For years, Philippine government agencies aiming to deploy advanced technologies like blockchain or specialized artificial intelligence models faced the same legal wall: standard public procurement laws demanded local bidding for tools that domestic vendors simply couldn’t provide.
That bottleneck is now cleared.
Department Administrative Order (DAO) No. 26-06, Series of 2026, issued by the Department of Trade and Industry (DTI) has established an official legal channel to certify when advanced tech and consulting services are not available locally.
The certification acts as a green light, allowing state agencies to bypass traditional domestic bidding constraints and directly acquire specialized technologies through international organizations, United Nations agencies, or international financing institutions.
Solving the Local Availability Dilemma
Philippine public procurement has long operated under strict preference for domestic suppliers. While designed to protect local commerce, the rule frequently paralyzed government units seeking cutting-edge software, specialized deep tech, or global technical expertise that no local company could supply.
- Under DAO No. 26-06, DTI now serves as the official Certifying Body tasked with reviewing and verifying whether a requested technology exists in the local market.
- If DTI certifies that the required technology or specialized consulting cannot be sourced domestically, procuring entities gain the legal authority to source those tools directly through international channels, provided the mode of procurement is determined to be the most advantageous to the government.
A Legal Pathway for Blockchain and Emerging Tech
The new guidelines explicitly encompass high-level scientific and technological innovations offering significant performance, efficiency, and functionality advantages over existing alternatives.
DTI highlighted several emerging domains covered under the framework:
- Blockchain & Distributed Ledgers: Securing public registries, digital identity verification, transparent supply chain tracking, and smart contract infrastructure.
- Artificial Intelligence & Machine Learning: Implementing automated public service platforms, predictive modeling, and specialized data processing.
- Deep Tech & Cybersecurity: Sourcing enterprise-grade cybersecurity solutions, quantum technology applications, advanced robotics, space technology applications, and smart city integrations.
The order applies across the public sector, covering National Government Agencies (NGAs), Local Government Units (LGUs), State Universities and Colleges (SUCs), Government-Owned or -Controlled Corporations (GOCCs), and Government Financial Institutions (GFIs).
Enacted Under the New Procurement Act
DAO No. 26-06 was issued pursuant to Republic Act No. 12009, known as the New Government Procurement Act (NGPA), and its Implementing Rules and Regulations.
The NGPA overhauled the country’s decades-old procurement frameworks to promote efficiency, modern technology adoption, and flexible procurement modalities. By establishing clear guidelines on documentary submissions, evaluation procedures, and certification validity, DTI aims to prevent administrative delays while ensuring compliance and transparency across all public sector deep tech acquisitions.
Senate CADENA Act and DICT’s Blockchain Push
The timing of DTI’s certification rules is far from accidental. The Philippines is undergoing a massive shift toward state-backed blockchain adoption, driven by legislative mandates and executive digital infrastructure programs.
Last December, the Philippine Senate unanimously passed the Citizen Access and Disclosure of Expenditures for National Accountability (CADENA) Act, certified as a priority measure following high-profile infrastructure corruption scandals. Authored by Senator Bam Aquino, the CADENA Act mandates that the entire national budget process, from allocations and bidding to disbursements, be recorded on an immutable, publicly accessible blockchain ledger. (Read More: Update: Senate Passes CADENA, Previously ‘Blockchain the Budget’ Bill on Third Reading)
Simultaneously, the Department of Information and Communications Technology (DICT) has rolled out several flagship GovTech blockchain projects:
As the CADENA Act moves through the House of Representatives and DICT scales up state blockchain infrastructure, government agencies will inevitably require complex decentralized protocols, enterprise node infrastructure, and specialized auditing software that the domestic market cannot currently supply at scale. (Read More: Bam Aquino Urges House to Pass ‘Blockchain the Budget’ (Cadena) Bill for Govt Transparency)
This article is published on BitPinas: DTI Issues Guidelines for Gov’t Procurement of Tech (such as Blockchain) That are Unavailable Locally
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