01 - Evolution of Reforms and Historical Development

This set of flashcards covers critical concepts, findings, and recommendations from Adoracion M. Navarro's study on public procurement reforms in the Philippines, focusing on historical context, research methodology, and identified issues.

CA 138

Provided preference for goods and services from the Philippines and the United States in government purchases, if goods and services from other countries are not significantly cheaper.

CA 362

Required advertisements for public bidding on national government contracts estimated at PHP3,000.00 or more, unless otherwise waived by the President.

RA 912

Required inputs used in government contracts to be produced from

the Philippines, whenever available.

RA 3019

Penalized government employees for entering into disadvantageous

contracts and prohibited their relatives from entering into contracts

with the government.

RA 5183

Required goods and consulting services contractors to be citizens of

the Philippines and bidders from firms with at least 60% capital

owned by Filipino citizens.

PD 81

Allowed the foreign loans obtained by the President to be relent to

the private sector, provided that 60% should be for utility projects

and the remaining 40% for agricultural projects.

PD 415

Authorized the Secretary of National Defense to enter into defense

contracts.

LOI 755

Established an integrated procurement system for government

purchases, creating the Procurement Council.

PD 764

Required all government contracts to undergo competitive bidding

processes.

PD 1948

Increased the capital outlay limit for pakyaw contracts from

PHP50,000.00 to PHP500,000.00. (July 18, 1984)

EO 164

Set price ceilings for infrastructure contracts awarded by procuring entities through public bidding or through public negotiation (awards beyond the price ceiling set requires approval by the President) and required procuring entities to constitute a Prequalification, Bids and Awards Committees in their offices.

EO 285

Abolished the Procurement Council and transferred their functions to the Systems and Procedures Bureau of the Department of Budget and Management.

RA 6713

Required government employees within 60 days, to divest from their

shares and/or within 30 days to resign from their positions in any firm

once conflicts of interest arise in government procurement processes.

RA 6939

Created the Cooperative Development Authority, which manages the

registration and regulation of cooperatives. Provided the framework

for cooperatives’ participation in public procurement.

RA 7042

Allowed foreign firms to invest in all projects without requiring

participation and ownership of Filipino citizens in their firms, except

for areas requiring Filipino ownership by the Constitution.

RA 7898

Organized the AFP Procurement System, considering new

requirements under the AFP modernization program.

PD 1594

Detailed further the provisions, requirements, and processes set in PD

1594 (1978 decree), organizing the Bids and Awards Committee,

evaluating the conditions with which bidders pass prequalification

requirements, determining the lowest calculated responsive bid, and

setting rules for the awarding of contracts.

RA 8792

Allowed the use of electronic transactions and documents as binding

in contractual agreements and obligations.

RA 9184

Reformed the government’s procurement system by innovating the

whole procurement process through invitation requirements, bid

evaluation, and post-qualification, by setting of performance security

for awards, by providing options for alternative methods of

procurement and for protests in procurement processes, and by

establishing the Government Procurement Policy Board (GPPB) to

regulate the government’s procurement system.

RA 9184 IRR

Specified the rules for the government’s procurement system by

prohibiting government procurement outside of an agency’s

approved Annual Procurement Plan, including experts and

representatives from end-users in the Bids and Awards Committee,

requiring reports for all procurement costing PHP50 million and

above for goods and infrastructure projects and PHP5 million for

consulting services, allowing observers from relevant professional

groups in the industry and from non-government organizations,

mandating pre-procurement conferences for goods beyond PHP2

million, for infrastructure projects beyond PHP5 million, and for

consulting services beyond PHP1 million, detailing the form and

contents of bid invitations and of bid security, listing the additional

circumstances with which alternative methods of procurement are

accepted, and adding warranty security in the awarding of contracts.

RA 9242

Prescribes the use of Philippine tropical fabrics for uniforms of public

officials and employees.

RA 9285

Established the use of alternative dispute resolution systems in

arbitration, allowing contractual disagreements and contestations on

Bids and Awards Committee rulings to be settled outside of court.

RA 9184 Revised IRR

Provided additional guidelines for types of procurement with special

provisions, such as military, non-government organizations, for

public utilities, as well as including rules for blacklisting contractors

and insurance companies and for organizing contractors.

DBM-PS

It was created in 1978 (then named the Procurement Council) to improve the

efficiency in the procurement of common-use supplies

RA 4566

Established a Philippine Licensing Board for Contractors and

requires contractors to obtain a license from such board before

pursuing government contracts.

pakyaw

It is Filipino term for wholesale purchase, purchase of all available stocks, or hiring of labor for the whole job. As used in old laws, it is the "undertaking of public works projects under the Filipino bayanihan spirit where the workers, moved by a sense of unity, put up a common capital and render services on a cooperative basis" and could be a negotiated contract as long as the negotiated fixed price does not exceed the prescribed ceiling.

RA 223

Increased the floor for requiring advertisements on government contracts at PHP10,000.00 and extends the requirement to provincial government contracts.

PD 950

Increased the capital outlay ceiling for pakyaw contracts (fixed price contracts for labor-intensive civil works projects) from PHP10,000.00 to PHP50,000.00.

PD 1177

Limited the ability of government agencies in public procurement within their appropriations for the fiscal year.

PD 1445

Limited the auditing of government contracts to the Commission on Audit, subjected claims made by successful bidders to regular review, and prohibited advance payments on awarded contracts.

EO 518

Required government-owned and controlled corporations to submit annual reports of financial performance, as well as reports on status of contractual obligations backed by government guarantee.

LOI 1042

Established Supply Support Agreements with relevant manufacturers to meet routine military procurement needs

RA 1948

Increased the capital outlay limit for pakyaw contracts from PHP50,000.00 to PHP500,000.00.

RA 1035

Established the rules for government procurement of private real properties for public use through rights-of-way.

RA 6685

Required private contractors to hire at least 50% of the unskilled and at least 30% of the skilled labor from the available residents in the province, city, or municipality where the project is located, except for highly technical and highly confidential projects.

RA 6957

Authorized the financing, construction, operation and maintenance of infrastructure projects by the private sector and provided the different contractual arrangements available between the government and the private sector on the management of infrastructure projects.

RA 8794

Put the executive guidelines for acquiring private real properties through rights-of-way into law.

RA 8795

Prohibited lower courts from issuing temporary restraining orders, preliminary injunctions or preliminary mandatory injunctions for government infrastructure projects.