Key terms in Philippine government procurement

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

General information, not legal advice. Each term has a fuller legal meaning in the source cited.

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

Short answers

What is the ABC in Philippine procurement? The Approved Budget for the Contract. It is the budget approved for the contract, and it is the ceiling for bid prices.

What is a BAC? The Bids and Awards Committee. It posts invitations, receives and opens bids, evaluates them and recommends the award to the head of the agency.

What is an APP? The Annual Procurement Plan. It is the agency's approved plan of what it will buy. Procurement must follow it.

What is an RFQ? A Request for Quotation. It is how an agency asks suppliers for price quotes.

What is PhilGEPS Platinum? The upgraded PhilGEPS membership, backed by eligibility documents. It lasts one year, and competitive bidding requires it.

What do the main abbreviations mean?

These are the terms you meet most often, in alphabetical order.

• ABC, Approved Budget for the Contract: The approved budget for the contract, and the ceiling for bid prices.
• APP, Annual Procurement Plan: The agency's approved plan of what it will buy. Procurement must follow it.
• BAC, Bids and Awards Committee: The agency committee that posts invitations, receives and evaluates bids, and recommends the award.
• COA, Commission on Audit: The government audit body. Its rules decide what proof of payment is acceptable in a direct purchase.
• CSE, Common-Use Supplies and Equipment: Goods used repeatedly in daily operations and listed in the PhilGEPS Electronic Catalogue.
• GPPB, Government Procurement Policy Board: The body that sets procurement policy and issues the rules and forms.
• HoPE, Head of the Procuring Entity: The agency head or authorized official, the governing board, or the local chief executive.
• IRR, Implementing Rules and Regulations: The detailed rules issued under RA 12009.
• LGU, Local Government Unit: A province, city, municipality or barangay.
• NFCC, Net Financial Contracting Capacity: A test of financial capacity based on current assets, current liabilities and ongoing contracts.
• OSS, Omnibus Sworn Statement: A sworn statement covering authority to sign, no blacklisting, true documents and other undertakings.
• PBDs, Philippine Bidding Documents: The standard bidding documents approved by the GPPB in May 2025.
• PCAB, Philippine Contractors Accreditation Board: The body that licenses contractors.
• PhilGEPS, Philippine Government Electronic Procurement System: The government's single electronic procurement portal.
• PPMP, Project Procurement Management Plan: The plan a unit prepares for its own projects, which feeds into the APP.
• PS-DBM, Procurement Service of the Department of Budget and Management: The office that manages PhilGEPS and buys common-use supplies centrally.
• RA 12009: The New Government Procurement Act, in effect since 13 August 2024.
• RA 9184: The earlier procurement law, now repealed.
• RFP, Request for Proposal: A request for proposals, named alongside the RFQ in the rules.
• RFQ, Request for Quotation: A request asking suppliers for price quotations.
• SLCC, Single Largest Completed Contract: Your largest completed similar contract, used as a track record test.
• SVP, Small Value Procurement: A mode where the agency requests at least three price quotations, within a peso limit.
• TWG, Technical Working Group: Experts who help the BAC with specifications, documents and evaluation.

What do the award terms mean?

These tell you how the winner is chosen.

• HRRB, Highest Rated Responsive Bid: The test for consulting services, based on quality, or on quality and cost.
• LCRB, Lowest Calculated Responsive Bid: The test where the eligible, technically responsive bid with the lowest price wins.
• MARB, Most Advantageous Responsive Bid: The test where the highest quality rating wins, if its price is within the ABC.
• MEARB, Most Economically Advantageous Responsive Bid: The test where quality and price are weighed together. Price counts for 15% to 40%.
• Single Calculated Responsive Bid: A lone responsive bid, which may still be considered for award.

What do the other common terms mean?

These come up during bidding and after award.

• Abstract of Quotations: A record of who responded to an RFQ and at what price.
• Beneficial owner: The person who ultimately owns, controls or dominantly influences an entity.
• Bid Bulletin: A written notice from the BAC that clarifies or amends the bidding documents.
• Bid security: Money or an instrument lodged with a bid, covering the case where the winner does not sign or post performance security.
• Bid Securing Declaration: A written undertaking used in place of a money bid security, with a fine and disqualification if broken.
• Bidding Documents: The documents an agency issues as the basis for bids.
• Blacklisting: A penalty that bars a person or entity, and its affiliates, from all government procurement for a period.
• Class "A" documents: A term from RA 9184-era notices for the core eligibility documents.
• Competitive Bidding: A mode open to any eligible bidder, with publication, eligibility screening, evaluation, post-qualification and award.
• Consulting Services: Services that need outside technical and professional expertise, such as feasibility studies, design and construction supervision.
• Direct Acquisition: Direct purchase of certain goods and services with an ABC not exceeding ₱200,000, with no canvass or RFQ.
• Domestic preference: Priority for Philippine products and services in government buying.
• End-User or Implementing Unit: The office that identifies the need and plans and carries out the project.
• Failure of bidding: When no bids arrive, all bidders are ineligible, no bid qualifies, or the winner refuses the award without just cause.
• Fit-for-Purpose: Choosing the most suitable way to buy for the project and the market.
• Goods: Items, supplies and materials, plus general support services such as repairs, hauling, janitorial and security.
• Infrastructure Projects: Construction, repair and maintenance of roads, bridges, buildings and similar public works.
• Invitation to Bid: The public notice of a bidding, with the project, ABC, deadlines and how to get the documents.
• Liquidated damages: A charge for delay of at least 0.1% of the cost of the unperformed portion per day. At 10% of the contract price, the agency may terminate.
• Modernized PhilGEPS (mPhilGEPS): The newer PhilGEPS system that replaces version 1.5.
• Notice of Award: The written notice from the HoPE that a bidder has won.
• Notice to Proceed: The notice that tells the supplier to start, issued after the contract is approved.
• Performance security: Security the winner posts before signing, to cover faithful performance of the contract.
• PhilGEPS Organization ID: The identification tied to a merchant's PhilGEPS record.
• PhilGEPS Platinum: The upgraded membership, backed by eligibility documents and lasting one year.
• PhilGEPS Red: The default PhilGEPS membership, with no fee.
• Post-qualification: The BAC's check of the best-ranked bidder's documents and claims before award.
• Procuring Entity: Any government office or body that buys under the law.
• Splitting: Dividing a contract into smaller amounts or phases to get around the rules, which is not allowed.
• Suspension: A penalty that bars a supplier from the procurements of the agency concerned for a period.

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.