LESSON 2:

REPUBLIC
ACT NO. 9184
OBJECTIVES:

 Understand the key provisions of RA

9184.
 Recognize the roles and responsibilities
of civil engineers in government
procurement.
REPUBLIC ACT NO.
9184
An act providing for the
modernization, standardization
and regulation of the procurement
activities of the government and
for other purposes.
REPUBLIC ACT NO.
9184
R.A. 9184 was signed by Her Excellency
President Gloria Macapagal-Arroyo on 10
January 2003, and was published on 11
January 2003, in two (2) newspapers of
general nationwide circulation, namely,
Manila Times and Malaya. It took effect
fifteen (15) days after its publication or on
26 January 2003.
 ARTICLE I

GENERAL PROVISIONS
SECTION 1. Short Title
This Act shall be known as the
“Government Procurement Reform Act.”

SEC. 2. Declaration of Policy.

It is the declared policy of the State to
promote the ideals of good governance in all
its branches, departments, agencies,
subdivisions, and instrumentalities, including
government-owned and/or -controlled
corporations, and local government units.
 ARTICLE I

GENERAL PROVISIONS
SEC. 3. Governing Principles on Government
Procurement.
All procurement of the national
government, its departments, bureaus,
offices and agencies, including state
universities and colleges, government-
owned and/or -controlled corporations,
government financial institutions and local
government units, shall, in all cases, be
governed by these principles:
(a) Transparency in the procurement
process and in the implementation of
procurement contracts.
(b) Competitiveness by extending equal
 ARTICLE I

GENERAL PROVISIONS
(c) Streamlined procurement process that will
uniformly apply to all government procurement.
The procurement process shall be simple and made
adaptable to advances in modern technology
in order to ensure an effective and efficient
method.

(d) System of accountability where both the public

officials directly or indirectly involved in the
procurement process as well as in the
implementation of procurement contracts and the
private parties that deal with government are,
when warranted by circumstances, investigated
and held liable for their actions relative thereto.
 ARTICLE I

GENERAL PROVISIONS
(e) Public monitoring of the procurement
process and the implementation of awarded
contracts with the end in view of guaranteeing
that these contracts are awarded pursuant to
the provisions of this Act and its implementing
rules and regulations, and that all these
contracts are performed strictly according to
specifications.
 GENERAL
SEC. 4. PROVISIONS
Scope and Application.

This Act shall apply to the Procurement of

Infrastructure Projects, Goods, and Consulting
Services, regardless of source of funds, whether
local or foreign, by all branches and
instrumentalities of government, its departments,
offices and agencies, including government-owned
and/or -controlled corporations and local
government units, subject to the provisions of
Commonwealth Act No. 138. Any treaty or
international or executive agreement affecting the
subject matter of this Act to which the Philippine
government is a signatory shall be observed.
 ARTICLE I

GENERAL
PROVISIONS
SEC. 5. Definition of Terms.
For purposes of this Act, the following
terms or
words and phrases shall mean or be understood as
follows:

(a) Approved Budget for the Contract (ABC) –

refers to the budget for the contract duly
approved by the Head of the Procuring Entity, as
provided for in the General Appropriations Act and/or
continuing appropriations, in the case of National
Government Agencies; the Corporate Budget for the
contract approved by the governing Boards, pursuant
to E.O. No. 518, series of 1979, in the case of
Government-Owned and/or Controlled Corporations,
Government Financial Institutions and State
Universities and Colleges; and the Budget for the
 GENERAL
PROVISIONS
(b) BAC – refers to the Bids and Awards
Committee established in accordance
with Article V of this Act.

(c) Bidding Documents – refers to

documents issued by the Procuring Entity as
the basis for Bids, furnishing all information
necessary for a prospective bidder to prepare
a bid for the Goods, Infrastructure Projects,
and Consulting Services to be provided.
 GENERAL
PROVISIONS
(d) Bid – refers to a signed offer or proposal
submitted by a supplier, manufacturer,
distributor, contractor or consultant in
response to the Bidding Documents.
(e) Competitive Bidding – refers to a method
of procurement which is open to participation
by any interested party and which consists of
the following processes: advertisement, pre-
bid conference, eligibility screening of
prospective bidders, receipt and opening of
bids, evaluation of bids, post-qualification,
and award of contract, the specific
requirements and mechanics of which shall
be defined in the IRR to be promulgated
 GENERAL
PROVISIONS
(f) 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:

(i) advisory and review services;

(ii) pre-investment or feasibility studies;
(iii) design;
(iv) construction supervision;
(v) management and related services; and
(vi) other technical services or special
studies.
 GENERAL
PROVISIONS
(g) G-EPS – refers to the Government Electronic
Procurement System as provided in Section 8 of this
Act.

(h) 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 or in the pursuit
of any government undertaking, project or activity,
whether in the nature of equipment, furniture,
stationery, materials for construction, or personal
property of any kind, including non-personal or
contractual services such as the repair and
maintenance of equipment and furniture, as well as
trucking, hauling, janitorial, security, and related or
analogous services, as well as procurement of
materials and supplies provided by the procuring
 GENERAL
PROVISIONS
(i) GPPB – refers to the Government Procurement
Policy Board established in accordance with Article XX
of this Act.

(j) Head of the Procuring Entity – refers to: (i) the head
of the agency or his duly authorized official, for
national government agencies; (ii) the governing
board or its duly authorized official, for government-
owned and/or -controlled corporations; or (iii) the local
chief executive, for local government units. Provided,
That in a department, office or agency where the
procurement is decentralized, the Head of each
decentralized unit shall be considered as the Head of
the Procuring Entity subject to the limitations and
authority delegated by the head of the department,
office or agency.
 GENERAL
PROVISIONS
(k) Infrastructure Projects – include the construction,
improvement, rehabilitation, demolition, repair,
restoration or maintenance of roads and bridges,
railways, airports, seaports, communication facilities,
civil works components of information technology
projects, irrigation, flood control and drainage, water
supply, sanitation, sewerage and solid waste
management systems, shore protection, energy/power
and electrification facilities, national buildings, school
buildings, hospital buildings and other related
construction projects of the government.
 GENERAL
PROVISIONS
(l) IRR – refer to the implementing rules and
regulations to be promulgated in accordance
with Section 75 this Act.

(m) Portal – refers to a website that

aggregates a wide variety of content for the
purpose of attracting a large number of
users.
 GENERAL
PROVISIONS
(n) Procurement – refers to the acquisition of Goods,
Consulting Services, and the contracting for
Infrastructure Projects by the Procuring Entity.
Procurement shall also include the lease of goods and
real estate. With respect to real property, its
procurement shall be governed by the provisions of
Republic Act No. 8974, 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, rules and
regulations.

(o) Procuring Entity - refers to any branch,

department, office, agency, or instrumentality of the
government, including state universities and colleges,
government owned and/or -controlled corporations,
government financial institutions, and local
government units procuring Goods, Consulting
Services and Infrastructure Projects.
 GENERAL
SEC. 6.
PROVISIONS
Standardization of Procurement Process and
Forms.
To systematize the procurement process, avoid
confusion and ensure transparency, the procurement
process, including the forms to be used, shall be
standardized in so far as practicable.

For this purpose, the GPPB shall pursue the

development of generic procurement manuals and
standard bidding forms, the use of which once issued
shall be mandatory upon all Procuring Entities.
ARTICLE II
PROCUREMENT PLANNING

SEC. 7. Procurement Planning and

Budgeting Linkage.
All procurement should be within the
approved budget of the Procuring Entity and
should be meticulously and judiciously
planned by the Procuring Entity concerned.
Consistent with government fiscal discipline
measures, only those considered crucial to
the efficient discharge of governmental
functions shall be included in the Annual
Procurement Plan to be specified in the IRR.
ARTICLE III

PROCUREMENT BY ELECTRONIC
MEANS
SEC. 8. Procurement By Electronic Means. –
To promote transparency and efficiency,
information and communications technology
shall be utilized in the conduct of
procurement procedures. Accordingly, there
shall be a single portal that shall serve as the
primary source of information on all
government procurement. The G-EPS
shall serve as the primary and definitive
source of information on government
procurement. Further, the GPPB is
authorized to approve changes in the
procurement process to adapt to
improvements in modern technology,
provided that such modifications are
ARTICLE III:

PROCUREMENT BY ELECTRONIC
MEANS
SEC. 9. Security, Integrity and
Confidentiality.
The G-EPS shall ensure the security,
integrity and confidentiality of documents
submitted through the system. It shall
include a feature that provides for an audit
trail for on-line transactions and allow the
Commission on Audit to verify the security
and integrity of the systems at any time.
ARTICLE IV:

COMPETITIVE BIDDING
SEC. 10. Competitive Bidding. – All
Procurement shall be done through
Competitive Bidding, except as
provided for in Article XVI of this Act.
ARTICLE V:
BIDS AND AWARDS COMMITTEE

SEC. 11. The BAC and its Composition.

Each procuring entity shall establish a single BAC
for its procurement. The BAC shall have at least five
(5) members, but not more than seven (7) members.
It shall be chaired by at least a third ranking
permanent official of the procuring entity other than
its head, and its composition shall be specified in
the IRR. Alternatively, as may be deemed fit by the
head of the procuring entity, there may be separate
BACs where the number and complexity of the items
to be procured shall so warrant. Similar BACs for
decentralized and lower level offices may be formed
when deemed necessary by the head of the
procuring entity. The members of the BAC shall be
designated by the Head of Procuring Entity.
However, in no case shall the approving authority be
ARTICLE V:
BIDS AND AWARDS COMMITTEE

SEC. 12. Functions of the BAC.

The BAC shall have the following functions:
1. advertise and/or post the invitation to bid,
2. conduct pre-procurement and pre-bid conferences,
3. determine the eligibility of prospective bidders,
4. receive bids,
5. conduct the evaluation of bids,
6. undertake post-qualification proceedings,
7. recommend award of contracts to the Head of the
Procuring Entity or his duly authorized representative:
(Provided, That in the event the Head of the Procuring Entity shall
disapprove such recommendation, such disapproval shall be based
only on valid, reasonable and justifiable grounds to be expressed
in writing, copy furnished the BAC);
ARTICLE V
BIDS AND AWARDS COMMITTEE

8. recommend the imposition of sanctions in

accordance with Article XXIII, and perform
such other related functions as may be
necessary, including the creation of a
Technical Working Group from a pool of
technical, financial and/or legal experts to
assist in the procurement process.
ARTICLE V
BIDS AND AWARDS COMMITTEE

SEC. 13. Observers. – To enhance the transparency

of the process, the BAC shall, in all stages of the
procurement process, invite, in addition to the
representative of the Commission on Audit, at least
two (2) observers to sit in its proceedings, one (1)
from a duly recognized private group in a sector or
discipline relevant to the procurement at hand, and
the other from a non-government organization:
Provided, however,
1. That they do not have any direct or indirect
interest in the contract to be bid out.
2. The observers should be duly registered with the
Securities and Exchange Commission and should
meet the criteria for observers as set forth in the
IRR.
ARTICLE V
BIDS AND AWARDS COMMITTEE

SEC. 14. BAC Secretariat. – To assist the

BAC in the conduct of its functions, the
Head of the Procuring Entity shall create a
Secretariat that will serve as the main
support unit of the BAC. The Head of the
Procuring Entity may also designate an
existing organic office within the agency to
serve as the Secretariat.
ARTICLE V
BIDS AND AWARDS COMMITTEE

SEC. 15. Honoraria of BAC 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. For this
purpose, the Department of Budget and
Management (DBM) shall promulgate the
necessary guidelines.
ARTICLE V
BIDS AND AWARDS COMMITTEE

SEC. 16. Professionalization of BAC, BAC

Secretariat and Technical Working Group
Members. – The GPPB shall establish a
sustained training program for developing
the capacity of the BACs, BAC Secretariats
and Technical Working Groups of Procuring
Entities, and professionalize the same.
ARTICLE VI

PREPARATION OF BIDDING
DOCUMENTS
SEC. 17. Form and Contents of Bidding
Documents. – The Bidding
Documents shall be prepared by the
Procuring Entity following the standard
forms and manuals prescribed by
the GPPB. The Bidding Documents shall
include the following:

1. Approved Budget for the Contract;

2. Instructions to Bidders, including
criteria for eligibility, bid evaluation and
post qualification, as well as the date,
time and place of the pre-bid Conference
ARTICLE VI

PREPARATION OF BIDDING
DOCUMENTS
3. Terms of Reference;
4. Eligibility Requirements;
5. Plans and Technical
Specifications;
6. Form of Bid, Price Form, and List
of Goods or Bill of Quantities;
7. Delivery Time or Completion
Schedule;
8. Form and Amount of Bid
Security;
9. Form and Amount of Performance
Security and Warranty; and,
10. Form of Contract, and General
ARTICLE VI

PREPARATION OF BIDDING
DOCUMENTS
SEC. 18. Reference to Brand Names. –
Specifications for the Procurement of
Goods shall be based on relevant
characteristics and/or performance
requirements. Reference to brand
names shall not be allowed.
ARTICLE VI

PREPARATION OF BIDDING
DOCUMENTS
SEC. 19. Access to Information. – In
all stages of the preparation of the
Bidding Documents, the Procuring
Entity shall ensure equal access to
information. Prior to their official
release, no aspect of the Bidding
Documents shall be divulged or
released to any prospective bidder or
person having direct or indirect
interest in the project to be procured.
ARTICLE VII
INVITATION TO BID
SEC. 20. Pre-Procurement
Conference. – Prior to the issuance of
the Invitation to Bid, the BAC is
mandated to hold a pre-procurement
conference on each and every
procurement, except those contracts
below a certain level or amount
specified in the IRR, in which case,
the holding of the same is optional.
ARTICLE VII
INVITATION TO BID
SEC. 21. Advertising and Contents of the
Invitation to Bid. – In line with the principle
of transparency and competitiveness, all
Invitations to Bid for contracts under
competitive bidding shall be advertised by
the Procuring Entity in such manner and
for such length of time as may be necessary
under the circumstances, in order to
ensure the widest possible dissemination
thereof, such as, but not limited to,
posting in the Procuring Entity’s premises, in
newspapers of general circulation, the G-
EPS and the website of the Procuring Entity,
if available. The details and mechanics
of implementation shall be provided in the
IRR to be promulgated under this Act.
ARTICLE VII
INVITATION TO BID
The Invitation to Bid shall contain,
among others:
(a) A brief description of the subject
matter of the Procurement;
(b) 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, and post-qualification;
(c) 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
ARTICLE VII
INVITATION TO BID
(d) The Approved Budget for the
Contract to be bid;
(e) The source of funds;
(f) The period of availability of the
Bidding Documents, and the place
where these may be
secured;
(g) The contract duration; and,
(h) Such other necessary information
deemed relevant by the
Procuring Entity.
ARTICLE VII
INVITATION TO BID
SEC. 22. Pre-bid Conference.

At least one pre-bid conference shall be

conducted for each procurement, unless
otherwise provided in the IRR. Subject to
the approval of the BAC, a pre-bid
conference may also be conducted upon the
written request of any prospective bidder.

The pre-bid conference(s) shall be

held within a reasonable period before the
deadline for receipt of bids to allow
prospective bidders to adequately prepare
their bids, which shall be specified in the
IRR.
ARTICLE VIII
RECEIPT AND OPENING OF BIDS
SEC. 23. Eligibility Requirements for
the Procurement of Goods and
Infrastructure Projects. – The BAC or,
under special circumstances specified
in the IRR, its duly designated
organic office shall determine the
eligibility of prospective bidders
for the procurement of Goods and
Infrastructure Projects, based on the
bidders’ compliance with the
eligibility requirements within the
period set forth in the Invitation
to Bid.
SEC. 24. Eligibility Requirements and
Short Listing for Consulting Services.
– The eligibility of prospective
bidders for the Procurement of
Consulting Services shall be
determined by their compliance with
the eligibility requirements
prescribed for the Competitive
Bidding concerned, within the period
stated in the Invitation to Bid.
The eligibility requirements
shall provide for fair and equal
access to all prospective bidders.
The prospective bidder shall
certify under oath as to the
correctness of the statements made,
and the completeness and
authenticity of the documents
submitted.
SEC. 25. Submission and Receipt of Bids. – A
bid shall have two (2) components,
namely the technical and financial
components which should be in
separate sealed envelopes, and which shall
be submitted simultaneously.
The bids shall be received by the
BAC on such date, time and place specified in
the invitation to bid.
The deadline for the receipt of bids
shall be fixed by the BAC, giving it
sufficient time to complete the bidding
process and giving the prospective bidders
sufficient time to study and prepare their
bids. The deadline shall also consider the
urgency of the procurement involved.

Bids submitted after the deadline shall not

be accepted.
Notwithstanding the provisions of this
Section and Section 26 of this Act, the GPPB
may prescribe innovative procedures for the
submission, receipt and opening of bids
through the G-EPS.
SEC. 26. Modification and Withdrawal
of Bids. – A bidder may modify his
bid, provided that this is done before
the deadline for the receipt of bids.
The modification shall be submitted
in a sealed envelope duly identified
as a modification of the original bid
and stamped received by the BAC.
A bidder may, through a letter,
withdraw his bid or express his
intention not to participate in
the bidding before the deadline for
the receipt of bids. In such case,
he shall no longer be allowed to
submit another Bid for the same
contract either directly or indirectly.
SEC. 27. Bid Security. – All Bids shall
be accompanied by a Bid security,
which shall serve as a guarantee
that, after receipt of the Notice of
Award, the winning bidder shall
enter into contract with the Procuring
Entity within the stipulated time
and furnish the required performance
security. The specific amounts and
allowable forms of the Bid security
shall be prescribed in the IRR.
SEC. 28. Bid Validity. – Bids and Bid
securities shall be valid for such
reasonable period of time indicated in
the Bidding Documents. The duration
for each undertaking shall take into
account the time involved in the
process of Bid evaluation and award
of contract.
SEC. 29. Bid Opening. – The BAC shall
publicly open all bids at the time, date,
and place specified in the bidding
documents. The minutes of the bid
opening shall be made available to the
public upon written request and
payment of a specified fee.
ARTICLE IX
BID EVALUATION
SEC. 30. Preliminary Examination of
Bids. – Prior to Bid evaluation, the BAC
shall examine first the technical
components of the bids using
"pass/fail" criteria to determine
whether all required documents are
present. Only bids that are
determined to contain all the bid
requirements of the technical
component shall be considered for
opening and evaluation of their
financial component.
ARTICLE IX
BID EVALUATION
SEC. 31. Ceiling for Bid Prices. – The
ABC shall be the upper limit or ceiling
for the Bid prices. Bid prices that
exceed this ceiling shall be
disqualified outright from further
participating in the bidding. There
shall be no lower limit to the amount
of the award.
ARTICLE IX
BID EVALUATION
SEC. 32. Bid for the Procurement of
Goods and Infrastructure Projects. –
For the procurement of Goods
and Infrastructure Projects, the BAC
shall evaluate the financial
component of the bids. The bids that
passed the preliminary examination
shall be ranked from lowest to
highest in terms of their
corresponding calculated prices.
The bid with the lowest
calculated price shall be referred to
as the "Lowest Calculated Bid."
ARTICLE IX
BID EVALUATION
SEC. 33. Bid Evaluation of Short
Listed Bidders for Consulting
Services. For the Procurement of
Consulting Services, the Bids of the
short listed bidders shall be
evaluated and ranked using
numerical ratings in accordance with
the evaluation criteria stated in the
Bidding Documents, which shall
include factors such as, but not
limited to,
1. experience,
2. performance,
3. quality of personnel,
4. price and;
5. methodology
ARTICLE IX
BID EVALUATION
The Bid with the highest calculated rating
shall be the “Highest Rated Bid.”
After approval by the Head of the Procuring
Entity of the Highest Rated Bid, the BAC
shall invite the bidder concerned for negotiation
and/or clarification on the following items:
1. financial proposal submitted by the bidder,
2. terms of reference,
3. scope of services,
4. methodology and work program,
5. personnel to be assigned to the job,
services/facilities/data to be provided by the
Procuring Entity concerned,
6. provisions of the contract.
ARTICLE IX
BID EVALUATION
When negotiations with the first-in-rank
bidder fails, the financial proposal of the
second rank bidder shall be opened for
negotiations:

Provided, That the amount indicated in the

financial envelope shall be made as the basis
for negotiations and the total contract
amount shall not exceed the amount
indicated in the envelope and the ABC.
Whenever necessary, the same process shall
be repeated until the bid is awarded to the
winning bidder.
ARTICLE X

POST-QUALIFICATION
SEC. 34. Objective and Process of
Post-qualification. – Post-
qualification is the stage where the
bidder with the Lowest Calculated
Bid, in the case of Goods and
Infrastructure Projects, or the
Highest Rated Bid, in the case of
Consulting Services, undergoes
verification and validation whether he
has passed all the requirements and
conditions as specified in the Bidding
Documents.
ARTICLE X

POST-QUALIFICATION
If the bidder with the Lowest Calculated
Bid or Highest Rated Bid passes all the
criteria for post-qualification, his Bid shall be
considered the “Lowest Calculated
Responsive Bid,” in the case of Goods and
Infrastructure or the “Highest Rated
Responsive Bid,” in the case of Consulting
Services.

However, if a bidder fails to meet any of

the requirements or conditions, he shall be
“post-disqualified” and the BAC shall
conduct the post-qualification on the bidder
with the second Lowest Calculated Bid or
Highest Rated Bid.
ARTICLE X

POST-QUALIFICATION
If the bidder with the second Lowest
Calculated Bid or Highest Rated Bid is post-
disqualified, the same procedure shall be
repeated until the Lowest Calculated
Responsive Bid or Highest Rated Responsive
Bid is finally determined.
In all cases, the contract shall be
awarded only to the bidder with the Lowest
Calculated Responsive Bid or Highest Rated
Responsive Bid.
ARTICLE X

POST-QUALIFICATION
SEC. 35. Failure of Bidding. – There
shall be a failure of bidding if:
(a) No bids are received;
(b) No bid qualifies as the
Lowest Calculated Responsive Bid
or Highest Rated Responsive Bid;
or,
(c) Whenever the bidder with
the highest rated/lowest calculated
responsive bid refuses,
without justifiable cause to accept
the award of contract, as the
case may be.
ARTICLE X

POST-QUALIFICATION
Under any of the above instances, the
contract shall be re-advertised and
re-bid. The BAC shall observe the
same process and set the new
periods according to the same rules
followed during the first bidding.
After the second failed bidding,
however, the BAC may resort to
negotiated procurement as provided
for in Section 53 of this Act.
ARTICLE X

POST-QUALIFICATION
SEC. 36. Single Calculated/Rated and
Responsive Bid Submission. – A
single calculated/rated and
responsive bid shall be considered for
award if it falls under any of the
following circumstances:
(a) If after advertisement,
only one prospective bidder submits
a Letter of Intent and/or applies
for eligibility check, and meets the
eligibility requirements or criteria,
after which it submits a bid, which is
found to be responsive to the bidding
requirements;
ARTICLE X

POST-QUALIFICATION
(b) If after the advertisement,
more than one prospective bidder
applies for eligibility check, but only
one bidder meets the eligibility
requirements or criteria, after which
it submits a bid which is found to be
responsive to the bidding
requirements; or

(c) If after the eligibility check,

more than one bidder meets the
eligibility requirements, but only one
bidder submits a bid, and its bid is
found to be responsive to the bidding
ARTICLE XI

AWARD, IMPLEMENTATION AND

TERMINATION OF THE CONTRACT
SEC. 37. Notice and Execution of Award. –
Within a period not exceeding fifteen (15)
calendar days from the determination
and declaration by the BAC of the Lowest
Calculated Responsive Bid or Highest
Rated Responsive Bid, and the
recommendation of the award, the Head of
the Procuring Entity or his duly authorized
representative shall approve or disapprove
the said recommendation.
In case of approval, the Head of the
Procuring Entity or his duly authorized
representative shall immediately issue the
Notice of Award to the bidder with the
Lowest Calculated Responsive Bid or Highest
Rated Responsive Bid.
ARTICLE XI

AWARD, IMPLEMENTATION AND

TERMINATION OF THE CONTRACT

Within ten (10) calendar days from receipt of

the Notice of Award, the winning bidder
shall formally enter into contract with the
Procuring Entity. When further
approval of higher authority is required, the
approving authority for the contract shall
be given a maximum of twenty (20) calendar
days to approve or disapprove it.
ARTICLE XI

AWARD, IMPLEMENTATION AND

TERMINATION OF THE CONTRACT

In the case of government-owned

and/or -controlled corporations, the
concerned board shall take action on the said
recommendation within thirty (30) calendar
days from receipt thereof.

The Procuring Entity shall issue the

Notice to Proceed to the winning bidder not
later than seven (7) calendar days
from the date of approval of the contract by
the appropriate authority. All notices
called for by the terms of the contract
shall be effective only at the time of receipt
thereof by the contractor
ARTICLE XI

AWARD, IMPLEMENTATION AND

TERMINATION OF THE CONTRACT

SEC. 38. Period of Action on

Procurement Activities. – The
procurement process from the
opening of bids up to the award of
contract shall not exceed three (3)
months, or a shorter period to be
determined by the procuring entity
concerned. Without prejudice to the
provisions of the preceding section,
the different procurement activities
shall be completed within reasonable
periods to be specified in the
IRR.
ARTICLE XI

AWARD, IMPLEMENTATION AND

TERMINATION OF THE CONTRACT

SEC. 39. Performance Security. –

Prior to the signing of the contract,
the winning bidder shall, as a
measure of guarantee for the faithful
performance of and compliance
with his obligations under the
contract prepared in accordance with
the Bidding Documents, be required
to post a performance security in
such form and amount as specified in
the Bidding Documents.
ARTICLE XI

AWARD, IMPLEMENTATION AND

TERMINATION OF THE CONTRACT
SEC. 40. Failure to Enter into Contract and
Post Performance Security. – If, for
justifiable causes, the bidder with the Lowest
Calculated Responsive Bid or Highest Rated
Responsive Bid fails, refuses or is otherwise
unable to enter into contract with the
Procuring Entity, or if the bidder fails to post
the required performance security within the
period stipulated in the Bidding Documents,
the BAC shall disqualify the said bidder and
shall undertake post-qualification for the
next-ranked Lowest Calculated Bid or Highest
Rated Bid.
This procedure shall be repeated until
an award is made. However, if no award is
possible, the contract shall be subjected to a
new bidding.
ARTICLE XI

AWARD, IMPLEMENTATION AND

TERMINATION OF THE CONTRACT
SEC. 41. Reservation Clause. – The Head of
the Agency reserves the right to reject
any and all Bids, declare a failure of bidding,
or not award the contract in the following
situations:
(a) If there is prima facie evidence of
collusion between appropriate public officers
or employees of the Procuring Entity,
or between the BAC and any of the bidders,
or if the collusion is between or among the
bidders themselves, or between a bidder and
a third party, including any act which
restricts, suppresses or nullifies or tends to
restrict, suppress or nullify competition;
ARTICLE XI

AWARD, IMPLEMENTATION AND

TERMINATION OF THE CONTRACT
(b) If the BAC is found to have failed
in following the prescribed bidding
procedures; or

(c) For any justifiable and reasonable

ground where the award of the
contract will not redound to the
benefit of the government as defined
in the IRR.
ARTICLE XI

AWARD, IMPLEMENTATION AND

TERMINATION OF THE CONTRACT
SEC. 42. Contract
Implementation and Termination. –
The rules and guidelines for the
implementation and termination of
contracts awarded pursuant to the
provisions of this Act shall be
prescribed in the IRR. The rules and
guidelines shall include standard
general and special conditions for
contracts.
ARTICLE XII
DOMESTIC AND FOREIGN
PROCUREMENT

SEC. 43. Procurement of Domestic and

Foreign Goods. – Consistent with the
country’s obligations under international
treaties or agreements, Goods may be
obtained from domestic or foreign sources
and the procurement thereof shall be
open to all eligible suppliers, manufacturers
and distributors.
However, in the interest of
availability, efficiency and timely delivery of
Goods, the Procuring Entity may give
preference to the purchase of domestically-
produced and manufactured goods, supplies
and materials that meet the specified or
desired quality.
ARTICLE XIII

BIDDING OF PROVINCIAL
PROJECTS
SEC. 44. Bidding of Provincial
Projects. – Priority programs and
infrastructure projects funded out of the
annual General Appropriations Act which are
intended for implementation within the
province shall be subject to the same public
bidding and to the procurement processes
prescribed under this Act.
For purposes of this Article,
Engineering District civil works projects,
subject to consultation with the concerned
Members of Congress, are included and
subsumed in the term “provincial projects”
and shall be governed by this Section and
Section 45 hereof.
ARTICLE XIII

BIDDING OF PROVINCIAL PROJECTS

SEC. 45. Provincial Bidders. – Within five (5)

years from the effectivity of this Act, a
contractor who participates in the bidding of
provincial priority programs and
infrastructure projects, whose principal office
is within the same province, and who submits
the lowest bid among the provincial bidders
which is higher than the lowest bid made by
a contractor with principal office outside the
said province shall be granted the privilege
to match the bid made by the latter:
Provided, however, That the release
of funds for said projects shall be
published in a local newspaper with the
widest circulation and the website of the
DBM, the mechanisms of which shall be
ARTICLE XIV
LEASE OF COMPUTERS,
COMMUNICATIONS, INFORMATION &
OTHER EQUIPMENT

SEC. 46. Lease Contracts. – Lease of

construction and office equipment,
including computers, communication
and information technology
equipment are subject to the same
public bidding and to the processes
prescribed under this Act.
ARTICLE XV
DISCLOSURE OF RELATIONS
SEC. 47. Disclosure of Relations. – In addition
to the proposed contents of the Invitation to
Bid as mentioned under Section 21 of this
Act, all bidding documents shall be
accompanied by a sworn affidavit of the
bidder that he or she or any officer of their
corporation is not related to the Head of the
Procuring Entity by consanguinity or affinity
up to the third civil degree.
Failure to comply with the
aforementioned provision shall be a ground
for the automatic disqualification of the bid
in consonance with Section 30 of this Act.
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
SEC. 48. Alternative Methods. – Subject
to the prior approval of the Head of the
Procuring Entity or his duly authorized
representative, and whenever justified by
the conditions provided in this Act, the
Procuring Entity may, in order to promote
economy and efficiency, resort to any of the
following alternative methods of
Procurement:
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
(a) Limited Source Bidding, otherwise known
as Selective Bidding – a method of
Procurement that involves direct invitation
to bid by the Procuring Entity from a set of
preselected suppliers or consultants with
known experience and proven capability
relative to the requirements of a particular
contract;

(b) Direct Contracting, otherwise known as

Single Source Procurement – a method of
Procurement that does not require elaborate
Bidding Documents because the supplier is
simply asked to submit a price quotation or a
pro-forma invoice together with the
conditions of sale, which offer may be
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
(c) Repeat Order – a method of Procurement
that involves a direct Procurement of Goods
from the previous winning bidder, whenever
there is a need to replenish Goods procured
under a contract previously awarded through
Competitive Bidding;
(d) Shopping – a method of Procurement
whereby the Procuring Entity simply requests
for the submission of price quotations for
readily available off-the-shelf Goods or
ordinary/regular equipment to be procured
directly from suppliers of known
qualification; or
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
(e) Negotiated Procurement – a method of
Procurement that may be resorted under the
extraordinary circumstances provided for in
Section 53 of this Act and other instances
that shall be specified in the IRR, whereby
the Procuring Entity directly negotiates a
contract with a technically, legally and
financially capable supplier, contractor or
consultant.

In all instances, the Procuring Entity shall

ensure that the most advantageous price for
the Government is obtained.
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT

SEC. 49. Limited Source Bidding. – Limited

Source Bidding may be resorted to only in
any of the following conditions:
(a) Procurement of highly specialized types
of Goods and Consulting Services which are
known to be obtainable only from a limited
number of sources; or
(b) Procurement of major plant components
where it is deemed advantageous to limit the
bidding to known eligible bidders in order to
maintain an optimum and uniform level of
quality and performance of the plant as a
whole.
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
SEC. 50. Direct Contracting. – Direct
Contracting may be resorted to only
in any of the following conditions:
(a) Procurement of Goods of
proprietary nature, which can be
obtained only from the proprietary
source, i.e. when patents, trade
secrets and copyrights prohibit
others from manufacturing the same
item;
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
(b) When the Procurement of critical
components from a specific manufacturer,
supplier or distributor is a condition
precedent to hold a contractor to guarantee
its project performance, in accordance with
the provisions of his contract; or,

(c) Those sold by an exclusive dealer or

manufacturer, which does not have sub
dealers selling at lower prices and for which
no suitable substitute can be obtained at
more advantageous terms to the
Government.
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
SEC. 51. Repeat Order. – When provided for
in the Annual Procurement Plan, Repeat
Order may be allowed wherein the Procuring
Entity directly procures Goods from the
previous winning bidder whenever there
arises a need to replenish goods procured
under a contract previously awarded through
Competitive Bidding, subject to post-
qualification process prescribed in the
Bidding Documents and provided all the
following conditions are present:
(a) The unit price must be equal to or lower
than that provided in the original contract;
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
(b) The repeat order does not result in
splitting of requisitions or purchase orders;

(c) Except in special circumstances defined in

the IRR, the repeat order shall be availed of
only within six (6) months from the date of
the Notice to Proceed arising from the
original contract; and,

(d) The repeat order shall not exceed twenty-

five percent (25%) of the quantity of each
item of the original contract.
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT

SEC. 52. Shopping. – Shopping may be

resorted to under any of the following
instances:
(a) When there is an unforeseen contingency
requiring immediate purchase: Provided,
however, That the amount shall not exceed
Fifty Thousand Pesos (P50,000); or
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT

(b) Procurement of ordinary or regular office

supplies and equipment not available in the
Procurement Service involving an amount
not exceeding Two Hundred Fifty Thousand
Pesos (P250,000): Provided, however, That
the Procurement does not result in Splitting
of Contracts: Provided, further, That at least
three (3) price quotations from bona fide
suppliers shall be obtained.

The above amounts shall be subject to a

periodic review by the GPPB. For this
purpose, the GPPB shall be authorized to
increase or decrease the said amount in
order to reflect changes in economic
conditions and for other justifiable reasons.
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT

SEC. 53. Negotiated Procurement. –

Negotiated Procurement shall be allowed
only in the following instances:
(a) In cases of two failed biddings, as
provided in Section 35 hereof;

(b) In case of imminent danger to life or

property during a state of calamity, or
when time is of the essence arising from
natural or man-made calamities or other
causes where immediate action is necessary
to prevent damage to or loss of life or
property, or to restore vital public services,
infrastructure facilities and other public
utilities;
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
(c) Take-over of contracts, which have been
rescinded or terminated for causes
provided for in the contract and existing
laws, where immediate action is necessary to
prevent damage to or loss of life or property,
or to restore vital public services,
infrastructure facilities and other public
utilities;
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
(d) Where the subject contract is adjacent or
contiguous to an on-going infrastructure project,
as defined in the IRR: Provided, however, That the
original contract is the result of a Competitive
Bidding; the subject contract to be negotiated has
similar or related scopes of work; it is within the
contracting capacity of the contractor; the
contractor uses the same prices or lower unit
prices as in the original contract less mobilization
cost; the amount involved does not exceed the
amount of the ongoing project; and, the
contractor has no negative slippage: Provided,
further, That negotiations for the procurement are
commenced before the expiry of the original
contract. Whenever applicable, this principle shall
also govern consultancy contracts, where the
consultants have unique experience and expertise
to deliver the required service; or,
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
(e) Subject to the guidelines specified
in the IRR, purchases of Goods from
another agency of the Government,
such as the Procurement Service of
the DBM, which is tasked with a
centralized procurement of commonly
used Goods for the government in
accordance with Letters of Instruction
No. 755 and Executive Order No. 359,
series of 1989.
ARTICLE XVI
ALTERNATIVE METHODS OF
PROCUREMENT
SEC. 54. Terms and Conditions for the use of
Alternative Methods.
– The specific terms and conditions, including
the limitations and restrictions, for the
application of each of the alternative
methods mentioned in this Article shall be
specified in the IRR.
 ARTICLE XVII
PROTEST MECHANISM

SEC. 55. Protests on Decisions of the BAC. – Decisions of

the BAC in all stages of procurement may be protested
to the head of the procuring entity and shall be in
writing. Decisions of the BAC may be protested by filing
a verified position paper and paying a nonrefundable
protest fee. The amount of the protest fee and the
periods during which the protests may be filed and
resolved shall be specified in the IRR.
 ARTICLE XVII
PROTEST MECHANISM

SEC. 56. Resolution of Protests. – The protests

shall be resolved strictly on the basis of
records of the BAC. Up to a certain amount to
be specified in the IRR, the decisions of the
Head of the Procuring Entity shall be final.
 ARTICLE XVII
PROTEST MECHANISM

SEC. 57. Non-interruption of the Bidding

Process. – In no case shall any protest taken
from any decision treated in this Article stay
or delay the bidding process. Protests must
first be resolved before any award is made.
 ARTICLE XVII
PROTEST MECHANISM

SEC. 58. Report to Regular Courts; Certiorari. –

Court action may be resorted to only after the
protests contemplated in this Article shall have
been completed. Cases that are filed in violation
of the process specified in this Article shall be
dismissed for lack of jurisdiction. The regional
trial court shall have jurisdiction over final
decisions of the head of the procuring entity.
Court actions shall be governed by Rule 65 of the
1997 Rules of Civil Procedure.
This provision is without prejudice to any law
conferring on the Supreme Court the sole
jurisdiction to issue temporary restraining orders
 ARTICLE XVIII
SETTLEMENT OF DISPUTES

SEC. 59. Arbitration. – Any and all disputes arising

from the implementation of a contract covered by this
Act shall be submitted to arbitration in the Philippines
according to the provisions of Republic Act No. 876,
otherwise known as the "Arbitration Law": Provided,
however, That, disputes that are within the
competence of the Construction Industry Arbitration
Commission to resolve shall be referred thereto. The
process of arbitration shall be incorporated as a
provision in the contract that will be executed
pursuant to the provisions of this Act: Provided, That
by mutual agreement, the parties may agree in writing
to resort to alternative modes of dispute resolution.
 ARTICLE XVIII
SETTLEMENT OF DISPUTES

SEC. 60. Appeals. – The arbitral award and

any decision rendered in accordance with the
foregoing Section shall be appealable by way
of a petition for review to the Court of
Appeals. The petition shall raise pure
questions of law and shall be governed by
the Rules of Court.
 ARTICLE XIX - CONTRACT PRICES AN
WARRANTIES

SEC. 61. Contract Prices. – For the given scope of work

in the contract as awarded, all bid prices shall be
considered as fixed prices, and therefore not subject to
price escalation during contract implementation,
except under extraordinary circumstances and upon
prior approval of the GPPB. For purposes of this
Section, “extraordinary circumstances” shall refer to
events that may be determined by the National
Economic and Development Authority in accordance
with the Civil Code of the Philippines, and upon the
recommendation of the procuring entity concerned.
 ARTICLE XIX - CONTRACT PRICES AN
WARRANTIES

SEC. 62. Warranty. -(a) For the procurement of Goods,

in order to assure that manufacturing defects shall be
corrected by the supplier, manufacturer, or distributor,
as the case may be, for a specific time after
performance of the contract, a warranty shall be
required from the contract awardee for such period of
time as may be provided in the IRR, the obligation for
which shall be covered by either retention money in the
amount equivalent to a percentage of every progress
payment, or a special bank guarantee equivalent to a
percentage of the total contract price, to be provided in
the IRR. The said amounts shall only be released after
the lapse of the warranty period, provided that the
Goods supplied are free from defects and all the
conditions imposed under the contract have been fully
met.
ARTICLE XIX - CONTRACT PRICES AND
WARRANTIES

(b) For the procurement of infrastructure projects, the

contractor shall assume full responsibility for the
contract work from the time project construction
commenced up to a reasonable period as defined in the
IRR taking into consideration the scale and coverage of
the project from its final acceptance by the government
and shall be held responsible for any damage or
construction of works except those occasioned by force
majeure
 ARTICLE XX
THE GOVERNMENT PROCUREMENT
POLICY BOARD

SEC. 63. Organization and Functions. – A Government

Procurement Policy Board (GPPB) is hereby
established to:
(a)protect national interest in all matters affecting
public Procurement, having due regard to the
country’s regional and international obligations;

(b) formulate and amend, whenever necessary, the

IRR and the corresponding standard forms for
Procurement;
 ARTICLE XX
THE GOVERNMENT PROCUREMENT
POLICY BOARD

(c) ensure that Procuring Entities regularly conduct

Procurement training programs and prepare a
Procurement operations manual for all offices and
agencies of government; and

(d) conduct an annual review of the effectiveness of

this Act and recommend any amendments thereto, as
may be necessary.
 ARTICLE XX
THE GOVERNMENT PROCUREMENT
POLICY BOARD

SEC. 64. Membership. – The GPPB shall be composed of the

Secretary of the Department of Budget and Management,
as Chairman, the Director-General of the National Economic
and Development Authority, as Alternate Chairman, with
the following as Members; the Secretaries of the
Departments of Public Works and Highways, Finance, Trade
and Industry, Health, National Defense, Education, Interior
and Local Government, Science and Technology,
Transportation and Communications, and Energy, or their
duly authorized representatives and a representative from
the private sector to be appointed by the President upon
the recommendation of the GPPB. The GPPB may invite a
representative from the Commission on Audit to serve as a
resource person.
 ARTICLE XXI
PENAL CLAUSE
SEC. 65. Offenses and Penalties. –(a) Without prejudice to
the provisions of Republic Act No. 3019, otherwise known
as the “Anti-Graft and Corrupt Practices Act” and other
penal laws, public officers who commit any of the following
acts shall suffer the penalty of imprisonment of not less
than six (6) years and one (1) day, but not more than
fifteen (15) years:
 ARTICLE XXI
PENAL CLAUSE
(1) Open any sealed Bid including but not limited to
Bids that may have been submitted through the electronic
system and any and all documents required to be sealed or
divulging their contents, prior to the appointed time for
the public opening of Bids or other documents.

(2) Delaying, without justifiable cause, the screening for

eligibility, opening of bids, evaluation and post evaluation
of bids, and awarding of contracts beyond the prescribed
periods of action provided for in the IRR.
 ARTICLE XXI
PENAL CLAUSE
(3) Unduly influencing or exerting undue
pressure on any member of the BAC or any
officer or employee of the procuring entity to
take a particular action which favors, or tends to
favor a particular bidder.

(4) Splitting of contracts which exceed

procedural purchase limits and competitive
bidding.
 ARTICLE XXI
PENAL CLAUSE
(5) When the head of the agency abuses the exercise of
his power to reject any and all bids as mentioned under
Section 41 of this Act with manifest preference to any
bidder who is closely related to him in accordance with
Section 47 of this Act.

When any of the foregoing acts is done in collusion with

private individuals, the private individuals shall likewise be
liable for the offense.

In addition, the public officer involved shall also suffer the

penalty of temporary disqualification from public office,
while the private individual shall be permanently
disqualified from transacting business with the
Government.
 ARTICLE XXI
PENAL CLAUSE
(b) Private individuals who commit any of the following
acts, including any public officer, who conspires with them,
shall suffer the penalty of imprisonment of not less than
six (6) years and one (1) day but not more than fifteen (15)
years:

(1)When two or more bidders agree and submit

different Bids as if they were bona fide, when they knew
that one or more of them was so much higher than
the other that it could not be honestly accepted and that
the contract will surely be awarded to the pre-arranged
lowest Bid.
 ARTICLE XXI
PENAL CLAUSE
(2)When a bidder maliciously submits different Bids
through two or more persons, corporations, partnerships
or any other business entity in which he has interest to
create the appearance of competition that does not in fact
exist so as to be adjudged as the winning bidder.

(3) When two or more bidders enter into an agreement

which call upon one to refrain from bidding for
Procurement contracts, or which call for withdrawal of Bids
already submitted, or which are otherwise intended to
secure an undue advantage to any one of them.
 ARTICLE XXI
PENAL CLAUSE
(4) When a bidder, by himself or in connivance with
others, employ schemes which tend to restrain the natural
rivalry of the parties or operates to stifle or suppress
competition and thus produce a result disadvantageous to
the public.

In addition, the persons involved shall also suffer the

penalty of temporary or perpetual disqualification from
public office and be permanently disqualified from
transacting business with the Government.
 ARTICLE XXI
PENAL CLAUSE
(c) Private individuals who commit any of the following
acts, and any public officer conspiring with them, shall
suffer the penalty of imprisonment of not less than six (6)
years and one (1) day but not more than fifteen (15) years:

(1)Submit eligibility requirements of whatever kind

and nature that contain false information or falsified
documents calculated to influence the outcome of the
eligibility screening process or conceal such information in
the eligibility requirements when the information will lead
to a declaration of ineligibility from participating in public
bidding.
 ARTICLE XXI
PENAL CLAUSE
(2)Submit Bidding Documents of whatever kind and
nature that contain false information or falsified
documents or conceal such information in the Bidding
Documents, in order to influence the outcome of the public
bidding.

(3) Participate in a public bidding using the name of

another or allow another to use one’s name for the
purpose of participating in a public bidding.
 ARTICLE XXI
PENAL CLAUSE
(4) Withdraw a Bid, after it shall have qualified as the
Lowest Calculated Bid/Highest Rated Bid, or refuse to
accept an award, without just cause or for the purpose of
forcing the Procuring Entity to award the contract to
another bidder. This shall include the non-submission
within the prescribed time, or delaying the submission of
requirements such as, but not limited to, performance
security, preparatory to the final award of the contract.

(d) When the bidder is a juridical entity, criminal liability

and the accessory penalties shall be imposed on its
directors, officers or employees who actually commit any of
the foregoing acts.
 ARTICLE XXI
PENAL CLAUSE
SEC. 66. Jurisdiction. – Jurisdiction over the offenses
defined under this Article shall belong to the appropriate
courts, according to laws existing at the time of the
commission of the offenses.
ARTICLE XXII
CIVIL LIABILITY
SEC. 67. Civil Liability in Case of Conviction. –
Without prejudice to administrative
sanctions that may be imposed in proper
cases, a conviction under this Act or Republic
Act No. 3019 shall carry with it civil liability,
which may either consist of restitution for
the damage done or the forfeiture in favor of
the government of any unwarranted benefit
derived from the act or acts in question or
both, at the discretion of the courts.
ARTICLE XXII
CIVIL LIABILITY
SEC. 68. Liquidated Damages. – All contracts
executed in accordance with this Act shall
contain a provision on liquidated damages
which shall be payable in case of breach
thereof. The amount thereof shall be
specified in the IRR.
ARTICLE XXIII
ADMINISTRATIVE
SANCTIONS
SEC. 69. Imposition of Administrative
Penalties. – (a) In addition to the provisions
of Articles XXI and XXII of this Act, the Head
of the Procuring Entity, subject to the
authority delegated to the BAC, if any, shall
impose on bidders or prospective bidders,
the administrative penalty of suspension for
one (1) year for the first offense, and
suspension of two (2) years for the second
offense from participating in the public
bidding process, for the following violations:
ARTICLE XXIII
ADMINISTRATIVE
SANCTIONS
(1) Submission of eligibility requirements
containing false information or falsified
documents.

(2) Submission of Bids that contain false

information or falsified documents, or the
concealment of such information in the Bids
in order to influence the outcome of
eligibility screening or any other stage of the
public bidding.
ARTICLE XXIII
ADMINISTRATIVE
SANCTIONS
(3) Allowing the use of one’s name, or using
the name of another for purposes of public
bidding.

(4) Withdrawal of a Bid, or refusal to accept

an award, or enter into contract with the
government without justifiable cause, after
he had been adjudged as having submitted
the Lowest Calculated Responsive Bid or
Highest Rated Responsive Bid.
ARTICLE XXIII
ADMINISTRATIVE
SANCTIONS
(5) Refusal or failure to post the
required performance security within
the prescribed time.

(6) Termination of the contract due to

the default of the bidder.
ARTICLE XXIII
ADMINISTRATIVE
SANCTIONS
All other acts that tend to defeat the purpose
of the Competitive Bidding.

(b) In addition to the penalty of suspension,

the Bid security or the performance security
posted by the concerned bidder or
prospective bidder shall also be forfeited.

(c) The Head of the Procuring Entity may

delegate to the BAC the authority to impose
the aforementioned administrative penalties.
ARTICLE XXIII
ADMINISTRATIVE
SANCTIONS
SEC. 70. Preventive Suspension. – The head
of the procuring entity may preventively
suspend any member of the Technical
Working Group or the Secretariat, or the BAC
if there are strong reasons or prima facie
evidence showing that the officials or
employees concerned are guilty of the
charges filed against them under Articles XXI
and XXII of this Act or for dishonesty as
defined by the Civil Service Laws. In all
cases, procedural and substantive due
process as mandated by the Constitution and
Civil Service Laws, rules and regulations,
shall be strictly observed.
ARTICLE XXIII
ADMINISTRATIVE
SANCTIONS
SEC. 71. Lifting of Suspension and Removal
of Administrative Disabilities. – Lifting of
preventive suspension pending
administrative investigation, as well as
removal of administrative penalties and
disabilities shall be in accordance with the
provisions of Sections 52 and 53, Chapter 6
(Civil Service Commission), Book V of
Executive Order No. 292, the Administrative
Code of 1987.
ARTICLE XXIV
LEGAL ASSISTANCE AND
INDEMNIFICATION OF BAC
MEMBERS
SEC. 72. Private Legal Assistance. – All the
members of the BAC are hereby authorized
to engage the services of private lawyers or
extend counsel immediately upon receipt of
Court Notice that a civil or criminal action,
suit or proceeding is filed against them. The
lawyer's fee shall be part of the
indemnification package for the BAC
members, subject to the provisions of
Section 73 hereof.
ARTICLE XXIV
LEGAL ASSISTANCE AND
INDEMNIFICATION OF BAC
MEMBERS
SEC. 73. Indemnification of BAC Members. –
The GPPB shall establish an equitable
indemnification package for public officials
providing services in the BAC, which may be
in the form of free legal assistance, liability
insurance, and other forms of protection and
indemnification for all costs and expenses
reasonably incurred by such persons in
connection with any civil or criminal action,
suit or proceeding to which they may be, or
have been made, a party by reason of the
performance of their functions or duties,
unless they are finally adjudged in such
action or proceeding to be liable for gross
ARTICLE XXV
FINAL PROVISIONS
SEC. 74. Oversight Committee. – There is
hereby created a Joint Congressional
Oversight Committee to oversee the
implementation of this Act for a period not
exceeding five (5) years from the effectivity
of this Act. The Committee shall be
composed of the Chairman of the Senate
Committee on Constitutional Amendments
and Revision of Laws and two members
thereof appointed by the Senate President,
and the Chairman of the House Committee on
Appropriations, and two members thereof to
be appointed by the Speaker of the House of
Representatives.
ARTICLE XXV
FINAL PROVISIONS
SEC. 75. Implementing Rules and Regulations
and Standard Forms. – Within sixty (60) days
from the promulgation of this Act, the
necessary rules and regulations for the
proper implementation of its provisions shall
be formulated by the GPPB, jointly with the
members of the Oversight Committee
created under Section 74 hereof. The said
rules and regulations shall be approved by
the President of the Philippines. For a period
not later than thirty (30) days upon the
approval of the implementing rules and
regulations, the standard forms for
Procurement shall be formulated and
approved.
ARTICLE XXV
FINAL PROVISIONS
SEC. 76. Repealing Clause. – This law repeals Executive
Order No. 40, series of 2001, entitled “Consolidating
Procurement Rules and Procedures for All National
Government Agencies, Government-Owned-or-Controlled
Corporations and/or Government Financial Institutions,
and Requiring the Use of the Government Electronic
Procurement System”; Executive Order No. 262, Series
of 2000, entitled "Amending Executive Order No. 302,
series of 1996, entitled "Providing Polices, Guidelines,
Rules and Regulations for the Procurement of
Goods/Supplies by the National Government" and
Section 3 of Executive Order No. 201, series of 2000,
entitled "Providing Additional Policies and Guidelines in
the Procurement of Goods/Supplies by the National
Government"; Executive Order No. 302, series of 1996,
entitled "Providing Policies, Guidelines, Rules and
Regulations for the Procurement of Goods/Supplies by
the National Government" and Presidential Decree No.
1594 dated June 11, 1978, entitled 'Prescribing Policies,
Guidelines, Rules and Regulations for Government
Infrastructure Contracts."
ARTICLE XXV
FINAL PROVISIONS
This law amends Title Six, Book Two of
Republic Act No. 7160, otherwise known as
the "Local Government Code of 1991"; the
relevant provisions of Executive Order No.
164, Series of 1987, entitled "Providing
Additional Guidelines in the Processing and
Approval of Contracts of the National
Government"; and the relevant provisions of
Republic Act No. 7898 dated February 23,
1995, entitled “An Act Providing for the
Modernization of the Armed Forces of the
Philippines and for Other Purposes.” Any
other law, presidential decree or issuance,
executive order, letter of instruction,
administrative order, proclamation, charter,
rule or regulation and/or parts thereof
contrary to or inconsistent with the
ARTICLE XXV
FINAL PROVISIONS
SEC. 77. Separability Clause. – If any
provision of this Act is declared invalid or
unconstitutional, the other provisions not
affected thereby shall remain valid and
subsisting.
ARTICLE XXV
FINAL PROVISIONS
SEC. 78. Effectivity Clause. – This Act shall
take effect fifteen (15) days following its
publication in the Official Gazette or in two
(2) newspapers of general circulation.
END!!!