The Implementing Rules and Regulations (IRR) of Republic Act (RA) 12009, or the New Government Procurement Act (NGPA) has set out the procurement strategies and the rules for the digital procurement to ensure a more streamline, responsive and modernized procurement process.

Based on the IRR uploaded on the Official Gazette on Monday, the procuring entities are required to assess market conditions, supplier capabilities and industry trends in preparing their project procurement management plans to optimize resource allocation and ensure effective implementation.

During the planning stage, the procuring entity should take into account the 10 strategic considerations laid out in the IRR.

These include the life cycle assessment and life cycle cost analysis; subcontracting; multi-year contracting; early procurement activities; design and build scheme for infrastructure projects; engagement of a procurement agent; use of framework agreement; pooled agreement; renewal of regular and recurring services; or warehousing and inventory activities.

For subcontracting arrangements, the subcontracted portion of the contract should not exceed 20 percent for goods and 50 percent for infrastructure projects, or a different percentage on a per project basis as approved by the Government Procurement Policy Board (GPPB).

The fixed threshold percentages will be subject to periodic review and adjustments as may be deemed appropriate by the GPPB.

The subcontracted portion will be limited to components that are not deemed “significant or material” to the project as determine by the procuring entity.

Failure of a subcontractor to meet the eligibility criteria does not affect the eligibility of the general contractor for the procurement, according to the IRR, stressing that the portion intended to be subcontracted to the ineligible subcontractor will be assumed by the general contractor.

Single electronic portal

The IRR provides that the Philippine Government Electronic Procurement System (PhilGEPS), which will be managed by the Department of Budget and Management’s Procurement Service (PS-DBM), will serve as the primary source of information and channel in the conduct of all government procurement activities.

To standardize and ease the process of government procurement, the PhilGEPS’ innovative features include an electronic bulletin board; electronic catalogue; virtual store; electronic marketplace; electronic bidding; electronic small value procurement; electronic reverse auction; electronic payment; registry of suppliers, manufacturers, distributors, contractors, consultants and service providers; and open data.

All procuring entities are mandated to fully use the PhilGEPS and its features, as well as to register with the electronic portal to ensure their access to an online network to facilitate the open, speedy and efficient online transmission, conveyance and use of electronic data messages or electronic documents.

Interconnectivity systems

Under the IRR, the GPPB is authorized to promulgate rules to ensure the interconnectivity of government databases through cross-platform interoperability using standardized protocols.

The protocols will enable a secure and efficient, and real-time data sharing across systems, ensuring compatibility and integration of government databases and platforms.

The GPPB is directed to coordinate with the PS-DBM, the Department of Information and Communications Technology, the Construction Industry Authority of the Philippines, the local government units, the Bureau of Internal Revenue, the Securities and Exchange Commission, the Cooperative Development Authority, the Insurance Commission, and other relevant agencies.

In a statement on Tuesday, the DBM said the IRR contains the governing principles of government procurement, including transparency, competitiveness, efficiency, proportionality, accountability, participatory procurement, sustainability, and professionalism.

The DBM said the IRR would apply to all procurement by any branch, agency, department, bureau, office, or instrumentality of the government, including government-owned or controlled corporations, government financial institutions, state universities and colleges and LGUs.

President Ferdinand R. Marcos Jr. signed RA 12009 into law on July 20, 2024, enhancing the decades-old RA 9184, or the Government Procurement Reform Act, by modernizing and increasing the transparency of the government procurement process.

DBM Secretary Amenah Pangandaman said the issuance of the IRR of RA 12009 is “one of the fastest” and signifies the current administration’s commitment to implementing a new government procurement law.

“As called for by our taxpayers, this allows our citizens to track government spending and ensures that resources are utilized efficiently and appropriately to improve public service delivery, true to the spirit of open and participatory governance,” Pangandaman said. (PNA)