. 5(w), R.A. No. 12009). A “Procuring Entity”, meanwhile, essentially refers to any branch, department, bureau, office, agency, or instrumentality of the government (Sec. 5(x), R.A. No. 12009). With this in mind, the NGPA applies to the procurement of goods, infrastructure projects, and consulting services, by all branches, instrumentalities, and agencies of the national government (Sec. 4, R.A. No. 12009).
One of the guiding principles under the NGPA when it comes to procurement activities by the government is that efficiency shall be met by “implementing an organized, uniform, and straightforward government procurement process through the use of emerging technologies and innovative solutions” (Sec. 3, R.A. No. 12009).
On the matter of efficiency through emerging technologies, the NGPA established the role of the Philippine Government Electronic Procurement System (PhilGEPS) as the single electronic procurement portal or website of the government’s procurement activities. This portal maintains an integrated system that spans processes from planning until payment. Just as well, the PhilGEPS is expected to incorporate features that make important information openly available and transparent at all stages of procurement – except where the national security is affected. Furthermore, according to the NGPA, the PhilGEPS shall include the following innovative features and solutions:
- electronic bulletin board;
- registry of suppliers, manufacturers, distributors, contractors, consultants, and service providers;
- electronic catalogue;
- virtual store;
- electronic marketplace;
- electronic reverse auction;
- electronic small value procurement’ electronic payment; and
- electronic bidding. (Sec. 20, R.A. No. 12009).
To enhance the transparency of the procurement process, the NGPA requires that a procuring entity should keep a video record of all procurement-related conferences for Competitive Bidding, when it comes to: goods costing above ten million pesos (P10,000,000.00); infrastructure Projects costing above twenty million pesos (P20,000,000.00); and consulting services costing above five million pesos (P5,000,000.00).
No procurement-related conference for Competitive Bidding shall commence without a video recording initiated by the Bids and Awards Committee (BAC) of the procuring entity. The BAC shall monitor the efficient, effective conduct of its procurement (Secs. 38 and 41, R.A. No. 12009).
When it comes to submitting and receiving bids during the procurement process, the NGPA provides that the Government Procurement Policy Board is required to “adopt technological advances to enhance the procurement process, and leverage emerging technologies and innovative procedures for the submission, receipt, and opening of bids through the PhilGEPS” (Sec. 55, R.A. No. 12009).
The above are just a few of the notable takeaways from the NGPA, and it is expected that the implementation of this transformative legislation will pave the way for the overall enhancement of government procurement in the Philippines.
In the meantime, the NGPA provides that prior to the effectivity of the implementing rules and regulations (IRR) of the Act, the provisions of the old Government Procurement Reform Act (i.e. Republic Act No. 9184) and its IRR shall remain in force to ensure the continued implementation of programs, activities, and projects. However, after the approval of the IRR and the standard forms for procurement, the Government Procurement Policy Board, the Head of the Procuring Entity, Procuring Entities, and the BACs affected by the NGPA, are given a three (3)-year transitory period to fully comply with the requirements of this Act.
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