BETTER DAYS
The Senate Committee on Finance is about to conclude its hearings on the individual budgets of the different departments, agencies and offices of the government. Over the next two weeks, we will be collating the recommendations made by our 15 subcommittee chairpersons for the crafting of the committee report on the 2024 General Appropriations Bill (GAB). As chairman of the Committee on Finance, I intend to sponsor the report shortly after Congress resumes its sessions on Nov. 6. We expect spirited debates on the proposed ₱5.768 trillion national budget and just as we have done in the previous years, we will listen to all of our colleagues’ opinions and amendments and take these into consideration in the crafting of the Senate’s version of the GAB.
Another important measure on the table for the Committee on Finance is the Revised Government Procurement Reform Act (GPRA). We recently conducted a hearing on the various bills related to government procurement and bidding procedures filed by Senators Francis Tolentino, Risa Hontiveros, Pia Cayetyano, Ramon Revilla Jr., and Jinggoy Estrada. The list includes our own Senate Bill Number 2466, which seeks to revise the GPRA to make it more responsive and relevant under the present conditions.
It was way back in January of 2003 when Republic Act 9184 or the GPRA was enacted into law. Authored by my father, the late former Senate President Edgardo Angara, the GPRA was seen as a landmark piece of legislation, lauded and recognized around the world and by organizations including the World Bank. The law was crafted to improve efficiency, competition, transparency and most importantly, eliminate political interference, which often leads to corruption in the government procurement process. The Department of Budget and Management (DBM) described the GPRA as one of the biggest acquisition and anti-corruption laws in the country.
Two decades have passed since the GPRA was enacted and a lot has changed since then. Some challenges have been identified in the procurement process, including the low utilization of funds by some government entities or underspending, prolonged delays in infrastructure projects and the tedious processes in procuring goods and services, which is partly attributed to the procurement law. The law that was intended to improve efficiency has sadly resulted in inefficiencies. Technology has also evolved over the last 20 years and the law has to adapt to the latest trends in order for it to remain relevant and effective. As President Ferdinand Marcos Jr. said in his second State of the Nation Address last July, enacting a new procurement law and auditing code will make government procurement and auditing more attuned to these changing times.
The DBM recommended amendments that will introduce innovative procurement methods that are aligned with the assessment of the public procurement system of the country using the methodology for assessing procurement system or MAPS. It espoused the awarding of contracts not only based on the lowest bids but on merit. Transparency is prioritized and access to information on the procurement and bidding process will include online platforms. The DBM emphasized adopting digitalization and innovation to make procurement more efficient and transparent.
Court Administrator Raul Villanueva, in relaying the judiciary’s experience with the procurement law, lamented how the process of bidding takes too long and how it affects certain purchases such as IT equipment. He explained that the awarding of contracts takes a year or two to complete and for IT equipment, this most likely would result in the goods already becoming outdated by the time they are delivered to the procuring entity. Just like what the DBM noted, Villanueva said that government entities often end up not getting the best quality of goods when the focus is on saving money by favoring the lowest bids.
In the past we have also seen controversies linked to the procurement system. The proposed revised GPRA is intended to address these challenges and to assist procuring entities in coping with the implementation of vast, complex and intricate government projects. The amendments embody a shift towards a fit-for-purpose procurement approach developed to meet the specific needs of procuring entities. Strategic procurement planning and preparations through the conduct of relevant market scoping, supply positioning, analysis of available procurement modalities and risk management is emphasized. These efforts will be complemented by reliable strategies to design and prepare procurement projects such as Early Procurement Activities, Green Public Procurement, Socially Responsible Procurement, Design and Build Scheme, Engagement of a Procurement Agent, Use of Framework Agreement, and Use of Life-Cycle Assessment and Life-Cycle Cost Analysis.
After two decades, now is a good time to reassess the law. We will study its strengths and its weaknesses and build on these strengths while responding to the demands of modern life and being more responsive to the needs of the government and its people. ([email protected]| Facebook, Twitter & Instagram: @sonnyangara)
(Senator Sonny Angara has been in public service for 19 years — nine years as representative of the lone district of Aurora, and 10 as Senator. He has authored, co-authored, and sponsored more than 330 laws. He is currently serving his second term in the Senate.)