Amending Section 34.2 of the Revised Implementing Rules and Regulations of RA No. 9184 (Government Procurement Reform Act)

October 31, 2014

GPPB RESOLUTION NO. 023-14

AMENDING SECTION 34.2 OF THE REVISED IMPLEMENTING RULES AND REGULATIONS (IRR) OF REPUBLIC ACT (RA) NO. 9184, CLAUSES 29.2, 28.2, AND 27.2 OF THE INSTRUCTIONS TO BIDDERS OF THE PHILIPPINE BIDDING DOCUMENTS (PBDs) FOR GOODS, INFRASTRUCTURE PROJECTS AND CONSULTING SERVICES, RESPECTIVELY

WHEREAS, Republic Act (RA) No. 9184, otherwise known as the "Government Procurement Reform Act" and its revised Implementing Rules and Regulations (IRR) took effect on 26 January 2003 and 2 September 2009, respectively;

WHEREAS, Section 63 of RA 9184 mandates the Government Procurement Policy Board (GPPB) to protect national interest in all matters affecting public procurement;

WHEREAS, Section 8.5.1 mandates that to ensure the widest dissemination of the Invitation to Bid/Request for Expression of Interest, manufacturers, suppliers, distributors, contractors and/or consultants shall register with the PhilGEPS;

WHEREAS, Section 34.2 of the revised IRR of RA 9184, Clauses 29.2, 28.2 and 27.2 of the ITB of the PBDs for Goods, Infrastructure Projects and Consulting Services, respectively, require the submission of Certificate of PhilGEPS Registration during post-qualification of a bidder with the Lowest Calculated Bid or Highest Rated Bid;

WHEREAS, in its letter dated 10 June 2014, The Department of Foreign Affairs (DFA) requested the GPPB for temporary suspension from the use and registration with PhilGEPS of manufacturers, suppliers, distributors, contractors and/or consultants for Foreign Service Posts (FSPs) procurement until all features of the new PhilGEPS system and other related provisions of the IRR are made applicable for procurement in foreign jurisdictions;

WHEREAS, foreign suppliers are reluctant to participate with FSPs procurement activities because of the registration requirement with PhilGEPS. Suppliers are unwilling to subscribe to the membership process, pay user fees and to submit eligibility documents. Private contracting parties in foreign countries who are eligible and qualified to participate in public bidding and other procurement projects are discouraged to supply to FSPs because of the registration requirement;

WHEREAS, the DFA raised the following common issues of FSPs in PhilGEPS registration by suppliers:

1. Business Tax Identification Number (TIN) — Business TIN of different countries are not the same. The Israeli business TIN has 9 digits only. The PhilGEPS website requires a 12-digit business TIN, and tags the 9-digit TIN as invalid.

2. SEC Certificate Number — Many suppliers abroad do not have SEC Certificates or its equivalent.

3. SEC Registration Date — This is not applicable to foreign suppliers due to non-availability of SEC Certificates.

4. Organization Address and Area of Delivery of Goods and Services to be procured — the fields only allow for the Philippine locations.

5. Telephone number — The field has a default country code of +63.

6. Some suppliers are unwilling to provide information on their market capitalization.

WHEREAS in order to resolve the concern of FSPs in cases where the prospective bidders are unwilling to register with the PhilGEPS, the procuring entity may assist the suppliers, manufacturers, distributors, contractors and/or consultants by undertaking the registration in behalf of the bidders to meet the requirements of RA 9184 and its IRR.

WHEREAS, the present registration of the manufacturers, suppliers, distributors, contractors and/or consultants with the PhilGEPS has corresponding Registration Number that can be required from the bidder in lieu of the Certificate of PhilGEPS Registration under Section 34.2 of the IRR of RA 9184.

WHEREAS, after careful and judicious deliberations on the matter, the GPPB found DFA's reasons and justifications sufficient to amend the requirements under Section 34.2 of the IRR of RA 9184, particularly the requirement for PhilGEPS Certificate of Registration for manufacturers, suppliers, distributors, contractors and/or consultants for FSPs and other government agencies operating in foreign countries;

WHEREAS, during the 6th GPPB and 5th Inter-Agency Technical Working Group (IATWG) Joint Meeting held on 31 October 2014, the requirement for Certificate of PhilGEPS Registration for FSPs manufacturers, suppliers, distributors, contractors and/or consultants under Section 34.2 of the IRR of RA 9184, was discussed;

NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to confirm, adopt and approve, as WE hereby confirm, adopt and approve the following:

1. AMEND Section 34.2 of the IRR of RA 9184, relative to Certificate of PhilGEPS Registration, as shown in Annex "A" hereof; and,

2. AMEND Clauses 29.2, 28.2, and 27.2 of the ITB of the PBDs for Goods, Infrastructure and Consulting Services, respectively, as shown in Annex "B".

This Resolution shall take effect after fifteen (15) days following the publication in the Official Gazette or a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified true copies of this Resolution.

APPROVED this 31st day of October 2014 at Pasig City, Philippines.

(SGD.) _______________________________________

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Attested by:

(SGD.) DENNIS S. SANTIAGOBoard Secretary, GPPB

ANNEX A

Revised Implementing Rules and Regulations (IRR)Republic Act (RA) No. 9184

 

Original	Amended
Section 34.2	Section 34.2
Within three (3) calendar days from receipt	Within three (3) calendar days from
by the bidder of the notice from the BAC that	receipt by the bidder of the notice from
the bidder has the Lowest Calculated Bid or	the BAC that the bidder has the Lowest
Highest Rated Bid, the bidder shall submit	Calculated Bid or Highest Rated Bid, the
the following documentary requirements to	bidder shall submit the following
the BAC:	documentary requirements to the BAC:
a)	Latest income and business tax returns;	a)	Latest income and business tax
			returns;
b)	Certificate of PhilGEPS Registration; and,	b)	Certificate of PhilGEPS Registration
			or PhilGEPS Registration Number if
c)	Other appropriate licenses and permits		the procuring entity is a Philippine
	required by law and stated in the Bidding		foreign office or post, provided
	Documents. . .		that participating bidders should
			register with the PhilGEPS prior to
			bid opening; and
		c)	Other appropriate licenses and
			permits required by law and stated in
			the Bidding Documents. . .

ANNEX B

Philippine Bidding Documents (PBDS) Instructions to Bidders (ITB)

Clause 29.2, ITB, PBDs for Goods

Original	Amended
Within a non-extendible period of three (3)	Within a non-extendible period of three
calendar days from receipt by the bidder of	(3) calendar days from receipt by the
the notice from the BAC that it submitted the	bidder of the notice from the BAC that it
LCB, the Bidder shall submit the following	submitted the LCB, the Bidder shall
documentary requirements:	submit the following documentary
		requirements:
(a)	Latest income and business tax	(a)	Latest income and business tax
	returns in the form specified in the		returns in the form specified in the
	BDS;		BDS;
(b)	Certificate of PhilGEPS Registration;	(b)	Certificate of PhilGEPS Registration
	and		or PhilGEPS Registration Number if
			the procuring entity is a Philippine
(c)	Other appropriate licenses and		foreign office or post, provided that
	permits required by law and stated in		participating bidders should register
	the BDS. . .		with the PhilGEPS prior to bid
			opening; and
		(c)	Other appropriate licenses and
			permits required by law and stated in
			the BDS. . .

Clause 27.2, ITB, PBDs, for Consulting Services

Original		Amended
Within a non-extendible period of three (3)		Within a non-extendible period of three
calendar days from receipt by the Consultant		(3) calendar days from receipt by the
of the notice from the BAC that it is the		Consultant of the notice from the BAC
HRB, the Consultant shall submit the		that it is the HRB, the Consultant shall
following documentary requirements:		submit the following documentary
			requirements:
(a)	Latest income and business tax	(a)	Latest income and business tax
	returns in the form specified in the		returns in the form specified in the
	BDS;		BDS;
(b)	Certificate of PhilGEPS Registration;	(b)	Certificate of PhilGEPS Registration
	and		or PhilGEPS Registration Number if
(c)	Other appropriate licenses and		the procuring entity is a Philippine
	permits required by law and stated in		foreign office or post, provided that
	the BDS. . .		participating bidders should register
			with the PhilGEPS prior to bid
			opening; and
		(c)	Other appropriate licenses and
			permits required by law and stated in
			the BDS. . .