REPUBLIC ACT 9184

GOVERNMENT PROCUREMENT
REFORM ACT

H. No. 4809
S. No. 2248
 Republic Act No. 9184

Republic of the Philippines

Congress of the Philippines
Metro Manila
Twelfth Congress
Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand two.

[REPUBLIC ACT NO. 9184 ]1

AN ACT PROVIDING FOR THE MODERNIZATION, STANDARDIZATION AND REGULATION OF THE

PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

ARTICLE I
GENERAL PROVISIONS

SECTION 1. Short Title. – This Act shall be known as the “Government

Procurement Reform Act.”

SEC. 2. Declaration of Policy. – It is the declared policy of the State to promote the ideals of good governance in all its branches,
departments, agencies, subdivisions, and instrumentalities, including government-owned and/or -controlled corporations, and local government units.

SEC. 3. Governing Principles on Government Procurement. – All procurement of the national government, its departments, bureaus,
offices and agencies, including state universities and colleges, government-owned and/or -controlled corporations, government financial institutions and
local government units, shall, in all cases, be governed by these principles:

(a) Transparency in the procurement process and in the implementation of procurement contracts.
(b) Competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in
public bidding.
(c) Streamlined procurement process that will uniformly apply to all government procurement. The procurement process shall be simple
and made adaptable to advances in modern technology in order to ensure an effective and efficient method.
(d) System of accountability where both the public officials directly or indirectly involved in the procurement process as well as in the
implementation of procurement contracts and the private parties that deal with government are, when warranted by circumstances, investigated and
held liable for their actions relative thereto.
(e) Public monitoring of the procurement process and the implementation of awarded contracts with the end in view of guaranteeing
that these contracts are awarded pursuant to the provisions of this Act and its implementing rules and regulations, and that all these contracts are
performed strictly according to specifications.

SEC. 4. Scope and Application. – This Act shall apply to the Procurement of Infrastructure Projects, Goods, and Consulting Services,
regardless of source of funds, whether local or foreign, by all branches and instrumentalities of government, its departments, offices and agencies,
including government-owned and/or -controlled corporations and local government units, subject to the provisions of Commonwealth Act No. 138. Any
treaty or international or executive agreement affecting the subject matter of this Act to which the Philippine government is a signatory shall be observed.

SEC. 5. Definition of Terms. – For purposes of this Act, the following terms or
words and phrases shall mean or be understood as follows:

(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 Appropriations Act and/or continuing appropriations, in the case of National Government Agencies; the Corporate
Budget for the contract approved by the governing Boards, pursuant to E.O. No. 518, series of 1979, in the case of Government-Owned and/or Controlled
Corporations, Government Financial Institutions and State Universities and Colleges; and the Budget for the contract approved by the respective
Sanggunian, in the case of Local Government Units.

1
R.A. 9184 was signed by Her Excellency President Gloria Macapagal-Arroyo on 10 January 2003, and was published on 11 January 2003, in two (2)
newspapers of general nationwide circulation, namely, Manila Times and Malaya. It took effect fifteen (15) days after its publication or on 26 January
2003.
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 Republic Act No. 9184

(b) BAC – refers to the Bids and Awards Committee established in accordance with Article V of this Act.
(c) Bidding Documents – refers to documents issued by the Procuring Entity as the basis for Bids, furnishing all information necessary
for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects, and Consulting Services to be provided.
(d) Bid – refers to a signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor or consultant in response to
the Bidding Documents.
(e) Competitive Bidding – refers to a method of procurement which is open to participation by any interested party and which consists
of the following processes: advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids,
post-qualification, and award of contract, the specific requirements and mechanics of which shall be defined in the IRR to be promulgated under this Act.
(f) Consulting Services – refer to services for Infrastructure Projects and other types of projects or activities of the Government
requiring adequate external technical and professional expertise that are beyond the capability and/or 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 supervision; (v) management
and related services; and (vi) other technical services or special studies.
(g) G-EPS – refers to the Government Electronic Procurement System as provided in Section 8 of this Act.
(h) Goods – refer to all items, supplies, materials and general support services, except consulting services and infrastructure projects,
which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature
of equipment, furniture, stationery, materials for construction, or personal property of any kind, including non-personal or contractual services such as
the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as
procurement of materials and supplies provided by the procuring entity for such services.
(i) GPPB – refers to the Government Procurement Policy Board established in accordance with Article XX of this Act.
(j) Head of the Procuring Entity – refers to: (i) the head of the agency or his duly authorized official, for national government
agencies; (ii) the governing board or its duly authorized official, for government-owned and/or -controlled corporations; or (iii) the local chief executive,
for local 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 the Procuring Entity subject to the limitations and authority delegated by the head of the department, office or
agency.
(k) Infrastructure Projects – include the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of
roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, irrigation, flood
control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification
facilities, national buildings, school buildings, hospital buildings and other related construction projects of the government.
(l) IRR – refer to the implementing rules and regulations to be promulgated in accordance with Section 75 this Act.
(m) Portal – refers to a website that aggregates a wide variety of content for the purpose of attracting a large number of users.
(n) Procurement – refers to the acquisition of Goods, Consulting Services, and the contracting for Infrastructure 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 provisions of Republic Act No. 8974, entitled “An Act to Facilitate the Acquisition of Right-of-Way Site or Location for National Government
Infrastructure Projects and for Other Purposes”, and other applicable laws, rules and regulations.
(o) Procuring Entity - refers to any branch, department, office, agency, or instrumentality of the government, including state
universities and colleges, governmentowned and/or -controlled corporations, government financial institutions, and local government units procuring
Goods, Consulting Services and Infrastructure Projects.

SEC. 6. Standardization of Procurement Process and Forms. – To systematize the procurement process, avoid confusion and ensure
transparency, the procurement process, including the forms to be used, shall be standardized insofar as practicable.

For this purpose, the GPPB shall pursue the development of generic procurement manuals and standard bidding forms, the use of which once
issued shall be mandatory upon all Procuring Entities.

ARTICLE II
PROCUREMENT PLANNING

SEC. 7. Procurement Planning and Budgeting Linkage. – All procurement should be within the approved budget of the Procuring Entity
and should be meticulously and judiciously planned by the Procuring Entity concerned. Consistent with government fiscal discipline measures, only those
considered crucial to the efficient discharge of governmental functions shall be included in the Annual Procurement Plan to be specified in the IRR.

No government Procurement shall be undertaken unless it is in accordance with the approved Annual Procurement Plan of the Procuring Entity.
The Annual Procurement Plan shall be approved by the Head of the Procuring Entity and must be consistent with its duly approved yearly budget. The
Annual Procurement Plan shall be formulated and revised only in accordance with the guidelines set forth in the IRR. In the case of Infrastructure
Projects, the Plan shall include engineering design and acquisition of right-of-way.

ARTICLE III
PROCUREMENT BY ELECTRONIC MEANS

SEC. 8. Procurement By Electronic Means. – To promote transparency and efficiency, information and communications technology shall
be utilized in the conduct of procurement procedures. Accordingly, there shall be a single portal that shall serve as the primary source of information on
all government procurement. The G-EPS shall serve as the primary and definitive source of information on government procurement. Further, the GPPB
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is authorized to approve changes in the procurement process to adapt to improvements in modern technology, provided that such modifications are
consistent with the provisions of Section 3 of this Act.
To take advantage of the significant built-in efficiencies of the G-EPS and the volume discounts inherent in bulk purchasing, all Procuring
Entities shall utilize the G-EPS for the procurement of common supplies in accordance with the rules and procedures to be established by the GPPB. With
regard to the procurement of non-common use items, infrastructure projects and consulting services, agencies may hire service providers to undertake
their electronic procurement provided these service providers meet the minimum requirements set by the GPPB.

SEC. 9. Security, Integrity and Confidentiality. – The G-EPS shall ensure the security, integrity and confidentiality of documents submitted
through the system. It shall include a feature that provides for an audit trail for on-line transactions and allow the Commission on Audit to verify the
security and integrity of the systems at any time.

ARTICLE IV
COMPETITIVE BIDDING

SEC. 10. Competitive Bidding. – All Procurement shall be done through

Competitive Bidding, except as provided for in Article XVI of this Act.

ARTICLE V
BIDS AND AWARDS COMMITTEE

SEC. 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 chaired by at least a third ranking permanent official of the procuring entity
other than its head, and its composition shall be specified in the IRR. Alternatively, as may be deemed fit by the head of the procuring entity, there may
be separate BACs where the number and complexity of the items to be procured shall so warrant. Similar BACs for decentralized and lower level offices
may be formed when deemed necessary by the head of the procuring entity. The members of the BAC shall be designated by the Head of Procuring
Entity. However, in no case shall the approving authority be a member of the BAC.
Unless sooner removed for a 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 of resignation, retirement, separation, transfer, reassignment, removal, the
replacement shall serve only for the unexpired term: Provided, That in case of leave or suspension, the replacement shall serve only for the duration
of the leave or suspension. For justifiable causes, a member shall be suspended or removed by the Head of the Procuring Entity.

SEC. 12. Functions of the BAC. – The BAC shall have the following functions:
advertise and/or post the invitation to bid, conduct pre-procurement and pre-bid conferences, determine the eligibility of prospective bidders, receive
bids, conduct the evaluation of bids, undertake post-qualification proceedings, recommend award of contracts to the Head of the Procuring Entity or his
duly authorized representative: Provided, That in the event the Head of the Procuring Entity shall disapprove such recommendation, such disapproval
shall be based only on valid, reasonable and justifiable grounds to be expressed in writing, copy furnished the BAC; recommend the imposition of
sanctions in accordance with Article XXIII, and perform such other related functions as may be necessary, including the creation of a Technical Working
Group from a pool of technical, financial and/or legal experts to assist in the procurement process.
In proper cases, the BAC shall also recommend to the Head of the Procuring Entity the use of Alternative Methods of Procurement as provided
for in Article XVI hereof.
The BAC shall be responsible for ensuring that the Procuring Entity abides by the standards set forth by this Act and the IRR, and it shall
prepare a procurement monitoring report that shall be approved and submitted by the Head of the Procuring Entity to the GPPB on a semestral basis.
The contents and coverage of this report shall be provided in the IRR.

SEC. 13. Observers. – To enhance the transparency of the process, the BAC shall, in all stages of the procurement process, invite, in addition
to the representative of the Commission on Audit, at least two (2) observers to sit in its proceedings, one (1) from a duly 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 indirect interest in the contract to be bid out. The observers should be duly registered with the Securities and Exchange Commission
and should meet the criteria for observers as set forth in the IRR.

SEC. 14. BAC Secretariat. – To assist the BAC in the conduct of its functions, the Head of the Procuring Entity shall create a Secretariat that
will serve as the main support unit of the BAC. The Head of the Procuring Entity may also designate an existing organic office within the agency to serve
as the Secretariat.

SEC. 15. Honoraria of BAC Members. – The Procuring Entity may grant payment of honoraria to the BAC members in an amount not to
exceed twenty five percent (25%) of their respective basic monthly salary subject to availability of funds. For this purpose, the Department of Budget
and Management (DBM) shall promulgate the necessary guidelines.

SEC. 16. Professionalization of BAC, BAC Secretariat and Technical Working Group Members. – The GPPB shall establish a sustained
training program for developing the capacity of the BACs, BAC Secretariats and Technical Working Groups of Procuring Entities, and professionalize the
same.

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ARTICLE VI
PREPARATION OF BIDDING DOCUMENTS

SEC. 17. Form and Contents of Bidding Documents. – The Bidding Documents shall be prepared by the Procuring Entity following the
standard forms and manuals prescribed by the GPPB. The Bidding Documents shall include the following:

(a) Approved Budget for the Contract;

(b) Instructions to Bidders, including criteria for eligibility, bid 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;
(c) Terms of Reference;
(d) Eligibility Requirements;
(e) Plans and Technical Specifications;
(f) Form of Bid, Price Form, and List of Goods or Bill of Quantities;
(g) Delivery Time or Completion Schedule;
(h) Form and Amount of Bid Security;
(i) Form and Amount of Performance Security and Warranty; and,
(j) Form of Contract, and General and Special Conditions of Contract.

The Procuring Entity may require additional document requirements or specifications necessary to complete the information required for the
bidders to prepare and submit their respective bids.

SEC. 18. Reference to Brand Names. – Specifications for the Procurement of Goods shall be based on relevant characteristics and/or
performance requirements. Reference to brand names shall not be allowed.

SEC. 19. Access to Information. – In all stages of the preparation of the Bidding Documents, the Procuring Entity shall ensure equal access
to information. Prior to their official release, no aspect of the Bidding Documents shall be divulged or released to any prospective bidder or person having
direct or indirect interest in the project to be procured.

ARTICLE VII
INVITATION TO BID

SEC. 20. Pre-Procurement Conference. – Prior to the issuance of the Invitation to Bid, the BAC is mandated to hold a pre-procurement
conference on each and every procurement, except those contracts below a certain level or amount specified in the IRR, in which case, the holding of
the same is optional.
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 in relation to their adherence to law. This shall be attended by the BAC, the unit or officials who prepared
the bidding documents and the draft Invitation to Bid, as well as consultants hired by the agency concerned and the representative of the end-user.

SEC. 21. Advertising and Contents of the Invitation to Bid. – In line with the principle of transparency and competitiveness, all
Invitations to Bid for contracts under competitive bidding shall be advertised by the Procuring Entity in such manner and for such length of time as may
be 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, the G-EPS and the website of the Procuring Entity, if available. The details and mechanics of
implementation shall be provided in the IRR to be promulgated under this Act.

The Invitation to Bid shall contain, among others:

(a) A brief description of the subject matter of the Procurement;
(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 Consulting Services, the examination and evaluation of Bids, and post-qualification;
(c) The date, time and place of the deadline for the submission and receipt of the eligibility requirements, the pre-bid
conference if any, the submission and receipt of bids, and the opening of bids;
(d) The Approved Budget for the Contract to be bid;
(e) The source of funds;
(f) The period of availability of the Bidding Documents, and the place where these may be secured;
(g) The contract duration; and,
(h) Such other necessary information deemed relevant by the Procuring Entity.

SEC. 22. Pre-bid Conference. – At least one pre-bid conference shall be conducted for each procurement, unless otherwise provided in the
IRR. Subject to the approval of the BAC, a pre-bid conference may also be conducted upon the written request of any prospective bidder.
The pre-bid conference(s) shall be held within a reasonable period before the deadline for receipt of bids to allow prospective bidders to
adequately prepare their bids, which shall be specified in the IRR.

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ARTICLE VIII
RECEIPT AND OPENING OF BIDS

SEC. 23. Eligibility Requirements for the Procurement of Goods and Infrastructure Projects. – The BAC or, under special
circumstances specified in the IRR, its duly designated organic office shall determine the 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. The
eligibility requirements shall provide for fair and equal access to all prospective bidders. The documents submitted in satisfaction of the eligibility
requirements shall be made under oath by the prospective bidder or by his duly authorized representative certifying to the correctness of the statements
made and the completeness and authenticity of the documents submitted.
A prospective bidder may be allowed to submit his eligibility requirements electronically. However, said bidder shall later on certify under oath
as to correctness of the statements made and the completeness and authenticity of the documents submitted.

SEC. 24. Eligibility Requirements and Short Listing for Consulting Services. – The eligibility of prospective bidders for the Procurement
of Consulting Services shall be determined by their compliance with the eligibility requirements prescribed for the Competitive Bidding concerned, within
the period stated in the Invitation to Bid. The eligibility requirements shall provide for fair and equal access to all 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.
A prospective bidder may be allowed to submit his eligibility requirements electronically. However, said bidder shall later on certify under oath
as to correctness of the statements made and the completeness and authenticity of the documents submitted.
The eligible prospective bidders shall then be evaluated using numerical ratings on the basis of the short listing requirements prescribed for
the Competitive Bidding concerned, within the period stated in the Invitation to Bid to determine the short list of bidders who shall be allowed to submit
their respective bids.

SEC. 25. Submission and Receipt of Bids. – A bid shall have two (2) components, namely the technical and financial components which
should be in separate sealed envelopes, and which shall be submitted simultaneously. The bids shall be received by the BAC on such date, time and
place specified in the invitation to bid. The deadline for the receipt of bids shall be fixed by the BAC, giving it sufficient time to complete the bidding
process and giving the prospective bidders sufficient time to study and prepare their bids. The deadline shall also consider the urgency of the procurement
involved.
Bids submitted after the deadline shall not be accepted.
Notwithstanding the provisions of this Section and Section 26 of this Act, the GPPB may prescribe innovative procedures for the submission,
receipt and opening of bids through the G-EPS.

SEC. 26. Modification and Withdrawal of Bids. – A bidder may modify his bid, provided that this is done before the deadline for the
receipt of bids. The modification shall be submitted in a sealed envelope duly identified as a modification of the original bid and stamped received by
the BAC.
A bidder may, through a letter, withdraw his bid or express his intention not to participate in the bidding before the deadline for the receipt of
bids. In such case, he shall no longer be allowed to submit another Bid for the same contract either directly or indirectly.

SEC. 27. Bid Security. – All Bids shall be accompanied by a Bid security, which shall serve as a guarantee that, after receipt of the Notice of
Award, the winning bidder 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 Bid security shall be prescribed in the IRR.

SEC. 28. Bid Validity. – Bids and Bid securities shall be valid for such reasonable period of time indicated in the Bidding Documents. The
duration for each undertaking shall take into account the time involved in the process of Bid evaluation and award of contract.

SEC. 29. Bid Opening. – The BAC shall publicly open all bids at the time, date, and place specified in the bidding documents. The minutes
of the bid opening shall be made available to the public upon written request and payment of a specified fee.

ARTICLE IX
BID EVALUATION

SEC. 30. Preliminary Examination of Bids. – Prior to Bid evaluation, the BAC shall examine first the technical components of the bids
using "pass/fail" criteria to determine whether all required documents are present. Only bids that are determined to contain all the bid requirements of
the technical component shall be considered for opening and evaluation of their financial component.

SEC. 31. Ceiling for Bid Prices. – The ABC shall be the upper limit or ceiling for the Bid prices. Bid prices that exceed this ceiling shall be
disqualified outright from further participating in the bidding. There shall be no lower limit to the amount of the award.

SEC. 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 that passed the preliminary examination shall be ranked from lowest to highest in
terms of their corresponding calculated prices. The bid with the lowest calculated price shall be referred to as the "Lowest Calculated Bid."

SEC. 33. Bid Evaluation of Short Listed Bidders for Consulting Services. – For the Procurement of Consulting Services, the Bids of the
short listed bidders shall be evaluated and ranked using numerical ratings in accordance with the evaluation criteria stated in the Bidding Documents,
which shall include factors such as, but not limited to, experience, performance, quality of personnel, price and methodology. The Bids shall be ranked
from highest to lowest in terms of their corresponding calculated ratings. The Bid with the highest calculated rating shall be the “Highest Rated Bid.”

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After approval by the Head of the Procuring Entity of the Highest Rated Bid, the BAC shall invite the bidder concerned for negotiation and/or clarification
on the following items: financial proposal submitted by the bidder, terms of reference, scope of services, methodology and work program, personnel to
be assigned to the job, services/facilities/data to be provided by the Procuring Entity concerned, and provisions of the contract. When negotiations with
the first-in-rank bidder fails, the financial proposal of the second rank bidder shall be opened for negotiations: Provided, That the amount indicated in
the financial envelope shall be made as the basis for negotiations and the total contract amount shall not exceed the amount indicated in the envelope
and the ABC. Whenever necessary, the same process shall be repeated until the bid is awarded to the winning bidder.

ARTICLE X
POST-QUALIFICATION

SEC. 34. Objective and Process of Post-qualification. – Post-qualification is the stage where the bidder with the Lowest Calculated Bid,
in the case of Goods and Infrastructure Projects, or the Highest Rated Bid, in the case of Consulting Services, undergoes verification and validation
whether he has passed all the requirements and conditions as specified in the Bidding Documents.
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 Infrastructure or the “Highest Rated Responsive Bid,” in the case of Consulting Services.
However, if a bidder fails to meet any of the requirements or conditions, he shall be “post-disqualified” and the BAC shall conduct the post-qualification
on the bidder with the second Lowest Calculated Bid or Highest Rated Bid. If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is
post-disqualified, the same procedure shall be repeated until the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid is finally determined.
In all cases, the contract shall be awarded only to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.

SEC. 35. Failure of Bidding. – There shall be a failure of bidding if:

(a) No bids are received;

(b) No bid qualifies as the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid; or,
(c) Whenever the bidder with the highest rated/lowest calculated responsive bid refuses, without justifiable cause to accept
the award of contract, as the case may be.

Under any of the above instances, the contract shall be re-advertised and re-bid. The BAC shall observe the same process and set the new
periods according to the same rules followed during the first bidding. After the second failed bidding, however, the BAC may resort to negotiated
procurement as provided for in Section 53 of this Act.

SEC. 36. Single Calculated/Rated and Responsive Bid Submission. – A single calculated/rated and responsive bid shall be considered
for award if it falls under any of the following circumstances:

(a) If after advertisement, only one prospective bidder submits a Letter of Intent and/or applies for eligibility check, and meets the
eligibility requirements or criteria, after which it submits a bid, which is found to be responsive to the bidding requirements;
(b) If after the advertisement, more than one prospective bidder applies for eligibility check, but only one bidder meets the eligibility
requirements or criteria, after which it submits a bid which is found to be responsive to the bidding requirements; or
(c) If after the eligibility check, more than one bidder meets the eligibility requirements, but only one bidder submits a bid, and its bid
is found to be responsive to the bidding requirements.

In all instances, the Procuring Entity shall ensure that the ABC reflects the most advantageous prevailing price for the Government.

ARTICLE XI
AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT

SEC. 37. Notice and Execution of Award. – Within a period not exceeding fifteen (15) calendar days from the determination and declaration
by the BAC of the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid, and the recommendation of the award, the Head of the Procuring
Entity or his duly authorized representative shall approve or disapprove the said recommendation. In case of approval, the Head of the Procuring Entity
or his duly authorized representative shall immediately issue the Notice of Award to the bidder with the Lowest Calculated Responsive Bid or Highest
Rated Responsive Bid.
Within ten (10) calendar days from receipt of the Notice of Award, the winning bidder shall formally enter into contract with the Procuring
Entity. When further approval of higher authority is required, the approving authority for the contract shall be given a maximum of twenty (20) calendar
days to approve or disapprove it.
In the case of government-owned and/or -controlled corporations, the concerned board shall take action on the said recommendation within
thirty (30) calendar days from receipt thereof.
The Procuring Entity shall issue the Notice to Proceed to the winning bidder not later than seven (7) calendar days from the date of approval
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 thereof by
the contractor.

SEC. 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 shorter period to be determined by the procuring entity concerned. Without prejudice to the provisions of the
preceding section, the different procurement activities shall be completed within reasonable periods to be specified in the IRR.

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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 the case of governmentowned and/or -controlled corporations, within the periods specified in the preceding paragraph, the contract concerned shall
be deemed approved.

SEC. 39. Performance Security. – Prior to the signing of the contract, the winning bidder shall, as a measure of guarantee for the faithful
performance of and compliance with his obligations under the contract prepared in accordance with the Bidding Documents, be required to post a
performance security in such form and amount as specified in the Bidding Documents.

SEC. 40. Failure to Enter into Contract and Post Performance Security. – If, for justifiable causes, the bidder with the Lowest Calculated
Responsive Bid or Highest Rated Responsive Bid fails, 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 disqualify the said bidder and shall
undertake post-qualification for the next-ranked Lowest Calculated Bid or Highest Rated Bid. This procedure shall be repeated until an award is made.
However, if no award is possible, the contract shall be subjected to a new bidding.
In the case of a failure to post the required performance security, the bid security shall be forfeited without prejudice to the imposition of
sanctions prescribed under Article XXIII.

SEC. 41. Reservation Clause. – The Head of the Agency reserves the right to reject any and all Bids, declare a failure of bidding, or not
award the contract in the following situations:

(a) If there is prima facie evidence of collusion between appropriate public officers or employees of the Procuring Entity, or between
the BAC and any of the bidders, or if the collusion is between or among the bidders themselves, or between a bidder and a third party, including any act
which restricts, suppresses or nullifies or tends to restrict, suppress or nullify competition;
(b) If the BAC is found to have failed in following the prescribed bidding procedures; or
(c) For any justifiable and reasonable ground where the award of the contract will not redound to the benefit of the government as
defined in the IRR.

SEC. 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. The rules and guidelines shall include standard general and special conditions for
contracts.

ARTICLE XII
DOMESTIC AND FOREIGN PROCUREMENT

SEC. 43. Procurement of Domestic and Foreign Goods. – Consistent with the country’s obligations under international treaties or
agreements, Goods may be obtained from domestic or foreign sources and the procurement thereof shall be open to all eligible suppliers, manufacturers
and distributors. However, in the interest of availability, efficiency and timely delivery of Goods, the Procuring Entity may give preference to the purchase
of domestically-produced and manufactured goods, supplies and materials that meet the specified or desired quality.

ARTICLE XIII
BIDDING OF PROVINCIAL PROJECTS

SEC. 44. Bidding of Provincial Projects. – Priority programs and infrastructure projects funded out of the annual General Appropriations
Act which are intended for implementation within the province shall be subject to the same public bidding and to the procurement processes 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 “provincial projects” and shall be governed by this Section and Section 45 hereof.

SEC. 45. Provincial Bidders. – Within five (5) years from the effectivity of this Act, a 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 among the provincial
bidders which is higher than the lowest bid made by a contractor with principal office outside the said province shall be granted the privilege to match
the bid made by the latter: Provided, however, That the release of funds for said projects shall be published 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.

ARTICLE XIV
LEASE OF COMPUTERS, COMMUNICATIONS, INFORMATION AND OTHER EQUIPMENT

SEC. 46. Lease Contracts. – Lease of construction and office equipment, including computers, communication and information technology
equipment are subject to the same public bidding and to the processes prescribed under this Act.

ARTICLE XV
DISCLOSURE OF RELATIONS

SEC. 47. Disclosure of Relations. – In addition to the proposed contents of the Invitation to Bid as mentioned under Section 21 of this
Act, all bidding documents shall be accompanied by a sworn affidavit of the bidder that he or she or any officer of their corporation is not related to the

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Head of the Procuring Entity by consanguinity or affinity up to the third civil degree. Failure to comply with the aforementioned provision shall be a
ground for the automatic disqualification of the bid in consonance with Section 30 of this Act.

ARTICLE XVI
ALTERNATIVE METHODS OF PROCUREMENT

SEC. 48. Alternative Methods. – Subject to the prior approval of the Head of the Procuring Entity or his duly authorized representative,
and 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:

(a) Limited Source Bidding, otherwise known as Selective Bidding – a method of Procurement that involves direct invitation to bid by
the Procuring Entity from a set of preselected suppliers or consultants with known experience and proven capability relative to the requirements of a
particular contract;
(b) Direct Contracting, otherwise known as Single Source Procurement – a method of Procurement that does not require elaborate
Bidding Documents because the supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sale, which
offer may be accepted immediately or after some negotiations;
(c) Repeat Order – a method of Procurement that involves a direct Procurement of Goods from the previous winning bidder, whenever
there is a need to replenish Goods procured under a contract previously awarded through Competitive Bidding;
(d) Shopping – a method of Procurement whereby the Procuring Entity simply requests for the submission of price quotations for readily
available off-the-shelf Goods or ordinary/regular equipment to be procured directly from suppliers of known qualification; or
(e) Negotiated Procurement – a method of Procurement that may be resorted under the extraordinary circumstances 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 financially capable supplier, contractor or consultant.

In all instances, the Procuring Entity shall ensure that the most advantageous price for the Government is obtained.

SEC. 49. Limited Source Bidding. – Limited Source Bidding may be resorted to
only in any of the following conditions:

(a) Procurement of highly specialized types of Goods and Consulting Services which are known to be obtainable only from a limited
number of sources; or
(b) Procurement of major plant components where it is deemed advantageous to limit the bidding to known eligible bidders in order to
maintain an optimum and uniform level of quality and performance of the plant as a whole.

SEC. 50. Direct Contracting. – Direct Contracting may be resorted to only in any
of the following conditions:

(a) Procurement of Goods of proprietary nature, which can be obtained only from the proprietary source, i.e. when patents, trade secrets
and copyrights prohibit others from manufacturing the same item;
(b) When the Procurement of critical components from a specific manufacturer, supplier or distributor is a condition precedent to hold a
contractor to guarantee its project performance, in accordance with the provisions of his contract; or,
(c) Those sold by an exclusive dealer or manufacturer, which does not have subdealers selling at lower prices and for which no suitable
substitute can be obtained at more advantageous terms to the Government.

SEC. 51. Repeat Order. – When provided for in the Annual Procurement Plan, Repeat Order may be allowed wherein the Procuring Entity
directly procures Goods from the previous winning bidder whenever there arises a need to replenish goods procured under a contract previously awarded
through Competitive Bidding, subject to post-qualification process prescribed in the Bidding Documents and provided all the following conditions are
present:

(a) The unit price must be equal to or lower than that provided in the original contract;
(b) The repeat order does not result in splitting of requisitions or purchase orders;
(c) Except in special circumstances defined in the IRR, the repeat order shall be availed of only within six (6) months from the date of
the Notice to Proceed arising from the original contract; and,
(d) The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item of the original contract.

SEC. 52. Shopping. – Shopping may be resorted to under any of the following instances:

(a) When there is an unforeseen contingency requiring immediate purchase:

Provided, however, That the amount shall not exceed Fifty Thousand Pesos (P50,000); or

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(b) Procurement of ordinary or regular office supplies and equipment not available in the Procurement Service involving an amount not
exceeding Two Hundred Fifty Thousand Pesos (P250,000): Provided, however, That the Procurement does not result in Splitting of Contracts:
Provided, further, That at least three (3) price quotations from bona fide suppliers shall be obtained.

The above amounts shall be subject to a periodic review by the GPPB. 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.

SEC. 53. Negotiated Procurement. – Negotiated Procurement shall be allowed

only in the following instances:

(a) In cases of two failed biddings, as provided in Section 35 hereof;

(b) In case of imminent danger to life or property during a state of calamity, or when time is of the essence arising from natural or man-
made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services,
infrastructure facilities and other public utilities;
(c) Take-over of contracts, which have been rescinded or terminated for causes provided for in the contract and existing laws, where
immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public
utilities;
(d) Where the subject contract is adjacent or contiguous to an on-going infrastructure project, as defined in the IRR: Provided,
however, That the original contract is the result of a Competitive Bidding; the subject contract to be negotiated has similar or related scopes of work; it
is within the contracting capacity of the contractor; the contractor uses 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 contractor has no negative slippage: Provided, further, That
negotiations for the procurement are commenced before the expiry of the original contract. Whenever applicable, this principle shall also govern
consultancy contracts, where the consultants have unique experience and expertise to deliver the required service; or,
(e) Subject to the guidelines specified in the IRR, purchases of Goods from another agency of the Government, such as the Procurement
Service of the DBM, which is tasked with a centralized procurement of commonly used Goods for the government in accordance with Letters of Instruction
No. 755 and Executive Order No. 359, series of 1989.

SEC. 54. Terms and Conditions for the use of Alternative Methods. – The specific terms and conditions, including the limitations and
restrictions, for the application of each of the alternative methods mentioned in this Article shall be specified in the IRR.

ARTICLE XVII
PROTEST MECHANISM

SEC. 55. Protests on Decisions of the BAC. – Decisions of the BAC 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 nonrefundable protest
fee. The amount of the protest fee and the periods during which the protests may be filed and resolved shall be specified in the IRR.

SEC. 56. Resolution of Protests. – The protests shall be resolved strictly on the basis of records of the BAC. Up to a certain amount to be
specified in the IRR, the decisions of the Head of the Procuring Entity shall be final.

SEC. 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 is made.

SEC. 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 specified in this Article shall be dismissed for lack of jurisdiction. The regional trial
court shall have jurisdiction over final decisions of the head of the procuring entity. Court actions shall be governed by Rule 65 of the 1997 Rules of Civil
Procedure.

This provision is without prejudice to any law conferring on the Supreme Court the sole jurisdiction to issue temporary restraining orders and injunctions
relating to Infrastructure Projects of Government.

ARTICLE XVIII
SETTLEMENT OF DISPUTES

SEC. 59. Arbitration. – Any and all disputes arising from the implementation of a contract covered by this Act shall be submitted to arbitration
in the Philippines according to the provisions of Republic Act No. 876, otherwise known as the "Arbitration Law": Provided,
however, That, disputes that are within the competence of the Construction Industry
Arbitration Commission to resolve shall be referred thereto. The process of arbitration shall
be incorporated as a provision in the contract that will be executed pursuant to the provisions of this Act: Provided, That by mutual agreement, the
parties may agree in writing to resort to alternative modes of dispute resolution.

SEC. 60. Appeals. – The arbitral award and any decision rendered in accordance with the foregoing Section shall be appealable by way of a
petition for review to the Court of Appeals. The petition shall raise pure questions of law and shall be governed by the Rules of Court.

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ARTICLE XIX
CONTRACT PRICES AND WARRANTIES

SEC. 61. Contract Prices. – For the given scope of work in the contract as awarded, all bid prices shall be considered as fixed prices, and
therefore not subject to price escalation during contract implementation, except under extraordinary circumstances and upon prior approval of 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 Philippines, and upon the recommendation of the procuring entity concerned.

SEC. 62. Warranty. – (a) For the procurement of Goods, in order to assure that manufacturing defects shall be corrected by the supplier,
manufacturer, or distributor, as the case may be, for a specific time after performance of the contract, a warranty shall be required from the contract
awardee for such period of time as may be provided in the IRR, the obligation for which shall be covered by either retention money in the amount
equivalent to a percentage of every progress 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 that the Goods supplied are free from defects and
all the conditions imposed under the contract have been fully met.
(b) For the procurement of infrastructure projects, the contractor shall assume full responsibility for the contract work from the time project
construction commenced up to a reasonable period as defined in the IRR taking into consideration the scale and coverage of the project from its final
acceptance by the government and shall be held responsible for any damage or construction of works except those occasioned by force majeure. The
contractor shall be fully responsible for the safety, protection, security, and convenience of his personnel, third parties, and the public at large, as well
as the works, equipment, installation and the like to be affected by his construction work and shall be 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.
The contractor shall undertake the repair works, at his own expense, of any defect or damage to the infrastructure projects on account of the
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 government shall undertake such repair works and shall be entitled to full reimbursement of
expenses incurred therein upon demand.
Any contractor who fails to comply with the preceding paragraph shall suffer perpetual disqualification from participating in any public bidding
and his property or properties shall be subject to attachment or garnishment proceedings to recover the costs. All payables of government in his favor
shall be offset to recover the costs.

ARTICLE XX
THE GOVERNMENT PROCUREMENT POLICY BOARD

SEC. 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 to the country’s regional and international obligations; (b) formulate and amend,
whenever necessary, the IRR and the corresponding standard forms for Procurement; (c) ensure that Procuring Entities regularly conduct Procurement
training programs and prepare a Procurement operations manual for all offices and agencies of government; and (d) conduct an annual review of the
effectiveness of this Act and recommend any amendments thereto, as may be necessary.
The GPPB shall convene within fifteen (15) days from the effectivity of this Act to formulate the IRR and for other related purposes. The GPPB shall be
supported by a technical support office.
In addition to the powers granted under this Act, the GPPB shall absorb all the powers, functions and responsibilities of the Procurement Policy
Board created under Executive Order No. 359, series of 1989. All affected functions of the Infrastructure Committee of the National Economic and
Development Authority Board are hereby transferred to the GPPB.

SEC. 64. Membership. – The GPPB shall be composed of the Secretary of the Department of Budget and Management, as 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 Highways, Finance, Trade and Industry, Health, National Defense, Education, Interior and Local Government, Science
and Technology, Transportation and Communications, and Energy, or their duly authorized representatives and a representative from the private sector
to be appointed by the President upon the recommendation of the GPPB. The GPPB may invite a representative from the Commission on Audit to serve
as a resource person.

ARTICLE XXI
PENAL CLAUSE

SEC. 65. Offenses and Penalties. – (a) Without prejudice to the provisions of Republic Act No. 3019, otherwise known as the “Anti-Graft
and Corrupt Practices Act” and other penal laws, public officers who commit any of the following acts shall suffer the penalty of imprisonment of not less
than six (6) years and one (1) day, but not more than fifteen (15) years:

(1) Open any sealed Bid including but not limited to Bids that may have been submitted through the electronic system and any and all
documents required to be sealed or divulging their contents, prior to the appointed time for the public opening of Bids or other documents.
(2) Delaying, without justifiable cause, the screening for eligibility, opening of bids, evaluation and post evaluation of bids, and awarding
of contracts beyond the prescribed periods of action provided for in the IRR.
(3) Unduly influencing or exerting undue pressure on any member of the BAC or any officer or employee of the procuring entity to take
a particular action which favors, or tends to favor a particular bidder.
(4) Splitting of contracts which exceed procedural purchase limits and competitive bidding.
(5) When the head of the agency abuses the exercise of his power to reject any and all bids as mentioned under Section 41 of this Act
with manifest preference to any bidder who is closely related to him in accordance with Section 47 of this Act.
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When any of the foregoing acts is done in collusion with private individuals, the private individuals shall likewise be liable for the offense.
In addition, the public officer involved shall also suffer the penalty of temporary disqualification from public office, while the private individual
shall be permanently disqualified from transacting business with the Government.
(b) Private individuals who commit any of the following acts, including any public officer, who conspires with them, shall suffer the penalty of
imprisonment of not less than six (6) years and one (1) day but not more than fifteen (15) years:

(1) When two or more bidders agree and submit different Bids as if they were bona fide, when they knew that one or more of them was
so much higher than the other that it could not be honestly accepted and that the contract will surely be awarded to the pre-arranged lowest Bid.
(2) When a bidder maliciously submits different Bids through two or more persons, corporations, partnerships or any other business
entity in which he has interest to create the appearance of competition that does not in fact exist so as to be adjudged as the winning bidder.
(3) When two or more bidders enter into an agreement which call upon one to refrain from bidding for Procurement contracts, or which
call for withdrawal of Bids already submitted, or which are otherwise intended to secure an undue advantage to any one of them.
(4) When a bidder, by himself or in connivance with others, employ schemes which tend to restrain the natural rivalry of the parties or
operates to stifle or suppress competition and thus produce a result disadvantageous to the public.

In addition, the persons involved shall also suffer the penalty of temporary or perpetual disqualification from public office and be permanently
disqualified from transacting business with the Government.
(c) Private individuals who commit any of the following acts, and any public officer conspiring with them, shall suffer the penalty of
imprisonment of not less than six (6) years and one (1) day but not more than fifteen (15) years:

(1) Submit eligibility requirements of whatever kind and nature that contain false information or falsified documents calculated to
influence the outcome of the eligibility screening process or conceal such information in the eligibility requirements when the information will lead to a
declaration of ineligibility from participating in public bidding.
(2) Submit Bidding Documents of whatever kind and nature that contain false information or falsified documents or conceal such
information in the Bidding Documents, in order to influence the outcome of the public bidding.
(3) Participate in a public bidding using the name of another or allow another to use one’s name for the purpose of participating in a
public bidding.
(4) Withdraw a Bid, after it shall have qualified as the Lowest Calculated Bid/Highest Rated Bid, or refuse to accept an award, without
just cause or for the purpose of forcing the Procuring Entity to award the contract to another bidder. This shall include the non-submission within the
prescribed time, or delaying the submission of requirements such as, but not limited to, performance security, preparatory to the final award of the
contract.
(d) When the bidder is a juridical entity, criminal liability and the accessory penalties shall be imposed on its directors, officers or employees
who actually commit any of the foregoing acts.

SEC. 66. Jurisdiction. – Jurisdiction over the offenses defined under this Article shall belong to the appropriate courts, according to laws
existing at the time of the commission of the offenses.

ARTICLE XXII
CIVIL LIABILITY

SEC. 67. Civil Liability in Case of Conviction. – Without prejudice to administrative sanctions that may be imposed in proper cases, a
conviction under this Act or Republic Act No. 3019 shall carry with it civil liability, which may either consist of restitution for the damage done or the
forfeiture in favor of the government of any unwarranted benefit derived from the act or acts in question or both, at the discretion of the courts.

SEC. 68. Liquidated Damages. – All contracts executed in accordance with this Act shall contain a provision on liquidated damages which
shall be payable in case of breach thereof. The amount thereof shall be specified in the IRR.

ARTICLE XXIII
ADMINISTRATIVE SANCTIONS

SEC. 69. Imposition of Administrative Penalties. – (a) In addition to the provisions of Articles XXI and XXII of this Act, the Head of the
Procuring Entity, subject to the authority delegated to the BAC, if any, shall impose on bidders or prospective bidders, the administrative penalty of
suspension for one (1) year for the first offense, and suspension of two (2) years for the second offense from participating in the public bidding process,
for the following violations:

(1) Submission of eligibility requirements containing false information or falsified documents.

(2) Submission of Bids that contain false information or falsified documents, or the concealment of such information in the Bids in order
to influence the outcome of eligibility screening or any other stage of the public bidding.
(3) Allowing the use of one’s name, or using the name of another for purposes of public bidding.
(4) Withdrawal of a Bid, or refusal to accept an award, or enter into contract with the government without justifiable cause, after he had
been adjudged as having submitted the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.
(5) Refusal or failure to post the required performance security within the prescribed time.
(6) Termination of the contract due to the default of the bidder.
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Refusal to clarify or validate in writing its Bid during post-qualification within a period of seven (7) calendar days from receipt of the request
for clarification.
Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor.
All other acts that tend to defeat the purpose of the Competitive Bidding.
(b) In addition to the penalty of suspension, the Bid security or the performance security posted by the concerned bidder or prospective
bidder shall also be forfeited.
(c) The Head of the Procuring Entity may delegate to the BAC the authority to impose the aforementioned administrative penalties.

SEC. 70. Preventive Suspension. – The head of the procuring entity may preventively suspend any member of the Technical Working
Group or the Secretariat, or the BAC if there are strong reasons or prima facie evidence showing that the officials or employees concerned are guilty of
the charges filed against them under Articles XXI and XXII of this Act or for dishonesty as defined by the Civil Service Laws. In all cases, procedural and
substantive due process as mandated by the Constitution and Civil Service Laws, rules and regulations, shall be strictly observed.

SEC. 71. Lifting of Suspension and Removal of Administrative Disabilities. – Lifting of preventive suspension pending administrative
investigation, as well as removal of administrative penalties and disabilities shall be in accordance with the provisions of Sections 52 and 53, Chapter 6
(Civil Service Commission), Book V of Executive Order No. 292, the Administrative Code of 1987.

ARTICLE XXIV
LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS

SEC. 72. Private Legal Assistance. – All the members of the BAC are hereby authorized to engage the services of private lawyers or extend
counsel immediately upon receipt of Court Notice that a civil or criminal action, suit or proceeding is filed against them. The lawyer's fee shall be part of
the indemnification package for the BAC members, subject to the provisions of Section 73 hereof.

SEC. 73. Indemnification of BAC Members. – The GPPB shall 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 indemnification for all costs
and expenses reasonably incurred by such persons in connection with any civil or criminal action, suit or 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 a settlement or compromise, indemnification shall be confined only on matters covered by the settlement, as to which the
Procuring Entity had been advised by counsel 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

SEC. 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 Laws and two members thereof appointed by the Senate President, and the Chairman of the
House Committee on Appropriations, and two members thereof to be appointed by the Speaker of the House of Representatives.

SEC. 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 provisions shall be
formulated by the GPPB, jointly with the members of the Oversight Committee created under Section 74 hereof. The said rules and regulations shall be
approved by the President of the Philippines. For a period not later than thirty (30) days upon the approval of the implementing rules and regulations,
the standard forms for Procurement shall be formulated and approved.

SEC. 76. Repealing Clause. – This law repeals Executive Order No. 40, series of 2001, entitled “Consolidating Procurement Rules and Procedures for All National
Government Agencies, Government-Owned-or-Controlled Corporations and/or Government Financial Institutions, and Requiring the Use of the Government Electronic
Procurement System”; Executive Order No. 262, Series of 2000, entitled "Amending Executive Order No. 302, series of 1996, entitled "Providing Polices, Guidelines, Rules and
Regulations for the Procurement of Goods/Supplies by the National Government" and Section 3 of Executive Order No. 201, series of 2000, entitled "Providing Additional
Policies and Guidelines in the Procurement of Goods/Supplies by the National Government"; Executive Order No. 302, series of 1996, entitled "Providing Policies, Guidelines,
Rules and Regulations for the Procurement of Goods/Supplies by the National Government" and Presidential Decree No. 1594 dated June 11, 1978, entitled 'Prescribing Policies,
Guidelines, Rules and Regulations for Government Infrastructure Contracts." This law amends Title Six, Book Two of Republic Act No. 7160, otherwise known as the "Local
Government Code of 1991"; the relevant provisions of Executive Order No. 164, Series of 1987, entitled "Providing Additional Guidelines in the Processing and Approval of
Contracts of the National Government"; and the 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 for Other Purposes.” Any other law, presidential decree or issuance, executive order, letter of instruction, administrative order,
proclamation, charter, rule or regulation and/or parts thereof contrary to or inconsistent with the provisions of this Act is hereby repealed, modified or amended accordingly.

SEC. 77. Separability Clause. – If any provision of this Act is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid
and subsisting.
SEC. 78. Effectivity Clause. – This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in two (2) newspapers of general
circulation.

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