School Procurement Under RA 12009: A Step-by-Step Guide

Every purchase a public school makes, from bond paper to classroom repairs, now follows Republic Act No. 12009, the New Government Procurement Act, and its Implementing Rules and Regulations (IRR). Most school purchases use one of two modes: Direct Acquisition, for up to ₱200,000 with no canvass, and Small Value Procurement, for up to ₱2,000,000 with requests for quotation to at least three suppliers. Either way, nothing may be bought unless it is in the approved Annual Procurement Plan (APP), and no purchase may be split to fit under a ceiling.

Inside the Department of Education (DepEd), the school head, or an officer-in-charge designated by the Schools Division Superintendent (SDS), approves the school’s purchase requests, then approves the award and signs the purchase order “on behalf of the Secretary”, up to the allotment the school has received (one open point on purchase orders is explained below) (DepEd Order No. 017, s. 2024). Purchases after a calamity follow the IRR’s rules on negotiated procurement for emergency cases, as amended in 2026, and DepEd’s DepEd Order No. 005, s. 2026.

The steps below run from the plan to the payment, with the documents each step produces and the rules in force on November 6, 2026. How school money arrives and is liquidated is in the school MOOE guide, and how procurement fits DepEd’s wider system of budgeting, bonding and property is in the guide to the Financial Management Operations Manual.

Key findings

• RA 12009 replaced RA 9184. Section 115 repealed the Government Procurement Reform Act. “Shopping”, an RA 9184 mode, is not among the eleven modes of procurement in Section 26 of the IRR.
• Purchases up to ₱200,000 need no canvass. Direct Acquisition lets a school buy goods and services directly “from any known and reputable sources”, provided the purchase is in the APP and the seller issues invoices that follow the rules of the Bureau of Internal Revenue (BIR) (IRR, Secs. 32.1 to 32.3).
• Purchases up to ₱2,000,000 go through Small Value Procurement. The school requests at least three quotations, and one quotation received is enough to proceed. Requests for quotation above ₱200,000 are posted for three calendar days on the Philippine Government Electronic Procurement System (PhilGEPS) and in the school (IRR, Sec. 34).
• The plan comes first. “No government procurement shall be undertaken unless it is in accordance with the approved Indicative APP or final APP” (IRR, Sec. 7.8). Splitting a purchase to stay under a ceiling is prohibited (Sec. 39) and is an administrative offense (Sec. 92).
• The school head approves but does not sit on the committee. DO 017, s. 2024 makes the school head the approving official for the purchase request, the award and the purchase order. The IRR bars the head of the procuring entity “or the approving authority” from membership in the Bids and Awards Committee (BAC) (Sec. 41.2.5).
• A relative of the BAC or the end-user cannot win the contract. A supplier related within the third civil degree to the head of the procuring entity, a BAC member, the BAC’s staff or the end-user is disqualified, “notwithstanding the act of such persons inhibiting themselves” (IRR, Sec. 81.1).
• Emergency purchases have their own route. Negotiated procurement for emergency cases lets a school buy directly from a capable supplier after a calamity, under the IRR as amended through GPPB Circular No. 08-2026, published September 10, 2026, and DO 005, s. 2026 (IRR, Sec. 35.2).

Which rules govern school purchases

DepEd Order No. 004, s. 2026 raised the purchase requests and awards that the Baguio Teachers Camp superintendent may approve to ₱2 million, “in line with the increased threshold of up to P2 Million for Small Value Procurement under Republic Act No. 12009”. It does not change the rows for schools.

What changed from RA 9184

RA 12009 was approved on July 20, 2024 and took effect on August 13, 2024. RA 9184 and its IRR stayed in force until RA 12009’s own IRR took effect (Sec. 113). The GPPB approved that IRR on February 4, 2025 through Resolution No. 02-2025; it was published on February 10 and took effect on February 25, 2025. Under the GPPB’s guidance on the transition, GPPB Circular No. 01-2025, RA 9184 still governs purchases whose request for quotation or invitation was published before February 25, 2025, the new standard procurement forms became mandatory on September 21, 2025, and procuring entities have “until 15 May 2028 to fully comply with the requirements of RA No. 12009 and its IRR” (items 5.1, 5.3.1 and 5.4).

DO 008, s. 2019 still tells school heads to “Ensure that all procurement using the school funds conform to the provisions of Republic Act No. 9184” (Sec. VI.A.3). That law is repealed, so the duty now runs to RA 12009 and its IRR.

Who does what in a school purchase

DepEd’s Secretary is the head of the procuring entity (HoPE) for the Department. The IRR lets a department decentralize procurement, in which case “the head of each decentralized unit shall be considered as the HoPE, subject to the limitations and authority delegated” (Sec. 5(q)). DepEd delegates through its signing-authorities orders. For schools, DO 017, s. 2024 sets these roles, “Up to the extent of allotment received”:

The inspection and acceptance rows come from DO 001, s. 2023, Annex C, which DO 017 left unchanged on that point. An IU school is one with its own finance staff; most schools are non-IUs whose MOOE arrives from the Schools Division Office (SDO) as a cash advance (see the MOOE guide).

One point is open. DO 017 gives the award authority “For projects awarded through Procurement”, which covers every mode, but its table for signing purchase orders and contracts is headed “For contracts awarded through public bidding”. DO 001, s. 2023 had required, for contracts under “any of the alternative methods of procurement, regardless of the amount involved, a written full authority from the HoPE” naming the official and the contract (Annex C, Part II, items B.3 and C.3). DO 017 does not repeat that sentence, but it keeps in effect “all other provisions not covered by this Order” (item 4), and no later order settles whether the requirement survives. The course that satisfies both orders is to keep on file the division’s written authority for the school’s purchase orders under Direct Acquisition and Small Value Procurement.

The Bids and Awards Committee

The HoPE designates five or seven BAC members: regular members, including a chairperson and vice-chairperson, and provisional members for the technical expertise and the end-user each purchase needs (IRR, Secs. 41.2.1 and 41.2.2). The HoPE “may create BACs where the number and complexity of the items to be procured shall so warrant” (Sec. 41.1.2). Some divisions have a BAC in each school; others serve small schools through a district or cluster committee, as the FMOM describes (p. 130). The SDS’s designation order shows which BAC acts for a school.

Three rules matter in a school:

• The approving official stays out. “In no case shall the HoPE or the approving authority be a member of the BAC” (Sec. 41.2.5). A school head who approves the school’s awards cannot chair or sit on the BAC that recommends them.
• Terms are one year. Members serve one year from designation, renewable, and no more than three consecutive terms “except when allowed by the HoPE” (Sec. 41.2.6).
• Small purchases can be delegated. Except for the bidding modes, “the BAC may delegate the conduct of procurement activities” to the end-user or the procurement unit (Sec. 26.4). The BAC still recommends the award.

BAC members may receive honoraria of up to 30% of their basic monthly salary, “subject to availability of funds”, under guidelines the Department of Budget and Management (DBM) issues (Sec. 45).

Step 1: Plan the purchase in the PPMP and APP

Planning starts with the School Improvement Plan. DO 008, s. 2019 lets school MOOE fund “activities as identified in the approved School Improvement Plan (SIP) for implementation in the current year and as specifically determined in the Annual Implementation Plan (AIP)” (Sec. V.D.1). DO 017, s. 2024 then requires each purchase request to follow “the approved WFP/Annual Implementation Plan and the APP for the current year of the office/school concerned”.

The procurement plan comes from the end-users. Each end-user prepares a PPMP that states (IRR, Sec. 7.7.1):

1. whether each activity needs procurement or will be done by administration;
2. the type and objective of the purchase;
3. the quantity and size;
4. the mode of procurement;
5. the schedule of each procurement activity;
6. the estimated budget; and
7. the technical specifications, scope of work or terms of reference.

The PPMPs are consolidated into the APP, which the BAC recommends and the HoPE approves; the final APP is posted on the procuring entity’s website and submitted to the GPPB “on or before the end of January of the budget year” (Sec. 7.7.5). Plans can change: new or revised PPMPs “may be undertaken as often as necessary”, and the BAC Secretariat folds approved changes into the APP (Sec. 7.9). What cannot change is the order of events: revise the plan before buying, never after.

Three rules shape the PPMP itself:

• Market scoping comes first. The end-user must conduct market scoping “as a preliminary undertaking in preparing its PPMP”, such as consulting suppliers, collecting price quotations and checking PhilGEPS data, and keep a record of the results (Secs. 10.1, 10.2 and 10.5). Its scale follows “the principle of Proportionality” (Sec. 10.3): a few price checks for school supplies, more for a room of equipment.
• No brand names. Specifications describe performance or standards. A brand may be named only “for reasons of technical compatibility, interoperability, servicing, maintenance, or preservation of supplier warranty”, with the justification written into the specifications (Sec. 11.2). Ink for the school’s existing printer qualifies; a favorite brand of laptop does not.
• Brand new goods. Goods must be brand new, except second-hand items allowed under DBM guidelines (Sec. 7.6).

DO 008, s. 2019 also limits what school MOOE may buy at all: “In no case shall the school MOOE be used for the procurement of” school seats and teachers’ tables and chairs, textbooks, and other supplementary learning resources (Sec. V.D.6). The furniture ban has an exception: “except for school furniture which are not procured/provided by the Central, Regional or School Division Offices. These may include laboratory and workshop furniture”.

Step 2: Choose the mode of procurement

The IRR lists eleven modes (Sec. 26.1). These are the ones a school meets:

Check first whether the item is a common-use item available at PS-DBM; if it is, buy it there. Otherwise, measure the whole requirement planned in the APP, not one order, against the ceilings: the IRR does not say this in those words, but it follows from the ban on splitting in Section 39.1. The GPPB also adopted a Procurement Mode Selection Decision Tree as an annex of the IRR through Resolution No. 12-2025 of November 25, 2025, to guide the choice.

Common-use supplies and PS-DBM

National agencies, including DepEd, “shall procure CSE only from the PS-DBM, subject to its availability” (Sec. 40.1). CSE means common-use supplies and equipment, the goods listed in the PhilGEPS Electronic Catalogue (Sec. 5(h)). A school may buy them elsewhere in four cases (Sec. 40.2):

The last case names “no internet connectivity or geographical limitations” as examples of impracticality (Sec. 40.2(d)(ii)), which fits many island and upland schools. The BAC, not the school head alone, resolves it.

Splitting is prohibited

Splitting means “dividing or breaking up of contracts into smaller quantities and amounts, or dividing contract implementation into artificial phases or subcontracts for the purpose of evading or circumventing the requirements” of the law (Sec. 39.1). Buying “per unit, by lot or package” stays allowed when the budget, quantity, availability, delivery sites, location or market capacity justify it (Sec. 39.1). A school that plans ₱600,000 of laboratory apparatus in its APP cannot buy it as three Direct Acquisitions of ₱200,000; it uses Small Value Procurement for the whole amount, or divides it into lots within that one procurement. A non-IU school that buys cleaning supplies each quarter because its MOOE arrives as quarterly cash advances is buying by lot according to its available budget, which Section 39.1 allows; its APP should show the quarterly lots.

Step 3: Direct Acquisition, for purchases up to ₱200,000

Direct Acquisition is the mode for most of a school’s day-to-day purchases. The procuring entity, “without need to conduct a canvass or request for quotations, may procure directly from any known and reputable sources”, such as department stores, hardware stores, bookstores, groceries and online stores, and services from providers such as furniture and equipment repair shops (Sec. 32.1).

The steps in a school:

1. Check the plan. The purchase must be in the APP. Items bought through petty cash or by reimbursement, “including foreseeable emergencies, which cannot be itemized”, appear in the APP as Miscellaneous Items (Sec. 32.2).
2. Prepare and approve the purchase request. The designated non-teaching staff member prepares it, the budget or finance staff certifies the allotment, and the school head approves it (DO 017, s. 2024).
3. Buy from a capable source. The HoPE may authorize the end-user to buy directly from a source registered with PhilGEPS, from an e-commerce platform that delivers on the date the school sets, or off the shelf for immediate pickup or delivery (Sec. 32.3).
4. Get a proper invoice. “Procuring Entities shall procure only from sources that issue invoices compliant with the rules of the BIR or other documents evidencing delivery and payment acceptable to the COA” (Sec. 32.3). A store that cannot issue a BIR-compliant invoice is not a source the IRR allows.
5. Inspect and accept, then record. The delivery is inspected and accepted on an Inspection and Acceptance Report by the officers in the table above, and the payment goes into the school’s books or Cash Disbursements Register.

Direct Acquisition needs no posting on PhilGEPS: the IRR lists the modes whose requests must be posted, and “Other modes not enumerated herein shall not be required to comply with the publication of requirements” (Sec. 50.3.2). Petty cash payments follow COA Circular No. 2012-001 (Sec. 32.2).

Step 4: Small Value Procurement, for purchases up to ₱2,000,000

Small Value Procurement is “a mode of procurement whereby the Procuring Entity requests for the submission of at least three (3) price quotations” for goods not available at PS-DBM, infrastructure projects and consulting services; “The receipt of one (1) quotation is sufficient to proceed” (Sec. 34.1). The ₱2,000,000 ceiling applies to national agencies such as DepEd; local governments have lower ceilings by income class (Sec. 34.2).

The steps under Section 34.3, with the DepEd signatories:

The supplier’s documents are now fixed by GPPB Circular No. 06-2026, approved through Resolution No. 10-2026 on February 3, 2026, published on June 19, 2026, and declared part of the IRR. For Small Value Procurement they are (item 4.7):

The list is closed: “The eligibility documents enumerated in these Guidelines are exclusive and the PEs shall not require additional eligibility documents” (item 3.5). Documents already on file need not be submitted again (item 4.4), and the request for quotation states when they are due (item 4.2). Direct Acquisition is outside the circular (item 3.3).

The auditor’s checklist is a separate list. COA Circular No. 2012-001 names what auditors expect to find with a payment for a purchase made without public bidding (items 9.2, 9.2.4 and 9.2.5): the approved procurement plan, the approved purchase request, the purchase order “duly approved by the official concerned and accepted by the supplier”, proof of posting where posting is required, the BAC resolution and the HoPE’s approval, the quotations and their abstract, the delivery invoice, and the Inspection and Acceptance Report. The circular predates RA 12009: its posting period and its references to “shopping” follow RA 9184’s older rules, so for current purchases read them as the IRR’s three-day posting and the modes above.

Step 5: Delivery, inspection and acceptance

A purchase is complete only when the school has inspected and accepted what it paid for. DO 001, s. 2023 assigns inspection to the school’s inspectorate team in an IU school and to the SDO or school district inspectorate team for a non-IU school (Annex C, Part II.G, item 2.1). School furniture and ICT equipment have their own rows: furniture is inspected by at least two members of the school’s inspectorate team (item 2.2), and ICT equipment in an IU school by two members of the team and the ICT Coordinator (item 2.4). The Inspection and Acceptance Report is signed “Inspected by” by the inspector and “accepted by” by the end-user or the property officer (COA Circular No. 2012-001, item 9.2).

Three contract rules protect the school after the purchase order is signed:

• Late delivery. A supplier that delivers late pays liquidated damages of one-tenth of 1% of the cost of the delayed goods for each day of delay. When the damages reach 10% of the contract price, the school “may rescind the contract and impose appropriate sanctions” (Sec. 71.1.4). The school need not prove actual loss.
• Extensions. Requests for more time must come before the delivery date, and the HoPE approves them on the end-user’s recommendation “based on meritorious reasons” (Sec. 71.1.3).
• Warranty. For goods, the supplier warrants against manufacturing defects for at least three months for expendable supplies and one year for non-expendable supplies after acceptance, secured by retention money or a special bank guarantee of 1% to 5% (Sec. 90.1).

Once accepted, equipment and semi-expendable items are recorded and issued to the person accountable for them, as the FMOM guide describes.

Step 6: Pay, record and report

A non-IU school pays from its MOOE or program-fund cash advance, records the payment in the Cash Disbursements Register, and submits the register, the paid vouchers and all supporting documents to the SDO on or before the 5th day of the following month (DO 008, s. 2019, Sec. V.C.3.3). An IU school pays through its own disbursement process. The MOOE guide has the cash advance and liquidation steps.

Procurement also has a public side. DO 008, s. 2019 requires the school’s report on sources and uses of funds to “include the names of suppliers and service providers where there is procurement of goods and services against school funds”, posted on the transparency board and updated every three months (Sec. VI.A.3 and 4). The BAC prepares a procurement monitoring report, which the HoPE submits to the GPPB “on a semestral basis” (IRR, Sec. 42.1(k)); in DepEd, the Undersecretary for Procurement approves it (DO 017, s. 2024).

Emergency purchases after a typhoon or other calamity

Negotiated procurement for emergency cases lets a procuring entity negotiate directly with “a legally, technically, and financially capable supplier, contractor, or consultant” (IRR, Sec. 35.2.3). Its rules are now in the GPPB’s guidelines on procurement for disaster-related preparations and response, GPPB Circular No. 08-2026, approved through Resolution No. 17-2026 on August 14, 2026 and published on September 10, 2026. The same resolution amended Section 35.2 of the IRR. Emergency procurement may be used in three cases (Circular No. 08-2026, item 7.3):

1. a state of calamity has been declared and the purchase responds to imminent danger to life or property;
2. time is of the essence because of a natural or man-made calamity; or
3. other causes need immediate action to prevent loss of life or property, to restore vital public services and facilities, or to take anticipatory action after a State of Imminent Disaster is declared under Republic Act No. 12287.

Two limits apply. Timing matters: “when the reason or cause thereof has already been abated or a substantial period of time has passed other procurement modalities may already be considered” (item 7.6). Size matters too: the quantity “must be proportional to the actual needs” and “should not include long-term provision, rehabilitation, reconstruction or other measures not intended for the immediate response” (item 7.7). Replacing a roof torn off by last night’s typhoon fits; next year’s repair program does not.

The procedure, under Section 35.2.3 of the IRR as amended and item 9 of the circular:

Every procuring entity must keep a Suppliers List of the suppliers it awarded contracts to in the past two years, posted on its website and PhilGEPS, which the circular calls “a mandatory requirement for purposes of transparency and accountability” (item 7.9). The supplier submits a mayor’s or business permit, an Omnibus Sworn Statement and the licenses its line of business needs; above ₱500,000, it also submits its income or business tax returns and, for infrastructure, its Net Financial Contracting Capacity; contractors also submit their Philippine Contractors Accreditation Board license (item 8.1). An expired permit with the renewal receipt and an unnotarized sworn statement “shall be accepted as basis for award”, provided the renewed permit and notarized statement come in before payment (item 8.1(b)). Buying from several suppliers is not automatically splitting when market scoping shows that no one supplier can fill the need (item 7.10).

DO 005, s. 2026 set DepEd’s procedure for purchases “resulting from or caused by the impact of Typhoon Tino” under Proclamation No. 1077 of November 6, 2025, which declared a State of National Calamity for one year. It covered those purchases “until 06 November 2026, unless earlier lifted by the President” (Encl., Sec. II). It named flexible learning options, repairs of school buildings and water and sanitation facilities, school furniture, the School-Based Feeding Program, temporary learning spaces and learning packages as programs it may cover. DO 005 remains in force, and its request form provides for calamities other than Typhoon Tino (Annex A). It implements Section 35.2.3 as it read before Resolution No. 17-2026: it has the BAC negotiate with suppliers from DepEd’s records, other agencies’ awardees or the Government of the Philippines Official Merchants Registry, and its form still quotes delegation to the BAC, which the amendment deleted. Where its steps differ, the amended IRR and Circular No. 08-2026 govern. Its list of supplier documents, issued before the circular, asks for tax returns at any amount, but it leaves the documentary requirements “at the discretion of the BAC” (Sec. V.C), so a BAC that follows the circular’s list satisfies both.

For goods needed “to address contingencies arising from natural or man-made calamities in areas where a ‘State of Calamity’ has been declared”, the IRR allows an advance payment of up to 15% of the contract amount (Sec. 71.1.5(b)). An emergency is not a reason to skip the plan: the end-user still prepares the PPMP and validates the funds before the BAC acts.

For the wider response, from class suspensions to learning continuity, see the school DRRM guide.

Feeding program purchases

DO 013, s. 2026, the institutional guidelines on the School-Based Feeding Program, adds three duties for the program’s implementer: “Commence all procurement activities for food supplies, meals, or NFPs within the first quarter of FY”, prioritize local agricultural and fishery producers “without favoring specific suppliers”, and manage catering and service providers “strictly following procurement laws and policies” (Sec. VI.D). “The SDO or the School shall determine the appropriate entity to undertake procurement, taking into consideration the volume requirements and the total contract amount per school” (Annex B, item 2). The “SDO or School Bids and Awards Committee (BAC) manages sourcing per RA 12009” (Annex E), guided by the GPPB’s rules on community participation and on purchases from farmers and fisherfolk under the Sagip Saka Act.

Prohibited acts and liability

Section 92 makes a public officer administratively liable, “even if no criminal prosecution is instituted”, for these acts:

RA 12009 has no penal article of its own. Criminal liability for a rigged or overpriced purchase runs through Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act, and other penal laws, and a conviction carries civil liability for restitution or forfeiture (Secs. 92 and 96). The head of the agency may preventively suspend BAC members and staff once a formal charge is issued and there is prima facie evidence (Sec. 94). Cases that reached the courts are in Can a Principal Be Jailed Over School Funds?.

Relatives get their own rule. Every bid carries a sworn statement that the bidder is not related to the HoPE, the BAC, its technical working group and secretariat, the end-user or the project consultants “by consanguinity or affinity up to the third civil degree”. Such a relationship “shall automatically disqualify the bidder from participating in the procurement of contracts of the Procuring Entity notwithstanding the act of such persons inhibiting themselves from the procurement process” (Sec. 81.1). A quotation counts as a bid (Sec. 5(c)). The Civil Code counts a sibling as two degrees away, an uncle as three and a first cousin as four (Art. 966), so a sibling, an aunt or uncle, or a niece or nephew is within the third degree, and a first cousin is not. Gifts and favors from suppliers are covered in the ethics and internal control guide.

What this means for school heads

1. Plan the year’s purchases in the PPMP. Submit it in time for the APP that covers your school, whose final version goes to the GPPB by the end of January. Base it on the AIP, do the market scoping, and write specifications without brand names. Revise the PPMP before any unplanned purchase.
2. Decide the mode by the total need, after checking PS-DBM for common-use supplies.
3. Stay off the BAC. As approving official, the school head may not be a member. Ask the SDS for a designation order that names the BAC for your school, and keep it on file with any written authority for your purchase orders.
4. Keep proof of every posting, such as a printout or photo of the request for quotation on PhilGEPS and the bulletin board.
5. Check relationships before the award. Read each supplier’s sworn statement, and ask BAC members and end-users to declare relatives who own or run supplying businesses.
6. Inspect before paying. No Inspection and Acceptance Report, no payment. Charge liquidated damages for late deliveries.
7. Publish what you bought. List suppliers and amounts in the quarterly report on the transparency board.

Records to keep for each purchase: the PPMP and APP entry, market scoping notes, the approved purchase request, the request for quotation and proof of posting, the quotations and abstract, the BAC resolution, the notice of award and purchase order, the invoice, the Inspection and Acceptance Report, and the voucher or register entry.

What a school head may not do: buy anything outside the approved APP, split a purchase, approve a purchase as a BAC member, accept a quotation from a relative of the school head, the BAC or the end-user, buy without a BIR-compliant invoice, use school MOOE for textbooks or for seats and teachers’ tables and chairs that the Central, Regional or Division Office provides, or pay for goods not yet inspected and accepted.

These duties serve indicators 2.2.1 and 2.2.2 of the Philippine Professional Standards for School Heads (PPSSH), adopted through DepEd Order No. 024, s. 2020, which name procurement as part of financial management, and indicators 2.3.1 and 2.3.2 on the acquisition of school facilities and equipment. The guide to Domain 2 explains both strands.

How the NASH may test this

The items below are original practice items, scored 3 (Relational), 2 (Multistructural), 1 (Unistructural) or 0 (Prestructural). An option that breaks a rule scores 0.

Question 1

Indicator 2.2.1, Financial management. Career Stage 1, Conceptual, Moderate.

Under RA 12009 and its IRR, a school may buy goods not available from the Procurement Service, worth up to Php 200,000, through Direct Acquisition without a canvass. Which statement best explains the rule against dividing a Php 600,000 purchase planned in the APP into three Direct Acquisitions?

• A. Splitting it would evade the competition the full amount requires, since the APP already shows the purchase as one Php 600,000 need.
• B. Splitting it is a prohibited act, and the school head who approves the three purchases may be held administratively liable for it.
• C. Splitting it ignores the Php 200,000 ceiling, which shows that Direct Acquisition is meant for small and simple school needs.
• D. Splitting it skips the canvass of three suppliers that every routine purchase needs, since Direct Acquisition is reserved for emergencies.

Answer and explanation

Best answer: A. Points: A = 3, B = 2, C = 1, D = 0.

• A (3 points, Relational). It connects the prohibition to its purpose: the planned need is one Php 600,000 purchase, and dividing it would avoid the requests for quotation and posting that Small Value Procurement requires for that amount.
• B (2 points, Multistructural). Splitting is prohibited and is an administrative offense, but the option lists consequences without saying why the rule exists.
• C (1 point, Unistructural). It recalls the ceiling and the kind of need the mode serves, but it does not explain what dividing a planned purchase does wrong.
• D (0 points, Prestructural). Direct Acquisition is not limited to emergencies, and no canvass is required for purchases within its ceiling; this is a carry-over from the old shopping rules.

Why. This aligns with Career Stage 1 expectations because indicator 2.2.1 asks an aspiring school head to understand the policies on procurement aligned with the school plan. Section 39.1 of the IRR forbids dividing contracts into smaller amounts “for the purpose of evading or circumventing the requirements” of the law, and a Php 600,000 need falls under Small Value Procurement, with requests for quotation to at least three suppliers and posting above Php 200,000 (Secs. 34.1 and 34.3). The option on liability is true but does not connect the rule to the competition it protects.

Indicator 2.2.1: Demonstrate knowledge and understanding of policies, guidelines and issuances in managing finances such as allocation, procurement, disbursement and liquidation aligned with the school plan.

Sources: Republic Act No. 12009 and its IRR, Secs. 32.1, 34.1, 34.3, 39.1 and 92(d).

Question 2

Indicator 2.3.2, School facilities and equipment. Career Stage 2, Situational, Moderate.

You are the school head of a non-implementing junior high school in a coastal town. The APP includes Php 450,000 for science laboratory apparatus, funded by a program fund the division released for the purpose. The apparatus is not sold by the Procurement Service. A supplier who demonstrated it last month offers to deliver everything within a week if the school buys directly from them. The science teachers want the apparatus before next month’s laboratory activities. What is the most appropriate action?

• A. Have the BAC post a request for quotation on PhilGEPS and in the school for three days and send it to at least three suppliers, including the one who offered.
• B. Have the BAC send requests for quotation to the offering supplier and two other stores, then award the purchase to the lowest quotation received within the week.
• C. Ask the science teachers to borrow apparatus from a nearby school for next month, and take up the purchase again in the next planning cycle.
• D. Buy the apparatus directly from the offering supplier as three separate purchases of Php 150,000 each, so that everything arrives within the week.

Answer and explanation

Best answer: A. Points: A = 3, B = 2, C = 1, D = 0.

• A (3 points, Relational). It uses the mode the amount calls for, with the posting and the three invitations it requires, and still lets the offering supplier compete, so the apparatus is bought on time and fairly.
• B (2 points, Multistructural). It invites three suppliers and awards to the lowest quotation, but it skips the three-day posting required when the budget is above Php 200,000.
• C (1 point, Unistructural). It keeps the laboratory activities going, but it abandons a purchase that is planned and funded for this year.
• D (0 points, Prestructural). Dividing a planned purchase into smaller amounts to avoid the required mode is splitting, which the law prohibits.

Why. This aligns with Career Stage 2 expectations because indicator 2.3.2 asks the school head to manage the acquisition of school equipment in adherence to issuances. For goods not available at the Procurement Service and worth up to Php 2,000,000, Small Value Procurement applies: the request for quotation is posted for three calendar days on PhilGEPS and in the school when the budget is above Php 200,000, and it is sent to at least three suppliers (IRR, Secs. 34.1, 34.3(b) and 34.3(c)). The option that invites three stores within the week skips the posting the budget requires.

Indicator 2.3.2: Manage school facilities and equipment in adherence to policies, guidelines and issuances on acquisition, recording, utilization, repair and maintenance, storage and disposal.

Sources: Republic Act No. 12009 and its IRR, Secs. 34 and 39.1; DepEd Order No. 017, s. 2024, Annex A.

Question 3

Indicator 2.2.2, Financial management. Career Stage 2, Situational, Difficult.

You are the school head of an integrated school in an upland municipality. The school’s BAC is evaluating quotations for Php 380,000 worth of electrical and plumbing materials for classroom repairs. The lowest quotation comes from a hardware store that the BAC vice-chairperson’s sister owns as a sole proprietorship. The vice-chairperson offers to leave the evaluation so that the store can still be considered, and the store’s price is the lowest by a wide margin. What is the most appropriate action?

• A. Let the vice-chairperson leave the evaluation and approve the award to the store, since its price gives the school the best value for the repairs.
• B. Have the BAC disqualify the store’s quotation because of the relationship, evaluate the other quotations, and record the reason in its resolution.
• C. Have the BAC declare the procurement failed and post a new request for quotation that leaves the store out, recording the reason in its resolution.
• D. Ask the division’s legal unit for an opinion on the relationship, and hold the evaluation of all quotations until the unit replies in writing.

Answer and explanation

Best answer: B. Points: A = 0, B = 3, C = 2, D = 1.

• A (0 points, Prestructural). The store is disqualified because its owner is related to a BAC member within the third civil degree, and the member’s inhibition does not change that.
• B (3 points, Relational). It applies the disqualification, keeps the procurement moving with the quotations already received, and documents the reason, so the repairs proceed on a clean record.
• C (2 points, Multistructural). It excludes the store and documents the reason, but starting over is unnecessary when other quotations are in hand, and it delays the classroom repairs.
• D (1 point, Unistructural). Seeking advice is careful, but the rule is clear, and holding every quotation stalls the repairs while nothing is decided.

Why. This aligns with Career Stage 2 expectations because indicator 2.2.2 asks the school head to manage procurement in adherence to issuances. Section 81.1 of the IRR disqualifies a bidder related to a BAC member by consanguinity or affinity up to the third civil degree, “notwithstanding the act of such persons inhibiting themselves from the procurement process”; a quotation is a bid (Sec. 5(c)), and a sibling is two degrees removed (Civil Code, Art. 966). One quotation is enough to proceed (Sec. 34.1). Starting over gets the disqualification right but delays the repairs when responsive quotations are already in hand.

Indicator 2.2.2: Manage finances adhering to policies, guidelines and issuances in allocation, procurement, disbursement and liquidation aligned with the school plan.

Sources: Republic Act No. 12009 and its IRR, Secs. 5(c), 34.1 and 81.1; Civil Code of the Philippines, Art. 966.

Nothing in this guide reproduces or predicts examination content.

Frequently asked questions

Is a canvass still required for school purchases below ₱200,000?

No. Under Direct Acquisition, a procuring entity may buy goods and services with an approved budget of up to ₱200,000 “without need to conduct a canvass or request for quotations” from any known and reputable source (IRR of RA 12009, Sec. 32.1). The purchase must still be in the APP, and the seller must issue a BIR-compliant invoice or another document COA accepts (Secs. 32.2 and 32.3).

Do school purchases need to be posted on PhilGEPS?

A request for quotation must be posted only under Small Value Procurement with an approved budget above ₱200,000: three calendar days on PhilGEPS, on the procuring entity’s website if it has one, and in a conspicuous place in the school (IRR, Sec. 34.3(b)). Direct Acquisition needs no posting (Sec. 50.3.2). An emergency purchase is not posted in advance, but its notice of award and contract are posted on PhilGEPS and the procuring entity’s website afterward (GPPB Circular No. 08-2026, item 11.0).

Can the school head be the chairperson of the school’s BAC?

No. “In no case shall the HoPE or the approving authority be a member of the BAC” (IRR, Sec. 41.2.5). DO 017, s. 2024 makes the school head the approving official for the school’s awards and purchase orders, so the chairperson must be another official the HoPE designates.

Can a school buy from a store owned by a teacher’s relative?

It depends on who the teacher is in that purchase. A supplier related within the third civil degree to the HoPE, a BAC member, the BAC’s working group or secretariat, or the end-user is automatically disqualified, even if that person inhibits (IRR, Sec. 81.1). A relative of a teacher who has no role in the purchase is not covered by Section 81.1, but the store must win on price and compliance like any other supplier.

Is RA 9184 still used for DepEd procurement?

Not for new purchases. RA 12009 repealed RA 9184 (Sec. 115), and RA 9184 governs only purchases whose invitation or request for quotation was published before RA 12009’s IRR took effect on February 25, 2025 (Sec. 113; GPPB Circular No. 01-2025, item 5.1). Read references to RA 9184 in older DepEd orders, such as DO 008, s. 2019, as references to RA 12009 and its IRR.

Sources

Laws and procurement rules

• Republic Act No. 12009, New Government Procurement Act, approved July 20, 2024, Secs. 32, 34, 39, 40, 41, 92, 93, 113 and 115.
• Implementing Rules and Regulations of RA 12009, approved through GPPB Resolution No. 02-2025, February 4, 2025, published February 10, 2025, effective February 25, 2025, Secs. 5, 7, 10, 11, 26, 27, 32 to 35, 39, 40, 41, 42, 45, 49.2, 50.3, 71.1, 81, 90, 92, 94 and 96.
• GPPB Circular No. 01-2025 (Resolution No. 05-2025), Policy Guidance on Section 113 (Transitory Provision) in Relation to Section 115 (Repealing Clause) of RA 12009 and Its IRR, September 18, 2025, items 3.1, 5.1, 5.3.1 and 5.4.
• GPPB Circular No. 06-2026 (Resolution No. 10-2026), Documentary Requirements and Relevant Guidelines for Specific Modes of Procurement Under RA 12009, February 3, 2026, published June 19, 2026, items 3.3, 3.5, 4.2 to 4.4 and 4.7.
• GPPB Circular No. 08-2026 (Resolution No. 17-2026), Guidelines on the Procurement for Disaster Preparedness, Anticipatory Measures, and Disaster-Related Mitigation Response, Relief, Recovery, Rehabilitation, Reconstruction and Other Activities, August 14, 2026, published September 10, 2026, items 7, 8, 9 and 11.
• Commission on Audit Circular No. 2012-001, Revised Guidelines and Documentary Requirements for Common Government Transactions, June 14, 2012, items 9.2, 9.2.4 and 9.2.5; and COA Circular No. 2024-004, March 14, 2024, which suspended COA Circular No. 2023-004.

DepEd issuances

• DepEd Order No. 017, s. 2024, Amendment to the Provisions of DepEd Order No. 001, s. 2023 on Signing Authorities for Financial Matters in the Department of Education, December 4, 2024, Annex A, Parts B to D.
• DepEd Order No. 001, s. 2023, Revised Designation of Undersecretaries and Assistant Secretaries to Their Strands and Functional Areas of Responsibilities and Revised Signing Authorities, January 9, 2023, Annex C, Part II.
• DepEd Order No. 004, s. 2026, Amendment to DepEd Order No. 017, s. 2024, February 25, 2026.
• DepEd Order No. 005, s. 2026, Guidelines on the Implementation of Emergency Procurement Pursuant to Republic Act No. 12009 and Its Implementing Rules and Regulations, in View of Proclamation No. 1077 Declaring a State of National Calamity Due to Typhoon Tino, March 19, 2026.
• DepEd Order No. 008, s. 2019, Revised Implementing Guidelines on the Direct Release, Use, Monitoring and Reporting of Maintenance and Other Operating Expenses Allocation of Schools, May 2, 2019, Secs. V.C, V.D and VI.A.
• DepEd Order No. 013, s. 2026, Institutional Guidelines on the Implementation of the School-Based Feeding Program, June 4, 2026, Sec. VI.D and Annexes B and E.
• DepEd Financial Management Operations Manual (2016), adopted through DepEd Order No. 60, s. 2016, p. 130.
• DepEd Order No. 024, s. 2020, Philippine Professional Standards for School Heads, indicators 2.2.1, 2.2.2, 2.3.1 and 2.3.2.

Other

• Civil Code of the Philippines (Republic Act No. 386), Art. 966, on degrees of relationship.
• 2016 Revised IRR of RA 9184, Sec. 54.2 and Annex H, for the rules RA 12009 replaced.
• GPPB Resolution No. 12-2025, Procurement Mode Selection Decision Tree, November 25, 2025.
• Proclamation No. 1077, Declaring a State of National Calamity Due to Typhoon “Tino”, November 6, 2025.

This guide explains procurement law and DepEd rules for study and professional awareness. It is not legal advice; for a specific case, consult a lawyer or your Schools Division Office’s legal unit.

Written by Mark Anthony Llego for NASH Reviewer. Sources: Republic Act No. 12009 and its IRR; GPPB Circulars No. 01-2025, No. 06-2026 and No. 08-2026; DepEd Orders No. 001, s. 2023, No. 017, s. 2024, No. 004, No. 005 and No. 013, s. 2026, and No. 008, s. 2019; COA Circulars No. 2012-001 and No. 2024-004; DepEd Order No. 024, s. 2020 and the PPSSH.