CIVLAWS

CE Laws, Ethics, Contracts and Specs

Lecture-7
RA 9184
Government Procurement Reform Act
Dr. J. BERLIN P. JUANZON CE, MBA, MSCM
Learning Objectives
To define RA 9184
To determine governing principles in
government procurement
To identify the scope and application of
government procurement
To identify procedures in receipt and
opening of Bids
To identify method of bid evaluation
RA 9184
AN ACT PROVIDING FOR THE
MODERNIZATION, STANDARDIZATION AND
REGULATION OF THE PROCUREMENT
ACTIVITIES OF THE GOVERNMENT AND FOR
OTHER PURPOSES

Begun and held in Metro Manila, on Monday, the

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Governing Principles
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:
Governing 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.
Governing Principles
(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 are,
when warranted by circumstances, investigated
and held liable for their actions relative thereto.
(e) Public monitoring of the procurement process
and the implementation of awarded contracts with
the end in view of guaranteeing that these
contracts are awarded pursuant to the provisions
of this Act and its implementing rules and
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 matter of
this Act to which the Philippine government is a
signatory shall be observed.
Definition of Terms
Approved Budget for the Contract (ABC) – refers to
the budget for the contract duly approved by the Head
of the Procuring Entity.
BAC – refers to the Bids and Awards Committee
established in accordance with Article V of this Act.
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.
Definition of Terms
Bid – refers to a signed offer or proposal submitted
by a supplier, manufacturer, distributor, contractor
or consultant in response to the Bidding Documents.
Competitive Bidding – refers to a method of
procurement which is open to participation by any
interested party.
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
Definition of Terms
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.
Definition of Terms
Procurement – refers to the acquisition of Goods,
Consulting Services, and the contracting for
Infrastructure Projects by the Procuring Entity.
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.
Receipt and Opening of Bids
Bid Security – All Bids shall be accompanied by a Bid
security, which shall serve as a guarantee that, after
receipt of the Notice of Award, the winning bidder shall
enter into contract with the Procuring Entity within the
stipulated time and furnish the required performance
security. The specific amounts and allowable forms of the
Bid security shall be prescribed in the IRR.
Bid Validity – Bids and Bid securities shall be valid for
such reasonable period of time indicated in the Bidding
Documents. The duration for each undertaking shall take
into account the time involved in the process of Bid
evaluation and award of contract
Receipt and Opening of Bids
Bid Opening – The BAC shall publicly open all bids at
the time, date, and place specified in the bidding
documents.
The minutes of the bid opening shall be made available to
the public upon written request and payment of a
specified fee.
BID EVALUATION
Bid for the Procurement of Goods and
Infrastructure Projects – For the procurement of Goods
and Infrastructure Projects, the BAC shall evaluate the
financial component of the bids. The bids that passed the
preliminary examination shall be ranked from lowest to
highest in terms of their corresponding calculated prices.
The bid with the lowest calculated price shall be referred
to as the "Lowest Calculated Bid.“
Post Qualification
Post-qualification is the stage where the bidder with the
Lowest Calculated Bid, in the case of Goods and
Infrastructure Projects, undergoes verification and
validation whether he has passed all the requirements
and conditions as specified in the Bidding Documents.
However, if a bidder fails to meet any of the requirements
or conditions, he shall be “post-disqualified” and the BAC
shall conduct the post-qualification on the bidder with
the second Lowest Calculated Bid.
Post Qualification
Failure of Bidding – There shall be a failure of bidding
if:
(a) No bids are received;
(b) No bid qualifies as the Lowest Calculated Responsive
Bid; or,
(c) Whenever the bidder with the lowest calculated
responsive bid refuses, without justifiable cause to accept
the award of contract, as the case may be.
 Award, Implementation and Termination Of
the Contract
Notice and Execution of Award. – Within a period not
exceeding fifteen (15) calendar days from the
determination and declaration by the BAC of the Lowest
Calculated Responsive Bid, and the recommendation of
the award, the Head of the Procuring Entity or his duly
authorized representative shall approve or disapprove the
said recommendation.
Within ten (10) calendar days from receipt of the Notice
of Award, the winning bidder shall formally enter into
contract with the Procuring Entity.
 Award, Implementation and Termination Of
the Contract
Notice to Proceed – The Procuring Entity shall issue the
Notice to Proceed to the winning bidder not later than
seven (7) calendar days from the date of approval of the
contract by the appropriate authority.
Period of Action on Procurement Activities. – The
procurement process from the opening of bids up to the
award of contract shall not exceed three (3) months, or a
shorter period to be determined by the procuring entity
concerned
 Settlement of Disputes
Arbitration. – Any and all disputes arising from the
implementation of a contract covered by this Act shall be
submitted to arbitration in the Philippines according to
the provisions of Republic Act No. 876, otherwise known
as the "Arbitration Law“.
THANK YOU FOR
LISTENING…
RA 9184