Key Definitions
- "United States": Encompasses the United States of America, the District of Columbia, and any State or territory of the North American Union.
- "Domestic entity": Any citizen of the Philippines or U.S. habitually engaged in business of manufacturing or selling covered merchandise; corporate bodies or commercial companies duly organized under Philippine law with at least 75% capital owned by Philippine or U.S. citizens.
- "Domestic bidder": Offers unmanufactured or manufactured articles, materials, or supplies grown, produced, or substantially manufactured in the Philippines or the United States.
- "Foreign bid": Offers articles, materials, or supplies not substantially grown, produced, or manufactured in the Philippines or the United States.
Preference and Purchase Conditions for Government Procurement
- Only unmanufactured articles grown or produced in the Philippines or United States or manufactured articles substantially made from such materials can be purchased.
- Specific conditions for awarding contracts in bidding:
- Foreign bids up to 2 pesos: award to domestic bidder if bid is not over 100% above foreign bid.
- Foreign bids between 2 to 20 pesos: award to domestic bidder if bid is not over 50% above foreign bid.
- Foreign bids between 20 to 200 pesos: award to domestic bidder if bid is not over 25% above foreign bid.
- Foreign bids between 200 to 2,000 pesos: award to domestic bidder if bid is not over 20% above foreign bid.
- Foreign bids exceeding 2,000 pesos: award to domestic bidder if bid is not over 15% above foreign bid.
Bidding Among Multiple Bidders
- Award shall be made to the domestic entity with the lowest bid, provided it does not exceed by more than 15% the lowest bid submitted by a non-domestic bidder.
Effectivity
- The Act became effective upon its approval on November 7, 1936.