Department of Budget and Management (DBM) Secretary Amenah “Mina” F. Pangandaman once again underscored the key features of the newly enacted government procurement law which integrates technology and sustainable and modern techniques.

 

Secretary Mina sat down with other Cabinet members as they convened for the first session of the 2024 Post-SONA Discussions, focusing on Food Security and Economic Development, at the Hilton Hotel in Pasay City today, 23 July 2024.

 

"The New Government Procurement Act (NGPA) is the biggest anti-graft and corruption law in our modern history. So, we're happy that the 20-year-old law is now amended and fully modernized – the process and the procurement system," Secretary Mina said.

 

 

Sec. Mina highlighted one of the alternative modes of procurement, the creation of an “e-marketplace” similar to online shopping outlets, where government agencies can place orders for common-use supplies and equipment (CSE) through the Procurement Service of the Department of Budget and Management (PS-DBM). The e-marketplace application will reduce the turnaround time to procure CSEs using technology.

 

“We'll make use of modern technology. For common-use supplies, we will use systems and applications similar to Lazada and Shopee. So, it will just be "add to cart" because we know that a lot of common-use supplies are unavailable in our Procurement Service, in our warehouses. But now, it will be online,” the Budget Secretary said.

Secretary Mina also noted that the law permits early procurement activities so that government agencies can implement their projects as early as the start of the year.

 

"The institutionalization of the early procurement method – previously, we don't have it. We just issued a circular on this. But now, it's already part of the law. Meaning, once we submit the National Expenditure Program, all the projects of my colleagues here [from different government agencies] can already be bid out," Sec. Mina said.

 

She continued, "We will submit the National Expenditure Program on July 29. Meaning, after the submission to Congress and the Senate, they can already bid out their projects. And by January 1, they can already prepare their Notice of Award. So, by January 1, they can already implement their projects. I think that's important in terms of the implementation of their projects."

 

Moreover, Sec. Mina noted that through the NGPA, the procurement process will be more transparent by strengthening citizen’s participation. This allows members of civil society to participate as observers in the process.

 

Another provision of the law also seeks to prevent conflict of interest in the procurement process through disclosure of relations between the bidder and procuring heads of agencies. This means that competent and credible suppliers can participate in the platform with ease as the e-marketplace has clear safeguards.

 

 

One of the key provisions of the NGPA determines the “most economically advantageous responsive bid” (MEARB). This contrasts with RA 9184’s “lowest calculated and responsive bid” which sometimes ends up with the government getting the cheapest items but with the lowest quality.

 

This new award criterion will free agencies from the obligation of selecting the lowest-priced bid, allowing them to choose the best deals for the Filipino people.

 

“We introduced a new or alternative mode of procurement. It's not just the low cost, but we will also consider the quality of the goods and services that we need in the national government," Sec. Mina said.

 

 

The law also advocates environmentally friendly methods whereby procuring entities seek to procure goods, infrastructure projects, and consulting services with reduced environmental impact through their lifecycle.

 

The green procurement approach will enable the acquisition of technology, solutions, and services with the lowest life-cycle costs by picking the offer that provides the best energy efficiency and overall quality.

 

This is also in support of the country’s commitment to accelerate climate change action and strengthen disaster resilience.

 

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