7 Interesting Proposed Amendments to the Government Procurement Law (RA 9184)

The Department of Budget and Management (DBM) has proposed interesting amendments to the now two-decade old Government Procurement Reform Act (RA 9184).

Upon the instruction of the President, the DBM crafted specific proposed amendments to the government procurement law which encompasses Innovative Procurement Methods, Efficiency in the Procurement Process, Procurement Planning and Budgeting, Digitalization and Innovation, Sustainable and Green Procurement, and Miscellaneous Provisions.

“The President was very supportive. He provided inputs to simplify procurement in LGUs. He explained aling mga areas sila nahihirapan. Naiintindihan niya po ang ating mga LGUs dahil dyan po siya nanggaling. Gusto rin po niya na ma-develop at ma-institutionalize ang eMarketplace,” Budget and Management Secretary Pangandaman said in a statement.

In this post we identify seven (7) interesting proposed amendments to the procurement law.

1. Most Economically Advantageous Tender/Bid (MEAB)

This proposed amendment aims to be an alternative to the ever heavily contested and opposed lowest calculated and responsive bid criteria.

According to Procurement Service Executive Director Dennis Santiago, the Most Economically Advantageous Tender/Bid in Section 34, Article VIII (Receipt and Opening of Bids) of RA 9184 is proposed to serve as an alternative to lowest calculated and responsive bid to address the issue in the lowest calculated and responsive bid criteria, which do not fully satisfy the requirements of the Procuring Entity as to its needs, and purely quantitative selection misses out on important factors that could benefit the agency.

“Lagi hong nababanggit na lowest calculated responsive bid. Doon daw tayo palagi sa lowest, pero minsan, hindi naman maganda. So we’re looking at an area wherein we can improve the evaluation methodology. We now call it the Most Economically Advantageous Bid or the MEAB,” Director Santiago said in a statement. [DBM]

2. Provision prohibiting the issuance of a TRO or Preliminary Mandatory Injunction

According to the DBM, this proposed amendment aims to address possible delays in the procurement process because of suits filed by losing bidders against the government in procurement contracts for Goods and Services, except for TROs issued by the Supreme Court. [DBM]

3. Simplified Eligibility Requirements

This additional provision to RA 9184 is proposed to allow procuring entities to require the submission of the PhilGEPS Certificate of Registration and Membership instead of the eligibility documents. [DBM]

4. Provision on how prices of goods and services, vis-à-vis Technical Specifications is determined to come up with the ABC

This proposal aims to provide a section the law on how prices of goods and services, vis-à-vis Technical Specifications, should be surveyed or monitored to arrive at the approved budget for the contract (ABC). Primarily, this proposal aims to prevent supposedly overpriced goods and services primarily caused by inadequate or poor processes in price monitoring and the lack of safeguards prescribed by law. [DBM]

5. Sustainable and Green Public Procurement

The Green Procurement is proposed to address the government’s need to prioritize environmentally friendly and socially responsible procurement practices. It will also serve as a concession to the United Nation’s Sustainable Development Goals that include institutionalization and implementation of Sustainable/Green Public Procurement. [DBM]

6. E-Marketplace

This proposed enhancements to the 20-year-old law is probably the most interesting and timely especially during this heavily technology-based era.

President Bongbong Marcos wants the DBM to come up with an e-Marketplace platform similar to famous online marketplaces in the Philippines such as Lazada and Shopee.

“And then ano po si President doon sa marketplace – gusto niya po talaga ma-develop and ma-institutionalize iyong e-Marketplace po natin, iyong e-government platform natin para pong Lazada or Shopee iyong concept noong platform” Secretary Pangandaman said.

The DBM disclosed that the e-Marketplace will become part of the Philippine Government Electronic Procurement System (PhilGEPS) with motor vehicles as the pilot products.

“And then moving forward, hopefully, iyong mga ibang produkto naman po ang maipapasok sa (other products can be launched in the) e-Marketplace where procuring entity can directly buy. Ang mawawala po rito ay iyong mahabang proseso ng pagbi-bid (What will be streamlined here is the long process of bidding). Okay? Because they will buy directly from the e-Marketplace,” ED Santiago said. [MB]

7. Removal of Bidding Process for Smaller Items

This amendment aims to remove the bidding process for small items such that government agencies can directly procure from merchants provided that they are found legally, technically, and financially compliant.

“This will put forth efficiency because ‘yung mga bagay bagay na dapat sina-submit for for competitive bidding ay hindi na po gagawin ‘yun, bagkus gagawa ang procuring entity ng sariling technical requirements and then approach the appropriate market operator to provide the goods,” ED Santiago said.

ED Santiago added that the DBM is looking at P250,000 as the minimum amount for goods and services that no longer require competitive bidding, but this will still be up to Congress. [GMA]

What do you think?

So, what do you think about these proposed amendments? Do you agree with them? Do you have some more suggestions? Leave us a message in the comments section below.