The GPPB has issued on March 7, 2008, Circular Letter No. 01-2008 advising government agencies or procuring entities that Memorandum Circular No. 80 issued on February 10, 1994 which requires the submission of certain documents and incorporation of certain provisions in Security and Janitorial contract awards - was impliedly repealed by R.A. 9184 and its IRR-A.
The circular clarified that as a general policy, imposition of additional eligibility or technical documents is discourage because it increases transaction cost and reduces competition. Thus the additional requirements for bidders to submit clearances from DOLE, SSS, PhilHealth or Pag-IBIG, as part of the eligibility or technical documents should be discouraged. In addition, the submission of a clearance or certificate that the bidder has no pending administrative or labor case is violative of due process and therefore, prohibited.
In lieu of the above mentioned requirements, the procuring entity will simply require the bidder to submit a certification under oath that it complies with existing labor laws and standards as provided for under Section 25.3 of IRR-A. However, during post qualification the procuring entity may verify, validate and ascertain the statement submitted under oath. The procuring entity may also require the submission of subject clearances during contract implementation.
Thursday, April 10, 2008
Friday, February 01, 2008
LGU Procurement Manual has been approved by the GPPB.
The GPPB has passed Resolution No. 30-2007 adopting and approving the Local Government Procurement Manual.
The said manual was made possible by the technical assistance from the Asian Development Bank (ADB), and the inputs coming from BAC members, Secretariat and TWGs of selected LGUs throughout the country. Upon its effectivity, this will replace the Generic Procurement Manual (GPM) already in use in so far as LGUs are concerned.
The roll-out of the manual could take place between March or April.
The said manual was made possible by the technical assistance from the Asian Development Bank (ADB), and the inputs coming from BAC members, Secretariat and TWGs of selected LGUs throughout the country. Upon its effectivity, this will replace the Generic Procurement Manual (GPM) already in use in so far as LGUs are concerned.
The roll-out of the manual could take place between March or April.
Thursday, January 03, 2008
Proposed 3-point amendment on the Procurement law
A bill was recently filed by Senator Chiz Escudero seeking to amend certain provisions of the Government Procurement Reform Act (GPRA) or R.A. 9184.
Senate Bill No. 1963 seeks to address the weaknesses of the current procurement law particularly along three areas, namely:
- putting under the coverage of RA 9184 the procurement of infrastructure projects, goods and consulting services funded by loan or credit under the Official Development Act, RA No. 8182, as amended;
- strengthen and advance transparency by mandating the posting of decisions of the Bids and Awards Committee (BAC) relative to criteria, ratings and calculations of bids as well as all other bids, responsive or otherwise, on the procuring agency's website or that of the Government Procurement Policy Board (GPPB). This will bolster and reinforce accountability of public officials by making public how BAC members decide and why.
- lessen the discretion of procuring entities specifically in the consideration of single calculated/rated and responsive bid submissions by subjecting it to the approval of the GPPB; and the use of observers. The current rule on allowing a single calculated/rated and responsive bid submission opens up an avenue of a rig bidding through consensus among bidders in a particular procuring entity. On the hand, the proposed amendment to the attendance of private observers is to limit the number of times they can be invited in the bidding of procuring entities. Observers who are regularly invited in public biddings have a tendency to become friendly and sometimes become cohorts in anomalous biddings.
According to Senator Escudero, the proposed amendments will address the problems and issues resulting from the highly publicized ZTE and Cyber Ed projects.
Senate Bill No. 1963 seeks to address the weaknesses of the current procurement law particularly along three areas, namely:
- putting under the coverage of RA 9184 the procurement of infrastructure projects, goods and consulting services funded by loan or credit under the Official Development Act, RA No. 8182, as amended;
- strengthen and advance transparency by mandating the posting of decisions of the Bids and Awards Committee (BAC) relative to criteria, ratings and calculations of bids as well as all other bids, responsive or otherwise, on the procuring agency's website or that of the Government Procurement Policy Board (GPPB). This will bolster and reinforce accountability of public officials by making public how BAC members decide and why.
- lessen the discretion of procuring entities specifically in the consideration of single calculated/rated and responsive bid submissions by subjecting it to the approval of the GPPB; and the use of observers. The current rule on allowing a single calculated/rated and responsive bid submission opens up an avenue of a rig bidding through consensus among bidders in a particular procuring entity. On the hand, the proposed amendment to the attendance of private observers is to limit the number of times they can be invited in the bidding of procuring entities. Observers who are regularly invited in public biddings have a tendency to become friendly and sometimes become cohorts in anomalous biddings.
According to Senator Escudero, the proposed amendments will address the problems and issues resulting from the highly publicized ZTE and Cyber Ed projects.
Tuesday, December 18, 2007
Honoraria in Government Procurement can now be paid out of savings!
For BAC, Secretariat and TWGs of Procuring Entities, the DBM has recently issued Budget Circular No. 2007-3 expanding the funding source for payment of honoraria and overtime pay of those involved in government procurement.
The previous issuances, Budget Circular Nos. 2004-5 and 2004-5A, restricted the funding sources of honoraria and overtime pay to income generated from procurement activities such as sale of bid documents, registration fees, protest fees, and forfeiture of bid security. BC 2007-3 added as funding source the savings realized from the current year's budget of national agencies, GOCCs and LGUs. The circular also reiterates that honoraria and overtime pay can only be paid for successfully completed procurement, and that in case of deficiency in collections and non-availability of savings, payment shall be adjusted proportionately.
This is good news to BAC members, Secretariat and TWGs. At least, they can now be compensated for services rendered related to procurement which are more tedious and risky than their regular assignments.
Copy of the BC can be downloaded from the GPPB web site
The previous issuances, Budget Circular Nos. 2004-5 and 2004-5A, restricted the funding sources of honoraria and overtime pay to income generated from procurement activities such as sale of bid documents, registration fees, protest fees, and forfeiture of bid security. BC 2007-3 added as funding source the savings realized from the current year's budget of national agencies, GOCCs and LGUs. The circular also reiterates that honoraria and overtime pay can only be paid for successfully completed procurement, and that in case of deficiency in collections and non-availability of savings, payment shall be adjusted proportionately.
This is good news to BAC members, Secretariat and TWGs. At least, they can now be compensated for services rendered related to procurement which are more tedious and risky than their regular assignments.
Copy of the BC can be downloaded from the GPPB web site
Thursday, October 25, 2007
Training for new procurement officials in LGUs.
The Regional Composite Team will hold a series of three-day trainings for newly-appointed/constituted Bids and Awards Committee (BAC) members, Secretariat and Technical Working Group of LGUs in Region VI on November 6-8 and 13-15, 2007. Venue is at the Punta Villa Resort, Arevalo, Iloilo City.
To enhance the learning experiences of the participants, the Team will adopt the ADB-prescribed training program. In conformity with GPPB policy, the number of participants per school shall be limited to 100 so reservation shall be on a first-come-serve basis. Interested participants can download the confirmation form from the dbmro6 website, and fax the same to the PHILLBO Secretariat at the Iloilo PBO Office, Fax No. 033-3369049, or the DBM Regional Office VI, Fax No. 033-3351235.
To enhance the learning experiences of the participants, the Team will adopt the ADB-prescribed training program. In conformity with GPPB policy, the number of participants per school shall be limited to 100 so reservation shall be on a first-come-serve basis. Interested participants can download the confirmation form from the dbmro6 website, and fax the same to the PHILLBO Secretariat at the Iloilo PBO Office, Fax No. 033-3369049, or the DBM Regional Office VI, Fax No. 033-3351235.
Thursday, October 04, 2007
Simplified Procurement Manuals for LGUs in the works!
The GPPB with the technical assistance from the Asian Development Bank (ADB) is coming up with a Simplified Procurement Manuals (SPM) designed for LGUs.
The series of consultation meetings with selected LGUs from the different regions were done from July to September to gather inputs, suggestions and procurement issues inherent to LGUs. Region VI was represented in that consultation by BAC members, Secretariat or TWG of the provinces of Antique, Capiz, Iloilo and Negros Occidental; the cities of Iloilo, Passi and San Carlos; and the municipalities of Ivisan, Capiz, Igbaras, Iloilo and Tobias Fornier, Antique.
With the consultation completed the GPPB will next conduct a validation workshop to be participated by five (5) representatives from each region comprising of the DBM Regional Office and four (4) LGU-participants coming from the group which participated in the regional consultation meeting. This is scheduled on October 10-13, 2007 in Zamboanga City. Two (2) other sessions will be scheduled in the coming weeks after which, the SPM will be finalized. Roll-out of the Manual is January of 2008.
The series of consultation meetings with selected LGUs from the different regions were done from July to September to gather inputs, suggestions and procurement issues inherent to LGUs. Region VI was represented in that consultation by BAC members, Secretariat or TWG of the provinces of Antique, Capiz, Iloilo and Negros Occidental; the cities of Iloilo, Passi and San Carlos; and the municipalities of Ivisan, Capiz, Igbaras, Iloilo and Tobias Fornier, Antique.
With the consultation completed the GPPB will next conduct a validation workshop to be participated by five (5) representatives from each region comprising of the DBM Regional Office and four (4) LGU-participants coming from the group which participated in the regional consultation meeting. This is scheduled on October 10-13, 2007 in Zamboanga City. Two (2) other sessions will be scheduled in the coming weeks after which, the SPM will be finalized. Roll-out of the Manual is January of 2008.
Friday, September 28, 2007
PTG to ensure that govt. contracts are aboveboard!
In the spite of the latest scandals that has rocked our national experience, specifically, the National Broadband Network (NBN) supposed contract with the Chinese firm, ZTE, the President issued Executive Order No. 662, creating the Procurement Transparency Group (PTG).
The PTG is composed of the Presidential Anti-Graft Commission (PAGC), National Economic and Development Authority (NEDA), Department of Justice (DOJ), Department of Budget and Management (DBM), Department of Interior and Local Government (DILG), Bishops-Businessmen Conference for Human Development, Transparency and Accountability Network, Volunteers Against Crime and Corruption (VACC), and two other NGOs involved in training procurement observers and/or procurement reforms.
As mandated by EO 662, the PTG shall monitor and evaluate all proposed and awarded contracts entered into by all national government agencies (NGAs), government owned and controlled corporations (GOCCs), government financial institutions (GFIs), state universities and colleges (SUCs) and local government units (LGUs), amounting to P100 million or more.
The PTG shall recommend remedial actions, improvements in procurement, contract implementation and monitoring processes to ensure compliance with contractual terms and to safeguard government and public interest.
If the contract is found non-compliant, the PTG shall recommend to the PAGC the imposition of sanctions, implementation of remedial measures, and the filing of criminal, civil and/or administrative charges if warranted.
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