Notes on Republic Act No. 12009: The New Government Procurement Act

Objectives of RA 12009

• Enhance efficiency and transparency in procurement processes.

• Promote sustainability and innovation.

• Ensure value for money and accountability.

Scope and Application

• Applies to procurement of goods, infrastructure projects, and consulting services.

• Covers all national government branches and instrumentalities, including:

  • State Universities and Colleges (SUCs)

  • Government-Owned and Controlled Corporations (GOCCs)

  • Government Financial Institutions (GFIs)

  • Local Government Units (LGUs)

• Applicable regardless of funding source (local or foreign).

Key Features

• Fit-for-Purpose Modalities: Tailors procurement methods to specific needs for better value.

• Strategic Procurement Planning: Mandatory market scoping and strategic planning.

• Modernization of Processes: Uses technologies to streamline procurement.

• Sustainable Public Procurement: Includes environmental, social, and economic factors.

• Enhanced Transparency: Promotes open government and participative procurement.

• Professionalization: Develops skilled procurement practitioners.

Implementation and Oversight

• Managed by the Government Procurement Policy Board (GPPB).

• Regular monitoring to ensure effectiveness and compliance.

Impact and Benefits

• Increased efficiency and reduced corruption.

• Better quality goods and services.

• Enhanced public trust through transparency.

Procurement Process Steps

1. Strategic Procurement Planning: Conduct market scoping, create an Annual Procurement Plan.

2. Preparation of Bidding Documents: Define specifications and evaluation criteria, include sustainability considerations.

3. Advertisement/Posting: Advertise opportunities via PhilGEPS and agency channels.

4. Procurement Modality Selection: Choose appropriate procurement methods (e.g., public bidding, negotiated procurement).

5. Submission and Opening of Bids: Publicly receive and open bids according to specified timelines.

6. Bid Evaluation and Post-Qualification: Evaluate compliance, capability, and conduct post-qualification checks.

7. Contract Award and Approval: Contract awarded to the Lowest Calculated and Responsive Bid (LCRB).

8. Contract Implementation and Monitoring: Monitor contractor performance and compliance with agreements.

9. Procurement Performance Review: Assess outcomes and report for continuous improvement.

Lowest Calculated and Responsive Bid (LCRB)

• LCRB Definition: The lowest price among compliant bids after evaluation.

• Factors for evaluation:

  • Must meet all technical/legal requirements.

  • Consulting services may use Highest Rated Responsive Bid (HRRB).

Example Scenarios

• Public School Classroom: Bidder A wins despite not being the lowest price due to compliance.

• Consultant for Flood Control Study: Firm X wins based on a higher overall score, emphasizing quality over lowest cost.

Conclusion

• RA 12009 marks a significant modernization of government procurement.

• Its successful implementation is vital for sustainable and inclusive growth in the Philippines.