Government Procurement Act: Definition of Terms

• Study notes on the Government Procurement Act's definition of terms, as per its Implemented Rules and Regulations (IRR)

Act

• Refers to Republic Act (RA) 9184
• RA 9184 is also known as the Government Procurement Reform Act
• RA 9184 provides for the modernization, standardization, and regulation of government procurement activities

Approved Budget for the Contract

• Refers to the budget that is duly approved by the Head of the Procuring Entity
• Applicable to NGAs and constitutional commissions or offices, and branches of government
• Under the General Appropriations Act (GAA), includes continuing and automatic appropriations
• For GOCCs and GFIs, it is the corporate budget approved by the governing board, pursuant to Executive Order No. 518, series of 1979 (E.O. 518)
• For SUCs, under R.A. 8292
• For LGUs, it is the budget that is approved by the Sanggunian
• For Foreign-funded Procurement, it is the estimated contract cost
• "ABC", "Approved Budget for the Contract", and "Approved Budget" are interchangeable terms
• In foreign-funded procurement, the estimated contract cost is the cost estimate prepared by the procuring entity
• The foreign government or foreign/international financing institution approves as specified in the Treaty/International/Executive Agreement

BAC

• Refers to the Bids and Awards Committee
• BAC is established as per Rule V of the IRR

Bid

• Refers to a signed offer/proposal to undertake a contract
• Must be submitted by a bidder in response to and aligned with the requirements of the Bidding Documents
• "Bid" is equivalent to and used interchangeably with "Proposal" and "Tender"

Bidder

• Refers to an eligible contractor, manufacturer, supplier, distributor, or consultant competing for a contract award in any procurement by the GOP
• Eligibility is determined by meeting all the eligibility requirements issued by the procuring entity

Bidding Documents

• Refers to the documents issued by the procuring entity that serve as the basis for bids
• Furnishes all information necessary for a prospective bidder to prepare a bid

Common-Use Supplies

• Refers to goods, materials, and equipment used in the day-to-day operations of Procuring Entities
• Common-use supplies are those included in the Electronic Catalogue of the PhilGEPS for the purpose of the IRR

Competitive Bidding

• Refers to a procurement method open to participation by any interested party
• Includes advertisement, pre-bid conference, eligibility screening, receipt and opening of bids, evaluation, post-qualification, and award of contract processes
• "Competitive Bidding" and "Public Bidding" have the same meaning and are used interchangeably

Consulting Services

• Refers to services for infrastructure projects and other GOP projects/activities
• Requires adequate external technical and professional expertise beyond the GOP's capability
• Includes advisory and review services, pre-investment or feasibility studies and design
• Covers construction supervision, management and related services, and other technical or special studies

Domestic Bidder

• Refers to any person or entity offering unmanufactured articles, materials, or supplies of the growth or production of the Philippines
• Can include manufactured articles substantially from Philippine articles, also includes materials, or supplies

Domestic Entity

• Refers to a citizen of the Philippines (individual/sole proprietor)
• Can refer to a partnership, corporation, cooperative, or association duly organized under Philippine laws
• At least 75% interest or outstanding capital stock belongs to Filipino citizens
• Must be habitually established in business and engaged in the manufacture or sale of merchandise covered by the bid
• The business has been in existence for at least 5 years before the Invitation to Bid advertisement/posting

Executive Agreements

• Refers to International Agreements that do not require legislative ratification

Expendable Supplies

• Refers to articles normally consumed in use within 1 year
• Can be converted in the process of manufacture or construction
• Includes items with over 1 year life expectancy but substantially decreases in value after 1 year of use (e.g., medicines, stationery, fuel, spare parts)

Foreign Bid

• Refers to any offer of articles, materials, or supplies not manufactured in the Philippines
• Also includes those not substantially made from Philippine articles, materials, or supplies

Foreign-Funded Procurement

• Refers to the acquisition of goods, consulting services, and infrastructure projects by the GOP
• These are wholly or partly funded by Foreign Loans or Grants pursuant to a Treaty/International/Executive Agreement
• "Foreign-funded procurement" is used interchangeably with "foreign-funded projects" or "foreign-assisted projects"

Foreign Grants

• Refers to grants with no repayment obligations
• Provided in monetary form, goods, works, and consultancy services, among others

Foreign Loans

• Refers to loans, credits, and indebtedness with foreign private banks
• This includes other entities with diplomatic relations with the Philippines
• Enables the GOP to finance economic development purposes or projects authorized by law

Goods

• Refers to all items, supplies, materials, and general support services
• Excludes consulting services and infrastructure projects
• May be needed for public business or government undertaking, project or activity
• Includes equipment, furniture, stationery, materials for construction, or personal property of any kind
• Also includes non-personal or contractual services and related or analogous services (lease or purchase of office space, media advertisements, health maintenance, etc.)

GPPB

• Refers to the Government Procurement Policy Board

Head of the Procuring Entity

• For NGAs and constitutional commissions/offices, and branches of government, it is the head of the agency/body or their duly authorized official
• For GOCCs, GFIs, and SUCs, it is the governing board or its duly authorized official
• For LGUs, it is the local chief executive
• In decentralized procurement situations, the head of each decentralized unit is considered the Head of the Procuring Entity

Infrastructure Projects

• Includes construction, improvement, rehabilitation, demolition, repair, restoration, or maintenance
• Includes roads, bridges, railways, airports, seaports, communication facilities, civil works components of IT projects
• Involves irrigation, flood control/drainage, water supply, sanitation, sewerage and solid waste management systems
• Also includes shore protection, energy/power and electrification facilities
• Encompasses national buildings, school buildings, hospital buildings, and other government construction projects
• "Infrastructure Projects" and "civil works"/"works" are interchangeable terms

International Agreement

• Refers to a contract or understanding between the GOP and another government/foreign/international financing institution
• Must be in written form, governed by international law, and can be embodied in a single or multiple related instruments

Non-Expendable Supplies

• Refers to articles not consumed in use and retain their original identity
• Have a serviceable life of more than 1 year which add to the assets of the GOP (furniture, fixtures, transport and other equipment)

PhilGEPS

• Refers to the Philippine Government Electronic Procurement System
• "PhilGEPS" is used interchangeably with "G-EPS"

Philippine National

• Refers to a Filipino citizen (individual/sole proprietor)
• Includes partnerships, corporations, cooperatives, or associations organized under Philippine laws with at least 60% Filipino ownership

Portal

• Refers to a website that integrates a variety of content
• Attracts and aggregates multiple users together in a central virtual space

Procurement

• Refers to acquiring goods, consulting services, and contracting for infrastructure projects by the procuring entity
• Nature of procurement (goods, infrastructure, consulting services) is based on the primary purpose of the contract for projects involving mixed procurements
• Also includes the lease of goods and real estate

Procuring Entity

• Refers to any branch, constitutional commission or office, agency, department, bureau, office, or instrumentality of the GOP (NGA)
• Includes GOCC, GFI, SUC and LGU procuring goods, consulting services and infrastructure projects

Treaties

• Refers to international agreements entered into by the GOP
• Requires legislative ratification after executive concurrence

Universal or Commercial Banks

• Refers to banks duly authorized under R.A. 8791, known as “The General Banking Act of 2000”