GPPB Implements RA 12009: A Strategic Overhaul of Government Procurement Rules

The Government Procurement Policy Board (GPPB) has rolled out the implementing rules and regulations (IRR) of Republic Act No. 12009, or the “New Government Procurement Act” (NGPA), which took effect on February 25, 2025. This sweeping reform repeals the two-decade-old RA 9184 and marks a significant modernization of public procurement in the Philippines.

RA 12009 is set to impact all government procuring entities, suppliers, contractors, and consultants, as it introduces new concepts, tools, and evaluation standards aimed at making procurement more strategic, transparent, and value-driven.

What’s New?

• Strategic Procurement Planning: Links procurement to policy goals and budgeting frameworks.
• Lifecycle-Based Decision-Making: Requires consideration of cost, environmental, and social impacts from acquisition to disposal.
• Sustainable Procurement: Embeds green procurement as a requirement rather than an option.
• Fit-for-Purpose Approach: Customizes procurement methods and documentation based on project needs, risks, and scale.
• Market Scoping: Mandates pre-bid supplier research to improve planning accuracy.
• Most Economically Advantageous Responsive Bid (MEARB): Replaces Lowest Calculated and Responsive Bid (LCRB) with a more holistic standard that includes quality, performance, and risk.
• Digital Transformation: Expands the PhilGEPS platform with tools like e-bidding, e-catalogues, virtual stores, and electronic payment systems.
• Community Participation: Formalizes direct engagement with local producers and communities for certain procurements.
• Procurement Agents: Requires certified procurement professionals and allows agencies to contract accredited procurement agents for complex transactions.

Key Differences from RA 9184

Who Is Affected?

Government procuring entities must align procurement plans with strategic goals, conduct market scoping, and apply MEARB evaluation while suppliers and contractors must prepare for more complex and quality-based bid evaluations, including lifecycle cost analysis and environmental compliance.

RA 12009 ushers in a new era of government procurement, one that prioritizes value over cost, flexibility over rigidity, and sustainability over short-term savings. Stakeholders must proactively adapt to the NGPA’s reforms, especially as full digitalization and professionalization become the norm. With its emphasis on long-term value and performance, the new procurement law is set to enhance service delivery and restore public trust in government contracting.

Prepared by Meliza Gielvert Lualhati.