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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
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:
Consistent with the country’s obligations under international treaties or agreements, goods may be obtained from domestic or foreign sources and the procurement thereof shall be open to all eligible suppliers, manufacturers and distributors.
Domestic Preference
Subject to the provisions of the “Tatak Pinoy (Proudly Filipino) Act”, the Procuring Entity shall give priority and preference to the Philippine products and services: Provided, That the preference and priority for Philippine products shall be guaranteed upon all levels of the procurement process, including raw materials, ingredients, supplies or fixtures.
The Procuring Entity shall award to the domestic bidder if the bid is not more than twenty-five (25%) in excess of the lowest foreign bid. The margin of preference provided herein shall be subject to a periodic review and adjustment by the Government Procurement Policy Board (GPPB), as may be necessary.
The priority and preference established herein may be waived should any of the following conditions be present:
- When domestic production is insufficient or unavailable in the required commercial quantities;
- When the specific or desired quality is not met;
- When the priority and preference will result in inconsistencies with the Philippines’ obligations under international agreements; and
- Other analogous circumstances.
Lease of Movable Properties
The lease of movable properties shall also be subject to government procurement using the most applicable mode of procurement. Movable properties refer to those properties defined under Article 416, 417, and 418 of the New Civil Code of the Philippines.
Disclosure of Relations
In addition to the proposed contents of the invitation to bid, all Bidding Documents shall be accompanied by a sworn affidavit of the bidder that he or she, any partner, member of the board, or officer of the juridical entity is not related to the Head of Procuring Entity (HoPE); the members the Bids and Awards Committee (BAC), the Technical Working Group (TWG), and the BAC Secretariat, the head of the Project Management Office or the end-user unit or implementing unit, and the project consultants of the Procuring Entity, or of the procurement agent, whichever is applicable, by consanguinity or affinity up to the third civil degree. In order to determine the ultimate beneficiary and prevent collusion, the ultimate beneficial ownership of an entity shall be disclosed by the bidder. Failure to comply with aforementioned provision shall be a ground for the automatic disqualification of the bid. For this reason, relation to the aforementioned persons within the third civil degree of consanguinity or affinity shall automatically disqualify the bidder from participating in the procurement of contracts of the Procuring Entity notwithstanding the act such persons inhibiting themselves from the procurement process.
Declaration of Beneficial Ownership
Notwithstanding the provisions of the Data Privacy Act of 2012, legal entities like corporations, partnerships, private sector organizations, foundations, and associations that participate in procurement projects shall safeguard the government from all acts that undermine a transparent, fair, and competitive procurement process. The beneficial ownership information of the suppliers, manufacturers, distributors, contractors, or consultants shall be a requirement to participate in government procurement. The GPPB shall maintain an online registry of beneficial ownership information of bidders established for government procurement which shall be accessible to the public.
Related Articles:
- Key Takeaways from the New Government Procurement Act (Part IX)
- Key Takeaways from the New Government Procurement Act (Part VIII)
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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