Lawmaker files bill to revamp procurement process
MANILA, Philippines — A lawmaker is proposing to shorten the procurement process in all government agencies from 72 days to 27 days and to exempt security-related agencies from competitive public bidding, citing a need to reduce delays in projects and bureaucratic inefficiency.
In filing House Bill No. 7944, Senior Deputy Speaker Aurelio “Dong” Gonzales Jr. said the government procurement system “needs to be updated and streamlined to put an end to recurring delays in the acquisition of goods and services, and the awarding and implementation of infrastructure projects like roads, expressways and school buildings.”
The proposed Ang Bagong Pilipinas Government Procurement Reform Act shortens the procurement process by 45 calendar days to 27 calendar days, starting from the first day of the publication of the invitation to bid until the posting of the notice of award and notice to proceed with the approved contract.
The measure also exempts all government agencies related to national security and public order that procure “defense materials and related purchases” from competitive public bidding.
The reforms proposed by the bill are “structured around the principles of economic efficiency, transparency, competitiveness and fairness,” Gonzales said in the bill’s explanatory note.
“At the core of this bill is the simplified process of procurement: to avoid delay, streamline the process, and facilitate remarkable improvement in project delivery/completion timeline,” he added.
The measure repeals the two-decades-old Republic Act 9184 or the Government Procurement Reform Act, which Gonzales says has been marred with issues in implementation, especially delays in projects and underspending by agencies.
Shortened procurement process
To compress the process, the measure removes the post-qualification step, which involves the verification and validation of all statements and documents submitted by bidders to prove their compliance with the contract.
This step is a “duality to the requirement of pre-qualification,” Gonzales said, with delays usually stemming from an agency’s lack of human resources, distance of the location of the project and limited expertise of the contractor.
Noting that members of bids and awards committees — which are temporary bodies — are usually saddled with other responsibilities, Gonzales also proposed the creation of "full-time" five-member prequalification, bids and awards committees, the secretariat of which will process bids and other procurement documents.
Exemption from public competitive bidding
The measure also proposes exempting government agencies related to public order and national security from competitive public bidding based on "the sound discretion" of the officials of the agencies.
These are the Department of National Defense, Department of Interior and Local Government, Department of Justice, National Security Council, Armed Forces of the Philippines, Philippine National Police, the National Intelligence Coordinating Agency and the National Bureau of Investigation.
"Procurements involving infrastructures and goods for defense, as they involve national security and advance technology, therefore in utmost confidentiality, are hereby declared exempt from competitive public bidding,” the bill read.
The proposed measure also exempts contracts which are “absolutely and reasonably necessary to prevent imminent loss of lives or properties; or to prevent further aggravation of damage to vital infrastructure facilities which are damaged by reason of foroe majeur or fortuitous events.”
The measure requires concerned offices or agencies to invite not less than three but not more than five contractors which have adequate financial resources, technical experience and personnel suited for the project or contract.
Other reforms proposed in the bill include a one-time posting, instead of two publications, of notice of award and notice to proceed with approved contract. The bill also allows the winning bidder to start work or delivery of goods immediately upon notice of award.
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