Procurement Risk:
Moderate
Score:
53/100
Government Policy
Q57
63/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
View Question
This indicator is not assigned a score in the GDI. Legislation exists and is clear and comprehensive in nature. See for example the Republic…
Explore
Corruption risks are identified in legislation and are also specified in bidding documents [1]. Legislation has introduced two measures to ensue transparency and accountability.…
Explore
Audit reports reveal there have been instances where the Defence Department has not conducted procurements in line with legislation [1, 2]. In some of…
Explore
Q58
58/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
View Question
The defence procurement cycle process is formalised through Republic Act 10349, Revised Armed Forces of the Philippines Modernization Program. The acquisition process involves the…
Explore
Some elements of the defence procurement cyle are disclosed, albeit not in an entirely disagregated form or with a high level of specificity; this…
Explore
There are policies and procedures within the implementation process but they are not very specific and are not always followed through [1, 2, 3,…
Explore
Q59
67/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
View Question
The power of Congress to conduct investigation is recognized by the 1987 Constitution under Section 21, Article VI. Both Senate and House committees on…
Explore
While the Congressional Oversight Committee on Defense Acquisitions, referred to in 59A, has not been created in the current 18th Congress [1], inquiry related…
Explore
The Commission on Audit (COA) has been effective in its reporting of procurement audit and has questioned the defence department about some of its…
Explore
Planning is made available in accordance with the updated “Horizons” modernisation programme and periodic white papers and press announcements; information is increasingly being made…
Explore
In 2018, the government confirmed the approval of Horizon 2 (2018-2022) of the country’s military modernisation plan [1, 2]. The announcement came from the…
Explore
Defence purchases are made publicly available in accordance with Republic Act No. 9184 and are subject to audit by the COA. Purchases are also…
Explore
The level of accessiblity with respect to data tends to vary: at times, data may be released in an accessible and comprehensive manner that…
Explore
Capability Gap and Requirements Definition
Q62
38/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
View Question
Q63
75/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
View Question
Whilst major procurement requirements do adhere to strategic objectives, some deals may occasionally deviate from these and be more strongly motivated by shorter-term political…
Explore
Whilst mechanisms for scrutiny do exist (for example congressional committees, audits and the media), the level of scrutiny is not as high or consistent…
Explore
Purchases are systematically based on priorities that are outlined; absent are the political and institutional variables mentioned earlier [1, 2, 3, 4, 5, 6].
Explore
Tender Solicitation, Assessment and Contract Award
Q64
38/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
View Question
In 2015, the Commission on Audit reported that less than 40% of defense procurement are conducted as open competition [1]. Review of the procurement…
Explore
The Commission on Audit (COA) has the power to question the competition procedure selected and has done so on a number of ocassions [1,…
Explore
Q65
50/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
View Question
The Government Procurement Reform Act specifically notes that members of the Bid and Awards Committee (BAC) must have unquestionable integrity and be proficient in…
Explore
The BAC Secretariat is required to prepare a Procurement Monitoring Report that covers major activities from pre-procurement conference to acceptance/turnover, including the standard and…
Explore
The Government Procurement Law added two entities to ensure transparency and accountability. First, it created an electronic portal that serves as the primary and…
Explore
As noted in 65A, the BAC is required to invite at least two observers (one from a duly recognised private group in a sector…
Explore
Q66
75/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
View Question
The Government Procurement Reform Act (RA 9184) [1] (which also applies to the defence and security sector), its revised implementing rules and regulations [2]…
Explore
Article XXI of the revised IRR of RA 9184 empowers procurement officials to exclude companies and senior officials where there is a conviction or…
Explore
Cases are investigated but, even if they are found guilty, defendants are not always punished and in some cases are even promoted [1] and…
Explore
Through its Technical Support Office, the GPPB has established a training programme to develop the capacity of procurement officials to address and resolve procurement…
Explore
Contract Delivery and In-Service Support
Q67
75/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
View Question
Policies and procedures on how to monitor, assess and report a contractor’s service are outlined in the Procurement Reform Act RA 9184 [1]. Pursuant…
Explore
Information on contract failures and modifications are rarely released but, in some cases, the media manages to obtain some details; further, as the oversight…
Explore
The BAC prepares a quarterly Procurement Monitoring Report that covers major activities from the holding of the pre-procurement conference to the issuance of notice…
Explore
Given that detailed monitoring reports are not publicly shared, it is difficult to assess how proactive procurement officials are in carrying out reporting and…
Explore
Q68
88/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
View Question
The Government Procurement Policy Board (GPPB) has released a resolution citing complaint mechanism for malpractice in both bidding and implementation stages [1]. Resolution No.…
Explore
Based on the Blacklisting guidelines, initiating the suspension and blacklisting proceedings requires a “reasonable fee” [1]. Currently there are 58 companies in GPPB’s Blacklisted…
Explore
Companies trust the complaint mechanism and believe that they will not be discriminated against because a representative of the COA sits in on the…
Explore
Procurement officers have the right to review the qualifications of a supplier at any stage of the procurement process. Suppliers who engage in corruption…
Explore
Cases are investigated but rarely prosecuted and, according to media reports, there is undue political influence in the decision-making process. A frigate acquisition project…
Explore
Despite confirmed offences by some suppliers, it is not clear if sanctions are imposed as in the case of the Korean firm involved in…
Explore
Offset Contracts
Q70
25/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
View Question
Offset agreements are permitted under the Philippine government’s countertrade policy which is managed by the Philippine International Trading Corporation (PITC) under the Department of…
Explore
No specific due diligence or auditing requirements specific to the PITC were disclosed on its website or in documents made publicly available [1, 2,…
Explore
Pursuant to Section 3 of Executive Order No. 12o of 1993, the Department of Trade and Industry though the Philippine International Trading Corporation (PITC)…
Explore
Some details are provided, including on the PITC bid announcement page, although not to an adequate level and not on aspects such as planned…
Explore
No completion reports as specified were identified since a MOU was signed between the DND and PITC in 2017 [1, 2, 3, 4, 5].
Explore
Stated contractual obligations are specified but contract breaches are not directly addressed in a public manner; this being said, mechanisms such as the COA…
Explore
The Philippine government’s offset policy is managed by the Philippine International Trading Corporation (PITC) under the Department of Trade and Industry, but the agency…
Explore
Agents / Brokers
Q73
63/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
View Question
There are some controls over the use of agents and intermediaries. The Philippine Bidding Documents and IRR of Republic Act No. 9184 stipulates that…
Explore
No specific enforcement percentage has been publicly issued but wider problems with enforcement have been detailed in public media accounts on several occasions [1,…
Explore
Financing Package
Q74
25/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
View Question
Some details of the financing package surrounding major arms deals are disclosed on the DND’s website; namely, the identity of the provider and the…
Explore
Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
View Question
This indicator is not assigned a score in the GDI. While acquisition decisions are chiefly determined by documents such as the AFP Modernisation Act…
Explore
This indicator is not assigned a score in the GDI. Justification by the government is provided as required, including through DND releases and press…
Explore
This indicator is not assigned a score in the GDI. There is little evidence of independent domestic political pressures from interest groups within the…
Explore