President Aquino Mandates Use of the Procurement Service and the PhilGEPS PDF Print E-mail
Wednesday, 10 August 2011

President Benigno S. Aquino III, on July 28, 2011, issued Administrative Order No. 17 on “Directing the Use of the Procurement Service and the Philippine Government Electronic Procurement System in Procurement Activities in Accordance With Republic Act No. 9184, And Improving the Operation of the Procurement Service”.

The issuance of AO 17 is generally in full support of the provisions of RA 9184 (the Government Procurement Reform Act) which set forth policies on transparency, competitiveness, streamlined procurement process, system of accountability and public monitoring of government procurement.  The directive specifically reiterates the provisions of R.A. 9184 on procurement of common goods from the PS and use of the PhilGEPS in the posting of all agencies’ procurement activities from publication of bid opportunities to posting of awards and contracts.  Other salient features of Administrative Order No. 17 include the following:

      • The DBM may consider data  available in the PhilGEPS such as opportunities, notices and awards posted, in its evaluation and review of the proposed budgets of agencies;
      • Public Access Terminals will be set up for use by government agencies without internet access.   Government agencies with internet access may share their resources with other agencies for purposes of using the PhilGEPS;
      • PS may charge fees for use of the PhilGEPS in order to sustain its operations;
      • Strengthening of PS operations on key areas like improving product standards and specifications, expanding the PS Product List, price monitoring, expansion of distribution system, improvement of inventory management and development of additional PhilGEPS features and enhancements were indicated.

AO 17 prescribes coverage and compliance even by Local Government Units.  It also specifically identified the integration of Annual Procurement Plans and the development of a module for contract implementation and monitoring tools for Civil Society Organizations (CSO) and Commission on Audit (COA) Auditors in the PhilGEPS.

It is also a means to achieving the defining principle that serves as the foundation of the Aquino Adminstration:  “Kung Walang Corrupt, Walang Mahirap“ (If no one is corrupt, no one will be poor).  DBM Secretary Florencio B. Abad, the staunchest champion of procurement reforms in the country, captures it best when he announced the savings and efficiencies that the government realized through the Procurement and PhilGEPS:

“With our present fiscal state, every peso should count. We are encouraging all government departments and agencies, as well as the local government units up to the barangay level, to use PS and PhilGEPS so that their procurement will be cost-efficient,” he said.
“But more than the cost benefits, PhilGEPS will enshrine transparency and accountability in all government procurement and minimize human intervention and discretion in the bidding process. Technology will empower us to fulfil the promise of ‘kung walang corrupt, walang mahirap,’” he said. (DBM Press Release Feb. 8, 2011)

The men and women of the Procurement Service and the PhilGEPS are grateful for the issuance of Administrative Order No. 17 which strengthens our organization.  We are likewise thankful for the support and vote of confidence on our ability to perform our tasks and contribute to procurement reforms and good governance.  We are all gearing up for the challenging work that comes with the trust bestowed upon the organization.

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