Mr. President:
Over 2 decades ago, Republic Act No. 9184 or the landmark Government Procurement Reform Act (GPRA) was enacted into law. GPRA was principally authored and sponsored by the Sponsor’s father, Senator Edgardo J. Angara. Following its enactment, the GPRA was touted by the World Bank as world-class legislation as it had been a shining example of procurement and anti-corruption laws. It sought to curb the lack of transparency and competition in procurement, as well as to eliminate political interference and delays.
Two decades later Mr. President, it is opportune that yet another Angara would seek to reform this measure to allow for increased transparency, accountability, and value for money. A legacy of sound management of fiscal resources through strengthened procurement practices and upholding accountability in government lives on through the younger Angara in the Senate.
With time, and in the face of rapidly evolving technology, the need for the updating and refinement of the GPRA has been highlighted. Modern times and challenges Mr. President, call for modern day approaches. Records will show how much the Committee on Finance has scrutinized the bills filed seeking to reform GPRA, to ensure that the Committee Report is one that will address the concerns of end users on the ground to ensure that public funds will be optimized and used as efficiently as possible.
The ber-months for us in the Senate do not just signal holiday cheer, but also of long days that roll over to the wee hours of mornings due to the budget season. Time and again we have asked agencies on their budget utilization, and we have heard challenges on procurement. This bill will enable government agencies to utilize their budget efficiently and allow for speedier procurement, while also safeguarding public funds and upholding integrity, to avoid delays in carrying out their mandate effectively.
With regard to inclusivity, equal opportunities to microenterprises and startups are provided for under this measure, Mr. President. This will allow for an environment that will enable fair and meaningful competition.
Our country was one of the early adopters of e-procurement in the region with the introduction of the Philippine Government Electronic Procurement System or PhilGEPS (pronounced as: Phil-jeps). However, this bragging right has been marred by dated features. E-submission has not been fully deployed in the system. With this bill however, the PhilGEPS will be improved and modernized to include innovative features. It shall be the single electronic portal which shall serve as the primary source of information and channel in the conduct of procurement activities. It shall also maintain an integrated system that covers procurement planning until payment. These innovative features and solutions include: electronic bulletin board and catalogue, registry of suppliers, manufacturers, distributors, contractors, consultants and service providers; virtual store; electronic marketplace; electronic bidding; and electronic payment.
Though we continue to put a premium on transparency Mr. President, under the guidance of the good sponsor, we have put in place provisions to uphold national security. Sensitive and critical defense procurement, which will not just be limited to AFP modernization, will be safeguarded. This is to ensure that acquisition of critical and sensitive nature such as munitions will not compromise the missions of the AFP and will not expose their capabilities.
The bill also provides for the procurement of second-hand goods, which will include military, defense or law enforcement equipment and materiel, subject of course to durability, remaining useful life, sustainability, maintenance cost, warranty and price. Giving preference to locally-made products, the bill allows for negotiated procurement in as far as defense cooperation agreement are concerned. This bill allows the Secretary of National Defense to directly negotiate with an agency or instrumentality of another country, which we have a defense cooperation agreement with, whenever the procurement involves major defense equipment and materiel. This is of course subject to a number of conditions which include the determination of the Secretary that it is necessary to protect our national interest and the expertise or credibility is not locally available.
According to the 2021 Assessment of Philippines Public Procurement System conducted jointly by the Government Procurement Policy Board, the World Bank, and the Asian Development Bank, the Philippine government could save between 26 and 29% of the total procurement spend through designing and implementing better procurement strategies and policies. But more than that, introducing reforms to our procurement law will fast track the digitalization thrust of the administration, it will allow for greater transparency and bang for the buck, and freeing up resources in a fiscally-constrained environment. Better procurement will help the curb the problem of government underspending and ensure the efficient delivery services to the Filipino people.
Thank you, Mr. President.