Senate Aims to Modernize Government Procurement System

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Senate President Optimistic About Approval of New Government Procurement Act

Senate President Juan Miguel Zubiri expressed optimism that Senate Bill (SB) 2593, also known as the New Government Procurement Act, will be approved by the Senate before its May adjournment. Zubiri, who chaired the plenary session on Tuesday, highlighted that SB 2593 is one of the 20 priority measures he aims to complete before the Senate goes into recess.

Modernizing the Government Procurement System

SB 2593 aims to improve and modernize the country’s two-decade-old government procurement system. Senator Juan Edgardo Angara, chairman of the Committee on Finance, emphasized that the lowest price would be of utmost importance in public bidding. He further defended SB 2593, which seeks to revise Republic Act (RA) 9184, also known as the Government Procurement Reform Act.

Enhancing Competition and Value for Taxpayers’ Money

Angara argued that competition in public bidding is essential to ensure that the government receives good value for the taxpayers’ money. He also acknowledged the need to recognize other modes of procurement that are better suited for defense, medical equipment, artistic, and scientific types of procurement. Even in the newer concept of “most economically advantageous responsive bid (MEARB),” the lowest bid remains a factor in procuring supplies.

In the MEARB, there is a quality-to-price ratio and upper and lower limits on the balance between quality and price. Quality accounts for 60 to 85 percent, while price accounts for 15 to 40 percent. Angara emphasized the importance of indicating the criteria to be used in the bidding process to ensure fairness and due process for all bidders.

Addressing Corruption and Improving Government Processes

During the plenary session, Senate Minority Leader Aquilino Pimentel III raised concerns about the need to revise RA 9184 after 20 years. Pimentel asked how the new bill would fight corruption and improve government processes, competition, and the government’s limited capacity.

Angara responded that the bill incorporated new provisions and safeguards while aiming to improve RA 9184. If enacted, SB 2593 will apply to the procurement of goods, infrastructure projects, and consulting services, regardless of the source of funds, whether local or foreign, by all branches and instrumentalities of the national government, its departments, bureaus, offices, and agencies.

It is important to note that SB 2593 does not apply to foreign-assisted projects under a treaty or international or executive agreement, which have different procurement rules or procedures.

Source: The Manila Times

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