QuestionsQuestions (Resolution NO. 31-2017)
To clarify whether and how government employees’ cooperatives may participate in government procurement, including rules on eligibility, pre-qualification requirements, and limitations due to conflict of interest.
All National Government Departments, Bureaus, Offices and Agencies, including State Universities and Colleges, GOCCs, GFIs, and Local Government Units (LGUs).
Cooperatives duly organized under Philippine laws may participate in procurement of goods, infrastructure projects, and consulting services.
Because RA 9184 abolished pre-qualification (replaced by simple eligibility checking), so there is no remaining pre-qualification process to exempt from.
It grants cooperatives transacting business with the Government (or its agencies/instrumentalities) an exemption from pre-qualification bidding requirements notwithstanding RA 9184.
It explains that the exemption was limited to pre-qualification only; since RA 9184 already abolished pre-qualification and replaced it with simple eligibility checking, cooperatives have no exemption to rely on.
Competitiveness requires equal opportunity for eligible and qualified bidders to participate in public bidding; thus, cooperatives must be evaluated on equal footing with other bidders.
It is the eligibility process that replaced pre-qualification under RA 9184; cooperatives must pass this objective pass/fail eligibility check like other bidders.
Yes, provided they meet all requirements under the 2016 Revised IRR of RA 9184 and are evaluated on equal footing, subject to laws and any BAC determination of conflict of interest.
The presence of conflict of interest, which can lead to disqualification, particularly when required by RA 9184 and the IRR.
When the bidder is related by consanguinity or affinity within the third civil degree to the HOPE, BAC, TWG, BAC Secretariat, head of the PMO, end-user unit, or project consultants (if any); if the bidder is a cooperative, this applies to all its officers, directors, and controlling shareholders or members.
It mandates disqualification of bidders found to have conflicting interests, including situations where a bidder’s relationship (directly or through third parties) puts them in a position to access information about or influence another bidder’s bid or influence the procuring entity’s decisions for the process.
It states that the determination is essentially and primarily lodged with the BAC of the procuring entity, considering surrounding circumstances and applying relevant provisions of the RA 9184 IRR, PBDs, RA 6713, and other rules.
It cites RA 6713’s definition: conflict occurs when an official’s or employee’s official duties are opposed to or affected by the official’s rights or interests in a corporation/business; remedy includes resignation and/or divestment and the duty to avoid conflict at all times.
No. It rejects automatic disqualification on the basis of conflict alone; instead, it emphasizes that eligibility and participation depend on meeting requirements and the BAC’s determination of conflict of interest based on the circumstances.
It notes potential undue advantage through access to information generally unavailable to other bidders, and it may create suspicion of partiality or familiarity among market operators.
Fifteen (15) days following its publication in the Official Gazette or in a newspaper of general nationwide circulation.