The Philippines has opened a formal legal route for government agencies to procure advanced technologies from overseas when those tools or related consulting services are not available in the domestic market. The change comes through Department Administrative Order No. 26-06, Series of 2026, issued by the Department of Trade and Industry.
Under the order, DTI becomes the certifying body that determines whether a requested technology can be sourced locally. If DTI confirms that it cannot, a government entity may use international procurement channels instead of being constrained by standard domestic bidding rules, as long as that method is found to be the most advantageous to the government.
A response to a long-standing procurement bottleneck
The new framework addresses a problem that has affected Philippine public procurement for years. Existing rules have generally favored local suppliers, a policy intended to support domestic commerce but one that could block agencies seeking highly specialized software, deep-tech systems, or expert services unavailable from Philippine vendors.
According to the order, the certification mechanism is meant to resolve that gap. Once DTI verifies the absence of a local source, the procuring entity gains legal authority to obtain the technology or consulting through international organizations, United Nations agencies, or international financing institutions.
Blockchain, AI and other specialized systems are explicitly covered
The guidelines apply to scientific and technological innovations that offer significant gains in performance, efficiency, or functionality over available alternatives. DTI specifically identified blockchain and distributed ledger technologies, artificial intelligence and machine learning, and broader deep-tech and cybersecurity applications within the scope of the order.
Examples cited in the framework include blockchain tools for public registries, digital identity verification, supply-chain tracking, and smart-contract infrastructure. It also covers AI-driven public service platforms, predictive models, specialized data processing, enterprise-grade cybersecurity, quantum technology applications, advanced robotics, space technology applications, and smart city systems.
Who can use the process and what law supports it
The order applies across the Philippine public sector. Agencies and institutions covered include National Government Agencies, Local Government Units, State Universities and Colleges, Government-Owned or -Controlled Corporations, and Government Financial Institutions.
DAO No. 26-06 was issued under Republic Act No. 12009, the New Government Procurement Act, together with its implementing rules and regulations. Bitpinas reported that the new order sets out documentary requirements, evaluation procedures, and rules on the validity of certifications, with the stated aim of reducing delays while maintaining compliance and transparency.
Broader blockchain adoption may test the new route
The timing of the order coincides with a wider push to introduce blockchain into government systems. The source article linked the measure to the CADENA Act, which mandates that the national budget process be recorded on an immutable, publicly accessible blockchain ledger, and noted that the bill is moving through the House of Representatives.
It also pointed to projects already being advanced by the Department of Information and Communications Technology, including the Digital Bayanihan Chain and the eGovchain and eGovPH SuperApp. If those efforts expand, agencies may need decentralized protocols, node infrastructure, auditing tools, and specialized expertise that, according to the source, the domestic market may not be able to provide at scale. The next confirmed step under the new framework is DTI’s case-by-case review of whether a requested technology is in fact unavailable locally.
Source: bitpinas.com