Gonzales seeks amendment on procurement process

CITY OF SAN FERNANDO --Senior Deputy Speaker Aurelio “Dong” Gonzales Jr. is proposing to shorten the procurement process in the entire bureaucracy from 72 days to 27 days.

He said the move is expected to speed up the implementation of vital government infrastructure projects.

His proposal is contained in House Bill No. 7944 “Ang Bagong Pilipinas Government Procurement Reform Act.”

The measure was taken up by the House committee on revision of laws chaired by Manila Representative Edward Maceda in a meeting before Congress went on its sine die adjournment last week.

Gonzales said the government procurement system needs to be updated and streamlined to put an end to recurring delays in the acquisition of goods and services, and the awarding and implementation of infrastructure projects like roads, expressways and school buildings.”

He said the huge increase in state expenditures since 2003, when Republic Act No. 9184 or the Government Procurement Reform Act was enacted, necessitates the updating of the law.

Infrastructure spending alone jumped to more than ten-fold, from P121 billion out of a national budget of P609 billion 20 years ago, to P1.311 trillion out of a P5.268-trillion outlay for this year, he said.

Gonzales added that agencies often blame procurement issues for their perennially low fund utilization rates.

The lawmaker pointed out that before proposing his new government procurement reform law, he conducted extensive consultations with state agencies and even asked them to submit position papers.

The results of these meetings and the agencies’ procurement concerns and recommendations as contained in their position papers were the basis of his proposed reforms, he stressed.

The House leader, who is a civil engineer by profession, suggested that the procurement process be shortened by 45 calendar days to 27 calendar days starting from the first day of the publication of the invitation to bid until the posting of the notice of award and notice to proceed with the approved contract.

“This could be done by doing away with post-qualification as it is a duality to the requirement of pre-qualification. The delay in post-qualification is usually due to the agency’s lack of manpower, distance of the location of the project, and limited expertise of the contractor,” he said.

He said the fact that bids and awards committees are ad hoc bodies whose members have other functions and duties in their respective offices contributes to procurement delays.

Gonzales recommended the creation of full-time bids and awards committees, whose secretariats should be allowed to receive bids and other procurement documents, a function they do not possess under the present law.

His other proposals include a one-time posting, instead of two publications, of notice of award and notice to proceed with the approved contract, and allowing the winning bidder to start work or delivery of goods immediately upon his receipt of the notice of award.

Gonzales is also proposing that relevant provisions of Presidential Decree No. 1870, which authorizes the government to take over delayed infrastructure projects, and PD No. 1795, which penalizes contractors and subcontractors who violate any provision of their contracts, be included in the proposed new procurement law insofar as they affect the acquisition of goods and services.

He said these decrees, issued by the late President Ferdinand Marcos Sr., were not repeated by RA 9184.

Gonzales said his reform proposals “are structured around the principles of economic efficiency, transparency, competitiveness, and fairness.”

“They will have a huge impact in addressing delays in the procurement process. Most importantly, they will further improve the timelines of the completion of projects of the entire government and their use and enjoyment by our people,” he stressed.

His proposed “Ang Bagong Pilipinas Government Procurement Reform Act” would apply to all government agencies and offices, including local government units, state corporations, and state universities and colleges.

It will repeal RA 9184.


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