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AN ACT PROVIDING FOR THE MODERNIZATION,

STANDARIZATION AND REGULATION OF THE
PROCUREMENT ACTIVITIES OF THE GOVERNMENT
AND FOR OTHER PURPOSES

GOVERNMENT
PROCUREMENT R.A. 9184
ACT Approval: January 10, 2003
It is the declared policy of the State to promote the ideals of good
governance in all its branches, departments, agencies, subdivisions,
and instrumentalities, including government-owned and/or -controlled POLICY
corporations, and local government units

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GOVERNING PRINCIPLES OF GOVT. PROCUREMENT
All procurement of the national government, its departments, bureaus, offices and agencies, including state
universities and colleges, government-owned and/or -controlled corporations, government financial institutions
and local government units, shall, in all cases, be governed by these principles:

a. Transparency in the procurement process and in the implementation of procurement contracts.

b. Competitiveness by extending equal opportunity to enable private contracting parties who are eligible
and qualified to participate in public bidding.
c. Streamlined procurement process that will uniformly apply to all government procurement. The
procurement process shall be simple and made adaptable to advances in modern technology in
order to ensure an effective and efficient method.
d. System of accountability where both the public officials directly or indirectly involved in the
procurement process as well as in the implementation of procurement contracts and the private
parties that deal with government
e. Public monitoring of the procurement process and the implementation of awarded contracts

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SECTION 4 SCOPE AND APPLICATION

This Act shall apply to the Procurement of Infrastructure Projects, Goods, and Consulting
Services, regardless of source of funds, whether local or foreign, by all branches and
instrumentalities of government, its departments, offices and agencies, including
government-owned and/or -controlled corporations and local government units, subject to
the provisions of Commonwealth Act No. 138. Any treaty or international or executive
agreement affecting the subject.

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CONSULTANTS
SECTION 4 SCOPE AND APPLICATION
RA9184shallnotapplytothefollowingactivities:

• Procurement of Goods, Infrastructure Projects and Consulting Services funded from

Foreign Grants covered by R.A. 8182, as amended by R.A. 8555, entitled “An Act
Excluding Official Development Assistance (ODA) from the Foreign Debt Limit in order to
Facilitate the Absorption and Optimize the Utilization of ODA Resources, Amending for the
Purpose Paragraph 1, Section 2 of R.A. 4860, As Amended,” unless the GoP and the foreign
grantor/foreign or international financing institution agree otherwise

• Acquisition of real property which shall be governed by R.A. 107523, entitled “An Act
Facilitating the Acquisition of Right-Of-Way Site or Location for National Government
Infrastructure Projects,” and other applicable laws, rules and regulations

• Public-Private sector infrastructure or development projects and other procurement

covered by R.A. 6957, as amended by R.A. 7718

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CONSULTANTS
SECTION 4 SCOPE AND APPLICATION
ThefollowingarenotprocurementactivitiesunderR.A.9184:

• Direct financial or material assistance given to beneficiaries in accordance with the

existing laws, rules and regulations, and subject to the guidelines of the concerned
agency
• Participation in local or foreign scholarships, trainings, continuing education,
conferences, seminars or similar activities that shall be governed by applicable COA,
CSC, and DBM rule
• Lease of government-owned property as lessor for private use;
• Hiring of Job Order Workers;
• Joint Venture under the revised NEDA Guidelines (GOCC and Private Entities), and Joint
Venture Agreements by LGU with Private entities; and
• Disposal of Property and Other Assets of the Government.

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DEFINITION OF TERMS
ApprovedBudgetfortheContract(ABC)

Refers to the budget for the contract duly approved by the HoPE (Head of Procuring Entity), as
provided for in the General Appropriations Act (GAA), continuing, and automatic appropriations, in
the case of national government agencies (NGAs)

BAC

Refers to the Bids and Awards Committee

ForeignBid
Refers to any offer of articles, materials or supplies not manufactured or not to be manufactured in
the Philippines, substantially from articles, materials, or Goods

Foreign-fundedProcurement

Refers to the acquisition of goods, consulting services, and the contracting for infrastructure
projects by the GoP which are wholly or partly funded by Foreign Loans or Grants pursuant to a
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DEFINITION OF TERMS

GPPB

Refers to the Government Procurement Policy Board

Goods

Refer to all items, supplies, materials and general support services, except Consulting Services
and infrastructure projects.

InfrastructureProjects

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
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DEFINITION OF TERMS

PhilippineGovernmentElectronicProcurementSystem(PhilGEPS)

Refers to the electronic System. Also known as “G-EPS)”.

Procurement

Refers to the acquisition of goods, consulting services, and the contracting for infrastructure
projects by the Procuring Entity

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CONSULTANTS
SECTION 6 STANDARDIZATION OF GOVT.
PROCUREMENT PROCESS AND FORMS

1. To systematize the procurement process, avoid confusion and ensure transparency, the
GPPB shall pursue the development and approval of generic procurement manuals, standard
Bidding Documents, and forms, including those to be used for major procurement like drugs
andtextbooks.

2.ProcuringEntitiesaremandatedtousetheGenericProcurementManuals(GPMs),Philippine
Bidding Documents (PBDs), and other standard forms issued by the GPPB. However,
whenevernecessary,tosuit theparticularneedsoftheProcuringEntity,modificationsmaybe
made,particularlyformajorandspecializedprocurement,subjecttotheapprovaloftheGPPB.

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ARTICLE III PROCUREMENT BY Procurement by Electronic
Means and the Philippine
Government Electronic
ELECTRONIC MEANS Procurement System
(PhilGEPS)
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SECTION 8

1. To promote transparency and efficiency, information and communications technology shall

beutilized in the conduct of procurement procedures. Accordingly, there shall be a single portal
that shall serve as the primary source of information on all government procurement. The
PhilGEPS shall serve as the primary and definitive source of information on government
procurement

2. To take advantage of the significant built-in efficiencies of the PhilGEPS and the volume
discounts inherent in bulk purchasing, all Procuring Entities shall utilize the PhilGEPS for the
procurement of Common-Use Supplies in accordance with the rules and procedures to be
establishedbytheGPPB.

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SECTION 9SECURITY, INTEGRITYANDCONFIDENTIALITY

The G-EPS shall ensure the security, integrity and confidentiality of documents
submitted through the system. It shall include a feature that provides for an audit trail for on-
line transactions and allow the Commission on Audit to verify the security and integrity of the
systems at any time.

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CONSULTANTS
ARTICLE XIII DOMESTIC AND FOREIGN
PROCUREMENT
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SECTION 43 PROCUREMENT OF DOMESTIC AND FOREIGN
GOODS
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. However, in the
interest of availability, efficiency and timely delivery of Goods, the Procuring Entity may give
preference to the purchase of domestically-produced and manufactured goods, supplies
and materials that meet the specified or desired quality.

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SECTION 43 PROCUREMENT OF DOMESTIC AND FOREIGN
GOODS
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. However, in the
interest of availability, efficiency and timely delivery of Goods, the Procuring Entity may give
preference to the purchase of domestically-produced and manufactured goods, supplies
and materials that meet the specified or desired quality.

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CONSULTANTS
ARTICLE XX THE GOVERNMENT
PROCUREMENT POLICY BOARD
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SECTION 63ORGANIZATIONAND FUNCTIONS
Without prejudice to the provisions of Republic Act No. 3019, otherwise known as the “Anti-Graft and
Corrupt Practices Act” and other penal laws, public officers who commit any of the following acts shall suffer
the penalty of imprisonment of not less than six (6) years and one (1) day, but not more than fifteen (15)
years:
a. Opening any sealed bid including but not limited to Bids that may have been submitted through the
electronic system and any and all documents required to be sealed or divulging their contents, prior to
the appointed time for the public opening of Bids or other documents.
b. Delaying, without justifiable cause, the screening for eligibility, opening of bids, evaluation and post
evaluation of bids, and awarding of contracts beyond the prescribed periods of action provided for in this
IRR.
c. Unduly influencing or exerting undue pressure on any member of the BAC or any officer or employee of
the Procuring Entity to take a particular action which favors, or tends to favor a particular bidder.
d. Splitting of contracts which exceed procedural purchase limits to avoid competitive bidding or to
circumvent the limits of approving or procurement authority.
e. Abuse by the HoPE of his power to reject any and all bids as mentioned under Section 41 of the Act and
this IRR, with manifest preference to any bidder who is closely related to him in accordance with Section
47 of the Act and this IRR
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ARTICLE XXI PENAL CLAUSE
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SECTION 65 OFFENSESAND PENALTIES

A Government Procurement Policy Board (GPPB) is hereby established to:

a. Protect national interest in all matters affecting public Procurement, having due
regard to the country’s regional and international obligations
b. formulate and amend, whenever necessary, the IRR and the corresponding
standard forms for Procurement
c. Ensure that Procuring Entities regularly conduct Procurement training programs
and prepare a Procurement operations manual for all offices and agencies of
government
d. Conduct an annual review of the effectiveness of this Act and recommend any
amendments thereto, as may be necessary

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ARTICLE XXII CIVIL LIABILITY
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SECTION. 67CIVIL LIABILITY INCASEOFCONVICTION
Without prejudice to administrative sanctions that may be imposed in proper cases, a
conviction under this Act or Republic Act No. 3019 shall carry with it civil liability, which may
either consist of restitution for the damage done or the forfeiture in favor of the government
of any unwarranted benefit derived from the act or acts in question or both, at the discretion
of the courts.

SECTION 68 LIQUIDATED DAMAGES

All contracts executed in accordance with this Act shall contain a provision on liquidated
damages which shall be payable in case of breach thereof.

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THANK YOU!
PREPARED BY: ALBEVANGELISTA
ARC 1426: PROFESSIONAL PRACTICE 1
SY 2021-2022 2ND SEMESTER
FEU IARFA

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