BEYOND BUDGET
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
Last Saturday, July 20, 2024, was very fulfilling for me as the Department of Budget and Management (DBM) Secretary. We witnessed the signing into law of Republic Act (RA) No. 12009, or the New Government Procurement Act (NGPA), by President Ferdinand “Bongbong” R. Marcos, Jr. (PBBM).
Procurement reform has been at the top of my agenda since the first day I sat as DBM Secretary. With the rise of disruptive technologies that are transforming the operations of industries and government, and redefining the needs of consumers; the Covid-19 pandemic revealing the shortcomings in our systems during times of crisis and heightening our reliance on digital transactions; and with questions being raised against the Philippine procurement system, I strongly believe that it is time to amend the decades-old RA 9184 or the Government Procurement Reform Act. This is to ensure that our law is responsive to the needs of the present as we prepare for a sustainable future.
In his third State of the Nation Address last Monday, PBBM highlighted the merits of the new law, saying, “With the newly-enacted Republic Act No. 12009 that I signed just last Saturday, government procurement will be modern and innovative, more streamlined and efficient, and truly at par with global best practices.”
Indeed, our new procurement law is transformative as it adheres to eight governing principles: enhanced transparency, improved competitiveness, increased efficiency, proportionality, enhanced accountability, participatory procurement, sustainability, and professionalism. With these, it is also the greatest reform to combat graft and corruption in recent history.
The NGPA introduces fit-for-purpose modalities to achieve value for money and quality public services, with new concepts like the Most Economically Advantageous and Responsive Bid (MEARB) and the Most Advantageous and Responsive Bid (MARB). These free us from the obligation of selecting the lowest-priced bid for a better choice.
As the President said in his keynote speech at the signing ceremony, “This will ensure that we get not only the best prices but also the best deals for our clients — the Filipino people.” It includes the provision of 11 new modalities in procurement to provide government agencies with greater flexibility in acquiring goods and services. Some of these modes are Competitive Bidding, Unsolicited Offer with Bid Matching, Direct Contracting, Repeat Order, Small Value Procurement, Negotiated Procurement, Direct Sales, and Direct Procurement for Science, Technology, and Innovation.
PBBM further emphasized the value of the law — the dramatic reduction in transaction processing time with less bureaucratic red tape. “The NGPA streamlines the procurement process from three months to just 60 days by standardizing procurement forms and institutionalizing electronic procurement,” he underscored.
Imagine government agencies just clicking the “add to cart” button for common-use supplies and equipment, and their transaction will be immediately processed. This is the power of modernizing the electronic procurement system of the PhilGEPS with the use of emerging technologies and innovative solutions, as well as integrated systems among relevant government agencies. These include the end-to-end process from procurement planning to payment of contracts; PhilGEPS electronic marketplace; electronic payment; and electronic bidding, among others.
The NGPA also emphasizes the critical role of procurement planning through mandatory market scoping and employment of strategies. Further, it institutionalizes sustainable public procurement principles, integrating economic, environmental, and social considerations into procurement projects. This includes green public procurement, which requires procuring entities to prioritize goods, infrastructure projects, and consulting services with reduced environmental impact throughout their lifecycle. It also features inclusive programs and gender-responsive procurement, ensuring equal opportunities for vulnerable and marginalized sectors, such as microenterprises, social enterprises, and startups. Procuring entities are encouraged to actively involve these sectors in procurement activities, emphasizing inclusivity in programs related to gender and ethnic equity, poverty reduction, and adherence to fundamental labor standards.
Moreover, the law enhances transparency and accountability through open contracting standards, improved public monitoring through observer participation, and the use of beneficial ownership information. It also institutes professionalization as a fundamental principle of public procurement, establishing a cadre of professionals with public procurement positions adhering to qualification standards, certification courses, competency frameworks, codes of ethics, and licensing requirements. Additionally, the NGPA establishes a Joint Congressional Oversight Committee to monitor the law’s implementation.
Thus, I believe that the signing of the NGPA is a significant milestone in our quest for a government procurement system that is more effective, transparent, and accountable.
I am therefore deeply grateful to the President and the honorable members of the Senate, especially then-Senator and now Department of Education Secretary Sonny Angara, the House of Representatives, led by Speaker Martin Romualdez, and House Committee on Revision of Laws Chairperson Edward Maceda. Their unwavering support has been instrumental in making this significant reform a reality.
Beyond budget, the NGPA is a game-changing law carefully crafted to enhance the existing procurement system to be responsive to the times, transparent, accountable, participatory, inclusive, and sustainable. Armed with the law, rest assured that the PBBM administration will immediately put in place all the requirements for its implementation, to ensure our people and nation get the best programs, projects, and activities as we march toward a progressive Bagong Pilipinas.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)