Question & AnswerQ&A (GPPB Resolution NO. 018-2005)
RA No. 9184 adopts as a basic principle the preference for Filipino nationals in the award of government procurement contracts.
Foreign suppliers are those where Filipino ownership or interest is less than 60%, foreign contractors have less than 75% Filipino ownership, and foreign consultants are individuals or entities not meeting the criteria for local consultants as defined in the IRR-A of RA 9184.
Foreign bidders may participate when goods are not available locally, to prevent restraint of trade, if from countries with reciprocal rights for Filipinos, or if allowed under treaty or international agreements.
Foreign contractors can participate if they form a joint venture with local contractors with foreign ownership not exceeding 25%, or if specialized technology not possessed by local contractors is required.
Foreign consultants may be hired if local consultants lack sufficient expertise, capability, and capacity, as determined by the head of the procuring entity.
It is determined after diligent market research and certification by the head of the procuring entity, and if applicable, certification from government regulatory bodies confirming non-availability from local suppliers.
The procuring entity head must certify the advertisement and lack of local participation was not due to the entity's fault, allowing invitation of foreign suppliers without changing bidding requirements.
The procuring entity must post an invitation to foreign manufacturers to participate before direct contracting with an exclusive local manufacturer, proceeding to public bidding if any foreign manufacturer responds.
Suppliers from countries granting reciprocal rights to Filipino nationals to participate in their public procurement are eligible to participate in Philippine government procurement.
The procuring entity checks the Department of Foreign Affairs' list of countries with reciprocal rights, and may require a sworn statement from the foreign bidder confirming such rights under their country's laws.