GOVERNMENT

PROCUREMENT 101

NAME OF SPEAKER

1
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 MODULE OBJECTIVES
By the end of this module, participants should be able to:

1. Develop broader knowledge on the major concepts of

the government procurement activities and processes;

2. Ensure effective, efficient, and ethical government

procurement operations in their respective areas of
responsibility; and

3. Gather uniform interpretation of the Republic Act No.

9184 and its 2016 revised Implementing Rules and
Regulations.
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and 2
distribution without the author’s approval is prohibited.
 I Philippine Government Procurement Laws: Then and Now

The Government Procurement Policy Board and its Technical

II Support Office

III Principles of Public Procurement

IV Key Concepts on Government Procurement

Scope and Application of Republic Act No. 9184 and its revised
V Implementing Rules and Regulations

VI Procurement Organization

VII Legal Indemnification

Procurement Package for the Bids and Awards Committee
Organization

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and 3
distribution without the author’s approval is prohibited.
 PHILIPPINE GOVERNMENT
PROCUREMENT LAWS:
THEN AND NOW

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Enactment of the GPRA or Republic Act No. 9184

Executive
Orders
Administrative
Issuances

Memorandum
Circulars

Implementing
Rules and
Regulations

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 5
Development

CHALLENGES BEFORE SOLUTIONS BROUGHT

GPRA ABOUT BY GPRA

Confusion caused by Enactment of the GPRA

fragmented legal system Creation of the Government
Inconsistent policies, rules, and Procurement Policy Board
regulations due to lack of (GPPB)
standards
Use of Philippine Government
Lack of transparency Electronic Procurement System
Lack of check and balance
Participation of Civil Society

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 6
Purpose

Modernize

Regulate
Standardize

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 7
 The Government Procurement
Policy Board and its Technical
Support Office

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Government Procurement Policy Board (GPPB)

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 9
Composition
Chairman: Secretary of the Department of Budget and Management
Alternate Chairman: Director-General of the National Economic and Development
Authority
12 Regular Members from the Secretaries of the following:
DPWH – Department of Public Works and Highways
DTI – Department of Trade and Industry
DOH – Department of Health
DND – Department of Defense
DepEd – Department of Education
DOF – Department of Finance
DILG – Department of the Interior and Local Government
DOST – Department of Science and Technology
DOTr – Department of Transportation
DOE – Department of Energy
DICT – Department of Information and Communications Technology
PhilSA – Philippine Space Agency
13th Regular Member: Private Sector
Invited Resource Persons

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 10
Functions of the GPPB

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 11
GPPB- Technical Support Office (TSO)

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 12
Functions of the GPPB-TSO

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 13
GPPB AND ITS TSO WEBSITE

[Link]

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 14
 Principles of Public Procurement

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Governing Principles

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 16
 Key Concepts on Government
Procurement

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
What is Procurement?

Refers to the acquisition of goods, consulting services and the contracting for
infrastructure projects by the Procuring Entity (PE). It shall also include the
lease of goods and real estate.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 18
What is 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 :

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 19
What is Infrastructure Projects?

Include the construction,

improvement, rehabilitation, IT
demolition,repair, restoration Projects Irrigation Communication
Facilities
or maintenance of:

Energy/ Flood
Power and Airports Control Water
Electrification
Facilities
and and
Drainage
Supply
Seaports
Sanitation, National/
Roads School,
Railways Sewerage
and and Solid Hospital Shore
Bridges Management Buildings Protection
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 20
What is Consulting Services?

Refer to services for infrastructure projects and other types of projects or

activities requiring adequate external technical and professional expertise
that are beyond the capability of the government to undertake:

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 21
What are the Key Concepts on Government Procurement?

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 22
What are the Procurement Methods?

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 23
What are the Procurement Methods?

Highly Exceptional
Cases

To promote Economy
and Efficiency

Justified by conditions

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 24
Bidding Process for Goods and Infrastructure Projects

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 25
Bidding Process for Consulting Services

Highly Exceptional
Cases

To promote Economy
and Efficiency

Justified by conditions

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 26
 Scope and Coverage of GPRA
and its 2016 Revised
Implementing Rules and
Regulations

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Scope and Coverage

Treaty or International
or Executive
Agreement

Foreign-funded
National Government procurement
State Universities and
Agencies Competitive Bidding
Colleges

Government Owned
or Controlled
Corporations

Government Financial Local Government

Institutions Units

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 28
Scope and Coverage

Activities that are not considered as procurement

undertakings under R.A. No. 9184 and its IRR

i t i o n of
uis rt y
Acq prope be
real shall y
Direct financial or material assistance
ch b given to beneficiaries
whi erned 52
r e i gn gov o. 107
Fo nts .N
R.A
Gra ed by 2,
er 18
cov No. 8 ed
. nd
R.A ame No. Participation to both local or foreign scholarships,
as R.A. trainings, continuing education, conferences,
by 8555 Public-Private
projects covered seminars or similar activities that are governed by
by R.A. No. 6957, Commission on Audit, Civil Service Commission,
as amended by and Department of Budget and Management rules.
R.A. No. 7718

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 29
 Procurement Organization

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Procurement Actors

End-User

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 31
Head
Head of the Procuring
of Procuring Entity (HoPE)
Entity (HoPE)

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 32
Functions and Responsibilities of HoPE

Establishes BAC and appoints the members

May designate alternate BAC members, who shall have the same qualifications as that of the members
originally designated under Section 11.2.2 of this IRR. (Section 11.2.4)

Ensures the professionalization of the BAC, its Secretariat and TWG Members
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 Technical Support Office. (Section 16 )

Approves the Annual Procurement Plan (APP) Resolves Protest

Approves or Disapproves the Contract Award

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 33
Officer-in-Charge as HoPE

Powers and authority shall depend on the nature of the designation.

Unless there is no The incumbent HoPE The incumbent HoPE

reservation, OIC may may approve or may sign the Notice to
approve or sign: disapprove the Proceed when he was
recommendation of a BAC member but the
the BAC so long as contract must have
he is: been awarded by the
BAC Resolutions
Neither the Chairman previous HoPE.
Notice of Award nor a member of the
BAC who rendered the
Notice to Proceed recommendation
(Section of the IRR)

NPM 102-2014
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 34
Bids and Awards Committee (BAC)

General Rule: HoPE must create a single BAC

Separate BACs may be created under any of the following conditions:
The items to be procured are complex or specialized;

If the single BAC cannot reasonably manage the procurement transactions as

shown by delays beyond the allowable limits; or

If the creation is required according to the nature of the procurement.

The HoPE shall designate 5-7 Members occupying plantilla positions in the Procuring
Entity concerned, and of unquestionable integrity and procurement proficiency

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 35
Prohibited BAC Members

Prohibited members are the following:

Head of the Procuring Entity

Official who approves procurement contracts

Chief Accountant or Head of the Provincial/City/Municipal Accounting Office and his/her

staff.
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)

Local Treasurers and Assistant Local Treasurers (DOF Department Order No. 042-
2019 dated 12 June 2019)
Internal Auditors (Revised PGIAM, issued through DBM NBC 2020-8)
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 36
Membership and Composition for NGASs, GOCCs, GFIs and
SUCs

Regular Members Provisional Members

Chairperson (3rd Ranking Permanent
Official) Officer Possessing technical
expertise relevant to the
Member representing the Legal or procurement
Administrative areas (5th or 3rd* Ranking
Permanent Personnel, of if not available, End User Representative
the next in rank)
Member representing the Finance Area
(5th or 3rd* Ranking Permanent
Personnel, of if not available, the next in
rank)
*In the case of bureaus, regional offices and sub-regional/district offices

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 37
Membership and Composition for LGUs

For Provinces, Cities For Barangays

and Municipalities
At least five (5), but not more than
One representative each from the regular seven (7) regular members of the
offices under the Office of the Local Chief Sangguniang Barangay, except the
Executive such as, but not limited to, the Punong Barangay
following: Office of the Administrator, Budget
Office, Legal Office, Engineering Office,
General Services Offices

End-User Representative

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 38
Alternate BAC Members

Presence in BAC meetings is considered for

purposes of quorum and shall be entitled to
the proportionate honoraria.

The relationship of the principal and the

alternate is of co-equal nature, rather than
hierarchical.

Accountability shall be limited to their

respective acts and decisions.

The same term as the original members

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 39
Functions and Responsibilities of the BAC

Recommend award
Recommend
of contract to the
approval and/or Conduct bidding
HoPE or his/her duly
revision of the APP process
authorized
and other reports
representative

Recommend to the
Conduct periodic
HoPE or his/her duly
assessment of the Creation of
authorized
procurement Technical Working
representative the
process and Group (TWG)
imposition of
procedures
sanctions

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 40
BAC Secretariat

HoPE may create a procurement unit to

act as BAC Secretariat, subject to the
rules and guidelines of the DBM (DBM
National Budget Circular No. 2015-558
dated June 4, 2015)

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 lower rank.

There is no minimum or maximum number of

members of the BAC Secretariat
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 41
BAC Secretariat Head

Functions:
Head of the BAC Secretariat Provide administrative support to the BAC and TWG
must be at least a 5th or 3rd
ranking permanent employee Organize BAC and TWG meetings and conferences
or, if not available, a Prepare minutes of meetings and resolutions
permanent official of the Take custody of procurement documents and other
lower rank. records
Manage the sale and distribution of bidding documents
Advertise/post bidding opportunities, including Bidding
Documents, and notices of awards
Assist in managing the procurement processes
Monitor procurement activities and milestones
Consolidate PPMPs and prepare the APP
Act as central channel of communications.
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 42
Technical Working Group (TWG)

Functions:
Created by the BAC from a Review of the Technical Specifications, Scope of
pool of:
Work, and Terms of Reference
Technical Experts
Review of Bidding Documents
Financial Experts
Shortlisting of Consultants
Legal Experts
Eligibility screening
Evaluation of Bids
BAC may create separate
TWGs to handle different Post-qualification
procurements. Resolution of Request for Reconsideration

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 43
End-Users

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 44
Observers

Prepare and
Submit
Observation
Report Notify PE of
Conflict of Shall be invited, in writing at least five (5) calendar
Interest days before the date of the:

Eligibility Checking Preliminary Examination of Bids

Shortlisting Bid Evaluation
Pre-bid Conference Post-Qualification

Private Non-
Government
Organization
Commission
on Audit

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 45
Observers

Allowed to access, free of charge: Online Access

Through own facilities of PEs until

Minutes of BAC Meetings
such time the modernized PhilGEPS
Abstract of Bids becomes operational`
Post- Qualification Summary Report In case, unable to provide the said
APP and related PPMP online access, PEs shall inform the
GPPB-TSO in writing by emailing
Opened Proposals observers@[Link].

subject to signing of Confidentiality Agreement

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 46
Online Access to Observers

1 Online monitoring for

observers using the mPhilGEPS
  
PEs to provide online access to
2  observers for monitoring all stages of
   procurement using the mPhilGEPS

PEs to inform the GPPB-TSO via

3  email (observers@[Link]) if
   online access cannot be provided

GPPB Circular No. 01-2021

47
Guidelines on the Grant of Honoraria

Bids and Awards Secretariat

Technical Working Group
Committee (Ad hoc)

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
Conforms to the guidelines promulgated by the Department of Budget and
Management.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 48
Guidelines on the Grant of Honoraria
DBM Budget Circular No. 2004-5A, dated 07 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:

Negotiated
Negotiated Procurement under
Limited Source
Competitive Bidding Procurement- Two- Section 53(b) following
Bidding
Failed Bidding the procedures under
Section 54.2(b)

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 49
Guidelines on the Grant of Honoraria

BAC Secretariat Honoraria Overtime Pay

Ad hoc

Procurement Unit

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, subject to the same regulations.

Payment of overtime services may be allowed for the administrative staff, (clerks, messengers and drivers
supporting the BAC, the TWG and the Secretariat whose positions are in the Procurement Unit of the
agency), for procurement activities rendered in excess of official working hours.

Those who are receiving honoraria shall no longer be entitled to overtime pay for procurement-related
services rendered.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 50
Funding Source
Collections from successfully completed procurement projects, limited to activities prior to
the awarding of contracts to winning bidders:

Fees charged fro

Fees from copies of minutes of
Proceeds from sale
contractor/supplier bid openings, BAC
of bid documents
registry resolutions, and
other documents

Proceeds from bid

Protest fees Savings of PE
security forfeiture

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 51
Amount of Honoraria

Maximum Honorarium Rate per

Procurement Project

BAC Chair PhP 3,000.00

BAC Members PhP 2,500.00

BAC Secretariat (Ad hoc); and

PhP 2,000.00
TWG Chair and Members

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited. 52
 Legal Indemnification Package
for the Bids and Awards
Committee

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Legal Indemnification Package
WHAT is INDEMNIFICATION?
This refers to the assistance or remuneration given to the members of the BAC
and/or the BAC Support Staff for any loss, damage, or injury caused to them by
reason of the lawful performance of their duty.

General Conditions

1 FREE LEGAL
ASSISTANCE
2 LIABILITY
INSURANCE
3 MEDICAL
ASSISTANCE

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited. 54
Free Legal Assistance

Indemnified by PE Legal Assistance shall cover actual cost

and fees with maximum PhP 5,000.00
Engaged the services of a BAC MEMBER OR
per appearance
private lawyer or external SUPPORT STAFF
counsel Shall not cover any action or suit initiated
in personal capacity; and initiated by the
Have not been adjudged as Government against the concerned BAC
guilty of gross negligence, member or staff
misconduct, or grave abuse
of discretion Entitled to actual, moral and exemplary
damages

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited. 55
Liability Insurance

The procuring entity shall have the responsibility to procure and maintain adequate liability
insurance for and in behalf of its BAC members or BAC Support Staff.
The liability insurance policy shall cover only those liabilities asserted against the public official
and incurred by him in his capacity as such BAC members or BAC Support Staff as the case
may be.
The insurer shall pay for the loss arising from the claim or suit made against the BAC members
or BAC Support Staff during the policy period wherein they serve in such capacity.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited. 56
Liability Insurance

For purposes of this issuance, the term “loss” shall include judgments, expenses for settlement
or compromise, as well as all reasonable fees and other expenses incurred by such persons in
connection with any administrative, civil, or criminal action, suit or proceeding to which they may
be or have been made a party by reason of the lawful performance of their official functions and
duties in such capacity.

Provided further, that, such BAC members or BAC Support Staff shall not be adjudged in such
action or proceeding to be guilty of gross negligence, misconduct, or grave abuse of discretion or
guilty of any other complaint or charges.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited. 57
Liability Insurance

In the event of settlement or compromise, indemnification shall be confined only to matters

covered by the settlement, and to which the procuring entity had been advised by counsel that
the person to be indemnified have not committed gross negligence, misconduct, or grave abuse
of discretion in the performance of their duties and functions.

The procurement of liability insurance shall be subject to the setting of schedule of premium by
the GPPB.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited. 58
Medical Assistance

Medical assistance shall be provided to BAC members and BAC Support Staff for
Injuries/disabilities incurred in the lawful performance of their official functions and duties.
The claimant(s) shall be entitled to indemnification for any injury or disability resulting from the
performance of their official functions as defined by law and without any contributory negligence
on their part.
The claimant or his/her relatives must notify the head of the procuring entity within seven (7)
calendar days from the occurrence of the injury or disability.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited. 59
Medical Assistance

The medical assistance herein provided shall consist of indemnification for medicines, laboratory
and hospitalization expenses, provided that the amount claimed shall not exceed the actual
amount incurred, substantiated by receipts and other supporting documents.
Indemnification shall only be made upon presentation of the proof of payment in connection with
the injury or disability suffered.
The medical assistance granted herein shall be granted to the claimant as a matter of right and
subject to the conditions mandated by law.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited. 60
 DROP YOUR
QUESTIONS
HERE!

Contact us:

THANK YOU!
Unit 2504 Raffles Corporate Center, F. Ortigas Road, Ortigas
Center, Pasig City, Philippines 1605

TeleFax: (632)7900-6741 to 44
Email address: training@[Link]