Under Republic Act No.
12009, also known as the New Government Procurement
Act (NGPA), the procurement of Scientific, Scholarly or Artistic Work,
Exclusive Technology and Media Services is recognized as a specific form of
Negotiated Procurement. The new law's Implementing Rules and Regulations
(IRR), approved in February 2025, have retained this modality to address unique
procurement needs that may not be suitable for competitive bidding.
Key Aspects under RA 12009
The NGPA maintains the core principles of transparency and efficiency while offering
a "fit-for-purpose" approach, meaning the procurement method is chosen to best
suit the specific project. This is particularly relevant for the services listed under this
section, which often require a high degree of specialization and expertise that may
only be found with a limited number of providers.
The process remains largely the same as outlined in the provided text, but with a
few key enhancements:
Expanded Scope: The new law and its IRR may have refined or expanded
the definition of what constitutes "Scientific, Scholarly or Artistic Work" to
reflect modern practices and technologies.
Negotiation Process: The Bids and Awards Committee (BAC) is still
responsible for the negotiation. However, the new law places a greater
emphasis on the "most economically advantageous responsive bid",
which means the negotiation and final award are not solely based on the
lowest price. The BAC can consider a supplier's technical expertise, track
record, and the overall value they offer to the government.
Head of the Procuring Entity (HoPE): The final approval and
determination still rest with the HoPE. The decision to use this mode of
procurement must be justified and properly documented to ensure
accountability.
Transparency and Public Monitoring: The new law mandates enhanced
transparency measures. All procurement-related information, including the
justification for using negotiated procurement, must be publicly disclosed
through the PhilGEPS and other open government initiatives, such as open
contracting data. This ensures public oversight and accountability.
In essence, while the legal basis has shifted from RA 9184 to RA 12009, the
fundamental procedure for procuring these highly specialized services through
negotiation remains, but it is now guided by a modernized framework that
prioritizes value-for-money, efficiency, and greater transparency.
Based on the text you provided, here is a breakdown of the specific information, structured to
highlight the key elements and procedures for this particular mode of procurement:
Section 35.6: Scientific, Scholarly or Artistic Work, Exclusive Technology and
Media Services
This section outlines a specific alternative method of procurement where competitive bidding is
not the primary mode. It applies to a limited range of specialized goods, infrastructure projects,
and consulting services.
Criteria for Application:
The Head of the Procuring Entity (HoPE) must determine that the item or service falls under one
of the following categories:
Creative and Artistic Works: This includes works of art, commissioned pieces, or
services that require a unique artistic skill. Examples provided are a singer, performer,
poet, writer, painter, or sculptor.
Historical Conservation: This pertains to restorative work specifically for historical and
culturally significant structures and artworks, implying a need for highly specialized
knowledge and skill.
Intellectual and Legal Services: This covers scientific, academic, scholarly work or
research, as well as legal services, suggesting that the expertise required is not typically
available through a general bidding process.
Highly Specialized Medical and Biotech Items: This is a very specific category for life-
saving medical and biotech equipment, devices, medicines, supplies, materials, tools, and
consumables. A critical requirement here is that the procurement must be certified by the
Department of Health (DOH).
Exclusive Publications: This includes scientific, technical, economic, business, trade, or
legal journals, magazines, papers, subscriptions, or other exclusive statistical publications
and references. The key term is "exclusive," which indicates a limited or single source.
Media Services: This covers media documentation, advertisements, or announcements
through various communication media like television, radio, newspaper, and the internet.
Key Provisions and Principles:
Determination by the HoPE: The decision to use this mode of procurement rests with
the Head of the Procuring Entity (HoPE). This underscores the authority and
responsibility of the agency head to justify and approve the use of a non-bidding method.
Award to Multiple Suppliers: The text explicitly states that "the award to more than one
(1) supplier may be made by the Procuring Entity." This is a notable departure from the
typical single-award principle in competitive bidding and is justified by the nature of the
information to be disseminated and principles of transparency, efficiency, and economy.
Procedure (Section 35.6.1):
o Negotiation by the BAC: The Bids and Awards Committee (BAC) is the body
responsible for carrying out the negotiation.
o Basis for Negotiation: The negotiation is to be conducted with a supplier,
contractor, or consultant who is "technically, legally, and financially capable."
The basis for these negotiations is the Technical Specifications, Scope of Work,
or Terms of Reference prepared by the End-User or Implementing Unit. This
highlights that while it's a negotiated process, it's still grounded in clear, pre-
defined requirements.
o Recommendation to the HoPE: After a successful negotiation, the BAC's role is
to recommend the contract award to the HoPE. The final approval and award of
the contract are not within the BAC's authority. This aligns with the broader
structure of government procurement where the BAC recommends and the HoPE
approves.
o Final Approval: The final contract award is made by the HoPE in accordance
with Section 66 of the IRR.
Explain this in layman
Let's break down this government rule in simple terms.
Imagine a government office needs to buy something or hire someone for a project. Usually, they
have to do a public auction or "bidding" where different companies compete to offer the best
deal.
But this rule, Section 35.6, is for special cases where a regular auction just doesn't make sense.
It's for things that are unique, artistic, or very specific.
When can they use this rule?
The government can skip the public auction and go straight to a specific person or company if
the project is:
A work of art: Like commissioning a painter to create a mural for a government
building, hiring a singer for a special event, or getting a famous writer to write something
for them. It's for when a particular artist's unique talent is what's needed.
Fixing a historical building: Like restoring a centuries-old church or a cultural statue.
You can't just hire any construction company for this; you need a specialist.
Scientific or legal work: Like hiring a specific scientist for a research project or a
specialized lawyer for a specific case. The expertise is so specific that only a few people
or firms can do the job.
Specialized medical stuff: This is for very specific, life-saving medical equipment or
medicine that is only made by one or two companies. The Department of Health (DOH)
has to say it's okay to do this.
Exclusive publications: Like subscribing to a special scientific journal or a business
database that's only sold by one company.
Media ads: For advertising on TV, radio, or in newspapers. Because of the nature of
media, they can hire more than one company (for example, to advertise on different TV
stations).
How does the process work?
Instead of a big public competition, the process is simpler:
1. The government team (BAC) sits down and negotiates directly with a person or
company.
2. They only negotiate with someone who is qualified—meaning they have the right skills
(technical), are legally allowed to do business (legal), and have the money to complete
the project (financial).
3. The negotiation is based on what the government needs, which they've already written
down in a document (like a detailed job description).
4. If they agree on a deal, the team recommends the deal to their boss, who is the Head of
the Procuring Entity (HoPE).
5. The boss then makes the final decision to approve the contract.
In short: This rule allows the government to efficiently hire unique talent or buy very specific,
one-of-a-kind items without going through a long, formal public bidding process, but only for
certain, clearly defined projects
Let's break down this government rule in simple terms.
Imagine a government office needs to buy something or hire someone for a project. Usually, they
have to do a public auction or "bidding" where different companies compete to offer the best
deal.
But this rule, Section 35.6, is for special cases where a regular auction just doesn't make sense.
It's for things that are unique, artistic, or very specific.
When can they use this rule?
The government can skip the public auction and go straight to a specific person or company if
the project is:
A work of art: Like commissioning a painter to create a mural for a government
building, hiring a singer for a special event, or getting a famous writer to write something
for them. It's for when a particular artist's unique talent is what's needed.
Fixing a historical building: Like restoring a centuries-old church or a cultural statue.
You can't just hire any construction company for this; you need a specialist.
Scientific or legal work: Like hiring a specific scientist for a research project or a
specialized lawyer for a specific case. The expertise is so specific that only a few people
or firms can do the job.
Specialized medical stuff: This is for very specific, life-saving medical equipment or
medicine that is only made by one or two companies. The Department of Health (DOH)
has to say it's okay to do this.
Exclusive publications: Like subscribing to a special scientific journal or a business
database that's only sold by one company.
Media ads: For advertising on TV, radio, or in newspapers. Because of the nature of
media, they can hire more than one company (for example, to advertise on different TV
stations).
How does the process work?
Instead of a big public competition, the process is simpler:
1. The government team (BAC) sits down and negotiates directly with a person or
company.
2. They only negotiate with someone who is qualified—meaning they have the right skills
(technical), are legally allowed to do business (legal), and have the money to complete
the project (financial).
3. The negotiation is based on what the government needs, which they've already written
down in a document (like a detailed job description).
4. If they agree on a deal, the team recommends the deal to their boss, who is the Head of
the Procuring Entity (HoPE).
5. The boss then makes the final decision to approve the contract.
In short: This rule allows the government to efficiently hire unique talent or buy very specific,
one-of-a-kind items without going through a long, formal public bidding process, but only for
certain, clearly defined projects.
Can this be done through a Purchase Request/
Yes, the process would begin with a Purchase Request (PR).
Think of it this way:
A Purchase Request (PR) is the starting point of any government procurement. It's an
internal document created by the office or department (the "End-User" or
"Implementing Unit" in the text) that needs the goods or services. It's their formal way of
saying, "We need to acquire this, and here are the details." The PR includes information
like the item description, quantity, estimated cost, and the purpose of the request.
The information on the Purchase Request then serves as the basis for the entire
procurement process that follows. The Bids and Awards Committee (BAC), upon
receiving the approved PR, will then determine the appropriate mode of procurement.
In the case of Section 35.6, the BAC would look at the PR and realize the request falls into one
of the specialized categories (like a work of art or a highly specialized medical device). Because
of this, they would then proceed with the Negotiated Procurement process as outlined in the
text, instead of going for a public bidding.
So, the Purchase Request is not a substitute for the process described in Section 35.6; rather, it's
the initial document that kicks off the entire procedure. The procurement method—whether it's
public bidding or a negotiated procurement—is chosen based on the details provided in the
approved Purchase Request.
Negotiated Procurement process
In the Philippines, "Negotiated Procurement" is one of the alternative methods of procurement
allowed under the Government Procurement Reform Act (Republic Act No. 9184) and its
Implementing Rules and Regulations (IRR). While the goal is always to have competitive
bidding, this method is used in specific, well-defined situations where public bidding is not
feasible or practical.
Here is a general outline of the negotiated procurement process, which can vary slightly
depending on the specific reason for its use (e.g., emergency, two failed biddings, or for
specialized services like those under Section 35.6).
1. Justification and Approval
Determination: The process begins with the determination by the Head of the Procuring
Entity (HoPE) that the procurement falls under one of the specific categories where
negotiated procurement is allowed. This is a critical step because it justifies bypassing the
default public bidding process.
Documentation: The Procuring Entity must prepare a justification document or a BAC
Resolution that clearly explains why negotiated procurement is being used. This ensures
transparency and accountability.
2. Identifying and Inviting Suppliers
Supplier Identification: The Bids and Awards Committee (BAC) identifies potential
suppliers, contractors, or consultants who are "technically, legally, and financially
capable" to perform the required work. This is not a public invitation for all to join, but a
targeted process.
Invitation to Negotiate: The BAC sends out an invitation to the pre-identified suppliers.
This invitation includes the Terms of Reference (TOR), Technical Specifications, or
Scope of Work, which were prepared by the end-user.
3. Negotiation and Submission of Offers
Initial Offers: The invited suppliers submit their initial technical and financial offers to
the BAC.
Negotiation Proper: The BAC conducts face-to-face or other forms of negotiation with
the suppliers. The goal of this negotiation is to get the best possible offer for the
government. The negotiation is not just about price but can also cover the technical
aspects of the proposal.
Best and Final Offer (BAFO): After the negotiations, the BAC may ask the suppliers to
submit a Best and Final Offer (BAFO). This is a crucial step where suppliers submit
their most competitive bids, taking into account the discussions from the negotiation
phase.
4. Evaluation and Recommendation
Evaluation: The BAC evaluates the offers based on the criteria set in the negotiation
documents. The evaluation considers not just the price but also the technical capabilities,
qualifications, and overall value of the offer.
BAC Resolution: Based on the evaluation, the BAC prepares a resolution recommending
the award of the contract to the supplier that submitted the "most economically
advantageous responsive bid." This resolution provides a detailed justification for the
recommendation.
5. Final Approval and Award
HoPE's Decision: The BAC's recommendation is submitted to the Head of the Procuring
Entity (HoPE). The HoPE reviews the recommendation and the supporting documents.
Awarding the Contract: If the HoPE approves the recommendation, they sign the
Notice of Award and the contract is awarded to the winning supplier.
Key Considerations
Transparency: Even though it's a negotiated process, the government must still maintain
transparency. This is done by documenting all steps of the process and making the details
of the award public through channels like the PhilGEPS (Philippine Government
Electronic Procurement System).
Accountability: The officials involved, especially the BAC and the HoPE, are held
accountable for their decisions to use this method and for ensuring the best outcome for
the government.
Proportionality: The process is designed to be "fit for purpose." The complexity and
rigor of the negotiated procurement are proportionate to the value and nature of the
project.