Why Bidding Matters: Safeguarding Billions in Public Funds

Competitive bidding may sound like just another bureaucratic requirement, but it is the legal backbone of public procurement in the Philippines. Without it, government projects risk being overpriced, poorly executed, or even left unfinished.

This article explains why bidding under Republic Act No. 9184 (Government Procurement Reform Act) is essential, what it is designed to prevent, and how it safeguards billions in public funds.

The Purpose of Bidding

Public funds are limited resources. Every peso spent on infrastructure, healthcare, or education must be used efficiently. Bidding ensures:

• Fair Competition – Qualified contractors compete on equal terms.

• Value for Money – The government secures the best balance of cost and quality.

• Transparency – Processes are documented and open to scrutiny.

• Accountability – Decisions are based on published rules and subject to audit.

RA 9184 makes this principle clear. Section 10 provides: “All procurement shall be done through competitive bidding, except as provided for in this Act.”

Risks Without Proper Bidding

When projects bypass or weaken the bidding process, several risks arise:

1. Overpricing

   • Without competition, prices can be inflated far above market value.

   • Example: materials like cement or steel priced at double the prevailing cost.

2. Substandard Work

   • Contractors selected without fair competition may cut corners, producing infrastructure that fails within a few years.

3. Favoritism or Collusion

   • Repeated awards to the same contractors may signal undue advantage.

   • “Cover bidding,” where competitors agree beforehand who will win, undermines the system.

4. Delays or Non-Completion

   • Contractors without proper vetting may lack financial or technical capacity, leaving projects incomplete.

According to the 2025 National Budget, infrastructure and public works account for more than ₱700 billion in government spending. Without strong bidding safeguards, enormous sums of taxpayer money are exposed to waste, fraud, or inefficiency.

Legal Safeguards Under RA 9184

The law contains multiple layers of protection:

• Publication in PhilGEPS – Section 8 requires all opportunities to be advertised on the Philippine Government Electronic Procurement System (PhilGEPS).

• Observer Participation – Section 13 mandates that independent observers from the Commission on Audit (COA), accredited NGOs, and the private sector be invited to attend bid openings and evaluations.

• Lowest Calculated Responsive Bid (LCRB) – Contracts are awarded not just on lowest price, but on full compliance with technical and financial requirements.

• Post-Qualification Checks – Agencies must verify that the bidder has the capability and track record to complete the project.

These measures collectively promote fairness, competition, and integrity.

Why It Matters for Flood Control Projects

Flood control projects often involve large budgets and urgent timelines. They are also vital to public safety. This makes them particularly vulnerable to:

• Overpricing of bulk construction materials;

• Pressure to award contracts quickly;

• Risk of substandard work that fails when floods come.

By mandating competitive bidding, RA 9184 reduces these risks. Citizens can also monitor flood control procurements directly through PhilGEPS, where invitations, bid results, and contract awards are publicly available.

Legal Insight

Bidding is not a formality. It is the statutory safeguard that protects billions of pesos in public funds from misuse. RA 9184, reinforced by transparency platforms and observer requirements, ensures that taxpayer money is spent on projects that are fair, competitive, and accountable.

For flood control and other critical infrastructure, this process is what stands between a well-built public project and wasted public resources.

👉 Next in the series: Spotting Red Flags in Government Projects: A Citizen’s Guide