Resolution on the Non-Acceptability of Temporary PCAB License as an Eligibility Requirement

April 22, 2019

GPPB RESOLUTION NO. 10-2019

RESOLUTION ON THE NON-ACCEPTABILITY OF TEMPORARY PCAB LICENSE AS AN ELIGIBILITY REQUIREMENT

WHEREAS, Republic Act (RA) No. 9184, otherwise known as the "Government Procurement Reform Act" and the 2016 revised Implementing Rules and Regulations (IRR) took effect on 26 January 2003 and 28 October 2016, respectively;

WHEREAS, Section 63 of RA No. 9184 and its 2016 revised IRR authorize the Government Procurement Policy Board (GPPB) to formulate public procurement policies, rules and regulations, and amend its IRR, whenever necessary;

WHEREAS, Section 23.1 (a) (vi) of the 2016 revised IRR of RA No. 9184 requires the submission of a valid Philippine Contractors Accreditation Board (PCAB) License or Special PCAB License in case of Joint Ventures, and registration for the type and cost of the contract to be bid as part of the eligibility requirements under Class "A" technical documents;

WHEREAS, PCAB issues Temporary PCAB License for contractors filing their renewal on or before 30th of June of each year until the PCAB license is finally issued;

WHEREAS, the GPPB-TSO receives inquiries from Procuring Entities, as well as private entities/contractors, on the acceptability of a Temporary PCAB License as an eligibility requirement;

WHEREAS, considering the volume of phone-in and walk-in queries regarding the acceptability of Temporary PCAB License, the GPPB-TSO presented the issue to the Inter-Agency Technical Working Group (IATWG) of the GPPB during its 3rd Regular Meeting held on 17 August 2018 and recommended for the IATWG to endorse to the GPPB the issuance of a Circular to clarify the acceptability of a Temporary PCAB License as an eligibility requirement;

WHEREAS, the IATWG approved the GPPB-TSO's recommendation, subject to further verification of turn-around time of renewal process with the PCAB;

WHEREAS, as instructed by the IATWG, the GPPB-TSO requested PCAB to clarify the turn-around time of renewal process of PCAB Licenses, to which the PCAB responded that turn-around time is twenty (20) calendar days;

WHEREAS, on 28 February 2019, representatives from the GPPB-TSO and PCAB met to discuss various matters including the latter's issuance of a Temporary PCAB License;

WHEREAS, based on the information gathered from the meeting and the reply-letter of PCAB, the GPPB-TSO revised its position and recommended the following:

1. The issuance of a Circular clarifying that Temporary PCAB License is not acceptable as an eligibility requirement; and

2. To remind all prospective contractors intending to participate in government procurement, to renew their license in accordance with the PCAB rules and regulations.

WHEREAS, during the 3rd Regular Meeting of the IATWG held on 11 April 2019, the GPPB-TSO presented its findings and recommendation and after due consideration, the IATWG resolved to endorse the GPPB-TSO's recommendation to the GPPB for its approval with the following modification:

1. The issuance of a Circular clarifying that Temporary PCAB License is not acceptable as an eligibility requirement, in lieu of a valid PCAB license for the purpose of participating in government bidding;

2. To remind all prospective bidders intending to participate in government procurement, to ensure that they submit a valid PCAB license during submission of bid and to ensure that said license is valid until completion of the infrastructure project;

3. To encourage prospective bidders to renew their licenses in accordance with the PCAB rules and regulations; and

4. To remind the PCAB to ensure the timely issuance of a valid PCAB license taking into consideration the requirement to streamline its processes in view of the Ease of Doing Business Act.

WHEREAS, during the 3rd Regular Meeting of the GPPB on 22 April 2019, the members of the Board discussed the foregoing recommendation of the IATWG and agreed to issue a Circular;

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

a) ISSUE a Circular clarifying that Temporary PCAB License is not acceptable as an eligibility requirement, in lieu of a valid PCAB license for the purpose of participating in government bidding;

b) REMIND all prospective bidders intending to participate in government procurement, to ensure that they submit a valid PCAB license during submission of bid and to ensure that said license is valid until completion of the infrastructure project;

c) ENJOIN prospective bidders to comply with the period of renewal of licenses under PCAB rules and regulations; and

d) REMIND the PCAB to ensure the timely issuance of a valid PCAB license taking into consideration the requirement to streamline its processes in view of the Ease of Doing Business Act.

This Resolution shall take effect immediately.

APPROVED this 22nd day of April 2019 at Manila City, Philippines.

(SGD.) ____________________________________Department of Budget and Management

___________________________________________National Economic and Development Authority

__________________________________________Department of Education

(SGD.) ____________________________________Department of Energy

(SGD.) ____________________________________Department of Finance

(SGD.) ____________________________________Department of Health

(SGD.) _____________________________________Department of the Interior and Local Government

(SGD.) _____________________________________Department of National Defense

(SGD.) _____________________________________Department of Public Works and Highways

(SGD.) ____________________________________Department of Science and Technology

(SGD.) ____________________________________Department of Trade and Industry

(SGD.) ____________________________________Department of Transportation

(SGD.) ____________________________________Private Sector Representative

__________________________________________________Department of Information and Communications Technology

ATTACHMENT

GPPB Circular No. 004-19April 22, 2019