Government Procurement Reform Act (Rep. Act 9184)
“Not just doing the right things, but doing it right”
PROBLEM AREAS AND REFORM MEASURES
PROBLEMS REFORMS
• Confusion caused by fragmented legal system
Uniform applicability of the law to both national government agencies and local government units
ENACTMENT OF GPRA
Implementing Implementing Rules and Rules and RegulationsRegulations
Executive OrdersExecutive Orders Administrative Administrative IssuancesIssuances
Memorandum Memorandum CircularsCirculars
over 100 procurement rules & regulationsover 100 procurement rules & regulations
R.A. 9184R.A. 918410 January 200310 January 2003
Goods, Infrastructure,Goods, Infrastructure,Consulting ServicesConsulting ServicesCoverage: NGAs and LGUsCoverage: NGAs and LGUs
PROBLEM AREAS AND REFORM MEASURES
PROBLEMS REFORMS
• Confusion caused by inconsistent rules and regulations
• Creation of the Government Procurement Policy Board (GPPB) as sole procurement authority• Inconsistent policies,
rules, and regulations due to lack of standards
• Outdated procurement rules and regulations
CREATION OF GPPB
Inter-Agency Body
Big procuring entities (defense, education, health, public works, transportation and communications)
Oversight agencies (budget, planning,
finance, trade, science and technology, interior and local government, energy)
Private Sector
Resource Persons (audit, anti-corruption agencies)
GPPB Functions Policy-Making
Amend implementing rules & regulations of procurement law (quasi-legislative function)
Prepare generic procurement manual and standard bidding forms
Capacity Development Establish a sustainable training program
Monitoring Assist procuring entities improve their
compliance Review effectiveness of procurement law
PROBLEM AREAS AND REFORM MEASURES
PROBLEMS REFORMS
Collusion and lack of transparency
Approved Budget for the Contract as ceiling for bid prices
Delays, collusion, and lack of competition
Simplification of Pre-qualification and stronger post-qualification
Abuse of discretion Use of objective non-discretionary criteria
PROBLEM AREAS AND REFORM MEASURES
PROBLEMS REFORMS
• Lack of transparency Use of Electronic Procurement
www.philgeps.net
PROBLEM AREAS AND REFORM MEASURES
PROBLEMS REFORMS
• Lack of checks and balance
Civil society organization observance of bidding process and result reporting
GOVERNING PRINCIPLES Transparency
◦ Wider dissemination of bid opportunities
Competitiveness◦ Equal opportunity to all eligible bidders
Streamlined Process◦ Uniformly applicable to all government agencies◦ Effective and efficient method
System of Accountability◦ “Answerable”
Public Monitoring◦ Awareness and vigilance
R.A. 9184 applies to all branches and/or instrumentalities of the government:
a) National Government Agencies (NGAs) b) State Universities and Colleges (SUCs)c) Government Owned or Controlled Corporations
(GOCCs)d) Government Financial Institutions (GFIs)e) Local Government Units (LGUs)
COVERAGE
SCOPE AND APPLICATION
R.A. 9184 governs the procurement of: Goods (Supplies & General Support Services) Infrastructure Projects Consulting Services
All domestically-funded procurement activities
All foreign-funded procurement activities, unless otherwise stated in the treaty or international or executive agreement
SCOPE AND APPLICATION
Exceptions:
Procurement funded from Foreign Grants [R.A. 8182, as amended by R.A. 8555 (ODA Law)];
Acquisition of Real Property (R.A. 8974);
Public-Private Sector Infrastructure or Development Projects [R.A. 6957, as amended by R.A. 7718 (BOT Law)];
Disposal of government properties (rules on budget, accounting and audit)
JV Partnerships (NEDA Guidelines)
DEFINITION (GOODS)
Items, supplies, materials & general support services, except consulting services & infra projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking. Includes, but is not limited to the following:a)equipment, b)furniture, c)stationery, d)materials for construction, e)personal property of any kind,f)non-personal or contractual services, i.repair & maintenance of equipment and furniture ii.trucking, hauling, and courieriii.janitorial, security and manpower
Related or analogous services shall include, but not limited to the following:
a)lease or purchase of office space
b)media advertisements
c)health maintenance services
d)other services essential to the operation of the procuring entity
i.rental of venues and facilities
ii.catering services
iii.lease of computers, copiers and other information technology equipment
DEFINITION (GOODS)
DEFINITION (INFRASTRUCTURE PROJECTS)
Include
• Construction• Improvement• Rehabilitation• Demolition• Repair• Restoration• Maintenance
• Roads and bridges• Railways• Airports and seaports• Communication facilities• Civil works components of IT projects• Irrigation• Flood control and drainage• Water supply• Sanitation• Sewerage and solid waste management
systems• Shore protection• Energy/power and electrification
facilities• Buildings (National, School, Hospital)• Other related construction projects
Services for infrastructure projects and other types of projects or activities requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the GOP, such as:
a)Advisory and review services
b)Pre-investment or feasibility studies
c)Design
d)Construction supervision
e)Management and related services
f)Other technical services or special studies
DEFINITION (CONSULTING SERVICES)
Head of the Head of the Procuring EntityProcuring Entity
BACBAC
TWGTWGObserversObservers
BAC SecretariatBAC Secretariat
PROCUREMENT ORGANIZATIONAL STRUCTURE
Head of the Procuring Entity (HOPE)
Establish BAC and appoint its members◦ Ensure BAC members give utmost priority to
assignments◦ Ensure professionalization of procurement
organization
Approve the Annual Procurement Plan (APP) & Procurement Monitoring Report
Promptly act on BAC recommendations, i.e., award of the contract and mode of procurement
Approve/Disapprove Contract Award
Resolve Protests
PROCUREMENT ORGANIZATION
Head of the Procuring Entity (HOPE)
Ensure that the procurement officials and personnel receive ample training and proper incentives
Impose the necessary administrative sanctions to errant procurement officials and bidders – issues blacklisting orders
In case of consulting services, approves the method of evaluation, short-listed bidders and bidder having the Highest Rated Bid.
PROCUREMENT ORGANIZATION
Bids and Awards Committee
General Rule: Single BAC
Exception: Expedite the procurement process for practical intents and purposes where the number and complexity of the items to be procured warrants
HOPE designates the BAC members, including the Chair and Vice-Chair
PROCUREMENT ORGANIZATION
Bids and Awards Committee
Composition: FIVE (5) but not more than SEVEN (7) MEMBERS designated by the HOPE
Members of the local sanggunian.
PROCUREMENT ORGANIZATION
Bids and Awards CommitteeMajor Functions:
Recommend Procurement Method
Create TWG
Conduct the bidding activities
Resolve Requests for Reconsideration
Prepares the APP and PMR
Recommend Imposition of Sanctions vis-à-vis process blacklisting proceedings
PROCUREMENT ORGANIZATION
Bids and Awards CommitteeOther Responsibilities:
Invite Observers during all stages of the procurement process
Conduct due diligence review or verifications of the qualifications of observers
Prepare Procurement Monitoring Report
Suspend or blacklist bidders
PROCUREMENT ORGANIZATION
Bids and Awards Committee
Prohibited Members:
Head of the Procuring Entity
Approving Authority
Chief Accountant (Head of the Provincial/City/Municipal Accounting Office) and his/her staff, unless any of the former were designated as end-user of the project (COA Circular 2003-04)
PROCUREMENT ORGANIZATION
Technical Working Group
Created by the BAC from a pool of legal, technical and financial experts
Functions:
Assist BAC in the following activities:• Preparing bidding documents• Eligibility check/short-listing• Bid evaluation and preparation of reports• Post-qualification • Preparation of post-qualification summary report
Assist BAC and BAC Secretariat in preparing BAC Resolutions
PROCUREMENT ORGANIZATION
BAC Secretariat
HOPE may create a new office or designate an existing organic office to act as BAC Secretariat
Functions:
Provide administrative support to the BAC
Organize BAC meetings and conferences
Take custody of procurement documents and other records
Manage the sale and distribution of bidding documents
PROCUREMENT ORGANIZATION
BAC Secretariat
Functions:
Advertise/post bidding opportunities and notices of awards
Assist in managing the procurement process
Monitor procurement activities and milestones
Consolidate PPMPs
Act as central channel of communications
PROCUREMENT ORGANIZATION
Who are the Observers? Representative from COA Representative from a duly recognized private
group in a relevant sector or discipline Representative from an NGO
Qualifications: Organization duly registered with the SEC or CDA With knowledge, experience or expertise in
procurement or in the subject matter of the contract to be bid
Without actual or potential conflict of interest in the contract to be bid
Any other relevant criteria that may be determined by the BAC
OBSERVERS
Invited at least 3 cd prior to the procurement stage/activity to enhance transparency of the process
Responsibilities: Prepare report (jointly or separately) indicating
their observations on the procurement activities Submit report to the PE and furnish a copy to the
GPPB and the Office of the Ombudsman/Resident Ombudsman
Immediately inhibit and notify in writing the PE of any actual or potential conflict of interest
Allowed access to documents upon signing of a confidentiality agreement
OBSERVERS
Honoraria
Legal Basis: DBM Budget Circular 2007-3, dated 20
November 2007 DBM Budget Circular 2004-5A, dated 7 October
2005
Paid only for successfully completed procurement projects
Procurement contract has been awarded Applies every procurement project that has been
identified, described, detailed, scheduled and budgeted in the APP
Limited to procurement that involves competitive bidding
BAC INCENTIVES
Honoraria: Ceiling
BAC Chair Php. 3,000
BAC Members 2,500
TWG Chair & Members 2,000
Average amount of honoraria per month over one year should not exceed 25% of the basic monthly salary
BAC INCENTIVES
Honoraria: Funding Source:
Collections from successfully completed project
• proceeds from sale of bid documents• fees from contractor/supplier registry • fees charged for copies of:
1. minutes of bid openings, 2. BAC resolutions, and 3. other BAC documents
• Protest fees• Proceeds from bid security forfeiture
• Savings from the DBM approved corporate operating budget
BAC INCENTIVES
Honoraria: BAC Secretariat Ad hoc: paid honoraria at the same rate as the TWG
chair and members Procurement Unit: Overtime services
Those who are receiving honoraria shall no longer be entitled to overtime pay
Administrative staff, such as clerks, messengers and drivers supporting the BAC, the TWG and the Secretariat entitled to payment of overtime services
BAC INCENTIVES
PHILIPPINE PROCUREMENT PARADIGM
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NEEDSSATISFACTION
End UserEnd User
BACBAC
BAC SecBAC Sec
HOPEHOPE
Identify
Assess Procure
Implement
BACBAC
TWGTWG
HOPEHOPE
End UserEnd User
BAC SecBAC Sec
• Cost-benefit analysis• Feasibility study• Market study• PPMP
• Review studies• Consolidate into APP• Decide procurement
method• Approve APP• Determine readiness
• Post/Advertise opportunity
• Open and evaluate bids
• Post-qualify• Award and enter into
contract
• Oversee implementation
• Inspect and accept deliveries
• Release payment
Budget Budget
Procurement planning involves resource allocation and scheduling.
Involves identifying which project/program/activity needs of the procuring entity can best be met by procuring products or services. It includes deciding:
Whether to procure
What to procure
How to procure
Where to procure
How much to procure
When to procure
PROCUREMENT PLANNING
Why Conduct Procurement Planning?
Overall goal of the particular project will be effectively and efficiently achieved
Precludes occasions for unnecessary government purchases and circumventions of the prescribed procurement procedures.
Examples: Advance deliveries; Suki” system, or Unwarranted resort to alternative methods
procurement.
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PROCUREMENT PLANNING
Why Conduct Procurement Planning?
Done w/in budgetary context reflecting the LGU’s priorities and objectives for the budget period.
Government has the fiduciary responsibility to protect the taxpayers’ interests and safeguard the resources allotted to each department
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PROCUREMENT PLANNING
The following competencies are required:
knowledge of the items to be procured accounting, warranty and contract laws, and scheduling.
PROCUREMENT PLANNING
All procurement shall be within the approved budget of the procuring entity and should be meticulously and judiciously planned by procuring entity
Only those considered crucial to the efficient discharge of governmental functions shall be included in the Annual Procurement Plan (APP).
A procurement project shall be considered crucial to the efficient discharge of governmental functions if it is required for the day-to-day operations or is in pursuit of the principal mandate of the procuring entity concerned.(Sec. 7.1, Revised IRR)
No procurement shall be undertaken unless it is in accordance with the approved APP (Sec. 7.1, Revised IRR)
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PROCUREMENT PLANNING
What is a PPMP?
PPMP is the document reflecting the different programs, activities and projects (PAPs) of the various end-user units or Project Management Offices (PMOs) of the procuring entity.
When is the PPMP prepared?
PPMP is prepared simultaneously with the budget proposal to provide details on the mode and schedule of procurement, technical description and specification of goods, equipment and civil works to be procured and their proposed budgets.
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PROJECT PROCUREMENT MANAGEMENT PLAN
Who prepares the PPMP?
The end-user units or the Project Management Office (PMO) shall prepare their respective PPMP for their PAPs.
Why is the PPMP prepared?
PPMP is an important factor in determining and projecting the quantity and quality of the expected outputs of the PAPs.
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PROJECT PROCUREMENT MANAGEMENT PLAN
Factors to consider in preparing the PPMP?
o Assess the Needs
Strategize procurement of Needs
Consolidate identified Needs
Review studies and justifications for the Needs
Ascertain reasonableness of Needs
Prioritize acquisition of Needs44
PROJECT PROCUREMENT MANAGEMENT PLAN
Project Procurement Management Plan
Name of the Project or Procurement
General Description of the Project
Extent/Size of Contract Scopes/Packages
Procurement Method
Time Schedule / Procurement Milestones
Estimated Budget for the Contract
Con
tent
s
PROJECT PROCUREMENT MANAGEMENT PLAN
What is an APP?
APP is the document that consolidates the various PPMPs submitted by the various procuring entity’s end-user units/PMOs.
Who prepares the APP?
APP is prepared by the BAC, through the BAC Secretariat
Who approves the APP?
APP should be approved by the HOPE or its duly authorized 2nd ranking official
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ANNUAL PROCUREMENT PLAN
How is the APP prepared & maintained?
APP should be maintained and updated regularly
In the consolidation of PPMPs, the BAC may adopt a strategy through which similar items of procurement are packaged into one procurement undertaking and under a single PPMP, in which the original PPMPs shall be consolidated and revised.
A review and updating of the individual PPMPs and the APP shall be done regularly, at least once every 6 mos. or as often as necessary;
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ANNUAL PROCUREMENT PLAN
Factors to consider in developing an APP?
Inclusion of all procurement activities planned for the year;
Include provisions for a lump sum to cover foreseeable emergencies or contingencies usually indicated by historical records;
Scheduling of procurement activities in the APP should be done in such a manner that the BAC and the other offices/units involved in the procurement process in the procuring entity are able to efficiently manage the conduct of procurement transactions.
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ANNUAL PROCUREMENT PLAN
PROCUREMENT PLANNING
End UserBudget Office
BAC Sec / BAC
Approving Authority
1Prepare PPMP
Evaluate PPMP and include in
budget proposal
Review and consolidate
into APP
Approve GAA/
Corporate Budget/
Ordinance
2 Revise PPMPFinalize
procurement mode
HOPE or 2nd in rank
approves APP
Annual Procurement Plan
Name of the Project
General Description of the Project
Procurement Method
Time Schedule of each Procurement Activity
Approved Budget for the Contract (ABC)
Con
tent
s
PMO or End-user Unit
ANNUAL PROCUREMENT PLAN
In preparing the APP, use the GPPB prescribed format
Post a copy of the APP in the PE’s website and the On-Line Monitoring Evaluation System (OMES) in the GPPB website
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PROCUREMENT PLANNING
What is a PMR?
PMR is the document that reflects all of the procurement activities undertaken by the procuring entity, whether completed or on-going
Who prepares the PMR?
PMR is prepared by the BAC, through the BAC Secretariat
Who approves the APP?
PMR shall be approved by the HOPE & submitted to the GPPB.
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PROCUREMENT MONITORING
What does the PMR cover?
PMR shall cover all procurement activities specified in the APP, whether on-going and completed from holding of the pre-procurement conference to the issuance of the notice of award and approval of the contract, including the actual time for each major procurement activity.
When will the PMR be submitted?
After HOPE approval, the PMR shall be submitted to the GPPB in printed & electronic format w/in 14 cd after the end of each semester.
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PROCUREMENT MONITORING
Why is the PMR prepared?
Monitoring entails tracking of inputs, activities, outputs, and outcomes of the procurement activity
It monitors the results of current operations on a regular basis.
Ex-post evaluation examines the project outcomes and impacts. It is a determination of the benefits derived from the project, the attainment of specific targets for key indicators, and the sustainability of the project.
BAC shall ensure that the procuring entity abides by the standards set forth under R.A. 9184 and its IRR.
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PROCUREMENT MONITORING
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