Summary: Pursuant to Section 43 of Republic Act (R.A.) No.9184, otherwise known as the "Government Procurement Reform Act," consistent with the country's obligations under international treaties or agreements, Goods may be obtained from domestic or foreign sources and the procurement thereof shall be open to all eligible suppliers, manufacturers, and distributors. However, in the interest of availability, efficiency and timely delivery of Goods, the Procuring Entity may give preference to the purchase of domestically produced and manufactured goods, supplies, and materials that meet the specified or desired quality.
Further, Section 43.1.3 of the 2016 Revised Implementing Rules and Regulations (IRR) of R.A. No. 9184 provides that a Domestic Bidder can only claim preference if it secures from the DTI a certification that the articles forming part of its bid are substantially composed of articles, materials, or supplies grown, produced, or manufactured in the Philippines.
In order to implement said statutory requirement, DTI Department Order No. 16-76, Series of 2016, mandated the Competitiveness Bureau-Supply Chain and Logistics Management Division to formulate guidelines for certification of domestic bidders claiming preference in government procurement.
In public procurement, local manufacturers and suppliers are put in a disadvantaged position to compete with foreign goods. Hence, to give preference to the purchase of domestically produced and manufactured goods, suppliers and materials will create a level playing field for local competition. The issuance of the DBP certificate primarily aims to: (1) Promote local products and local forms of raw materials; (2) Increase competitiveness for the local industries; (3) Increase productivity of the local industries; and (4) Provide local employment opportunities.
Deadline of Submission: All comments on the draft Guidelines should be in writing, and must be received by 12 October 2018.
You may access the draft Guidelines below: