For SMEs, participating in government procurement is a good business option for many reasons. Government procurement for goods and services is often less competitive and more structured than private sector bidding. The government is also a stable source of income, which is especially important during times of economic uncertainty. Lastly, having government contacts from procurement can lead to more projects, new markets, and more credibility for their business.
The Philippine government has a lot of procurement opportunities available — and they are all listed in PhilGEPS, the country’s official online procurement system. PhilGEPS (Philippine Government Electronic Procurement System) is a web-based portal where government agencies post their procurement opportunities, and where suppliers and contractors view and bid on these opportunities.
If you are a business owner interested in government procurement, registering with PhilGEPS is the first step. To do this, you need to prepare certain documents — which we will discuss in detail below.
PhilGEPS requirements for registration
Any merchant with valid requirements can apply for free in PhilGEPS. The default membership after registration is called a Red Membership. This membership has no expiration and lets you view bid abstracts. However, you cannot bid directly on the PhilGEPS portal. You also cannot bid on government procurement projects exceeding ₱1 million in payout.
Here are the PhilGEPS registration requirements in 2023:
- Valid email address
- Active account in any local bank
- Company Taxpayer Identification Number (TIN)
- **Department of Trade and Industry (DTI) permit**
- **Securities and Exchange Commission (SEC) Certification**, or a **Cooperative Development Authority (CDA) Registration Number**
After completing your registration, you won’t be required to upgrade to a PhilGEPS Platinum membership. However, if you want your government procurement journey to be easier, upgrading is highly recommended.
Platinum members can bid on any public projects via the PhilGEPS portal, including projects worth more than ₱1 million. They also get a PhilGEPS Certificate of Registration that can use to strengthen their bids. Learn more about the differences of PhilGEPS Red and Platinum in this article.
Here are the PhilGEPS requirements for Platinum Membership upgrade:
- Valid Business Registration Certificate: DTI for single proprietorship, SEC for corporation, CDA for cooperative
- Valid Mayor’s Permit
- Audited Financial Statement: must be stamped by the Bureau of Internal Revenue (BIR)
- Notarized PhilGEPS Sworn Statement (downloadable form)
- Tax Clearance Certificate: must be issued by the Collection Division under Revenue Regional Offices, Collection Enforcement Division, Large Taxpayers Division, or Accounts Receivable Monitoring Division under Bureau of Internal Revenue where the taxpayer applicant is currently and duly registered.
- Philippine Contractors Accreditation Board (PCAB) License: for contractors only. If PCAB License is not applicable to your company, just upload a file with the statement “PCAB License is not applicable.”
PhilGEPS requirements for project bidding
In our 5-step guide to bidding in PhilGEPS, you’ll find that you’ll need an entirely new set of documents for submitting a bid. These are called bidding documents or eligibility documents, and they are purchased from PhilGEPS or the bidding committee during the pre-bidding conference.
Seasoned government suppliers describe collecting these documents as the most challenging part of bidding. They can run up to a hundred pages or more, and the document fees vary per contract. The fees are also non-refundable unless there is a Failure of Bidding declaration for the project.
In general, the bidding documents are split into the following types:
“Class A” Documents
- Legal and business documents. These include SEC, DTI, or CDA registration; Mayor’s/Business Permit; and BIR tax clearance.
- Technical documents. Statement of your ongoing government and private contracts, if any; your Single Largest Completed Contract (SLCC); PCAB license for infrastructure; Bid Security; among others.
- Financial documents. Audited Financial Statement and computation of Net Financial Contracting Capacity (NFCC). In lieu of the latter, you may submit a committed Line of Credit — you can get this by availing a business loan or credit line from a legitimate loan provider.
- PhilGEPS Sworn Statement
- Extra documents requested by BAC. They are listed under the Document Request List section of the bidding notice, such as bid forms, cost analysis forms, and other technical documents.
“Class B” Documents
- Valid Joint Venture Agreement, or duly notarized statements from potential joint venture partners
- PhilGEPS Certificate of Registration, if applicable
- Other documents that may be requested by the BAC
Important: When filling out the Bid Form, the Approved Budget for the Contract (ABC) is the upper limit of the accepted bid price. Bids higher than the ABC are automatically disqualified.
How to submit PhilGEPS requirements for bidding
Bids are submitted to the BAC in 2 separate envelopes or folders:
Technical Component. These are the “Class A” and “Class B” requirements above, unless stated otherwise by the BAC.
Financial Component. These are the additional documents requested by the BAC, such as the bid form.
There are two ways to submit your bid:
In-Person. Send your 2 envelopes, marked and sealed, directly to the BAC via their address.
Electronic. If the BAC allows it, send your password-protected Bidding Documents inside 2 compressed archive folders via PhilGEPS portal or official BAC details. You will disclose the passwords during bid opening on the next stage.
In conclusion, participating in government procurement in the Philippines requires careful preparation of PhilGEPS requirements and compliance with the bidding process. By preparing the required documents and registering with PhilGEPS, you can expand your business opportunities and contribute to the development of the country. Good luck!