**Philippines**: Republic Act No. 12009, the New Government Procurement Act, establishes an electronic procurement and payment system across government agencies to improve transparency, efficiency, and sustainability. The law mandates cloud-based inventory, integrated databases, and prioritises quality and social impact alongside cost.
A newly enacted law in the Philippines, Republic Act No. 12009, also known as the “New Government Procurement Act (NGPA),” has been signed into effect by President Ferdinand Marcos Jr., with the aim of enhancing transparency, efficiency, and integrity in government procurement processes. This legislation impacts national government agencies (NGAs), government-owned and controlled corporations (GOCCs), state universities and colleges (SUCs), and local government units (LGUs), as articulated by Camarines Sur Representative LRay Villafuerte.
The NGPA introduces significant reforms by institutionalising an electronic procurement and payment system for the acquisition of goods, infrastructure projects, and consulting services funded through both local and foreign sources. Villafuerte, who is also the president of the National Unity Party (NUP) and a co-author of the law, stated that this advance aims to make online purchasing and payment a permanent fixture in government operations, thus enhancing transparency and reducing opportunities for corruption.
According to Villafuerte, the impetus for the NGPA arose from challenges experienced during the COVID-19 pandemic, where the lack of a cohesive automated warehousing and inventory system hindered effective procurement processes. “The existence of a digital system for warehousing and inventory is important to ensure safe and adequate storage of procured goods, proper recording of inventory movements, and a more efficient warehousing operation to prevent wastage,” he noted.
The Department of Budget and Management (DBM), along with the Bureau of the Treasury (BTr), has been tasked with developing a uniform electronic payment system for use by procuring entities and their suppliers. This system is designed to facilitate better storage, tracking, and management of procured goods through mandatory cloud-based inventory practices, which will be developed in consultation with the Department of Information and Communications Technology (DICT).
The law requires all relevant government bodies to collaboratively establish guidelines that promote efficiency and integrity within their warehousing functions, which includes setting up an auditable compliance framework. This ensures that all transactions are transparent and accountable.
Notably, the NGPA empowers the Government Procurement Policy Board (GPPB) to formulate rules that will interconnect various government databases. This includes linking systems like the Philippine Government Electronic Procurement System (PhilGEPS) with those of the Department of Trade and Industry (DTI) and local government units. The objective of such integration is to create a streamlined process that facilitates the sharing of project statuses, contracts, and performance information across different agencies.
Key features of RA 12009 also include new bid evaluation criteria. The Most Economically Advantageous and Responsive Bid (MEARB) prioritises not only cost but also quality, sustainability, and social impact when awarding contracts. The provision allows entities to consider various factors such as technical specifications and delivery times, thereby moving away from a purely price-driven selection process.
Moreover, the law promotes measures for sustainable procurement practices. Villafuerte, who is also behind the “Green Public Procurement (GPP) Act,” highlighted the importance of environmentally friendly practices that account for the entire lifecycle of goods and services.
The new law is also formulated to expedite the procurement process by introducing eleven methods of procurement, which include competitive bidding, negotiated procurement, and direct contracting. PhilGEPS is designated as the sole electronic portal for all procurement activities, reinforcing its role in providing a centralised source of information.
With these comprehensive changes, the NGPA aims to significantly reduce the lead time for government purchases and streamline operations, ensuring that public financial resources are deployed effectively and transparently.
Source: Noah Wire Services
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