GENERAL OVERVIEW OF

RA 9184 AND ITS REVISED

IRR & PROCUREMENT
ORGANIZATIONS

1
 OUTLINE

I. General Overview of RA 9184 and its IRR
vHistorical Background
vGPPB and its Functions
vKey Features of RA 9184 and its IRR
vScope and Coverage
II. Definition of Terms
III. Principles of Public Procurement
IV. Procurement Methods and Procedures
V. Procurement Organizations

3
 AMERICAN LAWS
ON PROCUREMENT
CONTRACTS

American Practice of
NO CONTRACT
Public Bidding was INVITATION SHALL BE
TO BID
introduced in the ENTERED INTO
Philippines on 1900 WITHOUT PUBLIC
LOWEST
RESPONSIVE
BIDDER
BIDDING

PHILIPPINE PUBLIC
PROCUREMENT

4
 1917 NEDA
GUIDELINES ON
ADMINISTRATIVE
PROCUREMENT
CODE OF THE
OF CONSULTING
PHILIPPINES
SERVICES
N
PD 1594 O N
MENT 62 O ENT
PROCURE 2
EO REM
WORKS
GOODS OF CIVIL OCU ODS
PR GO
LT ING OF
SU SER
CON VIC
ES
F RA
IN

PE BEFORE THE
ENACTMENT OF GPRA

5
 ENACTMENT OF GPRA

Implementing
Rules and
Government Procurement Reform
Regulations
Act
10 January 2003

Executive Orders
Implementing Rules and
Regulations (IRR) Part A
8 October2003

Revised IRR of 2009

2 September 2009
Administrative
Issuances Revised IRR of 2016
28 October 2016

Memorandum
Circulars

Over 100 Procurement Rules and Regulations

6
 PROCUREMENT REFORMS

PROBLEMS REFORMS
• Confusion caused by  • Enactment of the Government 
fragmented legal system Procurement Reform Act 
(GPRA)
• Inconsistent policies, rules,  • Creation of the Government 
and regulations due to lack  Procurement Policy Board 
of standards (GPPB)
• Use of PhilGEPS 
• Lack of transparency      (Philippine Government 
Electronic Procurement 
System)
• Lack of check and balance • Participation of civil society

7
 KEY FEATURES OF GPRA

v Covers procurement of all government agencies

v General Rule is Public/Competitive Bidding
v Alternative Methods of Procurement allowed in highly
exceptional cases
v Use of the Approved Budget for the Contract (ABC) as 
ceiling for the bid price
v Use of transparent, objective, and non-discretionary
criteria
v Increased transparency in the procurement process
v Professionalization of procurement officials
v Inclusion of Penal and Civil Liabilities
8
GOVERNMENT PROCUREMENT
POLICY BOARD (GPPB)
§ Composed of the following:
Ø Chairman: DBM Secretary
Ø Alternate Chairman: NEDA  Director-
General 
Ø 11 Regular Members – Secretaries  of 
DPWH,  DTI,  DOH,  DND,  DepEd,  DILG, 
DOST,  DOTC,  DOE  &  DICT  (Per  RA 
10844),  or  their  duly  authorized 
representatives;      Private Sector 
Representative
Ø Invited  Resource Persons (audit,  anti-
corruption agencies)

9
 GPPB FUNCTIONS

Monitoring
Policy-Making
• Ensure the proper 
• Amend  Capacity implementation by 
implementing rules &  Development PEs of the Act, this 
regulations of  IRR and all other 
procurement law  • Establish a  relevant rules and 
(quasi-legislative 
function) sustainable  regulations on 
training  public 
• Prepare generic 
procurement
procurement manual  program
and standard bidding  • Review 
forms effectiveness of 
procurement law

• Protect national interest in all matters affecting public procurement, 
having due regard to the country’s regional and international obligations
10
GPPB WEBSITE

12
 PHILGEPS REGISTRATION

Sec. 8.5.2 All bidders shall upload and maintain in PhilGEPS a current
and updated file of the following Class “A” eligibility documents under
Sections 23.1(a) and 24.1(a):

a) Registration Certificate;
b) Mayor’s/Business Permit or its Equivalent Document;
c) Tax Clearance;
d) Philippine Contractors Accreditation Board (PCAB) license and
registration; and
e) Audited Financial Statements.

For foreign bidders participating in the procurement by a Philippine Foreign

Service Office or Post, they shall submit their eligibility documents under Sec.
23.1 of the 2016 IRR of RA 9184.
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 JSDFAND
SCOPE PROJECT
COVERAGE

R.A. 9184 applies to all branches and/or instrumentalities

of the government:

1. National Government Agencies (NGAs) 
2. State Universities and Colleges (SUCs)
3. Government  Owned  or  Controlled  Corporations 
(GOCCs)
4. Government Financial Institutions (GFIs)
5. Local Government Units (LGUs)

15
 SCOPE AND COVERAGE

v It shall apply to all procurement activities involving:

1. Goods and Services 
2. Infrastructure Projects
3. Consulting Services

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 SCOPE AND COVERAGE

Section 4, Revised IRR

v All fully domestically-funded procurement activities

v All foreign-funded  procurement  activities, unless 

otherwise  provided  in  a  treaty  or  int’l/executive 
agreement

Mandates adherence to RA 9184 or selection through

competitive bidding. Otherwise, negotiating panel shall
ensure that the reasons for the adoption of a different rule or
method of procurement are clearly reflected in the records of
discussion. (Sec. 4.3, 2016 IRR of RA 9184)
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 SCOPE AND COVERAGE

Section 4, Revised IRR

v As  may  be agreed  upon  by  the  GOP  and  IFI  in  their 
treaty or int’l/executive agreement

• Projects funded from foreign grants
• Projects for International Competitive Bidding
• Consulting  Services  for  National  Competitive 
Bidding

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 SCOPE AND COVERAGE

EXCEPT:
1. Procurement for goods, infrastructure projects, and consulting
services funded from Foreign Grants covered by R.A. 8182, as
amended by R.A. 8555,  entitled  “An  Act  Excluding  Official 
Development  Assistance  (ODA)  from  the  Foreign  Debt  Limit  in 
order  to  Facilitate  the  Absorption  and  Optimize  the  Utilization  of 
ODA Resources, Amending for the Purpose Paragraph 1, Section 2 
of  Republic  Act  No.  4860,  as  amended”,  unless  the  GOP  and  the 
foreign  grantor/foreign  or  international  financing  institution  agree 
otherwise;
2. Acquisition of real property which shall be governed by R.A. 8974, 
as amended by RA 10752 entitled  “An  Act  to  Facilitate  the 
Acquisition  of  Right-of-Way  Site  or  Location  for  National 
Government  Infrastructure  Projects  and  for  Other  Purposes,”  and 
other applicable laws; 
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 SCOPE AND COVERAGE

3. Public-Private sector infrastructure or development

projects and other procurement covered by R.A. 6957,
as amended by R.A. 7718 (BOT Law), entitled “An Act 
Authorizing  the  Financing,  Construction,  Operation 
and  Maintenance  of  Infrastructure  Projects  by  the 
Private Sector, and for Other Purposes,” as amended;

4. Disposal of government properties;

vCommission on Audit Circular No. 86-264
vDBM National Budget Circular No. 425

20
 SCOPE AND COVERAGE

Enumerated activities that are not considered as procurement

undertakings under RA 9184 and its IRR:

1. Direct financial or material assistance to beneficiaries

2. Participation to scholarships, trainings, continuing
education, etc.
3. Lease of government property for private use
4. Job order workers
5. Joint Venture Agreements between Private Entities and
GOCCs or LGUs
6. Disposal of property and assets

Sec. 4.5, 2016 IRR of RA 9184

21
DEFINITION OF TERMS

24
 What is PROCUREMENT?

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

(Sec. 5(aa), IRR, R.A. 9184)

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 GOODS
Refer to:
v All items, supplies and materials
v Including general support services
v Needed  in  the  transaction of  public  businesses  or  in  the 
pursuit of any government undertaking, project or activity
v Whether in  the  nature  of  equipment,  furniture,  stationery, 
materials  or  construction,  personal  property,  including  non-
personal or contractual services, such as:
1. repair and maintenance of equipment and furniture
2. trucking, hauling, janitorial and security and other related 
and analogous services. 

Except: Infrastructure projects and consulting services
26
 INFRASTRUCTURE PROJECTS
Refer to:
v construction, improvement, demolition, rehabilitation, repair, 
restoration or maintenance of civil works components of :
1. IT projects
2. irrigation
3. flood control and drainage
4. water supply
5. sanitation, sewerage and solid waste management
6. national buildings,  hospital  buildings,  and  other  related 
constructions projects of the Government.

27
 CONSULTING SERVICES

Refer to  services  for  Infrastructure  Projects  and  other  types  of 

projects or activities of the Government requiring adequate
external technical and professional expertise that are beyond
the capability and/or capacity of the Government to undertake
such as, but not limited to: 

1. advisory and review services; 
2. pre-investment or feasibility studies; 
3. design; 
4. construction supervision; 
5. management and related services; and 
6. other technical services or special studies. 
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 MIXED PROCUREMENT

v In case  of  projects  involving  mixed  procurements,  the 

nature  of the procurement, shall be determined based
on the primary purpose of the contract. 

v Determination shall be made by the procuring entity.

v In mixed procurements, the PE shall specify in the Bidding

Documents all requirement applicable to each
component of the project. In the preparation of Bidding
Documents, the PE shall ensure compliance with existing
laws, rules and regulations, especially those concerning
licenses and permits required for the project (Sec. 17.2, 2016
IRR of RA 9184)
30
 DETERMINATION OF TYPE OF
PROCUREMENT

v PE is  in  the  best  position  to  determine  the  correct 

classification of its procurement based on its identified
needs and the best way by which these needs may be
addressed, managed, and satisfied.

v It is  the motivation or intention of  the  PE  in  pursuing 

the project that will determine the primary purpose of a 
project.

NPM 11-2013

31
PRINCIPLES OF PUBLIC
PROCUREMENT

32
 GOVERNING PRINCIPLES

P ublic Monitoring
 Awareness and vigilance

A ccountability
 Responsibility over actions/decisions (“Answerable”)

C ompetitiveness
 Equal opportunity to all eligible bidders

T ransparency
 Wider dissemination of bid opportunities

S treamlined Process
 Uniformly applicable to all government agencies
 Effective and efficient method

33
PROCUREMENT METHODS
AND PROCEDURES

39
 PROCUREMENT METHODS

All  Procurement  shall  be  done  through competitive

bidding except as provided in R.A. 9184.

Resort to alternative methods shall be made:

v Only in highly exceptional cases

v To promote economy and efficiency

v Justified  by  conditions  specified  in  R.A.  9184  and  its 

IRR

40
PROCUREMENT METHODS

41
 BIDDING PROCESS FOR
GOODS & INFRA PROJECTS

Advertisement 
Pre-
and/or  Pre-Bid
Procurement 
Conference Posting Conference

Opening of
Bid  Opening of
Technical Proposal 
Submission Financial Proposal
(incl. eligibility docs)

Contract 
Bid Evaluation Post-qualification Award

42
 BIDDING PROCESS FOR
CONSULTING SERVICES
Advertisement 
Pre-
and/or  Eligibility and 
Procurement 
Conference Posting Shortlisting

Opening of
Pre-Bid Bid  Bids
Conference Submission (QBE or QCBE)

Post-qualification Contract 
Bid Evaluation
Award
(QBE or QCBE)
Negotiation

43
 PROCUREMENT
ORGANIZATIONS

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PROCUREMENT ORGANIZATIONS

v Head of the Procuring Entity (HOPE)
v Bids and Awards Committee (BAC)
v BAC Secretariat
v Technical Working Group (TWG)
v Observers

45
HEAD OF PROCURING ENTITY (HOPE)

Refers to: 
v Head of  the  agency  or  body,  or  his  duly  authorized 
official, for NGAs and the constitutional commissions or 
offices, and other branches of government; 
v Governing Board or  its  duly  authorized  official,  for 
GOCCs, GFIs and SUCs; or 
v Local Chief Executive, for LGUs

Note: In an  agency,  department,  or  office  where  the 

procurement  is  decentralized,  the  head  of  each 
decentralized  unit  shall  be  considered  as  the  HoPE, 
subject to the limitations and authority delegated by the 
head of the agency, department, or office
46
HEAD OF PROCURING ENTITY (HOPE)

FUNCTIONS AND RESPONSIBILITIES:

1. Establishes BAC and appoints its members
v Ensures that BAC members give their utmost priority 
to duties
v Ensures  professionalization  of  members  of  the 
procurement organization

Within six (6) months upon designation, the BAC, its

Secretariat and TWG members should have satisfactorily
completed such training or program conducted,
authorized or accredited by the GPPB through its TSO.
(Sec. 16, 2016 IRR of RA 9184)

47
HEAD OF PROCURING ENTITY (HOPE)

2. Approves the Annual Procurement Plan (APP)

3. Approves/Disapproves the Contract Award

4. Resolves Protests

48
 BIDS AND AWARDS COMMITTEE
(BAC)

As  a general rule,  HOPE  must  create  a single BAC. 

However, separate BACs may be created under any of the 
following conditions:
1. The items to be procured are complex or specialized; 
2. If  the  single  BAC  cannot  reasonably  manage  the 
procurement  transactions  as shown by  delays  beyond 
the allowable limits; or
3. If the creation is required according to the nature of the 
procurement.

51
 BIDS AND AWARDS COMMITTEE
(BAC)
FUNCTIONS AND RESPONSIBILITIES:

v Recommends Procurement Method

v Creates a Technical Working Group (TWG)
v Conducts the bidding activities
v Resolves Requests for Reconsideration
v Recommends Imposition of Sanctions
v Invites Observers during all stages of the procurement 
process
v Conducts due diligence review or verifications of the 
qualifications of observers
v Prepares Procurement Monitoring Report

53
BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES:

v Advertise and/or post the IB/REI

v Conduct pre-procurement and pre-bid conferences;
v Determine the eligibility of prospective bidders;
v Receive and open bids;
v Conduct the evaluation of bids;
v Undertake post-qualification proceedings;
v Recommend award of contracts to the HoPE or his duly
authorized representative;
v Recommend to the HoPE the use of Alternative Methods of
Procurement

54
BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES:

v Conduct any of the Alternative Methods of Procurement;

v Conduct periodic assessment of the procurement processes and
procedures
v Perform such other related functions as may be necessary

(Sec. 12.1, 2016 IRR of RA 9184)

55
BIDS AND AWARDS COMMITTEE (BAC)

MEMBERSHIP AND QUALIFICATIONS:

v BAC  members  should  occupy plantilla positions  with 

the procuring entity concerned. 

v All  members are regular members  except  the  end-user 

member  who  is  considered  as  a provisional member. 
The  members,  whether  regular  or  provisional,  are 
equally  entitled  to  participate  and  to  vote  during 
deliberations.

56
BIDS AND AWARDS COMMITTEE (BAC)

COMPOSITION: 5 but not more than 7 MEMBERS

designated by the HOPE

1. Regular Members:
v Chairperson (3rd Ranking Permanent Official);
v Member  representing  the  Legal  or  Administrative 
areas  (5th  Ranking Permanent  Personnel); or if not
available, an officer of the next lower rank;
v Member  representing  the  Finance  Area  (5th Ranking 
Permanent Personnel); or if not available, an officer
of the next lower rank;

57
BIDS AND AWARDS COMMITTEE (BAC)

COMPOSITION: 5 but not more than 7 MEMBERS

designated by the HOPE

2. Provisional Members
v Officer possessing Technical expertise relevant to the 
procurement.
v End  user  unit Representative. In case of procurement
outsourcing, a representative from the Procuring Entity
may be designated as a provisional member

58
BIDS AND AWARDS COMMITTEE
(BAC)

HOPE
2nd
3rd 3rd 3rd
4th
5th
6th

62
 ALTERNATE BAC MEMBERS

v Same qualifications as their principals.
v Same term as the principal.
v Presence of  alternate  BAC  members  in  BAC  meetings 
are considered for purposes of quorum.
v The relationship of the principal and the alternate is of
co-equal nature, rather than hierarchical.
v Accountability shall be limited to their respective acts 
and decisions.
v Shall be entitled to the proportionate honoraria for 
attendance in meetings.

65
 BIDS AND AWARDS COMMITTEE
(BAC)
TERMS OF MEMBERSHIP:

The BAC members shall be designated for a term of one (1)
year  only,  reckoned  from  the  date  of  designation. 
However,  the HOPE may renew or terminate such
designation at his discretion.   

Upon expiration of the terms of the current members, they 
shall  continue  to  exercise  their  functions  until  new  BAC 
members are designated.

66
 BIDS AND AWARDS COMMITTEE
(BAC)
TERMS OF MEMBERSHIP:

In case of resignation, retirement, separation, transfer, re-

assignment, or removal of a BAC member, the HOPE shall 
designate a replacement that has similar qualifications as
the official replaced. The  replacement  shall serve for the
unexpired term.  In  case  of  leave  or  suspension,  the 
replacement shall serve only  for the duration  of the leave 
or suspension. 

67
 PROHIBITED BAC MEMBERS

1. Head of the Procuring Entity

2. Official who approves procurement contracts; 

3. Chief Accountant or Head of the

Provincial/City/Municipal Accounting Office and
his/her staff, unless the Accounting Department is the 
end-user  unit,  in  which  case  the  Chief  Accountant, 
Head  of  the  Accounting  Department  or  his/her  staff 
may  be  designated  as  an  end-user  member. (COA
Circular Letter No. 2004 – 3)

68
 BAC SECRETARIAT

v HOPE may create a new office or designate an existing

organic office to act as BAC Secretariat

In case of ad hoc BAC Secretariat, the HOPE shall assign full

-time support staff in its BAC Secretariat (Sec. 14.2)

v There is no minimum or maximum number of members 

of the BAC Secretariat.

v Head of the BAC Secretariat must be at least a 5th or 3rd

ranking permanent employee  or,  if  not  available,  a 
permanent official of the next lower rank

69
 BAC SECRETARIAT

FUNCTIONS:
v Provide administrative support to the BAC and TWG
v Organize BAC and TWG meetings and conferences
v Take custody  of  procurement  documents  and  other 
records
v Manage the sale and distribution of bidding documents
v Advertise/post bidding opportunities, including Bidding
Documents, and notices of awards
v Assist in managing the procurement process
v Monitor procurement activities and milestones
v Consolidate PPMPs
v Act as central channel of communications
v Prepare minutes of meetings and resolutions of the BAC
70
TECHNICAL WORKING GROUP (TWG)

v Created by the BAC from a pool of legal, technical and

financial experts 
- those experts outside the procuring entity concerned 
may  be  included, i.e. government  personnel  and 
officials and consultants from the private sector and 
academe  with  proven  expertise  on  the  sourcing  of 
goods,  works  or  consulting  services. (GPPB
Resolution No. 07-2012, GPPB Circular No. 02-2012)
v BAC may  create separate TWGs  to  handle  different 
procurements 

74
TECHNICAL WORKING GROUP (TWG)

FUNCTIONS:
Assist BAC in the following activities:
v Eligibility screening
v Bid evaluation
v Post-qualification
v Review of the Technical Specifications, Scope of Work, and
Terms of Reference
v Review of Bidding Documents
v Shortlisting of consultants
v Resolution of Request for Reconsideration
(Sec. 12.1, 2016 IRR of RA 9184)

75
 OBSERVERS

v Observers  represent  the public,  the  taxpayers  who  are 

interested  in  seeing  to  it  that  procurement  laws  are 
observed and irregularities are averted.
v At least three (3) Observers shall  be  invited coming 
from:
ü COA
ü Duly  recognized  private  group  in  the  sector  or 
discipline  of  the  particular  type  of  procurement 
involved
ü Non-Government Organization (NGO)  

76
 OBSERVERS

v In all stages of procurement process, During the 1)

eligibility checking, 2) shortlisting, 3) pre-bid
conference, 4) preliminary examination of bids, 5) bid
evaluation, and 6) post-qualification, the BAC must 
invite, in writing, at least three (3) Observers, at least 3
cd 5cd before the date of the procurement stage/activity 

77
 OBSERVERS

Observers  shall  be  allowed  access or be provided with the 

following  documents free of charge upon their  request, 
subject to signing of a confidentiality agreement: 

1. Minutes of BAC meetings; 
2. Abstract of Bids; 
3. Post-qualification summary report; 
4. APP and related PPMP; and 
5. Opened proposals  

In all instances, observers shall be required to enter into a

confidentiality agreement with the concerned Procuring Entity in
accordance with the form prescribed by the GPPB.
78
 OBSERVERS

RESPONSIBILITIES:
1. Prepare  report  (jointly  or  separately)  indicating  their 
observations on the procurement activities
2. Submit report to the PE and furnish a copy to the GPPB 
and  the  Office  of  the  Ombudsman/Resident 
Ombudsman. 
3. Immediately inhibit and notify in writing the PE of any 
actual or potential conflict of interest
If no report is submitted by the observer within seven (7)
calendar days after each procurement activity, then it is
presumed that the bidding activity conducted by the BAC
followed the correct procedure
79
 GRANT OF HONORARIA

v PE is authorized to grant honoraria  to  the  members  of 

the BAC, the TWG, and the BAC Secretariat  provided 
the  amount  so  granted does not exceed twenty-five
percent (25%) of their respective basic monthly salary, 
subject to the following conditions:

• funds are available for the purpose; and
• the  grant  of  honoraria  conforms  to  the  guidelines 
promulgated by the DBM.  (Section 15, IRR of R.A.
9184)

80
 GUIDELINES ON THE GRANT
OF HONORARIA
v DBM Budget Circular No. 2004-5A, dated 7 October
2005, as amended by DBM Budget Circular No. 2007-3,
dated 29 November 2007.

§ Only for successfully completed procurement

projects
§ Limited  to  procurement that involves competitive
bidding – Competitive Bidding, LSB and Nego
Proc-Two Failed Bidding.
§ Granted  to Chair or Members of the BAC or the
TWG by the PE concerned.

81
 GUIDELINES ON THE GRANT
OF HONORARIA
v BAC Secretariat  performing attendant functions  in 
addition  to  their  regular  duties  and  functions    may  be 
paid honoraria at the same rate as the TWG Chair and
Members
v Those  who  are  receiving  honoraria  shall no  longer  be 
entitled  to overtime pay  for  procurement-related 
services rendered. 
v Payment of overtime services may be allowed for the
administrative staff,  (clerks,  messengers  and  drivers 
supporting  the  BAC,  the  TWG  and  the  Secretariat), for
procurement activities rendered in excess of official
working hours.

82
 FUNDING SOURCE
v Collections from successfully completed procurement
projects,  limited    to  activities  prior  to  the  awarding  of 
contracts to winning bidders:

§ proceeds from sale of bid documents;
§ fees from contractor/supplier registry;
§ fees  charged  for  copies  of  minutes  of  bid  openings, 
BAC resolutions and other BAC documents;
§ protest fees; and
§ proceeds from bid security forfeiture

83
 CEILING FOR HONORARIA

Maximum Honorarium rate

per procurement project

BAC Chair Php 3,000.00

BAC Members Php 2,500.00

BAC Secretariat Php 2,000.00
TWG Chair and Members

Members of the BAC Secretariat whose positions are in the Procurement

Unit of the agency shall not be entitled to honoraria although the payment of
overtime services may be allowed, subject to existing policy on the matter.

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 THANK YOU!!

Contact us at:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44
Email address: gppb@gppb.gov.ph

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