{"id":187540,"date":"2025-04-16T07:17:15","date_gmt":"2025-04-16T07:17:15","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/government-procurement-ra-9184-an-overview\/"},"modified":"2025-04-16T07:17:15","modified_gmt":"2025-04-16T07:17:15","slug":"government-procurement-ra-9184-an-overview","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=187540","title":{"rendered":"Government Procurement (RA 9184): An Overview"},"content":{"rendered":"
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\nRepublic \nAct 9184, also known as the Government Procurement Act covers all procurement \nof Infrastructure Projects, Goods, and Consulting Services, regardless of \nsource of funds, whether local or foreign, by all branches and \ninstrumentalities of government, its departments, offices and agencies, \nincluding government-owned and\/or -controlled corporations and local government \nunits, subject to the provisions of Commonwealth \nAct No. 138<\/u><\/b>. <\/span><\/span><\/div>\n
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\nProcurement \nrefers to the acquisition of Goods<\/u><\/b>, \nConsulting Services<\/u><\/b>, and the contracting for Infrastructure Projects \nby<\/u><\/b> the Procuring Entity. Procurement shall also include the lease of \ngoods and real estate. With respect to real property, its procurement shall be \ngoverned by the provisions of Republic Act No. 8974, entitled \u201cAn Act to \nFacilitate the Acquisition of Right-of-Way Site or Location for National \nGovernment Infrastructure Projects and for Other Purposes\u201d, and other \napplicable laws, rules and regulations.<\/span><\/span><\/div>\n
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\nUnder the \nsaid law, all Procurement shall be done through competitive bidding<\/u> <\/b>except \nin cases where alternative modes of procurement are allowed. <\/span><\/span><\/div>\n
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\nCompetitive \nBidding<\/span><\/b> \nrefers to a method of procurement which is open to participation by any \ninterested party and which consists of the following processes: <\/span><\/span><\/div>\n
\n7. <\/span><\/span>Award of \ncontract<\/span><\/span><\/div>\n
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\nAlternative \nMethods of Procurement<\/span><\/b>:<\/span><\/span><\/div>\n
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\n1. <\/span><\/span>Limited Source Bidding (also known as Selective \nBidding) <\/span><\/b>\u2013 \na method of Procurement that involves direct invitation to bid by the Procuring \nEntity from a set of preselected suppliers or consultants with known experience \nand proven capability relative to the requirements of a particular contract; <\/span><\/span><\/div>\n
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\nLimited Source Bidding may be resorted to only \nin any of the following conditions: <\/span><\/span><\/i><\/div>\n
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\n(a) Procurement of highly specialized types of \nGoods and Consulting Services which are known to be obtainable only from a \nlimited number of sources; or <\/span><\/span><\/i><\/div>\n
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\n(b) Procurement of major plant components where \nit is deemed advantageous to limit the bidding to known eligible bidders in \norder to maintain an optimum and uniform level of quality and performance of \nthe plant as a whole.<\/span><\/span><\/i><\/div>\n
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\n2. <\/span><\/span>Direct Contracting (also known as Single Source \nProcurement)<\/span><\/b> \n\u2013 a method of Procurement that does not require elaborate Bidding Documents \nbecause the supplier is simply asked to submit a price quotation or a pro-forma \ninvoice together with the conditions of sale, which offer may be accepted \nimmediately or after some negotiations; <\/span><\/span><\/div>\n
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\nDirect Contracting may be resorted to only in \nany of the following conditions: <\/span><\/span><\/i><\/div>\n
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\n(a) Procurement of Goods of proprietary nature, \nwhich can be obtained only from the proprietary source, i.e. when patents, \ntrade secrets and copyrights prohibit others from manufacturing the same item; <\/span><\/span><\/i><\/div>\n
\n(b) When the Procurement of critical components \nfrom a specific manufacturer, supplier or distributor is a condition precedent \nto hold a contractor to guarantee its project performance, in accordance with \nthe provisions of his contract; or, <\/span><\/span><\/i><\/div>\n
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\n(c) Those sold by an exclusive dealer or \nmanufacturer, which does not have sub-dealers selling at lower prices and for \nwhich no suitable substitute can be obtained at more advantageous terms to the \nGovernment.<\/span><\/span><\/i><\/div>\n
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\n3. <\/span><\/span>Repeat Order <\/span><\/b>\u2013 a method of Procurement \nthat involves a direct Procurement of Goods from the previous winning bidder, \nwhenever there is a need to replenish Goods procured under a contract \npreviously awarded through Competitive Bidding; <\/span><\/span><\/div>\n
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\nWhen provided for in the Annual Procurement \nPlan, Repeat Order may be allowed wherein the Procuring Entity directly \nprocures Goods from the previous winning bidder whenever there arises a need to \nreplenish goods procured under a contract previously awarded through \nCompetitive Bidding, subject to post-qualification process prescribed in the \nBidding Documents and provided all the following conditions are present: <\/span><\/span><\/i><\/div>\n
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\n(a) The unit price must be equal to or lower \nthan that provided in the original contract; <\/span><\/span><\/i><\/div>\n
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\n(b) The repeat order does not result in \nsplitting of requisitions or purchase orders; <\/span><\/span><\/i><\/div>\n
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\n(c) Except in special circumstances defined in \nthe IRR, the repeat order shall be availed of only within six (6) months from \nthe date of the Notice to Proceed arising from the original contract; and, <\/span><\/span><\/i><\/div>\n
\n(d) The repeat order shall not exceed \ntwenty-five percent (25%) of the quantity of each item of the original \ncontract.<\/span><\/span><\/i><\/div>\n
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\n4. <\/span><\/span>Shopping<\/span><\/b> \u2013 a method of Procurement whereby \nthe Procuring Entity simply requests for the submission of price quotations for \nreadily available off-the-shelf Goods or ordinary\/regular equipment to be \nprocured directly from suppliers of known qualification; or <\/span><\/span><\/div>\n
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\nShopping \nmay be resorted to under any of the following instances: <\/span><\/span><\/i><\/div>\n
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\n(a) When there is an unforeseen contingency \nrequiring immediate purchase: Provided, however, That the amount shall not \nexceed Fifty Thousand Pesos (P50,000); or <\/span><\/span><\/i><\/div>\n
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\n(b) Procurement of ordinary or regular office \nsupplies and equipment not available in the Procurement Service involving an \namount not exceeding Two Hundred Fifty Thousand Pesos (P250,000): Provided, \nhowever, That the Procurement does not result in Splitting of Contracts: \nProvided, further, That at least three (3) price quotations from bona fide \nsuppliers shall be obtained. The above amounts shall be subject to a periodic \nreview by the GPPB. For this purpose, the GPPB shall be authorized to increase \nor decrease the said amount in order to reflect changes in economic conditions \nand for other justifiable reasons.<\/span><\/span><\/i><\/div>\n
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\n5. <\/span><\/span>Negotiated Procurement<\/span><\/b> \u2013 shall \nonly be allowed under the following cases:<\/span><\/span><\/div>\n
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\na. <\/span><\/span><\/i>In cases of two failed biddings;<\/span><\/i><\/span><\/div>\n
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\nb. <\/span><\/span><\/i> In case \nof imminent danger to life or property during a state of calamity, or when time \nis of the essence arising from natural or man-made calamities or other causes \nwhere immediate action is necessary to prevent damage to or loss of life or \nproperty, or to restore vital public services, infrastructure facilities and \nother public utilities; <\/span><\/i><\/span><\/div>\n
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\nc. <\/span><\/span><\/i>Take-over of contracts, which have been \nrescinded or terminated for causes provided for in the contract and existing \nlaws, where immediate action is necessary to prevent damage to or loss of life \nor property, or to restore vital public services, infrastructure facilities and \nother public utilities; <\/span><\/i><\/span><\/div>\n
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\nd. <\/span><\/span><\/i>Where the subject contract is adjacent or \ncontiguous to an on-going infrastructure project, as defined in the Implementing Rules and Regulations<\/u><\/b>; \nProvided, however, That the original contract is the result of a Competitive \nBidding; the subject contract to be negotiated has similar or related scopes of \nwork; it is within the contracting capacity of the contractor; the contractor \nuses the same prices or lower unit prices as in the original contract less \nmobilization cost; the amount involved does not exceed the amount of the \nongoing project; and, the contractor has no negative slippage: Provided, \nfurther, That negotiations for the procurement are commenced before the expiry \nof the original contract. Whenever applicable, this principle shall also govern \nconsultancy contracts, where the consultants have unique experience and \nexpertise to deliver the required service; or<\/span><\/i><\/span><\/div>\n
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\ne. <\/span><\/span><\/i>Subject to the guidelines specified in the Implementing \nRules and Regulations, purchases of Goods from another agency of the \nGovernment, such as the Procurement Service of the DBM, which is tasked with a \ncentralized procurement of commonly used Goods for the government in accordance \nwith Letters of Instruction No. 755 and Executive Order No. 359, series of \n1989.<\/span><\/i><\/span><\/div>\n
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\nThe \nAlternative Method of Procurement may be resorted only to <\/span>highly exceptional cases,<\/span> t<\/span>o promote economy and efficiency, and<\/span> <\/span>justified by conditions specified in the law and its Implementing Rules and Regulations. <\/u><\/b><\/span><\/span><\/div>\n
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\nIn \nall instances, the Procuring Entity shall ensure that the most advantageous \nprice for the Government is obtained.<\/span><\/span><\/div>\n