Adopting Direct Contracting mode of procurement under the New Government Procurement Act (NGPA) or Republic Act No. 12009 revolutionizes government procurement by ensuring a swift, efficient, and fit-for-purpose approach. This method allows for the seamless acquisition of proprietary goods and critical components, enhancing strategic outcomes and operational efficiency.

Direct Contracting is a streamlined procurement method that allows the government to acquire goods without the need for elaborate bidding documents. Under both Government Procurement Reform Act (GPRA) or Republic Act No. 9184 and NGPA, this method is used when goods are proprietary, critical components are required from a specific supplier, or when items are sold by exclusive dealers without sub-dealers offering lower prices. Under GPRA and NGPA, Direct Contracting involves asking the supplier to submit a price quotation or a pro-forma invoice with the conditions of sale, which can be accepted immediately or after negotiations. This method is applicable for proprietary goods, critical components necessary for project performance, and items sold exclusively without lower-priced sub-dealers. The NGPA maintains these core principles but emphasizes a more streamlined and flexible approach, ensuring that procurement processes are efficient and fit-for-purpose. This alignment with the fit-for-purpose approach allows the government to swiftly adopt innovative solutions tailored to specific needs, enhancing efficiency and strategic outcomes.

This robust and flexible procurement strategy adheres to government budgeting, accounting, and auditing rules, marking a significant advancement in government procurement.

Get the latest NGPA Series via the GPPB TSO website and NGPA Microsite (https://ngpa.gppb.gov.ph/) or click this link: https://www.gppb.gov.ph/category/ngpa-series/

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