Title
Amendment on PhilGEPS Registration for FSPs
Law
Gppb No. 23-2014
Decision Date
Oct 31, 2014
An amendment to the Philippine Government Procurement Reform Act allows procuring entities to assist bidders in registering with the Philippine Government Electronic Procurement System (PhilGEPS) and requires the submission of a PhilGEPS Registration Number instead of a Certificate of PhilGEPS Registration, addressing issues faced by foreign suppliers and encouraging their participation in procurement activities for Foreign Service Posts.
A

Original Requirement on PhilGEPS Registration

  • Section 34.2 of the IRR and Clauses 29.2, 28.2, and 27.2 of the Instructions to Bidders (ITB) required bidders with the Lowest Calculated Bid (LCB) or Highest Rated Bid (HRB) to submit a Certificate of PhilGEPS Registration during post-qualification.

Issues Raised by Philippine Foreign Service Posts (FSPs)

  • The Department of Foreign Affairs (DFA) requested temporary suspension of PhilGEPS registration for suppliers participating in procurement for Foreign Service Posts due to compatibility issues with the new PhilGEPS system and IRR provisions in foreign jurisdictions.
  • Foreign suppliers have been reluctant to participate due to:
    • Need to undergo membership registration and pay fees.
    • Submit eligibility documents.
    • Different business identification systems, e.g., the Israeli Tax Identification Number (TIN) format does not conform to PhilGEPS requirements.
    • Lack of Securities and Exchange Commission (SEC) certificates or equivalents outside the Philippines.
    • Requirement of SEC registration dates and Philippine-based addresses and telephone codes, which are not applicable to foreign entities.
    • Reluctance to disclose market capitalization.

Response and Resolution by GPPB

  • To address these concerns, the GPPB allows procuring entities to assist foreign suppliers by undertaking PhilGEPS registration on their behalf to comply with RA 9184 and its IRR.
  • The current system allows submission of PhilGEPS Registration Numbers instead of Certificates during post-qualification for entities operating abroad.
  • The GPPB found the DFAs justifications sufficient to amend Section 34.2 concerning the Certificate of PhilGEPS Registration for manufacturers, suppliers, distributors, contractors, and consultants for Foreign Service Posts and other government agencies operating in foreign countries.

Amendments to Section 34.2 of the IRR

  • Amend Section 34.2 to provide that bidders must submit:
    • Latest income and business tax returns.
    • Either the Certificate of PhilGEPS Registration or the PhilGEPS Registration Number for procurements involving Philippine foreign offices or posts, given that bidders registered with PhilGEPS before the bid opening.
    • Other appropriate licenses and permits required by law and stated in the bidding documents.
  • Clarifies the submission is within three calendar days from receipt of notice from the Bids and Awards Committee (BAC) about the LCB or HRB status.

Amendments to Instructions to Bidders (Clauses 29.2, 28.2, 27.2) in the Philippine Bidding Documents (PBDs)

  • Similar amendments were made to these clauses across Goods, Infrastructure Projects, and Consulting Services bidding documents.
  • Require bidders to submit:
    • Latest income and business tax returns in the form specified in the Bid Data Sheet (BDS).
    • Certificate of PhilGEPS Registration or PhilGEPS Registration Number if the procuring entity is a Philippine foreign office or post, contingent upon prior PhilGEPS registration.
    • Other pertinent licenses and permits as stated in the BDS.
  • Submission must be within a non-extendible three-calendar-day period after receipt of notice from the BAC.

Legal Effect and Implementation

  • The resolution was adopted by the GPPB at their 6th meeting and 5th Inter-Agency Technical Working Group Joint Meeting on October 31, 2014.
  • It formally amends specific provisions to ease participation of foreign suppliers in government procurement related to Foreign Service Posts without compromising legal and regulatory compliance.
  • The resolution took effect 15 days after publication in the Official Gazette or a national newspaper and upon filing certified copies with the University of the Philippines Law Center.

Key Legal Concepts and Practical Considerations

  • Recognition of foreign business differences in tax identification numbers and registration systems.
  • Allowing procuring entities assistance to foreign bidders to comply with local procurement registration requirements.
  • Facilitating wider participation of qualified foreign suppliers and contractors in Philippine government procurement abroad.
  • Balancing the mandates of transparency, competition, and national interest protection with practical challenges in foreign procurement contexts.
  • Preservation of procedural deadlines and documentary requirements while providing flexibility in acceptable proof of registration.

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