Republic Act No. 12009 - New Government Procurement Act Vocabulary

Vocabulary study set covering defined terms, core procurement modes, bid evaluation concepts, and governance principles under Republic Act No. 12009 (New Government Procurement Act).

New Government Procurement Act

Republic Act No. 12009, an act revising Republic Act No. 9184 (the 'Government Procurement Reform Act') to update government procurement laws in the Philippines.

Approved Budget for the Contract (ABC)

The budget for the contract duly approved by the Head of the Procuring Entity, as provided in the General Appropriations Act, corporate budget, appropriations ordinance, or other authorized source of funds.

Beneficial Owner

A natural person who ultimately owns or dominantly influences the management or policies of a juridical entity, or exercises ultimate effective control over it.

Bid

A signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor, consultant, or service provider in response to bidding documents.

Bidder

A supplier, manufacturer, distributor, contractor, consultant, or service provider who submits a bid in response to the requirements of the bidding documents.

Bidding Documents

Documents issued by the Procuring Entity as the basis for Bids, furnishing all information necessary for a prospective bidder to prepare a Bid for Goods, Infrastructure Projects, and Consulting Services.

Bids and Awards Committee (BAC)

The committee established in each Procuring Entity pursuant to Article V of RA 12009 to conduct and manage government procurement activities.

Blacklisting

An administrative penalty imposed by the Head of the Procuring Entity prohibiting a person or entity, including its affiliates, from participating in all government procurement activities.

Common-Use Supplies and Equipment (CSE)

Goods, materials, and equipment used repetitively in the day-to-day operations of Procuring Entities, included in the electronic catalogue of PhilGEPS.

Consulting Services

Services for Infrastructure Projects and other government activities requiring adequate external technical and professional expertise beyond the in-house capability of the government.

End-User or Implementing Unit

The employee or organic office within the Procuring Entity that identifies, plans, prepares, designs, and implements the procurement project based on agency needs and mandate.

Financial Eligibility

Having the financial capacity to manufacture, distribute, or deliver the Goods, Infrastructure Projects, and Consulting Services being procured.

Goods

All items, supplies, materials, and general support services (except Consulting Services and Infrastructure Projects) needed in the transaction of public business or government undertakings.

Head of the Procuring Entity (HoPE)

The head of the agency or authorized official for NGAs; the governing board or authorized official for GOCCs, SUCs, and GFIs; or the local chief executive for LGUs.

Infrastructure Projects

Projects involving the construction, improvement, rehabilitation, demolition, repair, restoration, or maintenance of public civil works such as roads, bridges, buildings, and utility systems.

Jury Duty (Procurement)

A responsibility requiring BAC, TWG, Secretariat members, and end-users to give utmost priority to procurement assignments over all other duties until requirements are completed.

Legal Eligibility

Having the legal capacity to act as an entity as evidenced by permits, licenses, and registrations required by law to engage in business.

Lifecycle Cost

The total cost of ownership over the entire life span of an asset from its acquisition, operation, and maintenance to its disposal.

Multi-Year Contractual Authority (MYCA)

The authority given to the Procuring Entity to procure multi-year projects in accordance with the conditions set by the DBM.

Philippine Government Electronic Procurement System (PhilGEPS)

The single electronic procurement portal managed by the Procurement Service (PS-DBM) serving as the primary source of information and channel for government procurement.

Procurement

The acquisition of Goods and Consulting Services, and the contracting for Infrastructure Projects by a Procuring Entity, including the lease of goods and real property.

Procuring Entity

Any branch, department, bureau, office, agency, or instrumentality of the government (including SUCs, GOCCs, GFIs, and LGUs) procuring goods, infrastructure, or services.

Technical Eligibility

Having the experience or expertise required to undertake the manufacturing, distribution, delivery, or implementation of the item being procured.

Value for Money

The optimum combination of quality and cost to meet the requirements and objectives of the end-user.

Competitive Bidding

A mode of procurement open to any eligible bidder, involving publication, pre-bid conference, eligibility screening, receipt/opening of bids, evaluation, post-qualification, and award.

Limited Source Bidding

A procurement mode involving direct invitation to bid sent to a pre-selected set of suppliers or consultants with known experience and proven capability.

Competitive Dialogue

A procurement mode employing a two-stage bidding process where the Procuring Entity invites suppliers to a dialogue to propose solutions before submitting technical and financial bids.

Unsolicited Offer with Bid Matching

A procurement mode where an unsolicited offer for Goods or Consulting Services involving a new concept or technology is considered after inviting comparative bids.

Direct Contracting

A procurement mode where the supplier is requested to submit a price quotation or pro-forma invoice for proprietary or exclusive items, accepted directly or after negotiations.

Direct Acquisition

A procurement mode allowing direct purchase from a known reputable source for non-CSEs, unavailable CSEs, and services with an ABC not exceeding P200,000.00.

Repeat Order

A procurement mode where goods are procured from a previous winning bidder to replenish items under a contract previously awarded through competitive bidding.

Small Value Procurement

A procurement mode requesting at least three price quotations for goods not available in PS-DBM, infrastructure, or consulting services with an ABC not exceeding P2,000,000.00.

Negotiated Procurement

A procurement mode whereby the Procuring Entity directly negotiates a contract with a capable supplier or contractor under specific statutory circumstances.

Direct Sales

A procurement mode of non-CSEs where a Procuring Entity purchases directly from a supplier that satisfactorily delivered the same items to another agency under a completed bid contract.

Direct Procurement for Science, Technology and Innovation

A procurement mode permitting direct purchase of research supplies, commissioned innovative goods, or products from qualified startups.

Lowest Calculated Bid (LCB)

The bid ranked lowest in calculated price among those that passed preliminary examination under contracts evaluated for LCRB award.

Most Economically Advantageous Bid (MEAB)

The bid achieving the highest overall score evaluated using a predetermined quality-price ratio under contracts evaluated for MEARB award.

Highest Rated Bid (HRB)

The bid obtaining the highest calculated rating among short-listed bidders evaluated under quality-based procedures for Consulting Services.

Lowest Calculated Responsive Bid (LCRB)

A bid identified as the LCB that successfully passes all verification and validation checks during post-qualification.

Most Economically Advantageous Responsive Bid (MEARB)

A bid identified as the MEAB that successfully passes all post-qualification criteria across both quality and price components.

Highest Rated Responsive Bid (HRRB)

A bid identified as the HRB for Consulting Services that successfully satisfies all post-qualification requirements and negotiations.

Green Public Procurement

An approach whereby Procuring Entities seek to procure Goods, Infrastructure Projects, and Consulting Services with reduced environmental impact throughout their lifecycle.

Domestic Preference

The statutory requirement to give priority and preference to Philippine products and services, awarding to a domestic bidder if its bid is not more than 25% above the lowest foreign bid.