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DBM urges local firms to participate in pool of suppliers for gov’t’s COVID-19 response

The Department of Budget and Management’s Procurement Service (PS-DBM) is urging local firms to join the government-wide procurement of COVID-19 medical supplies for its response efforts.

In an advisory, the PS-DBM said it will apply “domestic preference” in the purchase of COVID-19 response-related items and goods, pursuant to the Bayanihan to Recover as One Act or Bayanihan 2.

Under the Republic Act No. 11494 or Bayanihan 2, local manufacturers and suppliers shall be prioritized in the procurement of medical supplies, personal protective equipment, and other related items for the government’s pandemic response initiatives.

According to the PS-DBM, “domestic preference” means that the agency or any procuring entity will be awarding contracts to local firms, “to support business activities and livelihood of Filipinos.

“PS-DBM would like to reiterate that suppliers and manufacturers who wish to benefit from domestic preference must secure a Domestic Bidders (DoBid) Preference Certification,” the advisory read.

The DoBid is a certification that the articles forming par of bid are substantially composed articles, materials, or supplies that are grown, produced, or manufactured in the Philippines.

Citing records from the Department of Trade and Industry as of October 7, 2020, the PS-DBM said that there are only four companies with DoBid certification. These are:

  • Reliance Producers Cooperative
  • Medtex Corporation
  • EMS Components Assembly Inc.
  • Orthone Inc.

With this, the agency is inviting more local firms to join the pool of suppliers and manufactures in the government’s procurement of personal protective equipment, testing kits, and other medical supplies.

Based on the PS-DBM data, there are 356 domestic suppliers and manufacturers that could participate in the pool.

Of the number, 299 are registered under the Philippine Government Electronic Procurement System (PhilGEPS), with businesses in testing instruments; medical apparel; personal safety and protection; paper products; solvents; cleaning and janitorial supplies; as well as plastic and chemical industries.

Meanwhile, 44 companies had participated in PS-DBM’s previous procurements of COVID-19 response goods.

There are also 26 local companies that submitted letters of intent to bid during the implementation of Bayanihan 2, which is effective from September 11 to December 19, 2020.

However, the said 356 local companies have no DoBid preference certification from the DTI - Competitiveness Bureau (DTI-CB), which is a prerequisite for this procurement process to grant the bidders a 15% premium over bidders.

“We would like to encourage the following [356] companies to apply for a DoBid certification from DTI-CB,” the PS-DBM said.

Under the procurement rules of Bayanihan 2, the PS-DBM should award the contracts to local companies with DoBid certificates that submitted the cheapest deals among domestic suppliers.

The law also allows the PS-DBM to award a contract to the local supplier even its quoted price is higher than the lowest foreign bidder.

“When the bid submitted by the lowest domestic bidder with DoBid is not more than 15% in excess of the lowest foreign bid, domestic preference is applied and the contract is awarded to the domestic bidder,” it said.

The PS-DBM assured that it is one with all domestic industries and sectors in supporting local labor and products.

“With this, PS-DBM encourages all interested bidders to apply for a DoBid today and join our fight against the COVID-19 pandemic,” it said. — RSJ, GMA News