GAME CHANGERS: A NEW ERA IN GOVERNMENT PROCUREMENT

Public bidding or government procurement traces its roots from Act No. 22 which was enacted during the American era. A century later, R.A. 9184 (Government Procurement Reform Act or GPRA) was passed, guided by the principles of transparency, competitiveness, streamlined processes, accountability, and public monitoring.

After a 21-year wait, R.A. 12009 or the New Government Procurement Act (NGPA) was finally enacted in July 2024 to replace the seemingly outdated GPRA. Aimed to further enhance the GPRA principles, it also supplements the same with the addition of the principles of proportionality, participatory procurement, sustainability, and professionalism. These principles so espoused draw closer to full realization when the IRR of the NGPA was finally approved on 4 February 2025.

The NGPA is seen to be a revolutionary piece of legislation as it keeps up with the changing times. While procurement by electronic means was recognized in the GPRA through the Philippine Government Electronic Procurement System (PhilGEPS), the NGPA further modernizes the use of the PhilGEPS by designating it as the sole or single portal not only to serve as the primary source of information, but also as a channel in the conduct of all procurement activities of the government.

Another innovative aspect of the NGPA and its IRR is the pivot from competitive bidding as the main mode of government procurement to a more dynamic procurement framework consistent with the "fit-for-purpose procurement approach." This means that procuring entities are given more freedom to choose methods of procurement other than competitive bidding, ranging from limited source bidding, direct contracting, negotiated procurement, and small value procurement, among others. The law likewise introduced new modes of procurement such as competitive dialogue, unsolicited offer with bid matching, and direct sales.

The NGPA and its IRR also promotes the concept of "sustainable public procurement" such as encouraging procuring entities to seek to procure goods and infrastructure with reduced environmental impact.

Perhaps one of the most imaginative breakthroughs under the NGPA is the institution of professionalization in government procurement. The Department of Budget and Management is now mandated to create procurement positions in the government based on qualification standards, with the development of a code of ethics for procurement professionals and the establishment of a professional licensing program.