Manila – In a significant legislative move, the House of Representatives on Wednesday passed a new procurement bill aimed at enhancing the efficiency, transparency, and sustainability of government procurement processes. House Bill (HB) 9663, known as the proposed New Government Procurement Reform Act, was approved during the plenary session through voice voting.
According to Philippines News Agency, The bill’s advancement follows President Ferdinand R. Marcos Jr.’s call during his State of the Nation Address in July for a new government procurement law to bolster a whole-of-government and whole-of-society approach, considering it a transformative solution in the face of changing times. HB 9663 proposes a streamlined and transparent procurement process, incorporating definitive timelines, the application of emerging technologies, innovative solutions, and open contracting practices.
A key component of the bill is the adoption of an electronic procurement system, primarily through the Philippine Government Electronic Procurement System (PhilGEPS). This system will serve as a central portal for information on all government procurement activities, ranging from planning to contract implementation.
Manila 4th District Rep. Edward Maceda emphasized that the bill focuses on the utilization of emerging technologies and innovative solutions. It mandates systems integration among key government agencies and leverages platforms for information distribution, accessibility, and public awareness, supporting digitalization and innovation.
Maceda outlined that the bill aims to enhance strategic planning in procurement by applying strategies such as fit-for-purpose policy, detailed engineering, multiyear contracting, and early procurement activities. It also introduces framework agreements, engagement of procuring agents, mandatory market scoping, and the use of life cycle assessment and cost analysis.
One of the bill’s notable features is the best value procurement, which considers the quality-price ratio and adopts the most economically advantageous bid (MEAB) criteria for goods and infrastructure projects. These criteria include qualitative, environmental, social, and other aspects relevant to the procuring entity’s subject matter.
Maceda highlighted the bill’s central aspect, giving the Bids and Awards Committee (BAC) or the head of the procuring entity (HoPE) the option to use the MEAB in evaluating bids for goods and infrastructure projects. In addition to competitive procurement, the bill proposes alternative procurement modes like direct contracting, limited source bidding, repeat order, and negotiation.
Moreover, HB 9663 champions sustainable procurement practices, promoting green public procurement and the inclusion of marginal sectors in procurement processes.