US-ASEAN Business Council Welcomes the Philippines’ New Government Procurement Act 

(Manila, Philippines) – The US-ASEAN Business Council (USABC) welcomes the passage of the New Government Procurement Act (NGPA), signed into law by President Ferdinand “Bongbong” Marcos, Jr. on July 20. The NGPA, which repeals the Government Procurement Reform Act of 2003, will transform the Philippines’ government procurement system and make the Philippines a more attractive destination for businesses engaging with the government.

By introducing the “most economically advantageous responsive bid” (MEARB) criteria in assessing tender offers, the new law aims to ensure that quality and value for money are considered alongside the usual cost, addressing a persisting issue where following the lowest bids often led to the acquisition of low-quality goods.

The NGPA shortens the contract awarding period from the current minimum of three months to only two months, by standardizing procurement forms and institutionalizing electronic procurement. It also introduces new modalities for acquiring goods and services, such as competitive dialogue, framework contracting, pooled procurement, and direct procurement for science, technology, and innovation, among others. ​

“The Philippines has taken a significant step toward modernizing its public procurement system with the passage of the New Government Procurement Act.”, said Amb. Brian McFeeters, USABC’s Senior Vice President and Regional Managing Director. “We look forward to seeing the law’s full implementation as it aims to enhance economic efficiency, transparency, and digital transformation in government spending.”, he added.

The Government Procurement Policy Board, under the Department of Budget and Management, is expected to issue the law’s implementing rules within 180 days from its publication, while the standard procurement forms approved another ninety days after. The law provides the government a three year transitory period from the approval of the standard procurement forms, to fully comply with its requirements.