The Senate of the Philippines approved on third and final reading Senate Bill No. 2593, or the proposed New Government Procurement Act (NGPA), sponsored by Senator Sonny Angara, on 21 May 2024.
When enacted, NGPA shall amend the decades-old procurement law, with PS-DBM also introducing concepts such as the Most Economically Advantageous and Responsive Bid (MEARB) and the Most Advantageous and Responsive Bid (MARB), as well as new procurement modes to promote efficiency and sustainability in procurement activities undertaken by government agencies.
NGPA is also poised to bolster the government’s thrust towards digital transformation, with provisions that shall further the modernization of the Philippine Government Electronic Procurement System (PhilGEPS).
DBM Secretary Amenah F. Pangandaman has emphasized, on various occasions, that digitalization and innovation are the heart of the NGPA. In relation, PS-DBM’s electronic marketplace, or the eMarketplace, is also showcased. The eMarketplace shall digitalize the procurement of common-use supplies and equipment (CSE) by serving as the government's primary e-commerce platform. Sec. Pangandaman has repeatedly stressed that these initiatives shall bring in accessibility, convenience, efficiency, and transparency to budget utilization and procurement process.
Executive Director Dennis S. Santiago led the PS-DBM Team composed of Procurement Group Director Genmaries S. Entredicho-Caong, Operations Group Director Philip Josef Vera T. Cruz, and Legal Division's Atty. Ramon Matibag and Atty. Lyodychie Camarao — all of whom collaborated to introduce and review proposals geared towards instituting procurement reform.
New concepts and procurement modes in NGPA introduced by PS-DBM
The NGPA introduces two new award criteria, the Most Economically Advantageous and Responsive Bid (MEARB) and the Most Advantageous and Responsive Bid (MARB). The MEARB may be used when the consideration of assigning weights for the technical and financial aspects of a project is more appropriate to recognize both the qualitative and economic values of the bid. The MARB, as an award criterion, may be used when the quality or technical aspect of a project is the primary consideration in the procurement of goods and civil works. The financial envelope of the bidder with highest technical score shall be considered, which must be equal to or below the approved budget for the contract.
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New procurement modes were also proposed to ensure that the choice of procurement modality is proportional to the needs of the Procuring Entity and the nature of the project to be procured.
Direct Acquisition allows a Procuring Entity to procure directly from any known and reputable source its required non-CSE and CSE not available in the PS-DBM and services, subject to legal, technical and financial requirements, and with an amount not exceeding Two Hundred Thousand Pesos (Php 200,000.00).
Direct Sales is a mode of procuring non-CSEs where a Procuring Entity directly purchases from a supplier that has satisfactorily delivered the same items to another government agency under a completed contract awarded through bidding.
Competitive Dialogue employs a two-stage bidding process where the Procuring Entity invites suppliers, consultants, and contractors to a dialogue to propose solutions, which are usually innovative or complex in nature, to address its needs and requirements.
Unsolicited offer with bid matching allows a Procuring Entity to consider unsolicited offer on a negotiated basis for goods and consulting services, where the procurement involves a new concept or technology, and among other conditions.
Direct Procurement for Science, Technology, and Innovation is a mode where a Procuring Entity may procure goods and services used in the conduct of research and development projects or activities directly from a qualified manufacturer or supplier, or from a qualified startup business.
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Acting as the government's central procuring arm for CSE, PS-DBM contributed significantly in drafting the bill.
The proposed NGPA, which President Ferdinand R. Marcos, Jr. certified as urgent, is envisioned to make public procurement more efficient, transparent, attuned to the changing times, and responsive to the evolving needs of the Filipino people.