JULY 1, 2011 DATE

NR # 2452B
REF. NO.

Solon seeks proper classification of contractual services in General Procurement Law

A neophyte lawmaker is seeking a reclassification of general support services, nonpersonal services and contractual services, which she said, are wrongly included under the term goods in the General Procurement Act. Rep. Emmeline Aglipay (Party-list, DIWA), author of House Bill 4715, said putting general support services, non-personal services and contractual services under the term goods means that price is the only factor the government considers when it comes to biddings for these three services. This has created an untenable situation where service contractors cut legal corners, including undermining labor standards, particularly provisions on the minimum wage to ensure they have the lowest possible calculated price. It is unacceptable to have a bidding process wherein the most unscrupulous of employers has an institutionalized unfair advantage, said Aglipay, a Vice Chairperson of the House Committee on Human Rights. Aglipay proposed a reclassification of general support services, non-personal services and contractual services under a new category as Contractual Services. Aglipay said Contractual Services will be applied to new bidding and eligibility requirements similar to those for Consulting Services, with emphasis on ensuring compliance with labor laws in calculating ratings and determining the winning bidder. The bill seeks to amend Republic Act 9184 or the General Procurement Act and will cover the procurement of infrastructure projects, goods, contractual services and consulting services, regardless of source of funds, whether local or foreign by all branches and instrumentalities of government, its departments, offices and agencies, including government-owned and controlled corporations and local government units. It also proposed the amendment of Section 5 of RA 9184 on the definition of terms, so that Bidding Documents shall refer to documents issued by the Procuring Entity as the basis for the bids, furnishing all information necessary for a prospective bidder to prepare a bid for the goods, infrastructure projects, contractual services and consulting services. Likewise, it defines Contractual Services as general support services, except consulting services and infrastructure projects, including non-personal or contractual services such as the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services.

JULY 1, 2011 DATE

NR # 2452B
REF. NO.

The definition of Goods shall also be amended to refer to all items, supplies and materials which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind as well as procurement of materials and supplies provided by the procuring entity for such contractual services. Moreover, it refers to Procurement as the acquisition of goods, contractual services, consulting services, and the contracting for infrastructure projects by the procuring entity. Procurement shall also include the lease of goods and real estate. Another salient feature of the bill is the addition of a Section 23-A in RA 9184, providing the eligibility requirements and short listing for contractual services. It provides the eligibility of prospective bidders for the procurement of contractual services shall be determined by their compliance with the eligibility requirements prescribed for the competitive bidding concerned, within the period stated in the Invitation to Bid. The eligibility requirements shall provide for fair and equal access to all prospective bidders. The bill also proposed the addition of a Section 32-A on bid evaluation of short listed bidders for contractual services. (30) rbb