Republic of the Philippines

CAVITE STATE UNIVERSITY

Don Severino de las Alas Campus
Indang, Cavite
(046) 4150-010 / (046) 4150-013 loc 206
www.cvsu.edu.ph

COLLEGE OF ENGINEERING AND INFORMATION TECHNOLOGY

The 2016 Revised IRR of RA 9184

Rule I – VII

Submitted by:

Enrique, Earl Justin S.

201310492
BSCE 5-1

Submitted to:

Engr. Roslyn Peña

Instructor

March 3, 2018
Introduction

The Government Procurement Act or the RA 9184 is the current effective law in
government procurement which has been promulgated from the year 2003. This
procurement law was enacted to lay down rules and regulation to modernize, standardize
and regulate procurement activities of the government.

While on the 2016 Revised Implementing Rules and Regulations, called the IRR,
is promulgated pursuant to Section 75 of this Act as a repealing clause. It introduces
changes and errata to continually adapt the government procurement to streamline
systems in order to keep this act operative in the course of time.

This report contains the provisions for every Section from Rule 1 to 7 of this
revised IRR. Some contents are highlighted and constructed in forms that will help BSCE
students to understand and to familiarize the scopes and principles included in the Act.

Objectives

Specifically, this report intends:

1. To discuss the contents of Rule 1 to 7 of 2016 Revised IRR of RA 9184.

2. To construct diagrams to enumerate core principles in this Act.
3. To summarize the rule of each Section included in this report.

Discussion

Rule I – General provisions

Section 1. Short Title and Purpose

This Act shall be known as the “Government Procurement Reform Act, for the purpose
of prescribing the necessary rules and regulations for the modernization,
standardization, and regulation of the procurement activities of the Government of the
Philippines (GoP).
Section 2. Declaration Policy

The provisions of this IRR are in line with the commitment of the GoP
to promote good governance and its effort to adhere to the principles of transparency,
accountability, equity, efficiency, and economy in its procurement process.

Section 3. Governing Principles on Government Procurement

Figure I: Principles of Government Procurement

Transparency

Accountability Competitiveness

Principle of Government
Procurement

Streamlined
Public Monitoring procurement
process

Section 4. Scope and Applications of IRR

 Figure II: Scope of Government Procurement

Procurement
of Goods

Infrastructure
Procurement
Projects

Consultation
Services

Section 5. Definition of Terms

The following terms and phrases are defined to establish its meaning for the
whole Act. Some of these are unspecific to establish it is referring to and will not be
included in the list below.

Approved Budget for the Contract (ABC) - Refers to the budget for the contract duly
approved by the HoPE, as provided for in the General Appropriations Act (GAA).

Bid- refers to a signed offer or proposal to undertake a contracts submitted by a

bidder in response to and in consonance with the requirement of the bidding
documents.

Bidder - refers to a contractor, manufacturer, supplier, distributor and/or consultant

who submit a bid in response to the requirements of the bidding documents.

Bidding Documents- refers to the documents issued by the Procuring Entity as the basis
for bids, furnishing all information necessary for a prospective bidder to prepare
a bid.

Common-Use Supplies and Equipment (CSE) - refer to those goods, materials and
equipment that are used in the day-to-day operations of the Procuring Entities in the
performance of their functions.

Consulting Services - refer to services for infrastructure projects and other types of
projects or activities of the GoP requiring adequate external technical and
 professional expertise that are beyond the capability and/or capacity of the
GoP to undertake.

Goods - refer to all items, supplies, materials and general support services, except
Consulting Services and infrastructure projects, which may be needed in the
transaction of public businesses in the pursuit of undertaking government project or
activity.

Head of Procuring Entity (HoPE )- refers to:

 The head of the agency or body, or his duly authorized official, for NGAs
 The governing board or its duly authorized official, for GOCCs, GFIs, and SUCs
 The local chief executive, for LGUs

Infrastructure Projects - includes the construction, improvement, rehabilitation,

demolition, repair, restoration or maintenance of various civil works.

Procurement - refers to the acquisition of goods, consulting services and contracting for
infrastructure projects by the Procuring entity.

Procuring Entity - refers to any branch, agency, or any instrumentality of the GoP
including GOCC, GFI, SUC and LGU procuring goods, infrastructure and consulting
services.

Acronyms

ABC – Approved Budget of Contract

BAC – Bids and Awards Committee (excluded in this report, refer to Rule V)

CSE – Common-Use Supplies and Equipments

GPPB – Government Procurement Policy Board (excluded in this report, refer to Rule
XX)

HoPE – Head of Procuring Entity

APP – Annual Procurement Plan

GPM – Generic Procurement Manual

PBD – Philippine Bidding Documents

PPMP – Project Procurement Management Plans

PAP – Program Activities and Projects

PhilGEPS – Philippine Government Electronic Procurement System

Section 6. Standardization of Procurement Process and Forms

 Procuring Entities are mandated to use the Generic Procurement Manuals

(GPMs), Philippine Bidding Documents (PBDs), and other standard forms
issued by the GPPB.

Rule II – Procurement Planning

Section 7 – Procurement Planning and Budgeting Linkages

 All procurement shall be within the approved budget of the Procuring Entity and
should be planned by the Procuring Entity.

The Annual Procurement Plan (APP) is the requisite document that the agency
must prepare to reflect the necessary information on the entire procurement activities
for goods and services and infrastructure to be procured that it plans to undertake
within the calendar year.
 In the preparation of the APP, the Procuring Entity shall formulate their
respective Project Procurement Management Plans (PPMPs) for their different
programs, activities, and projects (PAPs).
Rule III – Procurement by Electronic Means
Section 8. Procurement by Electronic Means and the Philippine Government
Electronic Procurement System (PhilGEPS)
 To promote transparency and efficiency, information and communications
technology PhilGEPS shall be utilized in the conduct of procurement procedures.
Features of PhilGEPS:
1. Electronic Bulletin Board - for posting procurement opportunities, notices,
awards and reasons for award.
2. Registry of Manufacturers, Suppliers, Distributors, Contractors and Consultants
Eligibility Documents for the Registration of Bidders:
1. Registration Certificate
2. Mayor’s/Business Permit
3. Tax Clearance
4. Philippine Contractors Accreditation Board license and registration
5. Audited Financial Statements
Section 9 - Security, Integrity and Confidentiality
The PhilGEPS shall incorporate the following features, which shall be periodically
upgraded to keep abreast with developments in technology:
a) Security
b) Integrity
c) Confidentiality
d) Audit Trail
e) Performance Tracking
Rule IV – Competitive Bidding
Section 10. Competitive Bidding

All procurement shall be done through competitive bidding, except as provided in

Rule XVI of this IRR.
Rule V – Bids and Awards Committee

Section 11. The BAC and its Composition

 Each Procuring Entity shall establish in its head office a single BAC to undertake
the functions in order to facilitate professionalization and harmonization of
procedures and standards.

BAC Composition:

a) Chairperson (at least 3rd ranking permanent official of Procuring

Entity)
b) An officer (at least 5th ranking permanent official of the Procuring
Entity) who represents the legal or administrative area
c) An officer (at least 5th ranking permanent official of the Procuring
Entity) who represents the finance area

Provisional Members:

d) An officer who has a technical expertise in procurement

e) A representative from the end-user or implementing unit who has
knowledge of procurement laws and procedures.

Functions of the BAC

a) Advertise and/or post the Invitation to Bid for expressions of interest

b) Conduct pre-procurement and pre-bid conferences
c) Determine the eligibility of prospective bidders
d) Receive and open bids
e) Conduct evaluation of bids
f) Undertake post-qualification proceedings
g) Resolve requests for consideration
h) Recommend award of contracts to the HoPE or his duly authorized rep
i) Recommend the imposition of sanction
j) Recommend to the HoPE the use of Alternative Methods of Procurement
k) Conduct any of the Alternative Methods of Procurement
l) Conduct periodic assessment of the procurement processes and procedures to
streamline procurement activities
m) Perform such other related functions including the creation of the Technical
Working Group form a pool of technical, financial and legal experts to assist in
 reviewing bidding documents, eligibility screening, shortlisting consultants, bid
evaluation, post qualification and resolution of request for reconsideration.

Section 13. Observers

 To enhance the transparency of the process, the BAC shall invite, in addition to
the representative of the COA, at least 2 observers, who shall not have the right to
vote, during the whole procurement process.
1. At least 1 shall come from duly recognized private group in a sector or discipline
relevant to the procurement at hand, for example:
a. For Infrastructure Projects, national associations of constructors
recognized by Construction Industry Authority of the Philippines
(CIAP) such as: (1) Philippine Constructors Association Inc. (2)
National Constructors Association of the Philippines, Inc.
b. For Goods, a specific chamber-member of the Philippine Chamber
of Commerce and Industry
c. For Consulting Services, a project-related professional
organization recognized by PRC or Supreme Court such as: (1)
Philippine Institute of Civil Engineers (2) Confederation of
Filipino Consulting Organization.
2. The other observer shall come from a non-government organization (NGO)

Section 14. BAC Secretariat / Procurement Unit

 The HoPE shall create a Secretariat which will serve as the main support unit of
the BAC.

Functions and Responsibilities of BAC Secretariat

a) Provide administrative support to the BAC and the TWG;

b) Organize and make all necessary arrangements for BAC and the TWG meetings
and conferences;
c) Prepare minutes of meetings and resolutions of the BAC;
d) Take custody of procurement documents and other records and ensure that all
procurements undertaken by the Procuring Entity are properly documented;
e) Manage the sale and distribution of Bidding Documents to interested bidders;
 f) Advertise and/or post bidding opportunities, including Bidding Documents, and
notices of awards;
g) Assist in managing the procurement processes;
h) Monitor procurement activities and milestones for proper reporting to relevant
agencies when required;
i) Consolidate PPMPs from various units of the Procuring Entity to make them
available for review as indicated in Section 7 of this IRR and prepare the APP;
and
j) Act as the central channel of communications for the BAC with end-user or
implementing units, PMOs, other units of the line agency, other government
agencies, providers of goods, infrastructure projects, and consulting services,
observers, and the general public.

Section 15. Honoraria of BAC, BAC and TWG Members

 The Procuring Entity may grant payment of honoraria to the BAC members in an
amount not to exceed twenty five percent (25%) of their respective basic monthly
salary subject to availability of funds.

Section 16. Professionalization of BAC, TWG Members and Procurement Units

 The GPPB shall establish a sustained training program to develop the capability
of the BACs, BAC Secretariats, TWGs, and the Procurement Units of Procuring
Entities, and professionalize the same.

Rule VI – Preparation of Bidding Documents

Section 17. Form and Contents of Bidding Documents

The Bidding Documents shall include the following:

a. ABC;
b. Invitation to Bid/Request for Expression of Interest;
c. Eligibility Requirements;
d. Instructions to Bidders, including scope of bid, documents comprising the
bid, criteria for eligibility, bid evaluation methodology/criteria in
accordance with the Act, and post-qualification, as well as the date,
 time and place of the pre-bid conference (where applicable),
submission of bids and opening of bids;
e. Terms of Reference, for Consulting Services;
f. Scope of work, where applicable;
g. Plans/Drawings and Technical Specifications;
h. Form of Bid, Price Form, and List of Goods or Bill of Quantities;
i. Delivery Time or Completion Schedule;
j. Form, Amount, and Validity Period of Bid Security;
k. Form, Amount, and Validity of Performance Security and Warranty; and
l. Form of Contract and General and Special Conditions of Contract.

Section 18. Reference to Brand Names

 Specifications for the procurement of Goods shall be based on relevant

characteristics, functionality and/or performance requirements. Reference to
brand names shall not be allowed except for items or parts that are compatible
with the existing fleet or equipment of the same make and brand, and to maintain
the performance, functionality and useful life of the equipment.

Section 19. Access to Information

 In all stages of the preparation of the Bidding Documents, the Procuring Entity
shall ensure equal access to information.

Rule VII – Invitation to Bid

Section 20. Pre-Procurement Conference

 Prior to the advertisement or the issuance of the Invitation to Bid/Request for

Expression of Interest for each procurement undertaken through a competitive
bidding, the BAC, through its Secretariat, shall call for a pre-procurement
conference.
 The holding of a pre-procurement conference may not be required for small
procurements, i.e., procurement of Goods costing Two Million Pesos
(₱2,000,000.00) and below, procurement of Infrastructure Projects costing Five
Million Pesos (₱5,000,000.00) and below, and procurement of Consulting
Services costing One Million Pesos (₱1,000,000.00) and below.
Section 21. Advertising and Contents of the Invitation to Bid/Request for Expression of
Interest

Contents of the Invitation to Bid/Request for Expression of Interest:

a) For the procurement of:

i) Goods, the name of the contract to be bid and a brief description of the
goods to be procured;

ii) Infrastructure Projects, the name and location of the contract to be bid, the
project background and other relevant information regarding the proposed contract
works, including a brief description of the type, size, major items, and other important or
relevant features of the works; and

iii) Consulting services, the name of the contract to be bid, a general

description of the project and other important or relevant information;

b) The name of the project, identification and number of lots or items specific to
the bidding, as well as the basis of evaluation of the project, lots, or items, where
applicable;

c) A general statement on the criteria to be used by the Procuring Entity for the
eligibility check, the short listing of prospective bidders, in the case of the procurement of
Consulting Services, the examination and evaluation of bids, post-qualification, and
award;

d) The date, time and place of the deadline for the submission and receipt of the
eligibility requirements, the pre-bid conference if any, the submission and receipt of bids,
and the opening of bids;

e) ABC for the project, lot, or item to be bid;

f) The source of funding;

g) The place, time and website where the Bidding Documents may be secured or
downloaded, and, where required, the price of the Bidding Documents, in accordance
with Section 17.4 of this IRR;

h) The contract duration or delivery schedule;

i) The name, address, telephone number, facsimile number, e-mail and website
addresses of the concerned Procuring Entity, as well as its designated contact person;
and

j) Such other necessary information deemed relevant by the Procuring Entity.

Section 22. Pre-bid Conference

 For contracts to be bid with an ABC of One Million Pesos (₱1,000,000.00)

or more, the BAC shall convene at least one (1) pre-bid conference to
clarify and/or explain any of the requirements, terms, conditions, and
specifications stipulated in the Bidding Documents. For contracts to be bid
with an ABC of less than One Million Pesos (₱1,000,000), pre-bid
conferences may be conducted at the discretion of the BAC.

Supplemental/Bid Bulletins

 Requests for clarification(s) on any part of the Bidding Documents or for

an interpretation must be in writing and submitted to the BAC of the
Procuring Entity.
 Any Supplemental/Bid Bulletin issued by the BAC shall also be posted in
the PhilGEPS, the website of the Procuring Entity concerned, if available,
and at any conspicuous place within the premises of the Procuring Entity.

Conclusion

The Rule 1 to 7 of the 2016 Revised IRR of RA 9184 has included all about the:
general provisions which includes the scope and principles of this Act as well as the
definition of terms to be commonly used; procurement planning and budgeting linkages
through inclusion of the compliance of a procurement with the APP, PPMPs and PAPs;
procurement by electronic means using PhilGEPS; competitive bidding; the BAC and its
composition and functions, inclusion of observers, appointment of BAC Secratariat,
honoraria of BAC, BAC Secretariat and the TWG members, and professionalization of
them through trainings and seminars; preparation of bidding documents and; the activity
of pre-procurement conference and advertisement of Invitation to bid..

References

http://www.gppb.gov.ph/laws/laws/RevisedIRR.RA9184.pdf