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Philippines Government Procurement Law

Recent changes to the government procurement law in the Philippines have brought about significant modifications to the public bidding process. On July 20, 2024, the President of the Philippines signed Republic Act No. 12009, also known as the New Government Procurement Act (NGPA). This new law, which will be fully implemented within a three-year transition period from the approval of the procurement standard forms, has the potential to greatly improve the prospects of U.S. companies in winning public tenders in the Philippines. However, it may also require them to adjust their strategies.

The NGPA aims to enhance transparency, competition, efficiency, professionalism, accountability, and sustainability in government procurement. It is anticipated to rectify existing loopholes in the current government procurement system, eradicate opportunities for corruption, and improve service delivery. Furthermore, the NGPA will expedite procurement activities by reducing the period from bid opening to contract award from 90 days to 60 days.

The new legislation also alters the criteria for winning government contracts, as the lowest bid will no longer automatically secure contracts. This change is intended to enhance procurement quality by considering multiple factors when evaluating bids, addressing previous issues where contracts awarded solely based on the lowest bid led to subpar performance and delays.

The revised law also brings in new approaches for acquiring goods and services, including competitive dialogue, framework contracting, pooled procurement, and direct procurement for science, technology, and innovation. 
The Implementing Rules and Regulations (IRR) must be finalized and approved by the GPPB within 180 days from the promulgation of the Act. Moreover, the standard procurement forms should be completed and established within 90 days from the approval of the IRR. 

The full version of the NGPA can be found in the GPPB microsite: https://ngpa.gppb.gov.ph/.  

U.S. companies wishing to participate in public tenders must adjust their strategies to adhere to the new standards. 

For more information, contact the U.S. Commercial Service in Manila thru BusinessPhilippines@trade.gov.

 

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