Republic Act No.

9184 January 10, 2003 (a) Approved Budget for the Contract (ABC) - refers to the
budget for the contract duly approved by the Head of the
Procuring Entity, as provided for in the General
AN ACT PROVIDING FOR THE MODERNIZATION,
Appropriations Act and/or continuing appropriations, in the
STANDARIZATION AND REGULATION OF THE PROCUREMENT
National Government Agencies; the Corporate Budget for
ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES
the contract approved by the governing Boards, pursuant to
E.O.No.518, series of 1979, in the case of Government
Be it enacted by the Senate and Hose of Representatives of the Financial Institutions and State Universities and Colleges;
Philippines in Congress assembled: and the Budget for the contract approved by the respective
Sanggunian, in the case of Local Government Units.
ARTICLE 1
GENERAL PROVISIONS (b) BAC - refers to the Bids and Awards Committee
established in accordance with Article V of this Act.
Section 1. Short Title.- This act shall be known as the " Government
Procurement reform Act." (c) Bidding Documents - refer to documents issued by the
Procuring Entity as the basis for Bids, furnishing all
information necessary for a prospective bidder to prepare a
Section 2. Declaration of Policy.- It is the declared policy of the State
bid for the Goods, Infrastructure Projects, and Consulting
to promote the ideals of good governance in all its branches, Services to be provided.
departments, agencies, subdivisions, and instrumentalities, including
government-owned and/or -controlled corporations and local
government units. (d) Bid - refers to signed offer or proposal submitted by a
supplier, manufacturer, distributor, contractor or consultant in
response to the Bidding Documents.
Section 3. Governing Principles on Government Procurement.

(e) Competitive Bidding - refers to a method of procurement

All procurement of the national government, its departments, bureaus,
which is open to participation by any interested party and
offices and agencies, including state universities and colleges, which consist of the following processes: advertisement, pre-
government -owned and/or-controlled corporations, government bid conference, eligibility screening of bids, evaluations of
financial institutions and local government units, shall, in all cases, be
bids, post - qualification, and award of contract, the specific
governed by these principles: requirements and mechanics of which shall be defined in the
IRR to be promulgated under this Act.
(a) Transparency in the procurement process and in the
implementation of procurement contracts. (f) Consulting Services - refer to services for Infrastructure
Projects and other types of projects or activities of the
(b) Competitiveness by extending equal opportunity to Government requiring adequate external technical and
enable private contracting parties who are eligible and professional experts that are beyond the capability and/or
qualified to participate in public bidding. capacity of the government to undertake such as, but not
limited to: (I) advisory and review services; (ii) pre
investment or feasibility studies; (iii) design; (iv) construction
(c) Streamlined procurement process that will uniformly supervision; (v) management and related services; and (vi)
apply to all government procurement. The procurement other technical services or special studies.
process shall simple and made adaptable to advances in
modern technology in order to ensure an effective and
efficient method. (g) G - EPS - refers to the Government Electronic
Procurement System as provided in Section 8 of this Act.
(d) System of accountability where both the public officials
directly or indirectly involved in the procurement process as (h) Goods - refer to all items, supplies, materials and general
well as in the implementation of procurement contracts and support services, except consulting services and
the private parties that deal with government are, when infrastructure projects, which may be needed in the
warranted by circumstances, investigated and held liable for transaction of the public businesses or in the pursuit of any
their actions relative thereto. government undertaking, project or activity, whether in the
nature of equipment, furniture, stationery, materials for
construction, or personal property of any kind, including non
(e) Public monitoring of the procurement process and the - personal or contractual services such as the repair and
implementation of awarded contracts with the end in view of maintenance of equipment and furniture, as well as trucking,
guaranteeing that these contracts are awarded pursuant to hauling, janitorial, security, and related or analogous
the provisions of this Act and its implementing rules and services, as well as procurement of materials and supplies
regulations, and that all these contracts are performed provided by the procuring entity or such services.
strictly according to specifications.

(i) GPPB - refers to the Government Procurement Policy

Section 4. Scope and Application.- This act shall apply to the Board established in accordance with Article X of this Act.
Procurement of Infrastructure Projects, Goods and Consulting
Services, regardless of source of funds, whether local of foreign, by all
branches and instrumentalities of government, its departments, offices (j) Head of the Procuring Entity- refers to: (I) the head of the
and agencies, including government-owned and/or-controlled agency or his duly authorized official, for national
corporations and local government units, subject to the provisions of government agencies; (ii) the governing board or its duly
Commonwealth Act No. 138. Any treaty or international or executive authorized official, for government-owned and/or-controlled
agreement affecting the subject matter of this Act to which the corporations; or (iii) the local chief executive, for local
Philippine government is signatory shall be observed. government units. Provided, That in a department, office or
agency where the procurement is decentralized, the Head of
each decentralized unit shall be considered as the Head of
Section 5. Definition of Terms.- For purposes of this Act, the following the Procuring Entity subject to the limitations and authority
terms or words and phrases shall mean or be understood as follows: delegated by the head of the department, office or agency.
 (k) Infrastructure Projects - include the construction, serve as the primary and definitive source of information on
improvement, rehabilitation, demolition, repair, restoration or government procurement. Further, the GPPB is authorized to approve
maintenance of roads and bridges, railways, airports, changes in the procurement process to adapt to improvements in
seaports, communication faci9lities, civil works components modern technology, provided that such modifications are consistent
of information technology projects, irrigation, flood control with provisions of Section 3 of this Act.
and drainage, water supply, sanitation, sewerage and solid
waste management systems, shore protection, energy/power
To take advantage of the significant built-in-efficiencies of the G-EPS
and electrification facilities, national buildings, school
and the volume discounts inherent in bulk purchasing, all Procuring
buildings and other related construction projects of the
Entities shall utilize the G-EPS for the procurement of common
government.
supplies in accordance with the rules and procedures to be established
by the GPPB. With regard to the procurement of non-common use
(l) IRR - refer to the implementing rules and regulations to be items, infrastructure projects and consulting services, agencies may
promulgated in accordance with Section 75 of this Act. hire service providers to undertake their electronic procurement
provided these service providers meet the minimum requirements set
by the GPPB.
(m) Portal - refers to a website that aggregates a wide
variety of content for the purpose of attracting a large
number of users. Section 9. Security, Integrity and Confidentiality.- The G-EPS shall
ensure the security, integrity and confidentiality of documents
submitted through the system. It shall include feature that provides for
(n) Procurement - refers to the acquisition of Goods,
an audit trail for on-line transactions and allow the Commission on
Consulting Services, and the contracting for Infrastructure
Audit to verify the security and integrity of the systems at any time.
Projects by the Procuring Entity. Procurement shall also
include the lease of goods and real estate. With respect to
real property, its procurement shall be governed by the ARTICLE IV
provisions of Republic Act No.8974, entitled "An Act to COMPETITIVE BIDDING
Facilitate the Acquisition of Right-of -Way Site or Location of
National Government Infrastructure Projects and for Other
Section 10. Competitive Bidding.- All Procurement shall be done
Purposes" and other applicable laws, rules and regulations.
through Competitive Bidding, except as provided for in Article XVI of
this Act.
(o) Procuring Entity - refers to any branch, department,
office, agency, or instrumentality of the government,
ARTICLE V
including state universities and colleges, government-owned
BIDS AND AWARDS COMMITTEE
and/or - controlled corporations, government financial
institutions, and local government units procuring Goods,
Consulting Services and Infrastructure Projects. Section 11. The BAC and its Composition.- Each procuring entity shall
establish a single BAC for its procurement. The BAC shall have at least
five (5) members, but not more than seven (7) members. It shall be
Section 6. Standardization of Procurement Process and Forms.- To
chaired by at least a third ranking permanent official of the procuring
systematize the procurement process, avoid confusion and ensure
entity other than its head, and its composition shall be specified in the
transparency, the procurement process, including the forms to be
IRR. Alternatively, as may be deemed fit by the head of the procuring
used, shall be standardized insofar as practicable.
entity, there may be separate BACs where the number and complexity
of the items to be procured shall so warrant. Similar BACs for
For this purpose, the GPPB shall pursue the development of generic decentralized and lower level offices may be formed when deemed
procurement manuals and standard bidding forms, the use of which necessary by the head of the procuring entity. The numbers of the BAC
once issued shall be mandatory upon all Procuring Entities. shall be designated by the Head of Procuring Entity. However, in no
case shall the approving authority be a member of the BAC.
ARTICLE II
PROCUREMENT PLANNING Unless sooner removed for cause, the members of the BAC shall have
a fixed term of one (1) year reckoned from the date of appointment,
renewable at the discretion of the Head of the Procuring Entity. In case
Section 7. Procurement Planning and Budgeting Linkage- All
of resignation, retirement, separation, transfer, re-assignment, removal,
procurement should be within the approved budget of the Procuring
the replacement shall serve only for the unexpired term: Provided, That
Entity and should be meticulously and judiciously planned by the
in case of leave or suspension, the replacement shall serve only for the
Procuring Entity concerned. Consistent with government fiscal
duration of the leave or suspension. For justifiable causes, a member
discipline measures, only those considered crucial to the efficient
shall be suspended or removed by the Head of the Procuring Entity.
discharge of governmental functions shall be included in the Annual
Procurement Plan t o be specified in the IRR.
Section 12. Functions of the BAC.- shall have the following functions:
advertise and/or post the invitation to bid, conduct pre-procurement
No government Procurement shall be undertaken unless it is in
and pre-bid conferences, determine the eligibility of prospective
accordance with the approved Annual Procurement Plan of the
bidders, receive bids, conduct the evaluation of bids, undertake post-
Procuring Entity. The Annual Procurement Plan shall be approved by
qualification proceedings, recommend award of contracts to the Head
the Head of the Procuring Entity and must be consistent with its duly
of the Procuring Entity of his duly authorized representative: Provided,
approved yearly budget. The Annual Procurement Plan shall be
That in the event the Head of the Procuring shall disapprove such
formulated and revised only in accordance with the guidelines set forth
recommendation, such disapproval shall be based only on valid,
in the IRR. In the case of Infrastructure Projects, the Plan shall include
reasonable and justifiable grounds to be expressed in writing, copy
engineering design and acquisition of right-of-way.
furnished the BAC; recommend the imposition of sanctions in
accordance with Article XXIII, and perform such other related functions
ARTICLE III as may necessary, including the creation of a Technical Working
PROCUREMENT BY ELECTRONIC MEANS Group from a pool of technical, financial and/or legal experts to assist
in the procurement process.
Section 8. Procurement By Electronic Means.- To promote
transparency and efficiency, information and communications In proper cases, the BAC shall also recommend to the Head of the
technology shall be utilized in the conduct of procurement procedures. Procuring Entity the use of Alternative Methods of Procurement as
Accordingly, there shall be single portal that shall serve as the primary provided for in Article XVI hereof.
source of information on all government procurement. The G-EPS shall
The BAC shall be responsible for ensuring that the Procuring Entity (j) Form of Contract, and General and special Conditions of
abides by the standards set forth by this Act and the IRR, and it shall Contract.
prepare a procurement monitoring report that shall be approved and
submitted by the Head of the Procuring Entity to the GPPB on a
The Procuring Entity may require additional document requirements or
semestral basis. The contents and coverage of this report shall be
specifications necessary to complete the information required for the
provided in the IRR.
bidders to prepare and submit their respective bids.

Section 13. Observers.- To enhance the transparency of the process,

Section 18. Reference to Brand Names.- Specifications for the
the BAC shall, in all stages of the procurement process, invite, in
Procurement of Goods shall be based on relevant characteristics
addition to the representative of the Commission on Audit, at least
and/or performance requirements. Reference to brand names shall not
two(2) observers to sit in its proceedings, one(1) from a duly
be allowed.
recognized private group in a sector or discipline relevant to the
procurement at hand, and the other from a non-government
organization: Provided, however, That they do not have any direct or Section 19. Access to Information.- In all stages of the preparation of
indirect interest in the contract to be bid out. The observers should be the Bidding Documents, the Procuring entity shall ensure equal access
duly registered with the Securities and Exchange Commission and to information. Prior to their official release, no aspect of the Bidding
should meet the criteria for observers as set forth in the IRR. Documents shall be divulged or released on any prospective bidder or
having direct or indirect interest in the project to be procured.
Section 14. BAC Secretariat.- To assist the BAC in the conduct of its
functions, the Head of the Procuring Entity shall create a Secretariat ARTICLE VII
that will serve as the main support unit of the BAC. The Head of the INVITATION TO BID
Procuring Entity may also designate an existing organic office within
the agency to serve as the Secretariat.
Section 20. Pre-Procurement Conference. - Prior to the issuance of
the Invitation to Bid, the BAC is mandated to hold a pre-procurement
Section 15. Honoraria of BAC Members.- The Procuring Entity may conference on each and every procurement, except those contracts
grant payment of honoraria to the BAC members in an amount not to below a certain level or amount specified in the IRR, in which case, the
exceed twenty five percent (25%) of their respective basic monthly holding of the same is optional.
salary subject to availability of funds. For this purpose, the Department
of Budget and Management (DBM) shall promulgate the necessary
guidelines. The pre- procurement conference shall assess the readiness of the
procurement in terms of confirming the certification of availability of
funds, as well as reviewing all relevant documents and the draft
Section 16. Professionalization of BAC, BAC Secretariat and Invitation to Bid, as well as consultants hired by the agency concerned
Technical Working Group Members.- The GPPB shall establish a and the representative of the end -user.
sustained training program for developing the capacity of the BAC's,
BAC Secretariats and technical Working Groups of Procuring Entities,
Section 21. Advertising and Contents of the Invitation to Bid. - In line
and proffessionalize the same.
with the principle of transparency and competitiveness, all Invitations to
Bid contracts under competitive bidding shall be advertised by the
ARTICLE VI Procuring Entity in such manner and for such length of time as may be
PREPARATION OF BIDDING DOCUMENTS necessary under the circumstances, in order to ensure the widest
possible dissemination thereof, such as, but not limited to, posting in
the Procuring Entity's premises, in newspapers of general circulation,
Section 17. Form and Contents of Bidding Documents.- The Bidding
the G-EPS and the website of the Procuring Entity, if available. The
Documents shall be prepared by the Procuring Entity following the
details and mechanics of implementation shall be provided in the IRR
standard forms and manuals prescribed by the GPPB. The Bidding
to be promulgated under this Act.
Documents shall include the following:

The Invitation to Bid shall contain, among others:

(a) Approved Budget for the Contract;

(a) A brief description of the subject matter of the

(b) Instructions to Bidders, including criteria for eligibility, bid
Procurement;
evaluation and post-qualification, as well as the date, time
and place of the pre-bid Conference (where applicable),
submission of bids and opening of bids; (b) A general statement on the criteria to be used by the
Procuring entity for the eligibility check, the short listing of
prospective bidders, in the case of the Procurement of
(c) Terms of Reference;
Consulting Services the examination and evaluation of Bids,
and post-qualification;
(d) Eligibility Requirements;
(c) The date, time and place of the deadlines for the
(e) Plans and Technical Specifications; submission and receipt of the eligibility requirements, the
pre-bid conference if any, the submission and receipt of bids,
and the opening of bids;
(f) Form of Bid, Price Form, and List of Goods or Bill of
Quantities;
(d) The Approved Budget for the Contract to be bid;
(g) Delivery Time or Completion Schedule;
(e) The source of funds;
(h) Form and Amount of Bid Security;
(f) The period of availability of the Bidding Documents, and
the place where these may be secured and;
(i) Form and Amount of Performance Security and Warranty;
and,
(g) The contract duration; and
 (h) Such other necessary information deemed relevant by envelope duly identified as a modification of the original bid and
the Procuring Entity. stamped received by the BAC.

Section 22. Pre-bid Conference. - At least one pre-bid conference A bidder may, through a letter, withdraw his bid or express his intention
shall be conducted for each procurement, unless otherwise provided in not to participate in the bidding before the deadline for the receipt of
the IRR. Subject to the approval of the BAC, a pre-bid conference may bids. In such case, he shall no longer be allowed to submit another Bid
also be conducted upon the written request of any prospective bidder. or the same contract either directly or indirectly.

The Pre-bid conference(s) shall be held within a reasonable period Section 27. Bid Security. - All Bids shall be accompanied by a Bid
before the deadline for receipt of the bids to allow prospective bidders security, which shall serve as guarantee that, after receipt of the Notice
to adequately prepare their bids, which shall be specified in the IRR. of Award, the winning bidders shall enter into contract with the
Procuring Entity within the stipulated time and furnish the required
performance security. The specific amounts and allowable forms of the
ARTICLE VIII
Bid security shall be prescribed in the IRR.
RECEIPT AND OPENING OF BIDS

Section 28. Bid Validity. - Bids and Bid securities shall be valid for
Section 23. Eligibility Requirements for the Procurement of Goods and
such reasonable period of time indicated in the Bidding Documents.
Infrastructure Projects.- The BAC or, under special circumstances
The duration for each undertaking shall take into account the time
specified in IRR, its duly designated organic office shall determine the
involved in the process of Bid evaluation and award of contract.
eligibility of prospective bidders for the procurement of Goods and
Infrastructure Projects, based on the bidders' compliance with the
eligibility requirements within the period set forth in the Invitation to Bid. Section 29. Bid Opening. - the BAC shall publicly open all bids at the
The eligibility requirements shall provide for fair and equal access to all time, date, and place specified in the bidding documents. The minutes
prospective bidders. The documents submitted in satisfaction of the of the bid opening shall be made available to the public upon written
eligibility requirements shall be made under oath by the prospective request and payment of a specified fee.
bidder or by his duly authorized representative certifying to the
correctness of the statements made and the completeness and
ARTICLE IX
authenticity of the documents submitted.
BID EVALUATION

A prospective bidder may be allowed to summit his eligibility

Section 30. Preliminary Examination of Bids. - Prior to Bid evaluation,
requirement s electronically. However, said bidder shall later on certify
the BAC shall examine first the technical components of the bids using
under oath as to correctness of the statements made and the
"pass/fail" criteria to determine whether all required documents are
completeness and authenticity of the documents submitted.
present. Only bids that are determined to contain all the bid
requirements of the technical component shall be considered for
Section 24. Eligibility requirements and Short Listing for Consulting opening and evaluation of their financial component.
Services.- The Eligibility of prospective bidders for the Procurement of
Consulting Services shall be determine by their compliance with the
Section 31. Ceiling for Bid Prices. - The ABC shall be the upper limit or
eligibility requirements prescribed for the competitive Bidding
ceiling for the Bid prices. Bid prices that exceed this ceiling shall be
concerned, within the period stated in the Invitation to bid. The
disqualified outright from further participating in the bidding. There shall
eligibility requirements shall provide for fair and equal access to all
be no lower limit to the amount of the award.
prospective bidders. The prospective bidder shall certify under oath as
to the correctness of the statements made, and the completeness and
authenticity of the documents submitted. Section 32. Bid for the Procurement of Goods and Infrastructure
Projects. - For the procurement of Goods and Infrastructure Projects,
the BAC shall evaluate the financial component of the bids. The bids
A prospective bidder may be allowed to submit his eligibility
that passed the preliminary examination shall be ranked from lowest to
requirements electronically. However, said bidder shall later on certify
highest in terms of their corresponding calculated price shall be
under oath as to correctness of the statements made and the
referred to as the "Lowest Calculated Bid".
completeness and authenticity of the documents submitted.

Section 33. Bid Evaluation of Short Listed Bidders for Consulting

The eligible prospective bidders shall then be evaluated using
Services. - For the Procurement of Consulting Services, the Bids of the
numerical ratings on the basis of the short listing requirements
short listed bidders shall be evaluated and ranked using numerical
prescribed for the Competitive Bidding concerned, within the period
ratings in accordance with the evaluation criteria stated in the Bidding
stated in the Invitation to Bid to determine the short list of bidders who
Documents, which shall include factors such as, but not limited to,
shall be allowed to submit their respective bids.
experience, performance, quality or personnel, price and methodology.
The Bids shall be ranked from highest to lowest in terms of their
Section 25. Submission and Receipt of Bids.- A bid shall have two(2) corresponding calculated ratings. The Bid with the highest calculated
components, namely the technical and financial components which rating shall be the "Highest Rated Bid." After approved by the Head of
should be in separate sealed envelopes, and which shall be submitted the Procuring Entity of the Highest Rated Bid, the BAC shall invite the
simultaneously. The bids shall be received by the BAC on such date, bidder concerned for negotiation and/or clarification on the following
time and place specified in the invitation to bid. The deadline for the item: financial proposal submitted by the bidder, terms of reference,
receipt of bids shall be fixed by the BAC, giving the prospective bidders scope of services, methodology and work program, personnel to be
sufficient time to study and prepare their bids. The deadline shall also assigned to job, services/facilities/data to be provided by the Procuring
consider the urgency of the procurement involved. Entity concerned, and provisions of the contract. When negotiations
with first-in-rank bidder fails, the financial proposal of the second rank
bidder shall opened for negotiations: Provided, that the amount
Bids submitted after the deadline shall not be accepted.
indicated in the financial envelope shall be made as the basis for
negotiations and the total contract amount shall not exceed the amount
Notwithstanding the provisions of this Section and Section 26 of this indicated in the envelope and the ABC. Whenever necessary, the
Act, the GPPB may prescribe innovative procedure for the submission, same process shall be repeated until the bid awarded to the winning
receipt and opening of bids through the G-EPS. bidder.

Section 26. Modification and Withdrawal of Bids. - A bidder may ARTICLE X

modify his bid, provided that this is done before the deadline for the POST-QUALIFICATION
receipt of bids. The modification shall be submitted in a sealed
Section 34. Objective and Process of Post-qualification. - Post- declaration by the BAC of the Lowest Calculated Responsive Bid or
qualification is the stage where the bidder with the Lowest Calculated Highest Rated Responsive Bid, and the recommendation of the award,
Bid, in the case of Goods and Infrastructure Projects, or the Highest the Head of the Procuring Entity or his duly authorized representative
Rated Bid, in the case of Consulting Services, undergoes verification shall approve or disapprove the said recommendation. In case of
and validation whether he has passed all the requirements and approval, the Head of the Procuring Entity or his duly authorized
conditions as specified in the Bidding Documents. representative shall immediately issue the Notice of Award to the
bidder with the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid.
If the bidder with the Lowest Calculated Bid or Highest Rated Bid
passes all the criteria for post-qualification, his Bid shall be considered
the "Lowest Calculated Responsive Bid," in the case of Goods and Within ten (10) calendar days from receipt of the Notice of Award, the
Infrastructure or the "Highest Rated Responsive Bid," in the case of Winning bidder shall formally enter into contract with the Procuring
Consulting Services. However, if a bidder fails to meet any of the Entity. When further approval of higher authority is required, the
requirements or conditions, he shall be "post-disqualified" and the BAC approving authority for the contracts shall be given a maximum of
shall conduct the post-qualification on the bidder with the second twenty (20) calendar days to approve or disapprove it.
Lowest Calculate Bid or Highest Rated Bid. If the bidder with the
second Lowest Calculated Bid or Highest Rated Bid is post-
In the case of government-owned and/or -controlled corporations, the
disqualified, the same procedure shall be repeated until the Lowest
concerned board shall take action on the said recommendation within
Calculated Responsive Bid or Highest Rated Responsive Bid is finally
thirty (30) calendar days from receipt thereof.
determined.

The Procuring Entity shall issue the Notice to Proceed to the winning
In all cases, the contract shall be awarded only to the bidder with the
bidder not later than seven (7) calendar days from the date of approval
Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.
of the contract by the appropriate authority. All notices called for by the
terms of the contract shall be effective only at the time of receipt
Section 35. Failure of Bidding. - there shall be a failure of bidding if: thereof by the contractor.

a. No bids are received; Section 38. Period of Action on Procurement Activities. - The
procurement process from the opening of bids up to the award of
contract shall not exceed three (3) months, or a sho0rter period to be
b. No bid qualifies as the Lowest Calculated Responsive Bid;
determined by the procuring entity concerned. Without prejudice to the
or,
provisions of the preceding section, the different procurement activities
shall be completed within reasonable periods to be specified in the
c. Whenever the bidder with the highest rated/lowest IRR.
calculated responsive bid refuses, without justifiable cause to
accept the award of contract, as the case may be.
If no action on the contract is taken by the head of the procuring entity
or by his duly authorized representative, or by the concerned board, in
Under any of the above instances, the contract shall be re-advertised the case of government-owned and/or -controlled corporations, within
and re-bid. The BAC shall observe the same process and set the new the periods specified in the preceding paragraph, the contract
periods according to the same rules followed during the first bidding. concerned shall be deemed approved.
After the second failed bidding, however, the BAC may resort to
negotiated procurement as provided for in Section 53 of this Act.
Section 39. Performing Security. - Prior to the signing of the contract,
the winning bidder shall, as a measure of guarantee for the faithful
Section 36. Single Calculate/Rated and Responsive Bid Submission. - performance of an compliance with his obligations under the contract
A single calculated/rated and responsive bid shall be considered for prepared in accordance with the Bidding Documents, be required to
award if it falls under of the following circumstances: post a performance security in such form and amount as specified in
the Bidding Documents.
a. If after advertisement, only one prospective bidder submits
a Letter of Intent and/or applies for eligibility check, and Section 40. Failure to Enter into Contract and Post Performance
meets the eligibility requirements or criteria, after which it Security. - If, for justifiable causes, the bidder with the Lowest
submits a bide, which is found to be responsive to the Calculated Responsive Bid or Highest Rated Responsive Bid fails,
bidding requirements; refuses or is otherwise unable to enter into contract with the Procuring
Entity, or if the bidder fails to post the required performance security
within the period stipulated in the Bidding Documents, the BAC shall
b. If after the advertisement, more than one prospective disqualify the said bidder and shall undertake post-qualification for the
bidder applies for eligibility check, but only one bidder meets next-ranked Lowest Calculated Bid or Highest Rated Bid. This
the eligibility requirements or criteria, after which in submits a
procedure shall be repeated until an award is made. However, if no
bid which is found to be responsive to the bidding award is possible, the contract shall be subjected to a new bidding.
requirements; or

In the case of a failure to post the required performance security, the

c. If after the eligibility check, more than one bidder meets bid security shall be forfeited without prejudice to the imposition of
the eligibility requirements, but only one bidder submits a sanctions prescribed under Article XXIII.
bid, and its bid is found to be responsive to the bidding
requirements.
Section 41. Reservation Clause. - The Head of the Agency reserves
the right to reject any and all Bids, declare a failure of bidding, or not
In all instances, the Procuring Entity shall ensure that the ABC reflects
award the contract in the following situations:
the most advantageous prevailing price for the government.

a. If there is prima facie evidence of collusion between

ARTICLE XI
appropriate public officers or employees of the Procuring
AWARD, IMPLEMENTATION AND TERMINATION OF THE
Entity, or between the BAC and any of the bidders, or if the
CONTRACT
collusion is between or among the bidders themselves, or
between a bidder and a third party, including any act which
Section 37. Notice and Executive of Award. - Within a period not restricts, suppresses or nullifies or tends to restrict, suppress
exceeding fifteen (15) calendar days from the determination and or nullify competition;
 b. If the BAC is found to have failed in following the ARTICLE XVI
prescribed bidding procedures; or ALTERNATIVE METHODS OF PROCUREMENT

c. For any justifiable and reasonable ground where the Section 48. Alternative Methods. - Subject to the prior approval of the
award of the contract will not redound to the benefit of the Head of the Procuring Entity or his duly authorized representative, and
government as defined in the IRR. whenever justified by the conditions provided in this Act, the Procuring
Entity may, in order to promote economy and efficiency, resort to any
of the following alternative methods of Procurement:
Section 42. Contract Implementation and Termination. - The rules and
guidelines for the implementation and termination of contracts awarded
pursuant to the provisions of this Act shall be prescribed in the IRR. a. Limited Source Bidding, otherwise known as Selective
The rules and guidelines shall include standard general and special Bidding - a method of Procurement that involves direct
conditions for contracts. invitation to bid by the Procuring Entity from a set of pre-
selected suppliers or consultants with known experience and
proven capability relative to the requirements of a particular
ARTICLE XII
contract;
DOMESTIC AND FOREIGN PROCUREMENT

b. Direct Contracting, otherwise known as Single Source

Section 43. Procurement of Domestic and Foreign Goods. -
Procurement - a method of Procurement that does not
Consistent with the country's obligations under international treaties or
require elaborate Bidding Documents because the supplier is
agreements, Goods may be obtained for domestic or foreign sources
simply asked to submit a price quotation or a pro-forma voice
and the procurement thereof shall be open to all eligible suppliers,
together with the conditions of sale, which offer may be
manufacturers and distributors. However, in the interest of availability,
accepted immediately or after some negotiations;
efficiency and timely delivery of Goods, the Procuring Entity may give
preference to the purchase of domestically-produced and manufacturer
goods, supplies and materials that meet the specified or desired c. Repeat Order. - a method of Procurement that involves a
quality. direct Procurement of Goods from the previous winning
bidder, whenever there is a need to replenish Goods
procured under a contract previously awarded through
ARTICLE XIII
Competitive Bidding;
BIDDING OF PROVINCIAL PROJECTS

d. Shopping - a method of Procurement whereby the

Section 44. Bidding of Provincial Projects. - Priority programs and
Procuring Entity simply requests for the submission of price
infrastructure projects funded out of the annual General Appropriations
quotations for readily available off-the-shelf Goods or
Act which are intended for implementation within the province shall be
ordinary/regular equipment to be procured directly from
subject to the same public bidding and to the procurement processes
suppliers of known qualification; or
prescribed under this Act. For purposes of this Article, Engineering
District civil works projects, subject to consultation with the concerned
Members of Congress, are included and subsumed in the term e. Negotiated Procurement - a method of Procurement that
"provincial projects" and shall be governed by this Section and Section may be resorted under the extraordinary circumstances
45 hereof. provided for in Section 53 of this Act and other instances that
shall be specified in the IRR, whereby the Procuring Entity
directly negotiates a contract with a technically, legally and
Section 45. Provincial Bidders. - Within five (5) years from the
financially capable supplier, contractor or consultant.
effectivity of this Act, contractor who participates in the bidding of
provincial priority programs and infrastructure projects, whose principal
office is within the same province, and who submits the lowest bid In all instances, the Procuring Entity shall ensure that the most
among the provincial bidders which is higher than the lowest bid made advantageous price for the government is obtained.
by a contractor with principal office outside the said province shall be
granted the privilege to match the bid made by the latter: Provided,
Section 49. Limited Source Bidding. - Limited Source Bidding may be
however, That the release of funds for said projects shall be published
resorted to only in any of the following conditions:
in a local newspaper with the widest circulation and the website of the
DBM, the mechanisms of which shall be spelled-out in the IRR.
a. Procurement of highly specialized types of Goods and
Consulting Services which are known to be obtainable only
ARTICLE XIV
from a limited number of sources; or
LEASE OF COMPUTERS, COMMUNICATIONS, INFORMATION
AND OTHER EQUIPMENT
b. Procurement of major plant components where it is
deemed advantageous to limit the bidding to known eligible
Section 46. Lease Contracts. - Lease of construction and office
bidders in order to maintain an optimum and uniform level of
equipment, including computers, communication and information
quality and performance of the plant as a whole.
technology equipment are subject to the same public bidding and to
the processes prescribed under this Act.
Section 50. Direct Contracting. - Direct Contracting may be resorted to
only in any of the following conditions:
ARTICLE XV
DISCLOSURE OF RELATIONS
a. Procurement of Goods of propriety nature, which can be
obtained only from the propriety source, i.e. when patents,
Section 47. Disclosure of Relations. - In addition to the proposed
trade secrets and copyrights prohibit others from
contents of the Invitation to Bid as mentioned under Section 21 of this
manufacturing the same items;
Act, all bidding documents shall be accompanied by a sworn affidavit
of the bidder that he or she or any officer of their corporation in not
related to the Head of the Procuring Entity by consanguinity or affinity b. When the Procurement of critical components from a
up to the third civil degree. Failure to comply with the aforementioned specific manufacturer, supplier, or distributor is a condition
provision shall be a ground for the automatic disqualification of the bid precedent to hold a contractor to guarantee its project
in consonance with Section30 of this Act. performance, in accordance with the provisions his contract;
or,
 c. Those sold by an exclusive dealer or manufacturer, which a Competitive Bidding; the subject contract to be negotiated
does not have sub-dealers selling at lower prices and for has similar or related scopes of work; it is within the
which no suitable substitute can be obtained at more contracting capacity of the contractor; the contractor uses
advantageous terms to the government. the same prices or lower unit prices as in the original
contract less mobilization cost; the amount involved does not
exceed the amount of the ongoing project; and, the
Section 51. Repeat Order. - When provided for in the Annual
contractor has no negative slippage: Provided, further, That
Procurement Plan, Repeat Order may be allowed wherein the
negotiations for the procurement are commenced before the
Procuring Entity directly procures Goods from the previous winning
expiry of the original contract. Wherever applicable, the
bidder whenever there arises a need to replenish goods procured
principle shall also govern consultancy contract, where the
under a contract previously awarded through Competitive Bidding,
consultants have unique experience and expertise to deliver
subject to post-qualification process prescribed in the Bidding
the required service; or,
Documents and provided all the following conditions are present:

e. Subject to the guidelines specified in the IRR, purchases

a. The unit price must be equal to or lower than that provided
of Goods from another agency of the government, such as
in the original contract;
the Procurement Service of the DBM, which is tasked with a
centralized procurement of commonly used Goods for the
b. The repeat order does not result in splitting of requisitions government in accordance with Letters of Instruction No. 755
or purchase orders; and Executive Order No. 359, series of 1989.

c. Except in special circumstances defined in the IRR the Section 54. Terms and Conditions for the use of Alternative Methods. -
repeat order shall be availed of only within six (6) months The specific terms and conditions, including the limitations and
from the date of the Notice to Proceed arising from the restrictions, for the application of each of the alternative methods
original contract; and, mentioned in this Article shall be specified in the IRR.

d. The repeat order shall not exceed twenty-five percent ARTICLE XVII
(25%) of the quantity of each item of the original contract. PROTEST MECHANISM

Section 52. Shopping. - shopping may be resorted to under any of the Section 55. Protests on Decisions of the BAC.- Decisions of the BAC
following instances: in all stages of procurement may be protested to the head of the
procuring entity and shall be in writing. Decisions of the BAC may be
protested by filing a verified position paper and paying a non-
a. When there is an unforeseen contingency requiring refundable protest fee. The amount of the protest fee and the periods
immediate purchase: Provided, however, That the amount during which the protests may be filed and resolved shall be specified
shall not exceed Fifty thousand pesos (P50,000); or in the IRR.

b. Procurement of ordinary or regular office supplies and Section 56. Resolution of Protests. - The protest shall be resolved
equipment not available in the Procurement Service strictly on the basis of records of the BAC. Up to a certain amount to be
involving an amount not exceeding Two hundred fifty specified in the IRR, the decisions of the Head of the Procuring Entity
thousand pesos (P250,000): Provided, however, That the
shall be final.
Procurement does not result in Splitting of Contracts:
Provided, further, That at least three (3) price quotations
from bona fide suppliers shall be obtained. Section 57. Non-interruption of the Bidding Process.- In no case shall
any protest taken from any decision treated in this Article stay or delay
the bidding process. Protests must first be resolved before any award
The above amounts shall be subject to a period review by the GPPB. is made.
For this purpose, the GPPB shall be authorized to increase or
decrease the said amount in order to reflect changes in economic
conditions and for other justifiable reasons. Section 58. Report to Regular Courts; Certiorari.- Court action may be
resorted to only after the protests contemplated in this Article shall
have been completed. Cases that are filed in violation of the process
Section 53. Negotiated Procurement. - Negotiated Procurement shall
specified in this Article shall be dismissed for lack of jurisdiction. The
be allowed only in the following instances: regional trial court shall have jurisdiction over final decision of the head
of the procuring entity. Court actions shall be governed by Rule 65 of
a. In case of two (2) failed bidding as provided in Section 35 the 1997 Rules of Civil Procedure.
hereof;
This provision is without prejudice to any law conferring on the
b. In case of imminent danger to life or property during a Supreme court the sole jurisdiction to issue temporary restraining
state of calamity, or when time is of the essence arising from orders and injunctions relating to Infrastructure Projects of
natural or man-made calamities or other causes where Government.
immediate action is necessary to prevent damage to or loss
of life or property, or to restore vital public services, ARTICLE XVIII
infrastructure facilities and other public utilities; SETTLEMENT OF DISPUTES

c. Take-over of contracts, which have been rescinded or Section 59. Arbitration. - Any and all disputes arising from the
terminated for causes provided for in the contract and
implementation of a contract covered by this Act shall be submitted to
existing laws, where immediate action is necessary to arbitration in the Philippines according to the provisions of Republic Act
prevent damage to or loss of life or property, or to restore No. 876, otherwise known as the "Arbitration Law": Provided, however,
vital public services, infrastructure facilities and other public
That, disputes that are within the competence of the Construction
utilities; Industry Arbitration Commission to resolve shall be referred thereto.
The process of arbitration shall be incorporated as a provision in the
d. Where the subject contract is adjacent or contiguous to an contract that will be executed pursuant to the provisions of this Act:
on-going infrastructure project, as defined in the IRR: Provided, That by mutual agreement, the parties may agree in writing
Provided, however, That the original contract is the result of to resort to alternative modes of dispute resolution.
Section 60. Appeals. - The arbitral award and any decision rendered in Procurement operations manual for all offices and agencies of
accordance with the foregoing Section shall be appealable by way of a government; and (d) conduct an annual review of the effectiveness of
petition for review to the Court of Appeals. The petition shall raise pure this Act and recommend any amendments thereto, as may be
questions of law and shall be governed by the Rule of Court. necessary.

ARTICLE XIX The GPPB shall convene within fifteen (15) days from the effectivity of
CONTRACT PRICES AND WARRANTIES this Act formulate the IRR and for other related purposes. The GPPB
shall be supported by a technical support office.
Section 61. Contract Prices. - For the given scope of work in the
contract as awarded, all bid prices shall be considered as fixed prices, In addition to the powers granted under this Act, the GPPB shall
and therefore not subject to price escalation during contract absorb all the powers, function and responsibilities of the Procurement
implementation, except under extraordinary circumstances and upon Policy Board created under Executive Order No. 359, series of 1989.
prior approval of the GPPB. All affected functions of the Infrastructure Committee of the National
Economic and Development Authority Board are hereby transferred to
the GPPB.
For purposes of this Section, "extraordinary circumstances" shall refer
to events that may be determined by the National Economic and
Development Authority in accordance with the Civil Code of the Section 64. Membership. - The GPPB shall be composed of the
Philippines, and upon the recommendation of the procuring entity Secretary of the Department of Budget and Management, as
concerned. Chairman, the Director-General of the National Economic and
Development Authority, as Alternate Chairman, with the following as
Members; the Secretaries of the Departments of Public Works and
Section 62. Warranty. - (a) For the procurement of Goods, in order to
Highways, Finance, Trade and Industry, Health, National Defense,
assure that manufacturing defects shall be corrected by the supplier,
Education, Interior and Local Government, Science and Technology,
manufacturer, or distributor, as the case maybe, for a specific time
Transportation and Communications, and Energy, or their duly
after performance of the contract, a warranty shall be required from the
authorized representatives and a representative from the private sector
contract awardee for such period of time as may be provided in the
to be appointed by the President upon the recommendation of the
IRR, the obligation for which shall be covered by either retention
GPPB. The GPPB may invite a representative from the Commission on
money in the amount equivalent to a percentage of every progress
Audit to serve as a resource person.
payment, or a special bank guarantee equivalent to a percentage of
the total contract price, to be provided in the IRR. The said amounts
shall only be released after the lapse of the warranty period, provided ARTICLE XXI
that the Goods supplied are free from defects and all the conditions PENAL CLAUSE
imposed under the contract have been fully met.
Section 65. Offenses and Penalties. - (a) Without prejudice to the
b. For the procurement of infrastructure projects, the provisions of Republic Act No. 3019, otherwise known as the "Anti-
contractor shall assume full responsibility for the contract Graft and Corrupt Practice Act" and other penal laws, public officers
work from the time project construction commenced up to a who commit any of the following acts shall suffer the penalty of
reasonable period as defined in the IRR taking into imprisonment of not less than six (6) years and one (1) day, but not
consideration the scale and coverage of the project from its more than fifteen (15) years:
final acceptance by the government and shall be held
responsible for any damage or construction or works except
1. Open any sealed Bid including but not limited to
those occasioned by force majeure. The contractor shall be
Bids that may have been submitted through the
fully responsible for the safety, protection, security, and
electronic system and any and all documents
convenience of his personnel, third parties, and the public
required to be sealed or divulging their contents,
large, as well as the works, equipment, installation and the
prior to the appointed time for the public opening
like to be affected by his construction work and shall be
of Bids or other documents.
required to put up a warranty security in the form of cash,
bank guarantee, letter of credit, Government Service
Insurance System bond, or callable surety bond. 2. Delaying, without justifiable cause, the
screening for eligibility, opening of bids, evaluation
and post evaluation of bids, and awarding of
The contractor shall undertake the repair works, at his own expense, of
contracts beyond the prescribed periods of Bids or
any defect or damage to the infrastructure projects on account of the
other documents.
use of materials of inferior quality within ninety (90) days from the time
the Head of the Procuring Entity has issued an order to undertake
repair. In case of failure or refusal to comply with this mandate, the 3. Unduly influencing or exerting undue pressure
governments shall undertake such repair works and shall be entitle to on any member of the BAC or any officer or
full reimbursement of expenses incurred therein upon demand. employee of the procuring entity to take a
particular bidder.
Any contractor who fails to comply with the preceding paragraphs shall
suffer perpetual disqualification from participating in any public bidding 4. Splitting of contracts which exceed procedural
and his property or properties shall be subject to attachment or purchase limits and competitive bidding.
garnishment proceedings to recover the costs. All payables of
government in his favor shall be offset to recover the costs.
5. When the head of the agency abuses the
exercise of his power to reject any and all bids as
ARTICLE XX mentioned under Section 41 of this Act with
THE GOVERNMENT PROCUREMENT POLICY BOARD manifest preference to any bidder who is closely
related to him in accordance with Section 47 of
this Act.
Section 63. Organization and Functions. - A Government Procurement
Policy Board (GPPB) is hereby established to: (a.) protect national
interest in all matters affecting public Procurement, having due regard When any of the foregoing acts is done in collusion with
to the country's regional and international obligations; (b.) formulate private individuals, the private individuals shall likewise be
and amend, whenever necessary, the IRR and the corresponding liable for the offense.
standard forms for Procurement; (c) ensure that Procuring Entities
regularly conduct Procurement training programs and prepare a
In addition, the public officer involved shall also suffer the not limited to, performance security, preparatory to
penalty of temporary disqualification from public office, while the final award of the contract.
the private individual shall be permanently disqualified from
transacting business with the government.
(d) When the bidder is a juridical entity, criminal liability and
the accessory penalties shall be imposed on its directors,
(b) Private individuals who commit any of the following acts, officers or employees who actually commit any of the
including any public officer, who conspires with them, shall foregoing acts.
suffer the penalty of imprisonment of not less than six (6)
years and one (1) day but not more than fifteen (15) years:
Section 66. Jurisdiction. - Jurisdiction over the offenses defined under
this Article shall belong to the appropriate courts, according to laws
1. When two or more bidders agree and submit existing at the time of the commission of the offenses.
different Bids as if they were bona fide, when they
knew that one or more of them was so much
ARTICLE XXII
higher than the other that it could not be honestly
CIVIL LIABILITY
accepted and that the contract will surely be
awarded to the pre-arranged lowest Bid.
Section 67. Civil Liability in Case of Conviction. - Without prejudice to
administrative sanctions that may be imposed in proper cases, a
2. When a bidder maliciously submits different
conviction under this Act or Republic Act No. 3019 shall carry with it
Bids through two or more persons, corporations,
civil liability, which may either consist of restitution for the damage
partnerships or any other business entity in which
done or the forfeiture in favor of the government of any unwarranted
he has interest of create the appearance of
benefit derived from the act or acts in question or both, at the discretion
competition that does not in fact exist so as to be
of the courts.
adjudged as the winning bidder.

Section 68. Liquidated Damages. - All contracts executed in

3. When two or more bidders enter into an
accordance with this Act shall contain a provision on liquidated
agreement which call upon one to refrain from
damages which shall be payable in case of breach thereof. The
bidding for Procurement contracts, or which call for
amount thereof shall be specified in the IRR.
withdrawal of bids already submitted, or which are
otherwise intended to secure as undue advantage
to any one of them. ARTICLE XXIII
ADMINISTRATIVE SANCTIONS
4. When a bidder, by himself or in connivance with
others, employ schemes which tend to restrain the Section 69. Imposition of Administrative Penalties. - (a) In addition to
natural rivalry of the parties or operates to stifle or the provisions of Articles XXI and XXII of this Act, the Head of the
suppress competition and thus produce a result Procuring Entity, subject to the authority delegated to the BAC, if any,
disadvantageous to the public. shall impose on bidders or prospective bidders, the administrative
penalty of suspension for one (1) years for the first offense, and
suspensions of two (2) years for the second offense from participating
In addition, the persons involved shall also suffer the penalty
in the public bidding process, for the following violations:
of temporary or perpetual disqualification from public office
and be permanently disqualified from transacting business
with the government. 1. Submission of eligibility requirements containing
false information or falsified documents.
(c) Private individuals who commit any of the following acts,
and any public officer conspiring with them, shall suffer the 2. Submission of bids that contain false
penalty of imprisonment of not less than six (6) years and information or falsified documents, or the
one (1) day but more than fifteen (15) years: concealment of such information in the Bids in
order to influence the outcome of eligibility
screening or any other stage of the public bidding.
1. Submit eligibility requirements of whatever kind
and nature that contain false information or
falsified documents calculated to influence the 3. Allowing the use of one's name, or using the
outcome of the eligibility screening process or name of another for purposes of public bidding.
conceal such information in the eligibility
requirements when the information will lead to a
declaration of ineligibility from participating in 4. Withdrawal of a Bid, or refusal to accept an
award, or enter into contract with the government
public bidding.
without justifiable cause, after he had been
adjudged as having submitted the Lowest
2. Submit Bidding Documents of whatever kind Calculated Responsive Bid or Highest Rated
and nature than contain false information or Responsive Bid.
falsified documents or conceal such information in
the Bidding Documents, in order to influence the
5. Refusal or failure to post the require
outcome of the public bidding.
performance security within the prescribed time.

3. Participate in a public bidding using the name of

6. Termination of the contract due to the default of
another or allow another to use one's name for the
purpose of participating in a public bidding. the bidder.

Refusal to clarify or validate in writing its Bid

4. Withdraw a Bid, after it shall have qualified as
the Lowest Calculated Bid/Highest Rated Bid, or to during post-qualification within a period of seven
accept and award, without just cause or for the (7) calendar days from receipt of the request for
clarification.
purpose of forcing the Procuring Entity to award
the contract to another bidder. This shall include
the non-submission of requirements such as, but
 Any documented unsolicited attempt by a bidder to Laws and two (2) members thereof appointed by the Senate President,
unduly influence the outcome of the bidding in his and the Chairman of the House Committee on Appropriations, and
favor. two(2) thereof to be appointed by the Speaker of the House of
Representatives.
All other acts that tend to defeat the purpose of the
Competitive bidding. Section 75. Implementing Rules and Regulations and Standard
Forms. - Within sixty (60) days from the promulgation of this Act, the
necessary rules and regulations for the proper implementation of its
(b) In addition to the penalty of suspension, the Bid security
provisions shall be formulated by the GPPB, jointly with the members
of the performance security posted by the concerned bidder
of the Oversight Committee created under Section 74 hereof. The said
or prospective bidder shall also be forfeited.
rules and regulations shall be approved by the President of the
Philippines. For a period not later than thirty (30) days upon the
(c) the Head of the Procuring Entity may delegate to the BAC approval of the implementing rules and regulations the standard forms
the authority to impose the aforementioned administrative for Procurement shall be formulated and approved.
penalties.
Section 76. Repealing Clause. - This law repeals Executive Order No.
Section 70. Preventive Suspension. - The head of the procuring entity 40, series of 2001, entitled "Consolidating Procurement Rules and
may preventively suspend any member of the Technical Working Procedures for all National Government Agencies, Government-
Group of the Secretariat, or the BAC if there are strong reasons or Owned-or-Controlled Corporations and/or Government Financial
prima facie evidence showing that the officials or employees Institutions, and requiring the Use of the Government Electronic
concerned are guilty or the charges filed against them under Articles Procurement System"; Executive Order No.262, series of 2000, entitled
XXI and XXII of this Act or for dishonesty as defined by the Civil "Amending Executive Order No.302, series of 1996, entitled "Providing
Service Laws. In all cases, procedural and substantive due process as Policies, Guidelines, Rules and Regulations for the Procurement of
mandated by the Constitution and Civil Service Laws, rules and Goods/Supplies by the National Government' and Section 3 of
regulations, shall be strictly observed. Executive Order No.201, series of 2000, entitled "Providing Additional
Policies and Guidelines and the Procurement of Goods/Supplies by the
National Government"; Executive Order No. 302, series of 1996,
Section 71. Lifting of Suspension and Removal of Administrative
entitled "Providing Policies, Guidelines, Rules and Regulations for the
Disabilities. - Lifting of preventive suspension pending administrative Procurement of Goods/Supplies by the National Government" and
investigation, as well as removal of administrative investigation, as well Presidential Decree No. 1594 dated June 11,1978, entitled
as removal of administrative penalties and disabilities shall be in "Prescribing Policies, Guidelines, Rule and regulations for Government
accordance with the provisions of Sections 52 and 53, Chapter 6 (Civil Infrastructure Contracts." This law amends Title Six, Book Two of
Service Commission), Book V of Executive Order No. 292, the Republic Act No. 7160, otherwise known as the "Local Government
Administrative Code of 1987.
Code of 1991"; the relevant provisions of Executive Order No.164,
series of 1987, entitled " An Act Providing Additional Guidelines in the
ARTICLE XXIV processing and Approval of Contracts of the Government"; and the
LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS relevant provisions of Republic Act No. 7898 dated February 23, 1995,
entitled "An Act Providing for the Modernization of the Armed Forces of
the Philippines and other Purposes." Any other law, presidential decree
Section 72. Private Legal Assistance. - All the members of the BAC or issuance, executive order, letter of instruction, administrative order,
are hereby authorized to engage the service of private lawyers or proclamation, charter, rule or regulation and/or parts thereof contrary to
extend counsel immediately upon receipt of Court Notice that a civil or or inconsistent with the provisions of this Act, hereby repealed,
criminal action, suit or proceeding is filed against them. The lawyer's modified or amended accordingly.
fee shall be part of the indemnification package for the BAC members,
subject to the provisions of Section 73 hereof.
Section 77. Separability Clause. - If any provision of this Act is
declared invalid or unconstitutional, the other provisions not affected
Section 73. Indemnification of BAC Members. - The GPPB shall thereby shall remain valid and subsisting.
establish an equitable indemnification package for public officials
providing services in the BAC, which may be in the form of free legal
assistance, liability insurance, and other forms of protection and Section 78. Effectivity Clause. - This Act shall take effect fifteen (150)
indemnification for all cost and expenses reasonably incurred by such days following its publication in the Officials Gazette or in two (2)
persons in connection with any civil or criminal actions, suit or newspapers of general circulation.
proceeding to which they may be, or have been made, a party by
reason of the performance of their functions or duties, unless they are
finally adjudged in such action or proceeding to be liable for gross
negligence or misconduct or grave abuse of discretion.

In the event of settlement or compromise, indemnification shall be

confined only on matters covered by the settlement, as to which the
Procuring Entity had been advised by countset that the public officials
to be indemnified have not committed gross negligence or misconduct
in the performance of their functions and duties.

The members of the BAC and the BAC Secretariat shall also be
entitled to medical assistance for injuries incurred in the performance
of their functions.

ARTICLE XXV
FINAL PROVISIONS

Section 74. Oversight Committee. - There is hereby created a Joint

Congressional Oversight Committee to oversee the implementation of
this Act for a period not exceeding five (5) years from the effectivity of
this Act. The Committee shall be composed of the Chairman of the
Senate Committee on Constitutional Amendments and Revision of