Title
Supreme Court
Amendments to procurement rules of RA 9184
Law
Memorandum Order No. 213
Decision Date
May 8, 2006
The Government Procurement Policy Board proposes amendments to streamline and improve procurement procedures, including allowing the issuance of letters of credit, negotiation with suppliers, and fixed bid prices. President Gloria Macapagal-Arroyo approves the proposed amendments to the Implementing Rules and Regulations of Republic Act No. 9184.

Law Summary

Terms and Conditions for Use of Alternative Procurement Methods

  • For negotiated procurement under Item (a) of Section 53:

    • The procuring entity must create a list of at least three qualified suppliers, contractors, or consultants.
    • Invitations to submit bids followed by negotiations should be with the lowest calculated or highest rated bidder, depending on applicability.
    • If the lowest bidder’s offer does not meet original specifications and the Approved Budget for the Contract (ABC), negotiations proceed in ascending order of bid prices until a responsive bid is found.
    • The contract award decision must be posted on the Government Electronic Procurement System (G-EPS) website, procuring entity’s website if available, and in a conspicuous location at the procuring entity’s premises.
  • For negotiated procurement under Item (b) of Section 53:

    • Negotiations may be entered with previous suppliers or contractors of good standing or those located near the site of calamity or emergency.
    • The contract award must be posted similarly on the G-EPS and procuring entity’s website and premises.

Contract Prices and Currency Denomination

  • Bid prices are treated as fixed and not subject to price escalation, except in extraordinary circumstances with prior GPPB approval.
  • Contracts are to be denominated and payable in Philippine pesos unless the GPPB guidelines allow payment or bidding in foreign currency.
  • When bids are received in foreign currency, exchange rates as of the bid opening date must be used for bid comparison and evaluation.

General Provisions

  • All other provisions of the Implementing Rules and Regulations Part A of RA 9184 remain unchanged.
  • This Memorandum Order took effect immediately upon its publication in a newspaper of general circulation.

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