The Market Monitor Minding the Nation's Business
The House of Representatives has passed a new bill to repeal the country’s old procurement law.
A total of 251 lawmakers moved in favor of House Bill (HB) No. 9648 or the New Government Procurement Reform Act.
HB No. 9648, a consolidation of five bills, including one from Speaker Ferdinand Martin Romualdez, seeks to repeal Republic Act No. 9184 or the Government Procurement Reform Act and replace it with an Electronic Procurement System, which authors believe would promote “greater transparency, accountability, operational efficiency, and value for money”.
Section 6 of the proposed bill reads: “the Philippine Government Electronic Procurement System (PhilGEPS) shall be the single electronic portal that shall serve as the primary channel and source of information in the conduct of all procurement activities by the government for the acquisition of goods, infrastructure projects, and consulting services”.
“To take advantage of the significant built-in efficiencies of the PhilGEPS and the volume discounts inherent in bulk purchasing through the centralized procurement undertaken by the Procurement Service–Department of Budget and Management (PS-DBM), all procuring entities shall utilize the PhilGEPS virtual store for the procurement of CSEs including additional innovative features and solution,” it added.
Section 9 of the bill meanwhile mandates government agencies to engage in interconnectivity to streamline procurement processes in the following areas:
Department of Trade and Industry (DTI) on its database relating to business registration, list of all ongoing projects in the public and private sector, and records of priority domestic goods.
Construction Industry Authority of the Philippines (CIAP) on the contractor’s performance evaluation system (CPES) and the Philippine Contractors’ Association Board (PCAB) on the licensing of contractors.
All LGUs on their issuance of permits and licenses
Bureau of Internal Revenue (BIR) on tax returns and clearance
Securities and Exchange Commission (SEC) and CDA on the mandatory submission of all registered enterprises and beneficial ownership information
Procuring entities with established electronic procurement systems and websites on the status of projects, contacts, and performance of its respective winning bidders.
Other relevant government agencies as may be determined by the GPPB.
No less than President Ferdinand Marcos Jr, during his State of the Nation address last July, said that the government needs a new law on procurement and government auditing to ensure that state agencies are able to keep up with the demands of the modern age.