‘Stricter regulatory oversight needed as micro-procurement surges’
Pauline Dikuelo | Wednesday December 17, 2025 06:00
According to the Authority’s latest data, micro-procurement reached P8 billion, or 25% of the total procurement value in the year to March 2025.
Designed for small-scale purchases and meant to empower SMEs, micro-procurement is increasingly being used for substantial expenditure. PPRA cautioned that this creates risks of tender splitting and other practices aimed at bypassing stricter formal procedures.
PPRA stated that the total procurement value of P32.88 billion underscores the scale of government’s investment in public works, services and supplies, reinforcing public procurement as a central tool for national development. However, the authority emphasised that the integrity of the system depends on consistent application of open, competitive and transparent processes.
According to the latest PPRA data, citizen-owned companies continued to dominate lower-value contracts, securing P12 billion of the total P32 billion awarded. In terms of the number of awards, these companies received 58,154 out of 78,800 tenders approximately 74%. However, the bulk of high-value projects still went to foreign-owned entities.
PPRA explained that while citizen-owned firms participate in large numbers, “the relatively low share in value is primarily due to the awarding of a few high-value contracts to non-citizen companies, which significantly skews the distribution.”
The report also highlights progress in inclusive procurement, with vulnerable groups women, youth and persons living with disabilities receiving tenders worth P5 billion, representing 26% of total procurement value.
Despite these gains, PPRA’s deeper concern lies in the structure of procurement mechanisms. Although 75% of procurement by value about P24 billion was channelled through formal tendering processes, only 21% of projects valued above P300,000 went through open bidding, which is legally required for such amounts. The authority warned that the low uptake of open bidding undermines transparency, competition, and the principle of value for money.
Factors contributing to this trend include poor procurement planning, emergency direct procurements, and frequent use of waivers and exemptions.
With micro-procurement rising and open bidding underutilised, PPRA says stricter regulatory oversight may be necessary to strengthen compliance and safeguard the fairness and credibility of the country’s procurement framework