Scope, Application and Purpose
- Guidelines apply to procurement of goods, infrastructure, and consulting services across all government agencies, including state universities and local government units.
- Aim to clarify eligibility of foreign bidders within the framework of national and international trade policies.
Definitions of Key Terms
- Foreign Consultant: Any foreign individual or entity engaged in consulting services as per Section 24.1(2) IRR-A.
- Foreign Contractor: Foreign citizen/entity with less than 75% Filipino ownership providing infrastructure services (excluding consulting).
- Foreign Supplier: Foreign citizen/entity with less than 60% Filipino ownership involved in manufacturing/sale of goods or performance of general services.
- Local Consultant: Consultant satisfying IRR-A conditions and requirements.
- Local Contractor: Filipino citizen/entity with at least 75% Filipino ownership licensed to undertake infrastructure projects.
- Local Supplier: Filipino citizen/entity with at least 60% Filipino ownership engaged in manufacturing or sale of goods/services.
Eligibility of Foreign Bidders
- Foreign suppliers allowed when:
- Goods are unavailable locally.
- To prevent anti-competitive or trade-restraining situations.
- Reciprocal rights exist (countries grant Filipinos similar rights).
- Participation is provided under treaties or international agreements.
- Foreign contractors can participate in joint ventures with local contractors with a maximum 25% foreign interest.
- Foreign consultants may be hired if local ones lack expertise/capacity.
Criteria for Goods Unavailability from Local Suppliers
- Goods considered unavailable after diligent market research finds no capable local supplier.
- Procuring entity head must certify unavailability.
- Certifications from relevant government regulatory bodies (e.g., DTI, DOH) may be required.
- If local suppliers do not participate despite availability, certification of advertisement and no local participation required.
- Bidding requirements must remain unchanged to invite foreign bidders.
- Procurement must follow competitive bidding unless alternative procurement methods are justified.
Preventing Anti-Competitive or Trade-Restraining Situations
- Invitation to foreign manufacturers must be posted on entity’s website and PhilGEPS before direct contracting with exclusive local suppliers.
- If foreign manufacturers manifest interest, public bidding must be conducted.
- If no foreign interest manifests, direct contracting may proceed.
Reciprocity Rule in Procurement of Goods
- Foreign bidders from countries granting reciprocal procurement rights to Filipinos are eligible.
- Procuring entities must verify reciprocity from DFA-maintained country lists on GPPB website.
- If country is not listed, foreign bidders must submit a sworn statement confirming reciprocal treatment citing relevant laws.
- Statements are validated during post-qualification.
Effectivity of Guidelines
- Guidelines take effect 15 days after publication in the Official Gazette or a nationwide newspaper.
- Must be filed with the University of the Philippines Law Center with three certified copies.