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BAC Honorarium

Post by chrissy on Tue Apr 14, 2015 4:43 pm

I would like to solicit opinion on how the BAC Honorarium is computed.

example : Monthly salary - 50,000.00
             Designated BAC Member
             No. of Projects with completed procurement for 1 year-  50
             
as my computation :
     
             rate - 2,500.00/project ( as BAC member)
             25% average monthly over 1 year =  (50,000.00 x 12 ) x 25% = 150,000.00
             50 projects x 2500 = 125,0000.00

my questions are :
                 1. Is Notice to Proceed required before the Honorarium can be collected ( as far as I understand the function of the BAC is until until Award  
                    only, hence, the Notice of Award would suffice as an attachment among others)
                 2. Is it required that we collect the honorarium on a monthly basis  and will there be violations if it was done annually or every 6 months as
                     long as there is still procurement undertaken/completed
                 3. Is the BAC entitled to the maximum of PHP 150,000.00 ( as computed above)

thanks...
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Re: BAC Honorarium

Post by engrjhez® on Tue Apr 14, 2015 11:04 pm

chrissy wrote:I would like to solicit opinion on how the BAC Honorarium is computed.

example : Monthly salary - 50,000.00
             Designated BAC Member
             No. of Projects with completed procurement for 1 year-  50
             
as my computation :
     
             rate - 2,500.00/project ( as BAC member)
             25% average monthly over 1 year =  (50,000.00 x 12 ) x 25% = 150,000.00
             50 projects x 2500 = 125,0000.00

my questions are :
                 1. Is Notice to Proceed required before the Honorarium can be collected ( as far as I understand the function of the BAC is until until Award  
                    only, hence, the Notice of Award would suffice as an attachment among others)
                 2. Is it required that we collect the honorarium on a monthly basis  and will there be violations if it was done annually or every 6 months as
                     long as there is still procurement undertaken/completed
                 3. Is the BAC entitled to the maximum of PHP 150,000.00 ( as computed above)

thanks...

1. No. The requirement of DBMBC 2004-5A is "The honoraria... shall be paid only upon successful completion of each procurement." In Sison v. Tablang (G.R. No. 177011, June 5, 2009):

Furthermore, albeit in hindsight, the  DBM Budget Circular  provides that the payment of honoraria should be made only for “successfully completed procurement projects.”  This phrase was clarified in DBM Budget Circular No. 2004-5A dated October 7, 2005, to wit:

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. (underscoring supplied)

2. No. As long as procurement projects have been successfully awarded, you may claim for honoraria even 50 times (each time a contract is awarded) as in your example case.

3. It depends. A BAC member is limited to claim for honoraria up to 25% of his annual salary. So that if the BAC member's monthly salary is only P25,000.00, he cannot claim for honoraria more than P75,000.00 even if he may be entitled up to P125,000.00.
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Re: BAC Honorarium

Post by chrissy on Wed Apr 15, 2015 2:15 pm

sir , I made this query kasi po may audit findings po na honoraria..in the case of my sample computation na the 25% BAC Chairman monthly salary is only 12,500.00, hence, per findings po, he is only allowed with a rate of 3,000/project completed procurement..4 projects a month ( awarded on the same month)

yung computation ko po above is what we are doing. We monitor po na hindi siya mag exceed ng 25% over 1 year na basic salary.

Yun po ang problema.. pwede ba yan ma clarify ng GPPB to the DBM...


Last edited by chrissy on Wed Apr 15, 2015 2:24 pm; edited 2 times in total (Reason for editing : incomplete message)
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Re: BAC Honorarium

Post by engrjhez® on Wed Apr 15, 2015 8:25 pm

chrissy wrote:sir , I made this query kasi po may audit findings po na honoraria..in the case of my sample computation na the 25% BAC Chairman monthly salary is only 12,500.00, hence, per findings po,  he is only allowed with a rate of 3,000/project completed procurement..4 projects a month ( awarded on the same month)

yung computation ko po above is what we are doing. We monitor po na hindi siya mag exceed ng 25% over 1 year na basic salary.

Yun po ang problema.. pwede ba yan ma clarify ng GPPB to the DBM...

I believe the COA may have relied solely in Section 15 of R.A. No. 9184 and its IRR. A plain reading of the said Section would really suggest a 25% limitation on per monthly basis. However, the COA may have overlooked that the same section needs "enabling" DBM guidelines. Section 5.4 of DBM BC 2004-5A is very clear on this:

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. (underscoring supplied)

You may get a copy of the circular here.

I would also suggest reading this thread >>> http://gppb.topicsolutions.net/t25-honoraria-of-bac-members-secretariat-and-twg?highlight=honoraria
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Re: BAC Honorarium

Post by chrissy on Wed Apr 15, 2015 8:50 pm

Yes sir...actually its not a COA findings but the Internal Audit of the Department. I tried to explain the " average amount " over 1 year, but they construed it as " monthly" not the entire year. So, we are now expecting to make refunds... Crying or Very sad

thank you very much..


Last edited by chrissy on Wed Apr 15, 2015 8:54 pm; edited 1 time in total (Reason for editing : incomplete message and with typo error)
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Re: BAC Honorarium

Post by kanavarro on Thu Dec 08, 2016 5:42 pm

For clarification po.

Does this also includes successful negotiated procurement under small value procurement?

Appendix 10
Guidelines on the Grant of Honoraria to Government Personnel Involved in Government Procurement

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 Sec. 53 (a) of the IRR-A, where there has been failure of bidding for the second time; and
-Negotiated procurement under Sec. 53 (b) of the IRR-A following the procedures under Sec. 54.2 (b) thereof, whereby the procuring entity shall draw up a list of at least 3 supplier or contractors which will be invited to submit bids.

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