QuestionsQuestions (Republic Act No. 9184)
RA 9184 declares it policy of the State to promote good governance in all branches and instrumentalities of government, including GOCCs and LGUs. Its governing principles include: (1) transparency in procurement and contract implementation; (2) competitiveness through equal opportunity to eligible and qualified private parties; (3) a streamlined, uniform, and adaptable procurement process; (4) accountability of public officials and private parties involved relative to procurement and contract implementation; and (5) public monitoring to ensure awards follow the Act and contracts are performed strictly according to specifications.
RA 9184 applies to procurement of Infrastructure Projects, Goods, and Consulting Services, regardless of source of funds (local or foreign), by all branches and instrumentalities of government including GOCCs and LGUs, subject to the provisions of CA No. 138. Any relevant treaty/international or executive agreement affecting the subject matter must also be observed.
ABC is the budget for the contract duly approved by the Head of the Procuring Entity: for National Government Agencies—approved by the Head and provided for in the General Appropriations Act/continuing appropriations; for GOCCs/GFIs/SUCs—approved by the governing Boards pursuant to EO 518 s. 1979; for LGUs—approved by the respective Sanggunian.
BAC means Bids and Awards Committee. Each procuring entity must establish a single BAC with at least five (5) but not more than seven (7) members, chaired by at least a third ranking permanent official other than the head. Members are designated by the Head of Procuring Entity, but the approving authority is not a member. The composition specifics are in the IRR.
The BAC advertises/posts invitation to bid, conducts pre-procurement and pre-bid conferences, determines bidder eligibility, receives bids, evaluates bids, conducts post-qualification, and recommends award to the Head of Procuring Entity. It also recommends sanctions, ensures compliance with the Act and IRR, prepares procurement monitoring reports to the GPPB semiannually, and may create a Technical Working Group and recommend alternative methods of procurement in proper cases.
To enhance transparency, the BAC must invite in addition to COA representative at least two (2) observers: one from a duly recognized private group in a relevant discipline and one from a non-government organization. They must not have any direct or indirect interest in the contract to be bid.
RA 9184 mandates standardization, insofar as practicable, to systematize the procurement process, avoid confusion, and ensure transparency. The GPPB must develop generic procurement manuals and standard bidding forms, which once issued become mandatory for all Procuring Entities.
Procurement must be within the approved budget and must be meticulously planned. No government procurement shall be undertaken unless it is in accordance with the Procuring Entity’s approved Annual Procurement Plan (APP), consistent with its duly approved yearly budget. Only crucial procurements are included in the APP following IRR guidelines; for infrastructure, the plan includes engineering design and right-of-way acquisition.
G-EPS refers to the Government Electronic Procurement System. It serves as the primary and definitive source of information on government procurement. Procuring entities are required to utilize G-EPS for procurement of common supplies. It also provides security, integrity, confidentiality, and an audit trail enabling COA verification.
RA 9184 generally requires that all procurement be through Competitive Bidding, except as provided in Article XVI (Alternative Methods of Procurement). Competitive bidding is open to eligible parties and includes the sequence: advertisement, pre-bid conference, eligibility screening, receipt/opening, evaluation, post-qualification, and award.
Specifications for goods must be based on relevant characteristics and/or performance requirements. Reference to brand names shall not be allowed.
A bid has two (2) components: technical and financial components, which must be in separate sealed envelopes and submitted simultaneously, on the date/time/place stated in the invitation to bid. Bids submitted after the deadline are not accepted.
ABC is the upper limit or ceiling for bid prices. Bid prices exceeding ABC are disqualified outright from further participation. There is no lower limit to the amount of the award.
For Goods and Infrastructure Projects: BAC evaluates the financial components; bids passing technical pass/fail are ranked from lowest to highest by calculated price, and the lowest calculated bid is considered. For Consulting Services: short listed bids are evaluated using numerical ratings based on criteria such as experience, performance, quality of personnel, price, and methodology, ranked from highest to lowest calculated rating, and the highest rated bid is considered.
Post-qualification verifies and validates whether the bidder meets all requirements/conditions in the bidding documents. The bid becomes “responsive” if it passes. If post-disqualified, BAC conducts post-qualification on the next-ranked bidder (second lowest/second highest), repeating until a responsive bidder is determined. Contract is awarded only to the lowest calculated responsive bid (goods/infrastructure) or highest rated responsive bid (consulting).
Failure of bidding occurs if: (1) no bids are received; (2) no bid qualifies as the lowest calculated responsive bid/highest rated responsive bid; or (3) the highest rated/lowest calculated responsive bidder refuses, without justifiable cause, to accept the award. After failure, the BAC re-advertises and re-bids; after the second failed bidding, it may resort to negotiated procurement as provided in Section 53.
The head may reject any and all bids, declare failure of bidding, or not award if: there is prima facie evidence of collusion affecting bidding; the BAC failed to follow prescribed bidding procedures; or there is any justifiable and reasonable ground where award will not redound to the benefit of the government as defined in the IRR.
Protests may be filed to the Head of the Procuring Entity in writing with a non-refundable protest fee; the resolution must be based strictly on BAC records. Critically, no protest stays or delays the bidding process; protests must first be resolved before any award is made. Court action is only allowed after the protest process is completed.