SOP Library
SOP NO:
GS-PD21
(List of Exhibits/Attachments)
Missi
on
:
Finance and Administration
Area:
General Services (GS)
Activity:
Purchasing/Inspection and Fixed Asset Disposition (GS-PD)
Title:
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)
Date Approved/Issued:
08/16/2006
Date Effective:
08/16/2006
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A.
BAC and TWG Membership
1. Bids and Awards Committees to be created at NFA, both at the Central and the Regional Offices shall have five (5) to seven (7) members. The BAC composition shall be strictly in accordance with the provisions of RA 9184 and its IRR. The members of the C.O. BAC(s) and the RBAC(s) shall be designated by the NFA Administrator or his authorized representative through the issuance of a Special Order.
2. The members of the TWG that may be created for each procurement project shall be limited to three (3) up to a maximum of five (5) depending on the complexity of the procurement project to be undertaken. The creation of the TWG and the designation of its members shall be duly covered by a Special Order signed by the respective chairpersons of the C.O. BAC/RBAC.
B.
Entitlement
1. The chairpersons and members of the BAC/RBAC, and the TWG may be paid honoraria only for successfully completed procurement projects. A procurement project shall be considered successfully completed once the contract has been awarded to the winning bidder.
2. Members of the BAC/RBAC Secretariat who are performing the attendant functions in addition to their regular duties in other non-procurement units of the NFA may also be paid honoraria at the same rate as the TWG Chairperson and Members subject to the same regulations. However, members of the Secretariat whose positions are in the General Services Department (for Central Office) and the Administrative and General Services Unit (for field offices) shall not be entitled to honoraria. They may be allowed to collect overtime services subject to the guidelines under Budget Circular (BC) No. 10 dated March 29, 1996.
3. Only personnel duly covered by a Special Order designating them as members of the C.O. BAC and the RBAC, TWG or Secretariat shall be entitled to the honoraria.
4. The payment of honoraria shall be limited to procurement that involves competitive bidding. Competitive bidding activities are present only in :
a. Open and competitive bidding (Public Bidding)
b. Limited source bidding;
c. Negotiated procurement under Section 53 (a) of the IRR-A, where there has been failure of bidding for the second time; and,
d. Negotiated procurement under Section 53 (b) of the IRR-A of RA 9184 following the procedures under Section 54.2 (b) thereof, whereby the procuring entity shall draw up a list of at least three (3) suppliers or contractors which will be invited to submit bids and procedure for the conduct of public bidding activities.
Conversely, honoraria will not be paid when procurement is thru :
a. Direct contracting;
b. Repeat Order;
c. Shopping;
d. Negotiated procurement under Section 53 (b) of the IRR-A of RA 9184 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,
e. Negotiated procurement under Section 53 (c) to (f) of the IRR-A of RA 9184, whereby NFA directly negotiates a contract with a supplier, contractor or consultant under the following cases : (c) where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities; (d) where the subject contract is adjacent or contiguous to an on-going infrastructure project; (e) when purchases of goods is from another agency of the Government, such as the DBM- Procurement Service (PS), which is tasked with a centralized procurement of commonly used goods for the government; and, (f) where trust and confidence are the primary consideration for the hiring of the consultant as in the case of individual consultants hired to work that is (i) highly technical or propriety; or (ii) primarily confidential or policy determining.
C.
Amount of Honoraria
1. The honoraria of each person shall not exceed the rates indicated below per successfully completed procurement project :
Designation
Honorarium Rate Per Procurement Project
BAC/RBAC Chairman
3,000
BAC/RBAC Members
2,500
TWG Chairperson and Members
2,000
BAC Secretariat Head and Members
2,000
2. The maximum amount of honoraria that may be received by the BAC/RBAC//TWG Secretariat members shall not exceed twenty five percent (25%) of their annual basic salary subject to availability of funds. To illustrate :
An RBAC member has 25 successfully completed projects for the year awarded on the following months :
MONTH No. of Projects Amount of Honoraria
Awarded Due
January 2 P 5,000.00
February 1 2,500.00
March 0 0
April 3 7,500.00
May 1 2,500.00
June 4 10,000.00
July 1 2,500.00
August 3 7,500.00
September 2 5,000.00
October 1 2,500.00
November 3 7,500.00
December 4 10,000.00
-------- ------------
25 P 62,500.00
If this particular RBAC member has a basic monthly salary of P20,000.00, the maximum amount of honoraria that he may receive for the year shall be:
25% x P 20,000 x 12 months = P 60,000
Although the RBAC member is entitled to honoraria amounting to P 62,500.00, he can only collect P 60,000 for the year. The difference of two thousand five hundred (P 2,500.00) can no longer be collected.
3. Given this provision, a BAC/RBAC/TWG/Secretariat member may be granted honoraria corresponding to the number of contracts awarded in a given month provided, that the amount to be granted to him for the calendar year shall not exceed 25% of his annual basic salary and provided further that the funds for the purpose are sufficient.
D.
Overtime Services
1. Administrative staff such as clerks, messengers and drivers supporting the BAC/RBAC, the TWG and the Secretariat for procurement activities shall not be entitled to honoraria. However, they shall be allowed to collect overtime pay for services rendered in excess of working hours subject to the guidelines under DBM BC No. 10.
2. 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.
E.
Payment/Collection
a Payment of honoraria shall be through the payroll system. The following shall be specifically indicated in the particulars of payment :
Ÿ
The name(s) of the successfully completed project(s); and,
Ÿ
The date of award
b. The payroll for honoraria shall be prepared by the respective secretariats of the BAC/RBAC. The secretariat shall also be responsible for the preparation of the overtime payroll of personnel who may have rendered overtime services as authorized by the BAC/RBAC Chairman.
c. For the purpose of collecting the honoraria, the BAC/RBAC may group procurement projects according to their operational relationship and/or the degree of complexity of the procurement process undertaken. Two (2) or three (3) operationally related small projects may be grouped and treated as one (1) project as in the case of NFA Personnel Insurance Program (GAIP, GTLI, GHIP and Executive Health card), and various FDC laboratory equipment which are often put up for bidding simultaneously.
d. The payroll for the claims for honoraria shall be supported by the following documents :
i. Budget Utilization Request (BUR);
ii. Photocopy of the Special Order designating the concerned personnel as member of the BAC/RBAC, TWG or Secretariat.;
iii Certification by the respective BAC/RBAC Chairperson that the procurement projects for which the honoraria being collected has been “successfully completed”.;
iv. Photocopy of Notice of Award of the project for which the honoraria is being claimed;
v. Certification from the Cashier indicating the amount collected for the project for which the honoraria is being claimed;
In case the amount of honoraria claimed exceeds the amount collected for the project, a Certification from the BAC/RBAC that it has sufficient funds (from excess collections from other projects) shall also be required. The Certification shall indicate the fund balance for the year.
e. The BAC/RBAC Chairperson shall be responsible for ensuring that only those members of the BAC/RBAC, TWG and the Secretariat who have satisfactorily performed their functions as indicated in their respective Special Orders are allowed to collect the honoraria and that only the necessary overtime services are authorized and paid.
F. Funding Source
1. The amount necessary for the payment of the honoraria and overtime pay authorized herein shall be sourced only from the following :
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;
Ÿ
Liquidated damages; and
Ÿ
Proceeds from bid/performance security forfeiture.
Collections from the above-mentioned items shall be recorded as credit to 439.34- Other Payables - Bids and Awards Committee.
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.
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).
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 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.
4. In case of deficiency in the total collections from the sources identified in Item no. II.F.1, the amount of honoraria and overtime pay shall be adjusted proportionately to all those entitled thereto.
5. At the end of the year, the BAC/RBAC shall submit to the Accounting Section/ DTBFM/DAS the amount of honorarium for projects bidded but not yet awarded so that the Accounting Section/DTBFM can set aside the fund for the unpaid honorarium. The balance of the unused income from bidding after deducting the unpaid honorarium shall be reclassified to Miscellaneous Income - Non-refundable Bidding Fee (678-13).
G. Fund Monitoring and Control
1. The BAC/RBAC Secretariat shall be responsible for monitoring the funds collected from the sources identified in Item no. II.F.1. It shall ensure that the total amount of honoraria and overtime paid for procurement related activities shall not exceed the said collections.
2. The Department for Accounting Services (DAS) (for C.O.) / Accounting Unit (for F.O.) shall undertake the processing of payroll for honoraria to be granted to the BAC/RBAC/TWG/ Secretariat members. They shall ensure that the total amount of honoraria granted to each BAC/RBAC/TWG/Secretariat members in a given year shall not exceed 25% of their annual basic salary.
3. In the Central Office, any corrections/adjustment made by the Department for Accounting Services (DAS) in the amount of honoraria claimed which will require a corresponding adjustment in budget utilization shall be coordinated by DAS with DTBFM Budget/Unit Division.
This guidelines supersedes SOP No. GS-PD20 entitled Guidelines on the Grant of Honoraria to Members of the Bids and Awards Committees (BAC) and Technical Working Groups (TWG) issued on July 08, 2004.
Any other rulings and/or issuances inconsistent herewith are also hereby superseded.
Date Approved: August 16, 2006
III. RESPONSIBILITIES
IV. FLOW CHART
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