Short Title: | Government Procurement Reform Act |
Legislature: | Congress of the Philippines |
Long Title: | An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for other Purposes |
Citation: | Government Procurement Reform Act |
Territorial Extent: | Philippines |
Enacted By: | 12th Congress of the Philippines |
Date Enacted: | December 18, 2002 |
Date Signed: | January 10, 2003 |
Signed By: | Gloria Macapagal Arroyo |
Date Effective: | January 26, 2003 |
Bill Citation: | House Bill No. 4809 |
Introduced By: | Jose de Venecia Jr. |
2Nd Reading: | October 22, 2002 |
3Rd Reading: | October 23, 2002 |
Conf Committee Passed: | May 21, 2002 |
Committee Report: | Committee Report No. 00479 |
Bill Citation2: | Senate Bill No. 2248 |
Repeals: | EO No. 40 s. 2001, EO. No. 262 s. 2000, EO. No. 302 s. 1996, PD No. 1594 s. 1978 |
Related: | Revised implementing rules and regulations |
Status: | in force |
The New Government Procurement Act of 2024, officially designated as Republic Act No. 12009, is a Philippine law that prescribes the necessary rules to address the lack of transparency and competition in government procurement, eliminate collusion and interference, and lessen the delay in the procurement process by creating the Government Procurement Policy Board (GPPB) and PhilGEPs. It updates the Government Procurement Reform Act of 2003, officially designated as Republic Act No. 9184.[1]
The act covers the Philippine government's procurement of infrastructure projects, goods and consulting services from both local and foreign suppliers.
The law created the Government Procurement Policy Board (GPPB) that is responsible for protecting the nation's interest regarding public procurement, formulating and amending the Implementing Rules and Regulations (IRR) and the corresponding standard forms for procurement, ensuring that regular conduct of procurement training programs, and performing an annual review on the law and to recommend any amendments, if necessary. The GPPB also absorbs all the powers, functions and the responsibilities of the Procurement Policy Board created by Executive Order No. 359 s. 1989. Furthermore, all of the affected function of the Infrastructure Committee of the National Economic and Development Authority are transferred to the GPPB.
Philippine Government Electronic Procurement System (PhilGEPs), initially created by E.O. 322, s.2000 and E.O. 40, s.2001, will continue to be managed by the Department of Budget and Management but will fall under the supervision of the GPPB.This online portal serves as the primary source of information on government procurement to ensure transparency and efficiency on the government's procurement process. It features a centralized electronic bulletin board for posting procurement opportunities, notices awards and reasons for awards. It also serves as a registry of all manufacturers, suppliers, distributors, contractors and consultants that transacts with the government.
On May 16, 2002, Pangasinan Rep. Jose C. De Venecia, Jr. filed House Bill No. 4809 to the Committee on Appropriations and was subsequently approved and recommended to the Committee on Rules on May 21, 2002.[2] HB 4809 replaced HB187, HB333 and HB2986. The second reading of the bill was on May 27, 2002 and was sponsored by Camarines Sur Representatives Rolando G. Andaya and Felix William B. Fuentebella. The second reading of the bill was approved on October 22, 2002. The third reading was approved the following day, October 23 and passed the House of Representatives with a unanimous vote.
The senate received the bill on November 6, 2002, and requested to form a conference committee on November 12. The bill was approved and sent to the President's Office on December 20, 2002.
According to Art. XXI Sec. 65 (a) of RA 9184, 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:
According to Art. XXI Sec. 65 (b) of RA 9184, private individuals who commit any of the following acts, including any public officer, who conspires with them, shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than fifteen (15) years:
During the COVID-19 pandemic, shortages on Personal protective equipment (PPE) occurred worldwide, including in the Philippines. To close some of the supply gaps, the Department of Trade and Industry (DTI) asked garment and textile manufacturers to shift to the production of PPEs.[3] This call was answered by the Confederation of Philippine Manufacturers of PPE (CPMP).[4] [5] [6] However, the government's procurement law, RA 9184, prevents domestic manufacturers from competing against foreign manufacturers that have the ability to bid at lower prices.[7] [8] Unfortunately, the law has no provisions for preference of domestic products over foreign products. According to Art. X Sec. 34, the government can only award the contract to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. This forced companies to incur loss, partially close the repurposed factories and lay off around 3,500 workers in December 2020.
In July 2024, President Marcos Jr. signed Senate Bill No. 2593 into law. R.A. 12009, the New Government Procurement Act amends R.A. 9184 by optimizing the procurement process to 60 days. It provides for 11 new modalities of procurement, including the most economically advantageous responsive bid concept.[9]