Senate TWENTIETH CONGRESS OF THE ) Offite of the Shertetary REPUBLIC OF THE PHILIPPINES First Regular Session ) 26 FEB 10 P3:44 SENATE 1826 RECEIVED BY: S. No. — Introduced by Senator Rodante D. Marcoleta AN ACT STRENGTHENING THE GOVERNMENT PROCUREMENT, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 12009, OTHERWISE KNOWN AS THE NEW GOVERNMENT PROCUREMENT ACT EXPLANATORY NOTE Republic Act No. 12009, or the New Government Procurement Act, was enacted to modernize the country's procurement system and ensure that public funds are utilized in a manner that is efficient, transparent, and accountable. It institutionalized important reforms aimed at strengthening competition, professionalizing procurement processes, and safeguarding the integrity of public spending. However, recent legislative inquiries, particularly the Senate Blue Ribbon Committee hearings on anomalies in flood control projects, have revealed loopholes and systemic abuses in the implementation of the law. These include inaccurate project validations, weak monitoring mechanisms, and the continued use of layered corporate structures that allow certain contractors to dominate procurement activities through affiliated or dummy entities. Such practices undermine fair competition, distort project outcomes, and erode public trust in government institutions.
Section 8 of the R.A. No. 12009 requires that detailed engineering
investigations and surveys be conducted prior to the bidding and award of infrastructure projects. While this provision establishes an important safeguard, it does not mandate the use of objective, technology-based tools to verify the physical existence and actual location of project sites. As revealed during legislative hearings,
existing geotagging systems, if there be any, have proven insufficient, resulting in projects being implemented on erroneous or even non-existent locations. To address this gap, this measure proposes to amend Section & by requiring all infrastructure projects to undergo digital geotagging and satellite validation in partnership with the Philippine Space Agency (PhilSA), prior to bidding and award. This reform institutionalizes the use of space and geospatial technology in procurement, ensuring that public infrastructure is grounded on verified data, accurate mapping, and transparent monitoring. Moreover, this measure seeks to address a recurring pattern in procurement abuse wherein contractors establish or utilize multiple affiliated corporations to participate in the same or related procurement activities. Through corporate layering, interlocking directorships, and concealed beneficial ownership, these entities are able to monopolize project packages, circumvent eligibility thresholds, and defeat the principle of competitive bidding. Accordingly, this bill proposes to amend Section 52 by prohibiting affiliated, related, or commonly controlled corporations or entities from participating in the same procurement activity or within the same project package, and by expressly classifying the use of shell corporations, dummy entities, and layered corporate structures as a fraudulent and collusive scheme. To further strengthen deterrence, this measure also amends Section 100 by increasing the period of blacklisting to three (3) years for the first offense and five (5) years for the second offense, thereby reinforcing accountability and discouraging repeat violations of procurement laws. Ultimately, this bill seeks to recalibrate the procurement system toward data- driven governance, genuine competition, and real accountability, ensuring that public funds are protected from fraud, collusion, and systemic manipulation. In view of the foregoing, the immediate passage of this measure is earnestly sought. Quit RODANTE D. MARCOLETA
Senate Offite of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session FEB 10 P3:44 SENATE RECEIVED BY. 1826 S. No. Introduced by Senator Rodante D. Marcoleta AN ACT STRENGTHENING THE GOVERNMENT PROCUREMENT, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 12009, OTHERWISE KNOWN AS THE NEW GOVERNMENT PROCUREMENT ACT Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
Section 1. Section 8 of Republic Act No. 12009 is hereby amended to read as
2 follows: "SEC. 8. Detailed Engineering for the Procurement of Infrastructure Projects. - With the exception of an Infrastructure Project under a design- and-build scheme, no bidding and award of contract for Infrastructure Projects shall be made unless the detailed engineering investigations, surveys, and designs for the project, which shall consider, among others, the impact on the environment, have been sufficiently carried out and duly approved in accordance with the standards and specifications prescribed by the HoPE concerned or the duly authorized representative, and the acquisition of right-of-way pursuant to Republic Act No. 10752 has been accomplished; PROVIDED, THAT ALL INFRASTRUCTURE PROJECTS SHALL UNDERGO DIGITAL GEOTAGGING AND SATELLITE VALIDATION, WHICH SHALL BE UNDERTAKEN IN PARTNERSHIP WITH THE PHILIPPINE SPACE AGENCY (PHILSA), PRIOR TO THE BIDDING AND AWARD OF CONTRACT, TO ENSURE THE PHYSICAL EXISTENCE, ACCURACY OF LOCATION, AND CONFORMITY OF
SITE CONDITIONS WITH THE APPROVED PLANS AND DETAILED ENGINEERING DESIGN." Procuring Entities may consider architectural design that is well-curated and aesthetic to ensure that the Infrastructure Project not only meets functional requirements but also contributes to its overall appeal and architectural integrity.
Sec. 2. Section 52 of Republic Act No. 12009 is hereby amended to read as
follows: "SEC. 52. Eligibility Requirements for the Procurement of Goods, Infrastructure Projects, and Consulting Services. - The BAC or, under special circumstances specified in the IRR, its duly designated organic office, shall require the submission of the prospective bidder's valid and updated PhilGEPS Certificate of Registration and Membership to ensure that the bidder is technically, legally, and financially capable to undertake the proposed project for the procurement of Goods, Infrastructure Projects, and Consulting Services within the period set forth in the Invitation to Bid; PROVIDED, THAT NO TWO OR MORE AFFILIATED, RELATED, OR COMMONLY CONTROLLED CORPORATIONS OR ENTITIES SHALL BE ALLOWED TO PARTICIPATE IN THE SAME PROCUREMENT ACTIVITY OR IN RELATED PROCUREMENTS WITHIN THE SAME PROJECT PACKAGE; PROVIDED, FURTHER, THAT THE USE OF SHELL CORPORATIONS, DUMMY ENTITIES, OR LAYERED CORPORATE STRUCTURES, WHETHER THROUGH DIRECT CONTROL, AFFILIATION, OR INTERLOCKING DIRECTORSHIPS, TO CONCEAL OWNERSHIP, DEFEAT COMPETITION, OR MONOPOLIZE GOVERNMENT CONTRACTS, SHALL LIKEWISE CONSTITUTE A FRAUDULENT AND COLLUSIVE SCHEME AND IS HEREBY DECLARED A PROHIBITED ACT UNDER THIS ACT." "FOR THIS PURPOSE, AFFILIATION OR CONTROL SHALL BE DETERMINED BASED ON BENEFICIAL OWNERSHIP, INTERLOCKING DIRECTORS, MANAGEMENT CONTROL, OR
COMMON FINANCIAL INTEREST, AS DEFINED UNDER RELEVANT CORPORATE AND SECURITIES LAWS." "ANY BIDDER, ENTITY, OR BENEFICIAL OWNER FOUND TO HAVE ENGAGED IN SUCH ACTS SHALL BE DISQUALIFIED FROM THE PROCUREMENT AND BLACKLISTED PURSUANT TO SECTION 100 OF THIS ACT."
Sec. 3. Section 100 of Republic Act No. 12009 is hereby amended to read as
follows: "SEC. 100. Imposition of Blacklisting. - The HoPE may impose the penalty of blacklisting consisting of FONE (1)] THREE (3) YEARS prohibition for the first offense, or {TWO (2)] FIVE (5) years prohibition for the second offense for any of the following offenses:" "xXX"
Sec. 4. Separability Clause. - If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision or part not otherwise affected shall remain valid and subsisting.
Sec. 5. Repealing Clause. If, for any reason or reasons, any part of the provision
of this Act shall be held to be unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall continue to be in full force and effect.
Sec. 6. Effectivity. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in at least two (2) national newspapers of general circulation. 22 The publication shall not be later than seven (7) days after the approval hereof. Approved,