Government procurement transactions play a vital role in the delivery of services to the Filipino people. For a very long time, however, the system and bureaucracy used to be cumbersome and prone to corruption. With R.A. 9184, otherwise known as the “Government Procurement Reform Act (GPRA),” an online system called PhilGEPS was introduced as part of the modernization, standardization, and regulation of government procurement activities.
Platforms, like PhilGEPS, benefit not just the government agencies but also the private sector, including business startups and small and midsize enterprises (SMEs) as they are given the opportunities to bid on government procurements and projects. These businesses can then leverage business-to-government (B2G) transactions as additional sources of revenues.
In this article, we’ll provide a comprehensive guide on how to process PhilGEPS registration. We’ll also discuss the basic functionalities of the platform, membership types, and benefits that both the government and merchants derive from its utilization.
PhilGEPS
The Philippine Government Electronic Procurement System (PhilGEPS) is an online platform developed and maintained by the Procurement Service – Department of Budget and Management (PS-DBM) that serves as the primary and definitive source of information on all procurement activities of the government. It provides registered suppliers and contractors the information access and opportunities to participate in bidding processes.
It was developed by virtue of R.A. 9184, otherwise known as the “Government Procurement Reform Act (GPRA),” which provides for the modernization, standardization, and regulation of the procurement activities of the government and for other purposes.
The bidding opportunities on PhilGEPS can be as simple as the government procurement of cleaning supplies, or as big as the construction of an entire public facility. There are over two hundred (200) opportunities daily, ranging from simple supplies worth less than PHP 100,000 to complex multi-million projects.
Basic Functionalities of PhilGEPS
While the modernization is ongoing, the current system offers the following functionalities:
- Electronic Bulletin Board
- Government Official Merchants’ Registry
- Electronic Catalog
- Open Data
- Automatic Bid Notification
- E-Bidding Facility
- Virtual Store
- Electronic Payment of PhilGEPS Fees and Purchase of Bid Documents (for PS)
PhilGEPS Membership Types
There are two (2) PhilGEPS membership types:
[a] PhilGEPS RED Membership (Default)
It is the registered entity – delivery membership level or the default membership upon approval of the registration. It entails lifetime membership at no cost and can be upgraded to the other type.
[b] PhilGEPS PLATINUM Membership (Upgraded)
It is the higher level of membership that requires compliance with particular requirements and annual fee payment of PHP 5,000.00. PhilGEPS PLATINUM Membership (with one (1)-year validity) shall be downgraded to RED Membership after expiration and non-renewal of the membership.
Benefits of PhilGEPS Membership
Since its implementation, PhilGEPS has brought significant benefits to the government in terms of:
- Improved transparency in government procurement
- Enhanced competition and realization of value for money in procurement
- Improved administrative efficiencies
- Reduction in procurement costs, including newspaper advertisements
- Provision of audit trails through information posted in the system
- Medium for implementation of government procurement policies, transparency and good governance measures
- Expansive information database aiding the government agencies in procurement planning and monitoring
Merchants (i.e., suppliers and contractors) doing business with the government derive the following gains from using the system:
- Access to government bid opportunities 24 hours a day and 7 days a week
- Downloading of electronic bid documents
- Automatic notification, through the user’s email, of bid postings and supplements
- Savings on newspaper costs, transportation and man hours
- Information on government bid projects is important in market research and in making business decisions
General Qualifications and Requirements
The Philippine Government Procurement Policy Board (GPPB) requires all National Government Agencies (NGAs), Government Owned and Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), State Universities and Colleges (SUCS) including Local Government Units (LGUs) are mandated to register and use PhilGEPS.
From the private sector, suppliers, manufacturers, contractors, and consultants, operating in various business entities as listed below, are highly encouraged to register to take advantage of government procurement opportunities:
- Sole Proprietorships registered under the Department of Trade and Industry (DTI)
- Partnerships and Corporations under Securities and Exchange Commission (SEC)
- Cooperatives under the Cooperative Development Authority (CDA)
- Foreign Company Organizations with equivalent business registration certificates (BRCs)
- Individual Local Consultants with BIR Certificate of Registration (COR), TIN ID, and/or valid licenses issued by the Professional Regulation Commission (PRC)
PhilGEPS Registration Process
PhilGEPS registration, along with the preparation of documentary requirements, can be overwhelming, especially for business startups and SMEs with limited knowledge and experience in government transactions. Here are the important steps to follow:
[1] Draft and gather all documentary requirements.
One of the major requirements in registering with PhilGEPS is the Tax Clearance for Bidding Purposes (TCBP) issued by the Bureau of Internal Revenue (BIR). If the registrant is a foreign corporation, a Certificate of Non-Registration must also be secured from the Securities and Exchange Commission (SEC). Other requirements include business registration documents, audited financial statements, PCAB license for contractors, and application forms.
[2] Register online for PhilGEPS RED Membership.
Complete the online registration form via the official PhilGEPS website at www.philgeps.gov.ph and upload the supporting documents. Expect an email notification about the PhilGEPS RED Membership approval within twenty-four (24) business hours.
[3] Upgrade to PhilGEPS PLATINUM Membership.
Once the email notification about the approved registration is received, proceed to processing the upgrade to PhilGEPS PLATINUM (paid) membership. Log in to the same account, select Platinum Membership, and upload supporting documents. Generate the OnColl Payment Receipt, pay the membership fee, and upload the receipt.
[4] Generate the Certificate of PhilGEPS Registration.
After the payment is confirmed, receive an email notification of PhilGEPS PLATINUM Membership approval. Log in to the account and download the Certificate of PhilGEPS Registration.
As PhilGEPS expands with more functionalities and becomes a total provider of e-procurement solutions, it also offers suppliers and contractors, even startups, access to a bigger market, exposure, and profit increase. Thus, this business-to-government (B2G) opportunity can be worth exploring.
Although the actual online registration is no different from the account creation processes on most online platforms, interested suppliers and contractors may anytime seek the assistance and services of business consulting and legal firms, like FilePino, Inc., to ride out all the legal and technical worries and concerns.
… and you might just need our assistance.
Need assistance in PhilGEPS registration? Set up a consultation with FilePino today! Call us at (02) 8478-5826 (landline) and 0917 892 2337 (mobile) or send an email to info@filepino.com.
