On Honorarium

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On Honorarium

Post by CAAPA5 on Tue Dec 06, 2011 10:01 pm

For Clarification:

Is Honoraria for BAC allowed for the calendar year even if the bidding process is on-going? How can the members of the BAC and it's secretariat and TWG avail of honorarium as additional compensation? We are new to this. We hope we can be clarified.
Thank you!

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Re: On Honorarium

Post by RDV @ GP3i on Thu Dec 08, 2011 6:26 pm

CAAPA5 wrote:For Clarification:

Is Honoraria for BAC allowed for the calendar year even if the bidding process is on-going? How can the members of the BAC and it's secretariat and TWG avail of honorarium as additional compensation? We are new to this. We hope we can be clarified.
Thank you!

NO, you cannot yet grant honoraria if the bidding process is still ongoing, because payment of honoraria to the BAC, TWG, and BAC Secretariat from non-procurement units of the procuring entity, is dependent on "successfully completed procurement project", which means that an award has already been made to a winning bidder.

If you don't wait for the bidding process to be completed and the result is failure of bidding, then you are not entitled to the payment and the payment will be considered illegal as it violates DBM Budget Circular 2004-5a.
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Re: On Honorarium

Post by Jovinal on Fri Dec 09, 2011 12:09 am

I just want to add further clarifications of BAC Honorarium,
1)What are the required number of completed bidding process, so that BAC members are entitled to Honorarium for a particular month?
2) One completed bidding process is enough for one month honorarium?
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Re: On Honorarium

Post by engrjhez® on Fri Dec 09, 2011 12:27 pm

Jovinal wrote:I just want to add further clarifications of BAC Honorarium,
1)What are the required number of completed bidding process, so that BAC members are entitled to Honorarium for a particular month?
2) One completed bidding process is enough for one month honorarium?

1. You have to set first the rates of honoraria for those entitled (DBM BC 2004-5a). Maximum allowed are 3,000 (BAC Chair), 2,500 (BAC members), 2,000 (TWG, Secretariat).

2. There is no limitation. If you have one (1) bidding completed for one month, the honoraria rates will apply to that one project. The total honoraria must not exceed 25% of the average basic monthly salary in one year. Smile
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Re: On Honorarium

Post by Jovinal on Fri Dec 09, 2011 9:56 pm

That means Sir, we have to set a rates of honoraria per project, let say 300.00 for Bac Chairman and 250.00 for Bac Members, so if there are 11 projects completed, so the BAC Chairman is entitled to 3,300.00 but limited to 3,000.00 only, if this is the right ruling, what are right criteria of setting the rate per project completed, can we base this on project cost or on the complication of bidding process?
Thank You.
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Re: On Honorarium

Post by RDV @ GP3i on Sat Dec 10, 2011 5:35 pm

Jovinal wrote:That means Sir, we have to set a rates of honoraria per project, let say 300.00 for Bac Chairman and 250.00 for Bac Members, so if there are 11 projects completed, so the BAC Chairman is entitled to 3,300.00 but limited to 3,000.00 only, if this is the right ruling, what are right criteria of setting the rate per project completed, can we base this on project cost or on the complication of bidding process?
Thank You.

If the honoraria rate for the BAC Chair is P300 per 'successfully completed procurement project', as set by the procuring entity, and there are eleven such successfully completed procurement project, then the BAC Chair is entitled to a total honoraria of P3,300, not just 3,300. If those 11 projects were completed in one month, the total amount should not exceed 25% of his monthly salary.

The limit of P3000 is the maximum amount of honoraria that the procuring entity can
grant to the BAC Chair for each successfully completed procurement project. It is not
the limitation for total honoraria to be received. In other words, if the procuring entity sets P3,000 as honoraria for the BAC Chair and there are 2 successfully completed procurement projects, then the latter is entitled to the total honoraria of P6,000, provided it does not exceed 25% of the monthly salary. Besides, honoraria may be computed over a one year period and the average monthly honoraria, computed still on the basis of the number of successfully completed procurement project, does not exceed 25% of the basic monthly salary.

A successfully completed procurement project is one in which an award was made to a winning bidder. No award, no honoraria. No bidding, no honoraria.
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Re: On Honorarium

Post by Jovinal on Sat Dec 10, 2011 8:18 pm

Thank you very much Sir.
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Re: On Honorarium

Post by engrjhez® on Tue Dec 13, 2011 1:56 pm

Let us go academic again using a different scenario:

There are originally five (5) members of the BAC. In the middle of the year, the HOPE appointed two (2) more BAC members which made them now seven (7) all in all.

Question: (At the end of the year) Using DBM BC 2004-5a, can the additional two (2) BAC members entitled to claim for honoraria in the aggregate amount equal to the amount of honoraria other BAC members have earned in a year, provided that there is a sufficient number of completed procurement projects that can be referred to?
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Re: On Honorarium

Post by Jovinal on Wed Dec 14, 2011 12:57 am

I think Sir, NO because the additional two (2) BAC members are entitled only to actual months rendered as BAC member, let say from June to December 2011, so the aggregate amount will cover 8 months only, and divide this by 8 months to get the average amount of honoraria per month which shall not exceed 25% of the monthly basic salary. Hope Im right Sir.
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