All agencies required to use e-procurement for office supplies

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Monday, August 1, 2011

ALL agencies are now required to use a government-wide electronic procurement system whenever they need to source common items such as bond paper, ballpens, pencils, and ink.

This is according to Administrative Order 17 signed by President Benigno Aquino III on July 28.

Under the order, all government agencies are required to use the Philippine Government Electronic Procurement System (PhilGeps) in all their procurement activities as part of promoting transparency.


PhilGeps provides relevant information on all public procurement activities. It can be accessed online at

The AO has also directed all government offices to source all their common-use supplies directly from the Procurement Service (PS) of the Department of Budget and Management (DBM) or from its regional depots throughout the country.

Common-use supplies such as office supplies eat up about P19.5 billion of the government's annual spending.

Activities such publication of all bid opportunities, notices, awards and contracts, shall also be coursed through the Philgeps.

"This administration reiterates the policy that procurement of government supplies, materials, and equipment shall be done in the most and transparent and competitive manner," Executive Secretary Paquito Ochoa Jr. said Monday.

He stressed that ensuring transparency and competition are keys to protecting the procurement system from graft, as these two elements discourage attempts to rig the bidding and awarding process to favor particular suppliers.

"With a centralized supply purchasing system, the budget department has estimated that the government stands to save as much as P6 billion a year," he added.

The AO applies to all national government agencies, including military and police units, government-owned and -controlled corporations (GOCCs), government financial institutions (GFIs), state universities and colleges (SUCs), and local government units (LGUs).

In the past, only the national government agencies, including state colleges and universities, government-owned and controlled corporations, and their subsidiaries were mandated to use the PS system.

However, upon the enactment of Republic Act 9184 or the Government Procurement Reform Act, LGUs are now required to use PS or Philgeps.

The EO also calls for a periodic evaluation of all procuring entities, and this includes the regular holding of procurement training programs and distribution of procurement operations manual for all offices and agencies of the government.

At present, the PhilGeps already has 53,382 registered suppliers. (Jill Beltran/Sunnex)

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