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WHEREAS, Republic Act (RA) No. 9184 entitled “An Act Providing for the Modernization,  Standardization  and Regulation  of the Procurement  Activities  of the Government and for Other Purposes,” took effect on 26 January 2003, while its 2016 Revised  Implementing  Rules and Regulations  (IRR) took effect on 28 October 2016;

WHEREAS,   Section  4  of  RA  9184  provides  that  it  shall  apply  to  the Procurement  of Infrastructure  Projects,  Goods  and  Consulting  Services, regardless of source of funds, whether local of foreign, by all branches and instrumentalities  of government, its departments, offices and agencies, including government owned and/or-controlled corporations and local government units;

WHEREAS, Section 63 of RA 9184 mandates the Government Procurement Policy Board (GPPB) to protect national interest in all matters affecting public procurement;

WHEREAS, in a letter, dated 16 August 2016, then DFA Secretary Perfecto R. Yasay requested that the FSPs be exempted from the coverage of RA 9184 and its IRR in the conduct of its procurement activities, or in the alternative, the foreign   suppliers   of  FSPs  be  exempted   from  registering   in  the  Philippine Government  Electronic  Procurement  System  (PhilGEPS),  and  that  FSPs  be further exempted from posting its Notices of Award, Contracts, and Notices to Proceed in the PhilGEPS;

WHEREAS,  in support of its request, DFA forwarded  to the GPPB reports and   queries   submitted   by   different   FSPs   with   regard   to   the   difficulties encountered in their respective procurement activities which were undertaken in accordance with RA 9184 and its IRR;

WHEREAS, during the 12th GPPB and 10th Inter-Agency Technical Working Group (IATWG) Meeting held on 20 December 2016, the GPPB deliberated  on the request of the DFA and directed the GPPB-TSO to resolve the request within two weeks;

WHEREAS, on 28 December 2016 and 5 January 2017, the GPPB-TSO conducted consultation meetings with DFA, together with other concerned government    agencies,    i.e.,    PS-PhilGEPS,    Department    of    Budget    and Management  (DBM)  and  Commission  on  Audit  (COA),  to  discuss  the  issues raised by DFA and find a solution on these procurement concerns;

WHEREAS,  during  the 1st  IATWG  Meeting  held on 13 January  2017,  the IATWG adopted the findings of the GPPB-TSO that the GPPB does not have the authority under RA 9184 to exempt any government agency or office from its provisions   and  its  IRR,  and  recommended   that  the  DFA  may  propose   a Customized Procurement Manual to address the concerns of the FSPs or seek exemption  through a special provision  of the General Appropriation  Act (GAA), and  the  GPPB-TSO  to  develop  guidelines  that  will  address  concerns  of  all Procuring  Entities  with  Foreign  Posts,  e.g.  DFA,  Department  of  Trade  and Industry  (DTI),  Department  of  Labor  and  Employment,  with  regard  to procurement activities performed abroad, for consideration and approval of the GPPB;

WHEREAS,  during  the  1st  GPPB  Meeting  held  on  9  February  2017,  the GPPB, through Resolution No. 01-2017, adopted the recommendations of the IATWG that the DFA may propose a Customized Procurement Manual for FSPs and  that  the  GPPB-TSO   may  also  propose   and  formulate   guidelines   for procurement activities conducted and implemented outside of the Philippines;

WHEREAS, a consultation meeting with concerned agencies i.e., DFA, DTI, Department   of   Tourism,   Department   of   Finance,   Department   of   National Defense,  Bureau  of Fisheries  and Aquatic  Resources,  Center  for International Trade Expositions  and Missions  and Commission  on Audit, was held to solicit inputs and comments on proposed Guidelines on Projects to be Procured and Performed Outside of the Philippines, as initially drafted by the GPPB-TSO;

WHEREAS,   the  proposed   Guidelines   on  Projects  to  be  Procured   and Performed  Outside  of the  Philippines,  incorporating  the  comments  and suggestions made during the consultation meeting, was presented to the IATWG on 21 March 2017 and to the GPPB on 10 April 2017 to solicit further inputs;

WHEREAS, on 7 July 2017, the GPPB-TSO and DFA Representatives  met to discuss the proposed Guidelines and the issues raised by the DFA and made the following agreements:

1.     On the posting in the PhilGEPS website, DFA representatives are amenable to the recommendation  that Foreign  Service  Posts  will not be required  to post their procurement  activities  in the PhilGEPS  website  until the corresponding facility has become available through the PhilGEPS Modernization   Project,   subject   to  the  understanding   that   they   will  be consulted  in  the  development  of  the  PhilGEPS  facility  for  procurements abroad;

2.     DFA likewise  requested  the GPPB-TSO  to recommend  to the IATWG  and GPPB the imposition of a moratorium on the use of PhilGEPS for Foreign Service Posts until the Modernized PhilGEPS has provided the necessary facility; and

3.     On the inability to create BAC, the GPPB-TSO informed the DFA that in the next IATWG meeting, the GPPB-TSO  will present the recommendation  that will allow foreign posts to designate personnel or committee (not necessarily following the requirements  for the creation of a BAC under RA 9184 and its IRR), who will undertake the procurement projects for them, applying one of the rules on statutory construction.

WHEREAS, during the 5th IATWG Meeting on 14 July 2017, the GPPB-TSO presented  its proposed  recommendations  to address  the issues  raised  by the DFA, including the corresponding  provisions of the proposed Guidelines,  taking into consideration  the directives of the GPPB and the result of the meeting with the DFA, and thereafter, the IATWG agreed on the following:

1.     On the posting in the PhilGEPS website (lack of facility for Foreign Post and refusal  of  bidders  to  register  in  the  PhilGEPS)  -  adopt  the  GPPB-TSO alternative  recommendation  that Foreign Service Posts will not be required to post their procurement activities in the PhilGEPS website until the corresponding facility has become available through the PhilGEPS Modernization, subject to the understanding that they will be consulted in the development of the PhilGEPS facility for projects procured and performed abroad;

2.    On the inability to create BAC - adopt the GPPB-TSO initial recommendation that a personnel of the Foreign Service Posts, as the end-user, may be delegated by the Head of the Procuring Entity (HOPE) and Bids and Awards Committee (BAC) of the Home Office to conduct procurement; and

3.     DFA likewise  requested  the GPPB-TSO  to recommend  to the IATWG  and GPPB  the  imposition  of  moratorium  on  the  use  of  PhilGEPS  for  Foreign Service Posts until the Modernized PhilGEPS has provided the necessary facility.

WHEREAS, the IATWG agreed to recommend to the GPPB the approval of the proposed  Guidelines  for the Procurement  of Goods  and  Services, Infrastructure Projects, and Consulting Services to be Procured and Performed Overseas containing the IATWG recommendations  addressing the issues raised by the DFA; and in the alternative, the imposition of a moratorium on the use of PhilGEPS for Foreign Service Posts until the Modernized PhilGEPS has provided the necessary facility;

WHEREAS, during its 4th Regular Meeting on 31 July 2017, the GPPB, after careful  review  and deliberation,  approved  the recommendations  of the IATWG and the proposed Guidelines for the Procurement of Goods and Services, Infrastructure Projects, and Consulting Services to be Procured and Performed Overseas;

NOW, THEREFORE,  for and in view of all the foregoing, WE, the Members of  the  GOVERNMENT   PROCUREMENT   POLICY  BOARD,  by  virtue  of  the powers vested on US by law and other executive issuances, hereby RESOLVE to confirm, adopt, and approve, as WE hereby confirm, adopt, and approve the Guidelines  for the Procurement  of Goods and Services, Infrastructure  Projects, and Consulting Services to be Procured and Performed Overseas, copy of which is attached as Annex “A”.

The   Guidelines   shall   take   effect   after   fifteen   (15)   days   following   the completion of its publication in the Official Gazette or a newspaper of general nationwide  circulation  and  upon  filing  of  three  (3)  certified  copies  with  the University of the Philippines Law Center.
 
APPROVED this 31st day of July 2017 at Pasig City, Philippines.

ANNEX “A”


1.    PURPOSE

The  Guidelines  is  formulated  to  provide  rules  and  procedures  for  the  procurement  of Goods and Services, Infrastructure  Projects, and Consulting Services to be procured and performed  overseas;  and  to  ensure  transparency,  efficiency,  competition,  and accountability in the procurement process.

2.    SCOPE AND APPLICATION

The Guidelines shall apply to the national government, its branches, constitutional  offices, departments, bureaus, offices and agencies, including state universities and colleges, government-owned and/or -controlled  corporations,  government  financial institutions,  and local government units, in the procurement of Goods and Services, Infrastructure Projects, and  Consulting  Services  to be procured  and  performed  overseas.  Consequently,  if the project  will  be  performed  within  the  Philippines,  the  relevant  provisions  of  the  2016
Revised  Implementing  Rules  and Regulations  (IRR)  of Republic  Act (RA)  No. 9184  on
Competitive Bidding or Alternative Modes of Procurement shall apply.

3.    GENERAL GUIDELINES

a.     Annual  Procurement  Plan  (APP).  In accordance  with  Section  7.2 of the IRR,  no procurement shall be undertaken unless it is in accordance with the approved APP of the Procuring Entity.

b.     Advertisement  and  Posting  of  Procurement  Opportunity.  The  Procuring  Entity may  dispense  with  the  advertisement  in  the  newspaper  as  prescribed  in  Section 21.2.1  of  the  IRR  of  R.A.  9184.  Accordingly,  the  Procuring  Entity  shall  post  the Request  for Quotation  (RFQ)  or Request  for Proposal  (RFP)  in the  1.) PhilGEPS website, once the facility for the procurement of Goods and Services, Infrastructure Projects, and Consulting Services to be procured and performed overseas becomes available;  2.) The official  website  of the Procuring  Entity;  and 3.) In a conspicuous place reserved for this purpose in the premises of the Procuring Entity.

c.     Documentary   Requirements.   The  Procuring   Entity  shall  validate  whether  it  is entering into a contract with a technically, legally and financially capable supplier, contractor or consultant by requiring the submission of relevant documents or through other means, taking into consideration the usual trade and business practices being observed in the host country. In all cases, the Procuring Entity shall base its award on the quotations received in accordance with the corresponding  RFQ/RFP and Abstract of Quotations.
 
d.     Delegation  of Authority.  For purposes of efficiency, expediency,  and economy, the conduct  of  procurement   and/or  award  of  contract  under  the  Guidelines  may  be delegated to a specific personnel or committee, other than the Bids and Awards Committee (BAC), duly authorized by the HOPE.

For record and monitoring purposes, all awards shall be immediately reported with all supporting documents to the HOPE, to ensure compliance with the guidelines.

e.     Posting of Notice of Award, Contract and Notice to Proceed. Unless the contract involves and affects national security as determined  by the HOPE, the BAC, through its Secretariat, or the authorized personnel or committee shall post the relevant information   of  the  contract  in  the  PhilGEPS   website  once  the  facility  becomes available, the website of the Procuring Entity, and at any conspicuous place reserved for this purpose in the premises of the Procuring Entity within ten (10) calendar days from their issuance.

f.     Bid,  Performance  and  Warranty  Securities.  If deemed  necessary,  the Procuring Entity may require the submission of a Bid, Performance, or Warranty Securities or its equivalent

4. SPECIFIC GUIDELINES

a.     The End-User shall submit to the BAC or to the authorized personnel or committee a purchase/job  request,  which  indicates  the  technical  specifications,  scope  of  work, terms of reference, ABC and other terms and conditions relevant to the Goods and Services, Infrastructure Projects and Consulting Services to be procured.

b.     The  BAC  or the  authorized  personnel  or committee  shall  determine  the  technical, legal, and financial eligibility requirements  to be submitted by the prospective bidders or  any  other  means  to  verify  the  technical,  legal  and  financial  capability  of  the supplier, contractor or consultant.

c.     The  BAC  or  the  authorized  personnel  or  committee  shall  prepare  and  send  the Request for Quotations (RFQ) or Request for Proposals (RFP) to at least three (3) suppliers,  contractors  or consultants  of known  qualifications.  This,  notwithstanding, those  who  responded  through  any  of  the  required  postings  shall  be  allowed  to participate. Receipt of at least one (1) quotation on the deadline for submission of quotations  shall be sufficient  to proceed  with the evaluation  thereof.  In no instance shall  Procuring  Entities  be  required  to pay  any  sum  of money  for  the  purpose  of obtaining RFQs/RFPs.

For the procurement of requirements,  i.e., space, booth design, booth construction, in case  of participation  to international  exhibits,  duly  approved  by authorized  officials under existing  laws, rules and regulation,  Procuring  Entities  may not be required  to send RFQs/RFPs  to at least three (3) suppliers, contractors  or consultants  of known qualifications.

d.     The BAC  or the authorized  personnel  or committee  may meet  with all prospective bidders,  depending  on the nature  and complexity  of the project,  in order  to clarify and/or   explain   any   of  the   requirements,   terms,   conditions,   and   specifications stipulated in the RFQ/RFP.

e.     After   the   deadline    for   submission    of   quotations/proposals,   an   Abstract    of Quotations/Ratings shall be prepared setting forth the names of those who responded to the RFQ/RFP, and their corresponding price quotations/ratings.

f.     The BAC or the authorized  personnel  or committee  shall recommend  to the HOPE the award of contract in favor of the supplier or contractor  with the Single or Lowest Calculated   and  Responsive   Quotation   (for  goods  or  infrastructure   projects),   or consultant with the Single or Highest Rated and Responsive  Proposal (for consulting services).  In case of approval,  the HOPE  shall immediately  enter into contract  with the  winning   supplier,   contractor   or  consultant.   If  permitted   by  the  HOPE,   the authorized personnel or committee may award the contract in accordance with this paragraph.

5.    EFFECTIVITY  CLAUSE

This  Guidelines  shall  take  effect  fifteen  (15)  calendar  days  after  its  publication  in  the Official Gazette  or in a newspaper  of general nationwide  circulation  and upon filing with the University of the Philippines Law Center.