The Small Value Procurement (SVP) mode of procurement under the New Government Procurement Act (NGPA) or Republic Act No. 12009 marks a significant shift from its predecessor under the Government Procurement Reform Act (GPRA) or Republic Act No. 9184, emphasizing a fit-for-purpose approach and procurement efficiency. Unlike RA 9184, where SVP is categorized as a negotiated mode of procurement, RA 12009 recognizes it as a distinct mode, streamlining the process for procuring entities.
Under RA 9184, SVP applies to the procurement of goods not covered by Shopping, infrastructure projects, and consulting services, with thresholds varying by government entity and local government unit (LGU) classification. For instance, national government agencies, government-owned and controlled corporations, government financial institutions, state universities and colleges, and the Autonomous Regional Government have a threshold of ₱1,000,000. LGUs have different thresholds based on their classification, ranging from ₱1,000,000 for first-class provinces and cities to ₱50,000 for barangays. The process involves submitting a request to the Bids and Awards Committee (BAC), sending requests for quotations (RFQs) to at least three suppliers, and evaluating received quotations. This method ensures that procurement is conducted efficiently while adhering to the set financial limits and procedural requirements.
RA 12009 refines SVP by allowing procuring entities to request at least three price quotations for goods not available in the Procurement Service-Department of Budget and Management (PS-DBM), infrastructure projects, and consulting services. The receipt of one quotation is sufficient to proceed with the evaluation, provided the amount does not exceed ₱2,000,000. This threshold is subject to periodic review and adjustments by the Government Procurement Policy Board (GPPB). For LGUs, the GPPB can adjust the threshold based on income classification, ensuring flexibility and responsiveness to local needs. This approach under RA 12009 simplifies the procurement process, making it more efficient and adaptable to the specific needs of different government entities.
By implementing SVP under RA 12009, the government demonstrates its dedication to minimizing bureaucratic hurdles and improving procurement efficiency. This method simplifies procurement procedures, ensuring that public funds are used effectively and that services are delivered promptly and with high quality. The focus on a fit-for-purpose approach means that procurement activities are customized to meet the unique needs of each project, thereby optimizing outcomes and reducing administrative complexities. Notably, the increase in the threshold to ₱2,000,000 under RA 12009 allows for greater flexibility and responsiveness, enabling more projects to benefit from streamlined procurement processes.
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/
Follow us for more of the NGPA Procurement Modalities!