SOP No:

SOP Amendment / Addendum

Date : 12/05/2008

SOP Amedment / Addendum No. : GS-PD21.A
Title : Amendment to the Revised Guidelines on the Grant of Honoraria to the Members of the Bids and Awards Committees (BAC)/Regional Bids and Awards Committees (RBAC) and Technical Working Groups (TWG)
Digest :

For the information, guidance and compliance of all concerned, published hereunder is the Amendment to the Revised Guidelines on the Grant of Honoraria to the Members of the Bids and Awards Committee (BAC)/Regional Bids and Awards Committee (RBAC) and Technical Working Groups (TWG) SOP No. GS-PD 21 issued and made effective August 16, 2006.

I. Terms of Reference

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Basis

Budget Circular No. 2007 - 3 dated November 29, 2007 entitled Amendments to Certain Provisions of Budget Circular (BC) 2004-5A re: Guidelines on the Grant of Honoraria and Overtime Pay to Government Personnel Involved in Government Procurement

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II. Implementing Guidelines

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F. Funding Source

1. The amount necessary for the payment of the honoraria and overtime pay authorized herein shall be sourced from the following :

a. Collections from successfully completed procurement projects limited to activities prior to awarding of contracts to winning bidders:

Ÿ Proceeds from sale of bid documents;
Ÿ Fees from contractor/supplier registry;

Ÿ Fees charged for copies of minutes of bid openings, BAC resolutions and

other BAC documents;

Ÿ Protest fees, and
Ÿ Proceeds from bid security forfeiture.

a.1 Collections from the above-mentioned items shall be recorded as credit to 439.34- Other Payables - Bids and Awards Committee.

a.2 Pursuant to the DOF-DBM-COA Permanent Committee Resolution No. 2005 - 2 dated June 2005, collections from the sources identified shall be used exclusively for the payment of honoraria and overtime pay. This resolution allows the utilization of up to one hundred percent (100%) of the said collections for the payment of honoraria and overtime pay subject to the guidelines in Item II.B of SOP No. GS-PD21 entitled Revised Guidelines on the Grant of to the Members of the Bids and Awards Committee (BAC)/Regional Bids and Awards Committee (RBAC) and Technical Working Groups (TWG) . Any excess in the amount collected after deducting the unpaid honorarium shall form part of the NFA Corporate Funds. Payment of honoraria and/or overtime shall be debited against the above mentioned payable account (Item No. II.F.1.a.1).

a.3 Fund utilization shall be on a per BAC/RBAC basis, that is, the total proceeds collected by the BAC/RBAC shall be applied for the payment of the honoraria of the members of the BAC/RBAC/TWG/Secretariat and overtime pay for administrative staff supporting the BAC/RBAC/TWG/Secretariat and TWG for its different successfully completed procurement projects. Under this provision, the excess collections from a project can substantiate the honoraria of another project that experiences insufficiency of funds.

b. Savings from the NFA’s DBM-approved Corporate Operating Budgets (COB)

2. Savings refer to portions or balances of agencies’ budgets as referred to items b above, free from any obligation or encumbrance which are:

a. still available after the completion or final discontinuance or abandonment of the work, activity or purpose for which the appropriation is authorized.

b. arising from unpaid compensation and related costs pertaining to vacant positions and leave of absences without pay, and

c. realized from the implementation of collective negotiation agreements which resulted in improved systems and efficiencies and thus enables an agency to meet and deliver the required or planned targets, programs and services at lesser cost.

3. In the use of savings, priority shall be given to augmentation of the amounts set aside for mandatory expenditure items provided under the General provisions of the General Appropriations Act (GAA). It is understood that the use of agency savings for payment of honoraria and overtime pay for procurement activities shall be done only after satisfying said mandatory expenditure items.

4. In cases of deficiency in collection from procurement activities and non-availability of savings, the amount of honorarium and overtime pay shall be adjusted proportionately for all those entitled thereto.

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G. Fund Monitoring and Control

1. The BAC/RBAC Secretariat shall be responsible for monitoring the funds collected from the sources identified in Item II.F.1. It shall coordinate with the Budget Division, DTBFM (C.O.)/Accounting Unit (F.O.) if the collection from the procurement project is not sufficient to pay the total amount of the honoraria.

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All other provisions of SOP No. GS-PD21 on the Revised Guidelines on the Grant of Honoraria to the Members of the Bids and Awards Committee (BAC)/Regional Bids and Awards Committee (RBAC) and Technical Working Groups (TWG) not inconsistent with this amendments shall remain in force and effect.

This amendment shall take effect immediately upon approval of the Administrator.

Date Approved: December 05, 2008.