Honorarium to Government Personnel

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Introduction
Article V, Section 15 of the Republic Act 9184 states that, “The procuring entity may grant payment of honoraria to the BAC members in an amount not to exceed twenty five percent (25%) of their respective basic monthly salary subject to availability of funds. For this purpose, the DBM shall promulgate the necessary guidelines. The procuring entity may also grant payment of honoraria to the BAC Secretariat and the TWG members, subject to the relevant rules of the DBM.”

Definition of Honorarium

An honorarium is a form of compensation granted to individuals for the performance of tasks or involvement in activities beyond their regular functions. An honorarium is normally a one-time payment granted in recognition of a special service or distinguished achievement for which propriety precludes setting a fixed price, such as a special lecture, participation in a workshop or panel discussion, or similar activities.

Equity calls for equal compensation for performance of substantially similar duties, with substantially similar degrees of responsibility. Propriety dictates that only persons who have successfully completed their tasks or participated in accomplished activities ought to be accomplished.

Budget Circular No. 2004-5A for Grant of Honoraria to Government Personnel Involved in Government Procurement

The Department of Budget and Management issued a Budget Circular which provides the guidelines on the grant of honoraria to government personnel involved in government procurement consistent with Republic Act 9184 (Government Procurement Reform Act) specifically the grant of honoraria to BAC Members and TWG members.

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.

The payment of honoraria shall be limited to procurement that involves competitive bidding. 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 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.

For personnel to be entitled to honoraria, he should be duly assigned as chair or member of the BAC or the TWG by the head of the department/agency concerned. The honoraria of each person shall not exceed and follow the rates indicated per completed procurement project as much as necessary.

There are also certain limitation and guidelines presented in Budget Circular NO. 2004-5A for Grant of Honoraria to Government Personnel involved in Government Procurement on who are and who are not entitled to payment of honoraria aside from BAC and TWG Chairs and Members like BAC Secretariats, Head of Government entities, etc.

Enumerated also in the Budget Circular No. 2004-5A, are the funding sources of the amounts necessary for the payment of honoraria such as, proceeds from sale of bid documents, fees from supplier/contractor registry, protest fees, liquidated damages, etc. WHAT IS BIDS AND AWARDS COMMITTEE (BAC) THEN?

(Purpose and Components)

Article V, Section 11 of the Republic Act 9184 mandates that each procuring entity shall establish BAC for its procurement in order to facilitate professionalization and harmonization of procedures and standards It has become a declared...
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