In 2025, the Philippines introduced Republic Act No. 12009, known as the New Government Procurement Act (NGPA), replacing the older RA 9184.
This law modernizes the entire procurement system, making it more transparent, efficient, and fair for everyone involved.
RA 12009 applies government-wide — covering all agencies, departments, offices, and instrumentalities, including government-owned or controlled corporations (GOCCs), government financial institutions (GFIs), state universities and colleges (SUCs), and local government units (LGUs).
Notably, it also applies to frontline agencies like the Land Transportation Office (LTO), meaning the LTO’s procurement of goods, infrastructure projects, and consulting services must now follow the updated rules, principles, and procedures of the NGPA.
These standards emphasize transparency, competitiveness, efficiency, accountability, and professionalism in the use of public funds — ensuring that every peso spent truly serves the public interest.
What Makes RA 12009 Different?
The NGPA is more than an update — it’s a complete refresh of how the government should handle procurement.
It is anchored on good governance principles such as:
- Transparency – full disclosure of procurement plans and results
- Competitiveness – opening the process to fair competition
- Efficiency – faster and smarter ways to procure
- Proportionality – appropriate processes based on project size and complexity
- Accountability – clear responsibility at every step
- Public Monitoring – citizens can track procurement activities
- Professionalization – trained, certified procurement officers
- Sustainability – considering environmental and social impacts
- Value for Money – getting the best possible outcome for public funds
Key Features of the Law
1. Smarter Procurement Methods
Instead of forcing one bidding style for all, RA 12009 allows fit-for-purpose procurement — choosing the method that best suits the project.
Agencies must also conduct mandatory market scoping to understand real prices and options before bidding starts.
2. Tech-Driven Improvements
Digital platforms and innovative tools are encouraged to make procurement faster, less prone to errors, and easier to monitor.
3. Sustainability and Inclusion
Government spending will now consider:
- Environmental impact
- Social benefits like gender equality and poverty reduction
- Opportunities for marginalized sectors
This means projects won’t just be about cost — they’ll also be about long-term benefits for the community.
4. Transparency from Start to Finish
All procurement data — from planning, bidding, awarding, to project completion — must be made public.
This allows citizens and watchdog groups to spot irregularities and hold agencies accountable.
5. Professionalization of Procurement Staff
Procurement officers will receive formal training and certification to improve their skills, ethics, and decision-making.
6. Simplified Rules for Small Purchases
Small Value Procurement (SVP) rules have been updated with higher thresholds and fewer requirements.
For purchases within limits, agencies can get at least three price quotations or just one in certain cases to speed up the process.
7. Stricter Negotiated Procurement Rules
Negotiated procurement is only allowed in specific situations — like failed biddings, emergencies, contract take-overs, or closely related projects.
This prevents abuse while keeping flexibility for urgent needs.
Who Must Comply with RA 12009?
The NGPA applies across the entire government, covering:
- National agencies and departments
- Bureaus and offices
- State universities and colleges (SUCs)
- Government-owned and controlled corporations (GOCCs)
- Government financial institutions (GFIs)
- Local government units (LGUs)
It doesn’t matter if the funds are from the national budget, foreign aid, or loans — the same rules apply.
Implementation and Next Steps
The Implementing Rules and Regulations (IRR) of RA 12009 were released in February 2025.
These IRR provide the step-by-step guide for agencies to put the law into action.
For citizens, this means more chances to see where public money goes and demand accountability when something doesn’t look right.
Why This Matters for All Filipinos
RA 12009 is more than just legal jargon; it’s a promise.
A promise that public funds will be spent with integrity, fairness, and a vision for sustainable growth.
When procurement works well, projects get done faster, services improve, and taxpayers get real value for their contributions.
The law’s success will depend on active monitoring, responsible public servants, and informed citizens who know their right to transparent governance.
Frequently Asked Questions
1. What is the main purpose of RA 12009?
It aims to make government procurement more transparent, efficient, accountable, and sustainable while ensuring value for public funds.
2. Who is covered by this law?
All government entities, including national agencies, LGUs, GOCCs, GFIs, and state universities/colleges, regardless of the funding source.
3. What’s new compared to the old RA 9184?
RA 12009 introduces fit-for-purpose procurement, mandatory market scoping, sustainability measures, professionalization of procurement officers, and improved transparency rules.
4. How will this affect small local suppliers?
Small businesses may benefit from updated Small Value Procurement rules, which make it easier for them to participate in government projects.
Conclusion
RA 12009 brings Philippine government procurement into the modern age.
It’s designed not just to save money but to spend it wisely, ensuring that every project serves the public good.
For it to succeed, both government workers and ordinary citizens must take part — one by following the law faithfully, the other by keeping watch and speaking up.
In the end, good procurement means better roads, better schools, better healthcare — and a better Philippines for everyone.