Law Summary
Eligibility Criteria for Government Corporate Entities (GCEs) and Government-Owned or Controlled Corporations (GOCCs)
- Original provisions (Sections 23.6 and 24.6 of the IRR) restrict participation in Competitive Bidding to entities that are legally and financially autonomous, operate under commercial laws, and are not dependent agencies of the Government of the Philippines (GOP).
- Amendment substitutes the term "GCEs" with "GOCCs," removes the reference to GOP dependency, and clarifies the exclusion applies to "attached agencies" rather than "dependent agencies."
- GOCCs may participate in competitive bidding only if they:
- Are legally and financially autonomous.
- Operate under commercial law.
- Are not attached agencies of the procuring entity.
Definition Clarification and Addressing Ambiguities
- The GOCC Governance Act of 2011 provides a technical definition of GCEs, which creates potential confusion about the scope of Sections 23.6 and 24.6.
- These amendments clarify the intended application to include all GOCCs irrespective of the GOCC Governance Act’s specific definition.
Agency-to-Agency Agreements and Servicing Agencies
- Section 53.5 of the IRR allows procurement through agency-to-agency agreements for goods, infrastructure projects, and consulting services among government agencies.
- The original text excluded non-chartered GOCCs (incorporated under the Corporation Code) from acting as servicing agencies.
- Amendments remove this exclusion, allowing non-chartered GOCCs to act as servicing agencies.
- The term "servicing agency" is defined as the agency delivering goods, undertaking projects, or providing consulting services.
Scope and Application of Agency-to-Agency Procurement Guidelines
- The Guidelines encompass all National Government Departments, Bureaus, Offices and Agencies, GOCCs, Government Financing Institutions, State Universities and Colleges, and Local Government Units.
- The Procurement Service of the Department of Budget and Management (PS-DBM), responsible for centralized procurement of common-use supplies, is excluded from these guidelines.
- Infrastructure projects undertaken by the AFP Corps of Engineers remain governed by a separate existing guideline under GPPB Resolution No. 09-2005.
Objectives and Policy Considerations
- Amendments aim to facilitate a more efficient and streamlined public procurement process by removing unnecessary prohibitions.
- Revisions address administrative challenges and promote wider participation of government entities in procurement activities.
Effectivity and Official Adoption
- The resolution amending Sections 23.6, 24.6, and 53.5 of the IRR took effect immediately upon approval.
- The resolution was adopted after thorough review by the GPPB and signed by representatives of key government departments and the private sector.
- The amendments provide legal certainty and clarity for government procurement practices involving GOCCs and agency-to-agency arrangements.