Manila: The Implementing Rules and Regulations (IRR) of Republic Act (RA) 12009, or the New Government Procurement Act (NGPA), have set out procurement strategies and rules for digital procurement to ensure a more streamlined, responsive, and modernized procurement process.
According to Philippines News Agency, the IRR, uploaded on the Official Gazette, requires procuring entities to assess market conditions, supplier capabilities, and industry trends while preparing their project procurement management plans. This is intended to optimize resource allocation and ensure effective implementation. During the planning stage, the procuring entity must consider ten strategic factors outlined in the IRR, including life cycle assessments, subcontracting, multi-year contracting, early procurement activities, and various other procurement strategies.
The IRR stipulates that subcontracted portions of contracts should not exceed 20 percent for goods and 50 percent for infrastructure projects, with adjustments to these thresholds subject to periodic review by the Government Procurement Policy Board (GPPB). The subcontracted portion will be limited to components not deemed 'significant or material' to the project by the procuring entity. Furthermore, the eligibility of a general contractor is not affected by a subcontractor's failure to meet eligibility criteria, as the general contractor assumes responsibility for any ineligible subcontracted portions.
The Philippine Government Electronic Procurement System (PhilGEPS), managed by the Department of Budget and Management's Procurement Service (PS-DBM), will act as the primary channel for all government procurement activities, featuring innovative tools such as electronic bidding, a virtual store, and a registry of suppliers. All procuring entities are required to fully use PhilGEPS and its features to facilitate efficient online transmission and use of electronic data.
The IRR also authorizes the GPPB to establish rules ensuring interconnectivity of government databases through cross-platform interoperability using standardized protocols. This will enable secure, efficient, and real-time data sharing across systems, ensuring compatibility and integration of government databases and platforms.
In a statement, the Department of Budget and Management (DBM) emphasized that the IRR contains the governing principles of government procurement, including transparency, competitiveness, efficiency, and accountability. The IRR applies to all procurement by any government branch or agency, including government-owned corporations and local government units.
President Ferdinand R. Marcos Jr. signed RA 12009 into law on July 20, 2024, enhancing the previous Government Procurement Reform Act by modernizing and increasing the transparency of the government procurement process. DBM Secretary Amenah Pangandaman noted that the swift issuance of the IRR demonstrates the administration's commitment to implementing a new government procurement law, emphasizing its role in ensuring efficient resource utilization and improved public service delivery.
