GROUP 1

Section 1. Short Title and Purpose

This Updated 2016 Revised Implementing Rules and Regulations, hereinafter called the IRR, is
promulgated pursuant to Section 75 of Republic Act No. (R.A.) 9184, otherwise known as the
“Government Procurement Reform Act,”.
There are some activities under R.A 9184:
• Addressing a lack of transparency and competition in government procurement.
• Eliminating collusion and interference
• Reducing delays in the procurement
• Promoting transparency, competitiveness and accountability
• Streamlining procurement process
• Enabling public monitoring of government procurement activities.

 The Republic Act No. (R.A) 9184 was signed into law on January 10, 2003, and took effect on
January 26, 2003.

Section 2. Declaration of Policy

The provisions of this IRR are in line with the commitment of the GoP to promote good governance and
its effort to adhere to the principles of transparency, accountability, equity, efficiency, and economy in
its procurement process. It is the policy of the GoP that procurement of Goods, Infrastructure Projects
and Consulting Services shall be competitive and transparent, and therefore shall undergo competitive
bidding, except as provided in Rule
XVI of this IRR.

Section 3. Governing Principles on Government Procurement

The procurement of the GoP shall be governed by these principles:
a) Transparency in the procurement process and in the implementation of procurement contracts through
wide dissemination of bid opportunities and participation of pertinent non-government organizations.
Transparency means that decisions and actions are made with clarity and visibility, and employees are
aware of the reasons behind them. It also involves sharing both positive and negative developments,
maintaining honesty, and ensuring that employees can trust the information they receive.

What are the four pillars of transparency?

The four pillars of transparency encompass the fundamental principles and practices that promote
openness, honesty, and accountability in various contexts, including business, governance, and leadership.
These pillars are:
1. Clear communication
Transparent organizations prioritize clear and effective communication. This involves sharing
information openly, ensuring that messages are easily understood, and actively listening to feedback. Clear
communication fosters trust and understanding among employees, stakeholders, and the public.
2. Accountability
Accountability means taking responsibility for one's actions and decisions. Transparent entities hold
individuals and leadership accountable for their behavior, performance, and adherence to ethical standards.
This ensures that there are consequences for misconduct and that commitments are met.
3. Disclosure of information
Transparency relies on disclosing relevant information to the appropriate parties. This may include
financial disclosures, performance metrics, decision-making processes, and other pertinent data. Disclosing
information helps stakeholders make informed decisions and judgments.
4. Accessibility
Accessibility refers to making information, resources, and opportunities available to all relevant
parties. Transparent organizations ensure that information and resources are accessible to those who need
them, reducing barriers and promoting equal access to opportunities.

b) Competitiveness by extending equal opportunity to enable private contracting parties who are eligible
and qualified to participate in competitive bidding.
c) Streamlined procurement process that will uniformly apply to all government procurement. The
procurement process shall be simple and made adaptable to advances in modern technology in order to
ensure an effective and efficient method.
d) System of accountability where both the public officials directly or indirectly involved in the
procurement process as well as in the implementation of procurement contracts and the private parties
that deal with GoP are, when warranted by circumstances, investigated and held liable for their actions
relative thereto.
e) Public monitoring of the procurement process and the implementation of awarded contracts with the
end in view of guaranteeing that these contracts are awarded pursuant to the provisions of the Act and
this IRR, and that all these contracts are performed strictly according to specifications.
Section 4. Scope and Application of the IRR
4.1 This IRR shall apply to all procurement of any branch, agency, department, bureau, office, or
instrumentality of the GoP, including government-owned and/or -controlled corporations (GOCCs),
government financial institutions (GFIs), state universities and colleges (SUCs), and local government
units (LGUs).
4.2 Any Treaty or International or Executive Agreement to which the GoP is a signatory affecting the
subject matter of the Act and this IRR shall be observed.
4.3 Unless the Treaty or International or Executive Agreement expressly provides another or different
procurement procedures and guidelines, R.A. 9184 and this IRR shall apply to Foreign-funded
Procurement of Goods, Infrastructure Projects, and Consulting Services by the GoP.
4.4 This IRR shall not apply to the following activities:
a) Procurement of Goods, Infrastructure Projects and Consulting Services funded from Foreign Grants
covered by R.A. 8182, as amended by R.A. 8555, entitled “An Act Excluding Official Development
Assistance (ODA) from the Foreign Debt Limit in order to Facilitate the Absorption and Optimize the
Utilization of ODA Resources, Amending for the Purpose Paragraph 1, Section 2 of R.A. 4860, As
Amended,” unless the GoP and the foreign grantor/foreign or international financing institution agree
otherwise;
b) Acquisition of real property which shall be governed by R.A. 107523, entitled “An Act Facilitating the
Acquisition of Right-Of-Way Site or Location for National Government Infrastructure Projects,” and other
applicable laws, rules and regulations; and
c) Public-Private sector infrastructure or development projects and other procurement covered by R.A.
6957, as amended by R.A. 7718, entitled “An Act Authorizing the Financing, Construction, Operation and
Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes,” as amended:
Provided, however, That for the portions financed by the GoP, in whole or in part, the provisions of the
Act and this IRR shall apply.
4.5 The following are not procurement activities under R.A. 9184 and this IRR:
a. Direct financial or material assistance given to beneficiaries in accordance with the existing laws,
rules and regulations, and subject to the guidelines of the concerned agency;
b. Participation in local or foreign scholarships, trainings, continuing education, conferences, seminars
or similar activities that shall be governed by applicable COA, CSC, and DBM rules;
c. Lease of government-owned property as lessor for private use;
d. Hiring of Job Order Workers;
e. Joint Venture under the revised NEDA Guidelines (GOCC and Private Entities), and Joint Venture
Agreements by LGU with Private entities; and
f. Disposal of Property and Other Assets of the Government.
Section 5. Definition of Terms
a) Act. Refers to R.A. 9184, entitled “An Act Providing for the Modernization, Standardization and
Regulation of the Procurement Activities of the Government and for other Purposes,” otherwise
known as the Government Procurement Reform Act.

b) Approved Budget for the Contract (ABC). Refers to the budget for the contract duly approved by the
HoPE, as provided for in the General Appropriations Act (GAA), continuing, and automatic
appropriations, in the case of national government agencies (NGAs)

c) Bid. Refers to a signed offer or proposal to undertake a contract submitted by a bidder in response to
and in consonance with the requirements of the Bidding Documents.
d) Bidder. Refers to a contractor, manufacturer, supplier, distributor and/or consultant who submits a bid
in response to the requirements of the Bidding Documents.

e) Bidding Documents. Refer to the documents issued by the Procuring Entity as the basis for bids,
furnishing all information necessary for a prospective bidder to prepare a bid for the Goods,
Infrastructure Projects and/or Consulting Services required by the Procuring Entity.

f) Bids and Awards Committee (BAC). Refers to the Committee established in accordance with Rule V
of this IRR.
g) Common-Use Supplies and Equipment (CSE). Refer to those goods, materials and equipment that are
used in the day-to-day operations of Procuring Entities in the performance of their functions.
h) Competitive Bidding. Refers to a method of procurement which is open to participation by any
interested party and which consists of the following processes: advertisement, pre-bid conference,
eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids, post-
qualification, and award of contract.
i) Consulting Services. Refer to services for infrastructure projects and other types of projects or
activities of the GoP requiring adequate external technical and professional expertise that are beyond
the capability and/or capacity of the GoP to undertake such as, but not limited to: (i) advisory and
review services; (ii) pre- investment or feasibility studies; (iii) design; (iv) construction supervision;
(v) management and related services; and (vi) other technical services or special studies. General
principles on Consulting Services are provided for in Annex “B” of this IRR.
j) Domestic Bidder. Refers to any person or entity offering unmanufactured articles, materials or supplies
of the growth or production of the Philippines, or manufactured articles, materials, or supplies
manufactured or to be manufactured in the Philippines substantially from articles, materials, or
supplies of the growth, production, or manufacture, as the case may be, of the Philippines.
k) Domestic Entity. Refers to an individual or a sole proprietor who is a citizen of the Philippines or a
partnership, corporation, cooperative, or association duly organized under the laws of the Philippines
and of which at least seventy five percent (75%) of the interest or outstanding capital stock belongs to
citizens of the Philippines, habitually established in business and habitually engaged in the
manufacture or sale of the merchandise covered by his bid, and the business has been in existence for
at least five (5) consecutive years prior to the advertisement and/or posting of the Invitation to Bid .
l) Executive Agreements. Refer to International Agreements except that they do not require legislative
ratification.
m) Expendable Supplies. Refer to articles which are normally consumed in use within one (1) year or
converted in the process of manufacture or construction, or those having a life expectancy of more
than one (1) year but which shall have decreased substantially in value after being put to use for only
one (1) year (e.g., medicines, stationery, fuel, and spare parts).
n) Foreign Bid. Refers to any offer of articles, materials or supplies not manufactured or not to be
manufactured in the Philippines, substantially from articles, materials, or supplies of the growth,
production, or manufacture, as the case may be, of the Philippines.
o) Foreign-funded Procurement. Refers to the acquisition of goods, consulting services, and the
contracting for infrastructure projects by the GoP which are wholly or partly funded by Foreign Loans
or Grants pursuant to a Treaty or International or Executive Agreement.
p) Foreign Grants. Refer to grants with no repayment obligations and are provided in monetary form,
goods, works, and consultancy services, among others.
q) Foreign Loans. Refer to loans, credits, and indebtedness with private foreign banks or with foreign
governments, agencies, or instrumentalities of such foreign governments, foreign financial institutions,
or other international organizations with whom, or belonging to countries with which, the Philippines
has diplomatic relations, as may be necessary and upon such terms and conditions as may be agreed
upon, to enable the GoP to finance, either directly or through any government office, agency or
instrumentality or any government-owned and controlled corporation, industrial, agricultural or other
economic development purposes or projects authorized by law.
r) Goods. Refer to all items, supplies, materials and general support services, except Consulting Services
and infrastructure projects, which may be needed in the transaction of public businesses or in the
pursuit of any government undertaking, project or activity, whether in the nature of equipment,
furniture, stationery, materials for construction, or personal property of any kind, including non-
personal or contractual services, such as, the repair and maintenance of equipment and furniture, as
well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement
of materials and supplies provided by the Procuring Entity for such services.
s) Government Procurement Policy Board (GPPB). Refers to the Body created in accordance with Rule
XX of this IRR.
t) Head of the Procuring Entity (HoPE). Refers to: (i) the head of the agency or body, or his duly
authorized official, for NGAs and the constitutional commissions or offices, and other branches of
 government; (ii) the governing board or its duly authorized official, for GOCCs, GFIs and SUCs; or
(iii) the local chief executive, for LGUs: Provided, however, That in an agency, department, or office
where the procurement is decentralized, the head of each decentralized unit shall be considered as the
HoPE, subject to the limitations and authority delegated by the head of the agency, department, or
office.
u) Infrastructure Projects. Include the construction, improvement, rehabilitation, demolition, repair,
restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities,
civil works components of information technology projects, irrigation, flood control and drainage,
water supply, sanitation, sewerage and solid waste management systems, shore protection,
energy/power and electrification facilities, national buildings, school buildings, hospital buildings, and
other related construction projects of the government. For purposes of, and throughout this IRR, the
term “Infrastructure Projects” shall have the same meaning as, and shall be used interchangeably with,
“civil works” or “works.”
v) International Agreement. Refers to a contract or understanding, regardless of nomenclature, entered
into between the GoP and another government or foreign or international financing institution in
written form and governed by international law, whether embodied in a single instrument or in two (2)
or more related instruments.
w) Non-expendable Supplies. Refer to articles which are not consumed in use and ordinarily retain their
original identity during the period of use, whose serviceable life is more than one (1) year and which
add to the assets of the GoP (e.g., furniture, fixtures, transport and other equipment). For this IRR, the
term non-expendable supplies shall include semi-expendable property.
x)
y) Philippine Government Electronic Procurement System (PhilGEPS). Refers to the electronic System
as provided in Section 8 of this IRR. For purposes of, and throughout this IRR, the term “PhilGEPS”
shall have the same meaning as, and shall be used interchangeably with, “G-EPS” referred to in the
Act.
Philippine National. Refers to an individual or a sole proprietor who is a citizen of the Philippines or a
partnership, corporation, or association organized under the laws of the Philippines of which at least
sixty percent (60%) of the capital or interest is owned by citizens of the Philippines, or cooperatives
registered with the Cooperative Development Authority.
z) Portal. Refers to a website that integrates a wide variety of contents for the purpose of attracting and
aggregating multiple users together in a central virtual space.
aa) Procurement. Refers to the acquisition of goods, consulting services, and the contracting for
infrastructure projects by the Procuring Entity.
bb) Procuring Entity. Refers to any branch, constitutional commission or office, agency, department,
bureau, office, or instrumentality of the GoP (NGA), including GOCC, GFI, SUC and LGU procuring
goods, infrastructure projects and consulting services.
cc) Treaties. Refer to international agreements entered into by the GoP which require legislative
ratification after executive concurrence.
dd) Universal or Commercial Banks. Refer to universal or commercial banks duly authorized under R.A.
8791, otherwise known as “The General Banking Act of 2000.”
Section 6. Standardization of Procurement Process and Forms
6.1 To systematize the procurement process, avoid confusion and ensure transparency, the GPPB shall
pursue the development and approval of generic procurement manuals, standard Bidding Documents, and
forms, including those to be used for major procurement like drugs and textbooks
6.2 Procuring Entities are mandated to use the Generic Procurement Manuals (GPMs), Philippine Bidding
Documents (PBDs), and other standard forms issued by the GPPB.
However, whenever necessary, to suit the particular needs of the Procuring Entity, modifications may be
made, particularly for major and specialized procurement, subject to the approval of the GPPB.
Section 7. Procurement Planning and Budgeting Linkage
7.1 All procurement shall be within the approved budget of the Procuring Entity and should be meticulously
and judiciously planned by the Procuring Entity. Consistent with government fiscal discipline measures, only
those considered crucial to the efficient discharge of governmental functions shall be included in the Annual
Procurement Plan (APP).
7.2 No procurement shall be undertaken unless it is in accordance with the approved APP, including approved
changes thereto. The APP must be consistent with the duly approved yearly budget of the Procuring Entity
and shall bear the approval of the HoPE or second-ranking official designated by the HoPE to act on his
behalf.
7.3 The APP shall be formulated and revised only in accordance with the following guidelines:

7.3.1 Upon issuance of the budget call in the case of NGAs, SUCs, Constitutional Commissions or Offices, or
similar document for GOCCs, GFIs and LGUs, the Procuring Entity shall prepare its indicative APP for the
succeeding calendar year to support its proposed budget taking into consideration the budget
framework for that year in order to reflect its priorities and objectives.
7.3.2 In the preparation of the indicative APP, the end-user or implementing units of the Procuring Entity
shall formulate their respective Project Procurement Management Plans (PPMPs) for their different programs,
activities, and projects (PAPs). The PPMP shall include:
a) information on whether PAPs will be contracted out, implemented by administration in accordance with
the guidelines issued by the GPPB, or consigned;
b) the type and objective of contract to be employed;
c) the extent/size of contract scopes/packages;
d) the time schedule for each procurement activity and for the contract implementation; and
e) the estimated budget for the general components of the contract.
For purposes of this Section, consignment refers to an arrangement where the following requisites are
present: (a) delivery of goods by their owner (consignor), without sale, to a government agency (consignee);
(b) consignee must try to sell the goods and remit the price of the sold goods to the consignor; (c) consignee
accepts without any liability except for failure to reasonably protect them from damage; (d) no disbursement
of government funds is involved; and (e) at terms not disadvantageous to the GoP.

7.3.3 In order to hasten project implementation, Procuring Entities which may not have the proficiency o
capability to undertake a particular procurement, as determined by the HoPE concerned, may outsource the
procurement tasks by:
a) Requesting other GoP agencies to undertake such procurement for them, through the execution of a
memorandum of agreement containing specific arrangements, stipulations and covenants, in accordance with
the relevant issuance of the GPPB and government budgeting, accounting and auditing.
b) Engaging private procurement agents to directly undertake the procurement for them, subject to the
guidelines to be issued by the GPPB; or
c) Recruiting or engaging consultants to assist them directly and/or train their staff in the management of the
procurement function
7.3.4 The PPMPs shall then be submitted to the Procuring Entity’s Budget Office for evaluation in order to
ensure consistency with the Procuring Entity's budget proposal and compliance with existing budgeting
rules.
a) Name of Procurement Project;
b) Procurement Management Office (PMO)/end-user/implementing unit;
c) Method of Procurement;
d) Schedule of identified procurement activities as reflected in the APP form approved by the GPPB;
e) Source of funds;
f) Indicative ABC; and
The indicative APP and budget proposal shall be simultaneously submitted to the HoPE and/or other
oversight bodies for approval.
7.3.5 As soon as the GAA, corporate budget, or appropriation ordinance, as the case may be, becomes final,
the end-user or implementing units shall revise and adjust the PPMPs to reflect the budgetary allocation for
their respective PAPs.
7.4 Changes to the individual PPMPs and the consolidated APP may be undertaken every six (6) months or
as often as may be required by the HoPE.
7.5 Except for procurement projects and renewal of contracts for regular and recurring services undertaken
through early procurement activities (EPA), the ABC as reflected in the approved APP shall be at all times
consistent with the appropriations for the project authorized in the GAA, continuing, and automatic
appropriations, the corporate budget, and the appropriations ordinance, as the case may be.
7.6 To facilitate the immediate implementation of procurement of Goods, Infrastructure Projects or
Consulting Services, and renewal of contract for regular and recurring services, even pending approval of
the GAA, corporate budget, appropriations ordinance or loan agreements in the case of FAPs, as the case
may be, and notwithstanding Section 7.2 hereof, the Procuring Entity may undertake EPA.
7.7 For procurement projects subject to Framework Agreement as provided in the Guidelines on the use of
Framework Agreement by all Procuring Entities, the end- user unit shall ensure that the Framework
Agreement List must be attached to the APP submitted to the BAC to be approved by the HoPE.