Law Summary

Introduction

This summary analyzes GPPB Resolution No. 21-2013, which approves amendments to specific sections of the Revised Implementing Rules and Regulations (IRR) of Republic Act No. 9184 regarding public procurement policies in the Philippines. The resolution was approved on July 30, 2013.

Authority and Background

• Legal Basis: The Government Procurement Policy Board (GPPB) derives its authority from Section 63.1(b) of RA No. 9184, allowing it to formulate and amend public procurement policies and rules.
• Prior Requirements: Previously, specific legal eligibility documents were mandated for bid submissions, including:
  • Registration certificates from relevant authorities (SEC, DTI, or CDA).
  • Mayor's permit from the local government unit where the business is located.

Amendments to Eligibility Documents

• New Inclusion: The GPPB has resolved to include the Tax Clearance as part of the Class A legal eligibility documents required during the bid submission process.
• Affected Sections:
  • Sections Amended:
    • 23.1(a)
    • 24.1(a)
    • 34.2 of the IRR
  • Clauses in the Philippine Bidding Documents (PBDs):
    • Clause 12.1 of the ITB for Goods and Infrastructure Projects.
    • Clause 2.1 of the Eligibility Documents and Clause 27.2 of the ITB for Consulting Services.

Tax Clearance Requirement

• Purpose: The inclusion of the Tax Clearance aims to ensure compliance with tax obligations and assess a bidder's financial capacity.
• Details:
  • Tax Clearance will reflect the current assets and liabilities of the taxpayer.
  • This requirement is particularly relevant during the post-qualification stage for the Lowest Calculated Bid or Highest Rated Bid.

Implementation and Effectivity

• Immediate Effectivity: The resolution takes effect immediately upon its approval on July 30, 2013.
• Signatories: The resolution is endorsed by representatives from various government agencies, including the Departments of Budget and Management, Education, Energy, Finance, National Defense, Public Works and Highways, and Transportation and Communications.

Key Takeaways

• The GPPB Resolution No. 21-2013 introduces significant amendments to the eligibility requirements for public procurement in the Philippines by including the Tax Clearance as a requisite document.
• The adjustments aim to enhance the integrity of the bidding process and ensure that bidders are compliant with their tax obligations.
• All amendments are effective immediately, reinforcing the urgency for prospective bidders to align with the updated requirements.

This summary encapsulates the primary provisions and implications of GPPB Resolution No. 21-2013, highlighting the key changes and their significance for public procurement practices in the Philippines.