PHILIPPINES

Country Public Procurement Profile Survey (with E-Government Procurement Overview)
COUNTRY Philippines
Respondent Agency Government Procurement Policy Board – Technical Support Office (GPPB-TSO)
Date of First Submission Friday, July 29, 2011
Date of Last Update Tuesday, October 18, 2011
Part A.  Country Public Procurement Profile (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Does your country have a central Public Procurement Authority (PPA) with legal authority through legislative enactment, executive decree or administrative regulation to act as functional and normative body in public procurement?
a.      Yes
2 The PPA’s mandates involve the following responsibilities (please select as many as applicable, one per line):
a.       formulation of procurement policy and regulations
b.      procurement prior reviews/no-objection
f.       monitoring and evaluation at country, sector and procuring entity level
g.       professional advise and guidance in public procurement
h.      procurement capacity development and training
Others (please specify):
3 The PPA reports to:
a.       President/Parliament
Others (please specify):
4 Number of people employed by the PPA: (Please provide an organizational chart of the PPA and email address for communication, if possible)
d. 15 and more
Email address for communication with PPA:  gppb@gppb.gov.ph
5 Does PPA have a website?
a.      Yes
Link to PPA website:  www.gppb.gov.ph
6 The PPA website covers the following areas (please select as many as applicable, one per line):
a.       procurement related regulations and documents
b.      news, events and policy initiatives related to public procurement
c.       interaction with users through procurement forum, Q&A, customer survey & feedback, policy dialogue & experience sharing, etc
h.      posting of overview and resolutions to complaints
i.        centralized online system for procurement monitoring of procuring entities
j.        centralized online system for collecting procurement data and statistics
k.      linkage to an e-procurement system with actual procurement transactions
Other functions (please specify):
7 Do you have a public procurement law or any other regulatory act with legislative power? (Please provide a link or a scanned copy of its English version.) If yes, which of following are true (please select as many as applicable, one per line)?
d.      the law does not cover procurement conducted by public utilities
j.        the law establishes combination of decentralized and centralized system (decentralized for small or routine procurement and centralized for large or selected goods, works and services)
k.      the law mandates standardization of procurement practices mandating use of common procedures and standard bidding documents and forms
l.        the law currently provides principles and general procedures  that makes provision for the  use/adoption of e-procurement
Link to public procurement law, if any:
8 Do you have a strategic plan or reform agenda for developing the procurement system in your country? (Please provide a copy or link)
a.       Yes, this is a long term procurement strategy updated 3-5 years and its key outcomes are incorporated into national development strategy documents of the country
Others (please specify):
9 What kind of initiatives and assistance in your view is needed to improve your public procurement system in the near future? [Please select your five most important initiatives among the choices, one per line.]
a.       Conduct an overall assessment of the effectiveness of the country’s public procurement system
b.      Assess compliance with country’s public procurement rules and regulations by procuring entities
d.      Create a sustainable training system for procurement practitioners to ensure compliance, professionalism and career development
e.       Create a single window for procurement related information and statistics led by PPA and connect with e-procurement system
f.       Launch communication campaign to improve public awareness of country’s public procurement policy
Others (please specify):
Additional notes, if any:
10 What is the size of the public procurement of your country? Please select the closest corresponding values based on most recent available information or your rough assessment?
I. Average annual procurement under national and local budget
b.      between  US$ 10 to 100 million
II. Average annual procurement by State Owned Enterprises (those who are subject to the procurement regulations)
b.      between  US$ 10 to 100 million
III. Average annnual procurement under Official Development Assistance (Donor-funded projects)
b.      between  US$ 10 to 100 million
Part B.  e-Government Procurement Planning (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Has your government formed or implemented a concrete plan for development of e-Gp?  Please select only one answer.  (If yes, please email a copy of the plan to mkhaltarpurev@adb.org).
e.   No, there is no formal plan or agenda for e-Gp
2 Which of the following best describes the functionality of your planned e-Gp initiatives? (Please select as many as applicable, one per line.)
a.       a single website that consolidates and publishes all national information and policies related to public procurement
c.       e-publication system for real time procurement notices
d.      e-publication of procurement awards and results
e.        system for bidders to download bidding documents and RFPs in response to the published procurement notices
f.       e-bidding system for bidders to submit their bid or proposals online and observe the online public opening of the bid
l.        electronic supplier registration system
3 Do you have plans to implement any new e-Gp system at the national level? (Please select as many as applicable, one per line.)
a.       a single website that consolidates and publishes all national information and policies related to public procurement
c.       e-publication system for real time procurement notices
d.      e-publication of procurement awards and results
e.        system for bidders to download bidding documents and RFPs in response to the published procurement notices
f.       e-bidding system for bidders to submit their bid or proposals online and observe the online public opening of the bid
l.        electronic supplier registration system
4 Does the scope of your e-GP plans include the following? (Please select as many as applicable, one per line, and please provide a copy of the relevant documents if possible.)
a.    improving legal architecture to facilitate e-Gp system implementation
b.   assessing e-readiness of procuring entities through surveys and feasibility studies
d.    creation of necessary IT infrastructure
h.   drafting amendments to the public procurement law and its implementing rules and   regulations to facilitate  e-Gp operations
i.   generating public awareness and conducting consultation with suppliers to promote development of e-Gp system
Part C.  e-Government Procurement System Implementation (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 General Information about the e-GP system presently in operation
a.  System Name:  PHILGEPS (Philippine Government Electronic Procurement System
b.  Website Address:  http://www.philgeps.net
c.  Administration/Operator of the System:  PHILGEPS Group; Procurement Service – Department of Budget and Management
d.  Agency(s) using the System:  all National Government Agencies (NGAs), Government-Owned and Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), State Universities and Colleges (SUCs), and Local Government Units (LGUs)
e.  Year of launch:  2000 as a Pilot System, 2006 full implementation
2 Brief description of the system in terms of coverage and main functional modules
a.  e-publication/downloading:  implemented in the Electronic Bulletin Board functionality.  Procuring entities post their invitation to bid, upload their bid documents and results of bidding in the PhilGEPS.  This is mandated under the Government Procurement Reform Act (RA 9184).  Suppliers registered in the system received bid match notification for bids that match their line of business.  Suppliers download bid documents from the elctronic Bulletin Board.
b.  e-bidding:  ongoing development.  For pilot implementation end of 2011.  This will allow the suppliers/contractors to submit their bid proposals online and the Bids and Awards Committee to open and record the results of evaluation online.
c.  e-contracting:  not available in the system
d.  e-payment:  Connects with the government bank — Land Bank of the Philippines.  Allows government agencies to pay online common-use goods/items purchased from the central procuring agency, the Procurement Service.  This will be implemented in September 2011.
e.  e- reverse auction:  not available in the system.  Reverse auction is not allowed in the Philippine procurement law.
f.  e-catalog purchasing:  implemented via the Virtual Store which allows online purchase of common-use goods from the central procurement agency, the Procurement Service.
g.  e-Guarantee/security:  included as part of the e-bidding and e-payment system.
3 Other government IT systems that the e-Gp system links to (please select as many as applicable):
a.       National Treasury and Budget
b.      Tax
c.       Business Registration
d.      Banking
f.       Contractors and Suppliers Registration and Classification
Others (please specify):  NOTES:  a. & b. are planned; d. is an ongoing development; f. Is an ongoing study
4 How do the bidders input and submit their proposal/tender documents into your e-Tendering  System, if any (please select as many as applicable)?
a.       web form
b.      upload files
c.       send in paper documents
Other methods (please specify):
5 If bid evaluation is carried out online, briefly describe the process of online evaluation.
The process of evaluation is the same as the manual system, however, the results have to be recorded into the system.
6 Is bid security/guarantee required on your e-procurement system? (Please explain briefly.)
Yes, bid security is required in bid submission.  In the planned system design, it will be included in the e-bidding system where scanned copies of bid securities can be uploaded by the supplier as part of his bid.  If the bid security is in the form of cash, the supplier can use the e-payment system.  The GPPB has yet to make a final decision on this matter.
7 Does the e-Gp system require specific operating system, browser?
No
8 Describe the security method (e.g. digital authentication) used in the e-Gp system.
In the process of being designed.
9 Are electronic and paper documents legally equivalent in your country?
Yes, via Republic Act No. 8792 (E-Commerce Law)
10 Briefly describe the management of the e-Gp system in terms of :
a.  the business model (managed in house, outsourced etc.):  Outsourced development and operation to a private service provider — Ayala Systems Technology Inc.  The Philippines adopted a Government Managed Service Model.  The government manages the operations of the system and owns the database.  The system is owned by the service provider.
b.  users fee for suppliers or procuring agencies (if any):  Based on the proposed Business Plan which is still being subjected for review of the National Economic Development Authority (NEDA), user fees will be charged to suppliers depending on the membership type that he wants to avail.  Basic system registration is free, however, if a supplier wants to avail of other services such as certificate of registration, then he has to be a “blue” member and pay the corresponding user fee of Php3,000 (equivalent to USD 72).  If a supplier/contractor wants to participate in e-bidding, then he has to be a “platinum” member and pay the corresponding user fee of Php5,000 (equivalent to USD 119).
c.  training (available programs, e-learning, manuals etc):  Regular training is available for both government procuring entities and suppliers/contractors and is being provided by a private service provider who manages the administrative task of inviting agencies and suppliers, providing the venue, food, supplies, etd., and arranging the schedule of the trainer.  The trainers come from the National Pool of Trainers which were trained by PhilGEPS and have already taken and passed the certification examination online.  e-Learning materials are also available online to the National Pool of Trainers and to those that have been trained in the system.  User manuals are also downloadable from the system.
d.  certification ( if required who issues, how):  The PhilGEPS’ office issues the PhilGEPS certificate of registration which is required under the Implementing Rules and Regulations of RA 9184 for post-qualification.  Upon the implementation of the Expanded Supplier Registry which will allow suppliers to submit digital copies of their eligibility documents online, suppliers can already print the certificate of registration online.
e.  Call Center (Q&A for user requirements etc.):  The PhilGEPS office handles the helpdesk for users (i.e. Buyers and suppliers) of the system such as providing information/assistance on the use of the system, system registration, username and password, posting bid notices, etc.
f.  Self teaching (modules for user requirements):  e-Learning materials are available online to those who have been trained in the system.  Help facility is also available in the system.
g.  Service centers (physical service centers to meet user requirements):  PhilGEPS office is located in the heart of the business district in Ortigas Center, Pasig City which is one of the country’s premier business district.  Government agencies and suppliers can easily go to the PhilGEPS office for assistance.  In the provinces and the regions, government agencies and suppliers can go to the nearest Procurement Service’s regional depots for assistance.
h.  Any incentives offered to encourage adoption of this system by other procuring entities:  Procuring entities are encouraged to use the system because of the following benefits that they will get from the system:  1. improve transparency in government procurement; 2. increase competition which results in better prices; 3. savings in newspaper advertising cost and procurement cost; 4. implement the requirements of the law.  The PhilGEPS office, Procurement Service gives awards to top 5 government agencies who post the most number of bid notices and awards during its milestone anniversary.  The PhilGEPS is planning to give annually the PhilGEPS Awards.
11 Please provide the following statistics (if available):
a. number of procuring entities legally required to use the e-Gp system: 4,789 + 41,995 Barangays
b. number of procuring entities registered in the e-Gp system as of December 31 2010:  4,046 + 4,867 Barangays
c. number of procuring entities that actually used the e-Gp system since its inception:  6,529
d.value of the contracts awarded in 2010  (in USD):   —
e. value of the contracts (awarded) registered in the e-Gp in 2010 (in USD):  15.5 million
f. active business (contractors and suppliers) in the country as of December 31, 2010:  20,645
g. contractors/suppliers registered in the System as of December 31, 2010:  47,704
12 How do you encourage procuring entities and suppliers to use the e-Gp system?
Government Procuring Entities are mandated under RA 9184 to use the e-GP system.  Under the IRR of the law, all suppliers and contractors who wish to do business with the government are also mandated to register and use the system.  The PhilGEPS certificate of registration is a requirement for postqualification.  Benefits that can be derived from the system are also discussed in various trainings, seminars and fora attended by the PhilGEPS office.
13 Do you allow individual procuring entities to customize national e-Gp systems? If yes, in what way(e.g. use a different website design with their logo)
No
14 Are individual agencies free to use different systems to those approved at the central level? If yes, is there any central approval procedure for this?
Yes, per RA 9184 agencies can use or build their own e-procurement system for non-common use goods.  However, it has to link with the PhilGEPS and the GPPB has to determine and certify compliance with the requirements.  Although, it is being encouraged that the procuring entities should just use the PhilGEPS to avoid additional expenses and the need for additional resources on the part of the government.
15 What are the key success factors you observe in introducing or implementing e-Gp in your public procurement system framework (please list them if any)?
a.  Government Leadership – Champions must be present in all levels of the government.  During the time that the pilot e-procurement system was implemented, the Secretary of Budget and Management ensured that there is buy-in from the President of the Philippines.  During that time, which was prior to the enactment of RA 9184, several Executive Orders were issued by the President to mandate procuring entities to post their bid invitation and notice of award in the system.  For the succeeding Presidents, the PhilGEPS is included in the priority agenda of the government and included as part of the Philippine Development Plan.
b.  Policy and Legal Framework – The use of PhilGEPS is mandated under Section B of the Goverment Procurement Reform Act (GPRA).  Government procuring entities are mandated to use the system.
c.  PhilGEPS is a part of the overall government procurement reform program.
16 What are the major problems you faced in introducing or implementing e-Gp system under your public procurement framework (please list them)?
a.  Sustainability of e-GP Systems – The PhilGEPS office, under the Procurement Service, has limited resources to operate the PhilGEPS.  The office is dependent on the Procurement Service for its manpower and overhead expenses and to the National Budget for the development and operation of the system.  A review of the PhilGEPS organizational structure must be conducted.
b.  Lack of monitoring systems for the implementation of e-GP – Out of the 1,375,250 bid notices posted, only 172,683 or 12% of award notices are posted.  The monitoring capability of oversight agencies such as the GPPB-TSO and the CSOs must also be strengthened.
c.  Weak institutional capacity to implement e-GP – Lack of awareness of the users (implementing agencies and private sector) regarding the PhilGEPS.  Some government agencies use the system for compliance on the requirements of the law but not to use the PhilGEPS as part of their procurement process.
17 What approach to the e-Gp development is suitable for your country’s public procurement system and why? (Please briefly describe your answer.)  OPTIONAL
THANK YOU!