CHANGING THE LOWEST CALCULATED BID PROVISION: Sen. Sonny Angara presides over the Senate Committee on Finance hearing Wednesday, February 28, 2024 on various measures seeking to amend Republic Act No. 9184, otherwise known as the Government Procurement Reform Act (GPRA). (JOSEPH VIDAL / Senate Social Media Unit)
MANILA, Philippines — Senator Sonny Angara believes the proposed bill titled New Government Procurement Act (NGPA) will make the procedures for purchasing items and entering into contracts transparent and efficient.
Angara, in a statement on Friday, said the NGPA will boost investor confidence in the country because procurement processes will be open to scrutiny, therefore, encouraging competition among bidders.
Senate Bill No. 2593 was approved last Tuesday, and the NGPA is now up for President Ferdinand Marcos Jr.’s signature.
“The NGPA was a product of months of consultations with all the stakeholders, particularly the Executive branch, to come up with a law that will ultimately end up saving money for the government and result in the delivery of better services for our people,” Angara said.
“This measure will also help boost investor confidence in the Philippines because, as we all know, they are constantly looking at the processes undertaken, particularly by the government, when they make decisions to invest in a particular jurisdiction,” he noted.
“Consistency, transparency and accountability are key elements in attracting investments,” he pointed out.
Under the NGPA, steps include the requirement for video recording of procurement-related conferences and the provision of equal access to information for the procuring entities at all procurement levels.
READ: New gov’t procurement bill breezes through Senate on final reading
The proposal seeks to replace Republic Act No. 9184 or the Government Procurement Reform Act, which has been used for over two decades as the standard for public procurement.
If enacted, the new bill will also require government agencies to engage in interconnectivity to streamline procurement processes.
READ: Bill creating new, modernized procurement guidelines hurdles House
Angara admitted that “scheming minds” were able to exploit R.A. No. 9184 and this necessitates the changes more than ever.
“Over time, scheming minds were still able to exploit the GPRA and it is high time that we clamp down on these illegal practices by eliminating the opportunities for corruption and this is what the NGPA intends to achieve,” Angara said.
While there are safeguards in R.A. No. 9184, several stakeholders noted that the law is outdated and it limits procurement to the cheapest-priced products, even if the items being purchased are not the best in their class.
According to Angara, introducing a Most Economically Advantageous Responsive Bid (MEARB) in the NGPA would ensure that government agencies would not always have to resort to the lowest bid offer in selecting the winning bid.
“Ang MEARB ay tugon sa obserbasyon ng maraming ahensiya at institusyon ng gobyerno tungkol sa kalidad ng mga binibiling gamit kung ang pagbabasehan lang ay ang pinakamura na presyo,” he said.
(The MEARB is a response to the observation of many agencies and government institutions regarding the quality of items being procured, as it would be detrimental if the items bought are only based on the cheapest price.)
“Sayang din naman ang pondo kung nakatipid ka nga sa presyo pero mas madali naman masira o mahina ang kalidad ng gamit na nabili mo,” he added.
(The funds would also go to waste if you will save funds because of low prices of products, but the items are of low quality.)
READ: Bill creating new, modernized procurement guidelines hurdles House
Angara noted that the NGPA also shortens the period of action on procurement activities from 90 days to 60 days.
It also seeks to tap local enterprises and small business owners to provide alternatives during procurement.
“Isa sa naging hangarin natin sa NGPA ay ang pagbibigay ng suporta sa ating mga lokal na industriya, kabilang na dito ang mga maliliit na negosyante na kadalasan ay hindi makalahok sa mga bidding ng gobyerno dahil sa kawalan ng track record,” Angara explained.
(One of the goals of the NGPA is to give support to the local industries, including small businesses which are not always allowed to take part in the government bidding because of the lack of a track record.)
“Ang partisipasyon sa ganitong klaseng proseso ay isang paraan para makapag-level-up ang mga maliliit na players at mabigyan din ng suporta ang mga industriyang Pilipino at ng produkto at serbisyong Pilipino,” Angara said.
(Their participation in this process is a way for small players to level up — which translates into support for local industries and Filipino services.)
The NGPA is part of the Legislative-Executive Development Advisory Council, and was mentioned during President Marcos’ past State of the Nation Address (Sona).
In his July 2023 Sona, Marcos said the government needs a new law on procurement and government auditing so that state agencies are able to keep up with the demands of the modern age.