BC - 2004-5A BAC Honoraria PDF
BC - 2004-5A BAC Honoraria PDF
BC - 2004-5A BAC Honoraria PDF
NO. 2004-5A
October 7, 2005
1.0 Background
Budget Circular (BC) No. 2004-5A, dated March 23, 2004, provides the guidelines on the
grant of honoraria to government personnel involved in government procurement
consistent with Republic Act 9184 (Government Procurement Reform Act). Certain
provisions thereof need further clarification particularly on the entitlement to honoraria
when alternative modes of procurement are used, the definition of a “successful
procurement project”, and the funding source for payment of honoraria.
2.0 Purpose
To amend BC No. 2004-5 and reissue the guidelines on the grant of honoraria to qualified
personnel.
3.0 Coverage
This circular shall apply to all national government agencies (NGAs), and its
instrumentalities, including state universities and colleges (SUCs), government-owned or –
controlled corporations (GOCCs) and local government units (LGUs).
4.0 Rationale
5.0 Guidelines
5.1 The chairs and members of the Bids and Awards Committee (BAC) and the
Technical Working Group (TWG) may be paid honoraria only for successfully
completed procurement projects. In accordance with Section 7 of the Implementing
Rules and Regulations Part A (IRR-A) of RA No. 9184, a procurement project refers
to the entire project identified, described, detailed, scheduled and budgeted for in
the Project Procurement Management Plan prepared by the agency.
A procurement project shall be considered successfully completed once the contract
has been awarded to the winning bidder.
5.2 The payment of honoraria shall be limited to procurement that involves competitive
bidding. Competitive bidding activities are present only in:
• Open and competitive;
• Limited source bidding;
• Negotiated procurement under Section 53 (a) of the IRR-A, where there has
been failure of bidding for the second time; and
• Negotiated procurement under Section 53 (b) of the IRR-A following the
procedures under Section 54.2 (b) thereof, whereby the procuring entity shall
draw up a list of at least (3) suppliers or contractors which will be invited to
submit bids.
Conversely, honoraria will not be paid when procurement is thru:
• Direct contracting;
• Repeat order;
• Shopping;
• Negotiated procurement under Section 53 (b) of the IRR-A following the
procedures under Section 54.2 (d) thereof, whereby the procuring entity
directly negotiates with previous supplier, contractor or consultant, or when the
project is undertaken by administration or thru the AFP, in case of infrastructure
projects; and
• Negotiated procurement under Section 53 (c) to (g) of the IRR-A.
5.3 The honoraria of each person shall not exceed the rates indicated below per
completed procurement project:
5.4 The average amount of honoraria per month over one year shall not exceed twenty
five percent (25%) of the basic monthly salary. The honoraria, however, shall be
paid only upon the successful completion of each procurement.
5.5 To be entitled to honoraria, personnel should be duly assigned as chair or member
of the BAC or the TWG by the head of the department/agency concerned.
5.6 The members of the BAC Secretariat who are performing the attendant functions in
additions to their regular duties in other non-procurement units of the agency may
likewise be paid honoraria at the same rate as the TWG Chair and Members, subject
to the same regulations.
The members of the BAC Secretariat whose positions are in the Procurement Unit of
the agency shall not be entitled to honoraria. The payment of overtime services
may be allowed, subject to existing policy on the matter.
5.7 Heads of government entities are prohibited from paying honoraria to personnel
involved in procurement activities outside of those covered herein.
5.8 By reason of jurisprudence, a Department Undersecretary or Assistant Secretary
who concurrently serves in the BAC, in whatever capacity, shall not be entitled to
honoraria.
5.9 In lieu of honoraria, the payment of overtime services may be allowed for the
administrative staff, such as clerks, messengers and drivers supporting the BAC, the
TWG and the Secretariat, for procurement activities rendered in excess of official
working hours. The payment of overtime services shall be in accordance with the
existing policy on the matter.
5.10 Those who are receiving honoraria for their participation in procurement activities
shall no longer be entitled to overtime pay for procurement-related services
rendered in excess of official working hours.
9.0 Effectivity
This Circular shall take effect immediately.
(Signed)
ROMULO L. NERI
Secretary