Pangandaman: Digitalization, innovation at the heart of new Government Procurement Reform Act 


MANILA–Department of Budget and Management (DBM) Secretary Mina F. Pangandaman has expressed belief the digitalization and innovation, which are at the heart of House Bill 9648 or the proposed new Government Procurement Reform Act (GPRA), will address gaps in the system of purchasing goods and services.

“Towards efficiency, we will streamline processes through digitalization and innovation by adopting electronic (e)-bidding and by modernizing the centralized procurement system of the Procurement Service (PS)-DBM,” said Sec. Mina.

President Ferdinand R. Marcos Jr. has earlier urged the legislative branch to enact a new government procurement law and a new government auditing code to make procurement and auditing “more attuned to these changing times.”

The proposed new GPRA aims to promote transparency, competitiveness, efficiency, proportionality, accountability, public monitoring, procurement professionalization, and sustainability in government procurement.

“The Philippine Government Electronic Procurement System (PhilGEPS) offers innovative features and solutions, including e-reverse auction, e-shopping/e-small-value procurement, and the e-marketplace which will be expanded to include non-common-use supplies with a registration facility for qualified suppliers,” Sec. Mina added.

Section 6 (Adoption of an Electronic Procurement System) of the new GPRA says 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 that covers procurement planning until payment.”

All government procuring entities are required to register with PhilGEPS for the purchase of common-use supplies and equipment (CSEs) and utilize its additional innovative features and solutions in accordance with the rules and procedures issued by the Government Procurement Policy Board (GPPB).

These innovative features include the following: Electronic Bulletin Board for posting procurement opportunities, notices, awards, and reasons for awarding; Registry of Manufacturers, Suppliers, Distributors, Contractors and Consultants in a centralized electronic database; Electronic Catalogue of common-use goods, supplies, materials, and equipment; Virtual Store, which is open only to registered procuring entities and may not be accessed by suppliers; Electronic Marketplace, an online platform that allows procuring entities to search, view, compare, select, and procure common-use and non-common-use supplies and equipment from legally, technically, and financially capable suppliers.

For non-common use goods, the electronic marketplace allows suppliers to present their goods and inventory on a consignment basis, from which procuring entities may choose either the lowest complying bid or the most economically advantageous bid based on their needs and requirements; Electronic Reverse Auction, an online auction where a procuring entity invites suppliers to submit bids for specific goods and services on a specific date and time duration, based on defined specifications for design, quantity, quality, delivery, and related terms and conditions, and compete by outbidding each other through lower offers or amounts they are willing to accept.

At the close of the reverse auction duration, to be defined by the procuring entity, the procurement contract shall be awarded to the last complying bid; Electronic Small Value Procurement, a facility that allows procuring entities to resort to shopping or small value procurement under Article VIII of the Act; Electronic or Digital Payment, an inclusive digital payment system including stored money credits in an electronic wallet and direct electronic payment, and the use of credit cards for government purchases of CSEs or payments of the bidder for bidding documents, and bid securities; Electronic Bidding, a facility that allows the submission of an annual procurement plan, the conduct of pre-bid conferences, submission, receipt, and opening of bids electronically.

It covers the entire procurement process from planning, posting of bid opportunities and bidding documents, pre-bid conferences, receipt and opening of bids, evaluation of bids, post qualification, recommendation and award of contract, contract management, and implementation, including contract terminations, and payment which shall apply to goods, infrastructure, and consulting services.

All government procuring entities are required to register with PhilGEPS for access to an online network to facilitate the open, speedy, and efficient online transmission, conveyance, and use of electronic data messages or electronic documents. Procuring entities with established electronic procurement systems shall provide for a seamless interface of systems with the PhilGEPS to ensure efficient sharing of procurement information.

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