04/04/2026
The passage of the New Government Procurement Act (NGPA) or Republic Act No. 12009 and its Implementing Rules and Regulations (IRR) establishes Section 37 as a new mode of Direct Procurement for Science, Technology and Innovation. This provision introduces a fit-for-purpose approach that allows Procuring Entity (PE) to directly obtain goods or services from a legally, technically and financially capable manufacturer, supplier, or qualified startup business for the following:
a) Supplies, materials, equipment, and related services to be used actually, exclusively, and directly in the conduct of research and development (R&D) projects or activities;
b) Goods which include products of a commissioned task by a PE which were processed, developed, and manufactured in satisfaction of its needs and requirements. These include: (1) pre-commercial goods and services that involve early market engagement to stimulate the development of new goods and services that meet specific government needs; and (2) goods to be manufactured by qualified startup businesses alongside the thrust to develop and support new and startup businesses.
Unless otherwise indicated in a written agreement, the intellectual property rights and ownership over the commissioned goods developed and manufactured pursuant to this provision shall belong to the PE, and no manufacturing or sale thereof can be performed by the supplier; and
c) Other goods analogous to the foregoing.
Approved on January 15, 2026, and published on March 20, 2026, this strengthened procurement policy was developed by the Government Procurement Policy Board (GPPB), in coordination with the National Innovation Council (NIC), to bolster the country’s research, development, innovation, and enterprise ecosystem.
The published guidelines for implementing NGPA Section 37 showcase an innovative procurement approach that reinforces government's commitment to advancing national innovation goals and priorities. It enhances efficiency by supporting the timely delivery of government programs and projects while fostering innovation through early market engagement and support for startups.
Learn more:https://www.gppb.gov.ph/wp-content/uploads/2026/03/Approved-GPPB-Resolution-No.-04-2026-STI.pdf
