How government procurement works in the Philippines

A draft for a lawyer to review, not yet final.

General information, not legal advice. The notice and the current rules always count.

Last checked against the official sources on 06-Nov-2026.

Short answers

What law governs government procurement in the Philippines? Republic Act 12009, the New Government Procurement Act, and its Implementing Rules and Regulations. It repealed RA 9184.

When did RA 12009 take effect? The Act took effect on 13 August 2024. Its Implementing Rules and Regulations took effect on 25 February 2025.

Who buys under RA 12009? All branches and agencies of government, including state universities, government corporations, government financial institutions and local government units.

What is PhilGEPS? The Philippine Government Electronic Procurement System is the government's single electronic procurement portal. The Procurement Service of the Department of Budget and Management manages it.

Who decides who wins a government contract? The agency's Bids and Awards Committee evaluates bids and recommends an award. The head of the agency approves or disapproves that recommendation.

How many ways can a Philippine agency buy? The law lists eleven modes of procurement. They include competitive bidding, small value procurement and direct acquisition.

What law governs government buying in the Philippines?

Republic Act (RA) 12009, the New Government Procurement Act, governs government buying. Its detailed rules are in its Implementing Rules and Regulations (IRR). The Act was enacted on 20 July 2024 and took effect on 13 August 2024. The IRR took effect on 25 February 2025.

Does the old law, RA 9184, still apply?

Only to older purchases. RA 12009 repealed RA 9184. RA 9184 and its rules still apply to projects published before 25 February 2025.

The change-over is still running. New standard forms became mandatory on 21 September 2025. Agencies have until 15 May 2028 to comply fully with the new law.

Who buys?

Every part of government buys under this law. That covers national departments, bureaus and offices. It also covers state universities and colleges, government-owned or controlled corporations, government financial institutions and local government units (LGUs). The rules call each buyer a "Procuring Entity".

A few things sit outside these rules. Examples are acquiring real property and projects under the Public-Private Partnership Code, except any part the government finances.

Who makes the decisions?

Different people decide different things.

What is PhilGEPS?

The Philippine Government Electronic Procurement System (PhilGEPS) is the government's single electronic procurement portal. The law makes it the primary source of information and the channel for all government procurement. The Procurement Service of the Department of Budget and Management (PS-DBM) manages it.

All agencies must register with PhilGEPS and use it. Its features include a bulletin board, a catalogue of common supplies, an online store for agencies, a marketplace, electronic bidding and a registry of suppliers.

The bulletin board lists open opportunities, former opportunities, award notices and annual procurement plans.

Has PhilGEPS changed?

Yes. Agencies are moving from PhilGEPS 1.5 to the Modernized PhilGEPS. The GPPB approved retiring version 1.5 in September 2025. PS-DBM says 31 October 2026 was the last day to post new opportunities on version 1.5. From 1 November 2026, later procurement activities go through the eBidding Facility of the Modernized PhilGEPS. The Modernized PhilGEPS address is www.philgeps.gov.ph.

Agencies may still use version 1.5 to close purchases they posted there earlier.

What happens in a typical purchase?

A purchase moves from a plan to a posted notice, an award and then payment.

1. Plan. The agency puts the purchase in its Annual Procurement Plan (APP). No procurement may proceed unless it follows the approved plan. The approved APP goes on the agency's website.

2. Budget. The agency sets an Approved Budget for the Contract (ABC). The ABC is the ceiling for bid prices.

3. Choose how to buy. The BAC recommends the mode of procurement.

4. Post. The agency posts the notice where the rules require it.

5. Receive and evaluate. The BAC receives, opens and evaluates bids or quotes.

6. Award. The HoPE approves the award and issues the Notice of Award.

7. Deliver and get paid. The agency pays the supplier. Under the standard contract for goods, payment follows a certification that the goods were delivered, inspected and accepted.

Posting, bid receipt, award and payment all stay with the agency and PhilGEPS.

What are the main ways agencies buy?

The law lists eleven modes of procurement:

• Competitive Bidding
• Limited Source Bidding
• Competitive Dialogue
• Unsolicited Offer with Bid Matching
• Direct Contracting
• Direct Acquisition
• Repeat Order
• Small Value Procurement
• Negotiated Procurement
• Direct Sales
• Direct Procurement for Science, Technology and Innovation

Competitive Bidding is open to any eligible bidder. Small Value Procurement asks for price quotations, up to ₱2,000,000 for a national agency. Direct Acquisition lets an agency buy directly, up to ₱200,000. Local limits for Small Value Procurement can be lower.

The GPPB has approved a decision tree to help agencies choose a mode. It is only a guide and does not settle which mode must be used.

See our guide to the ways agencies buy for the limits, posting periods and steps.

About Verisio

Verisio is a private service that helps businesses find government opportunities and prepare for them. It is not a government website or a procurement portal. Posting, bid receipt, award and payment stay with the agency and PhilGEPS.