NPM No. 060-2016

Requesting Entity: Northern Iloilo Polytechnic State College (NIPSC)

Issues Concern: Honoraria for Bids and Awards Committee (BAC) Secretariat and Technical Working Group (TWG) Members



Clarification on the claim for honoraria of the BAC members, including BAC Secretariat and TWG members

Section 15 of the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 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 the availability of funds. Under the same provision, the BAC Secretariat and the TWG members may likewise be granted honoraria, subject to the relevant rules of the Department of Budget and Management (DBM).


[T]he DBM has issued Budget Circular (BC) No. 2004-5A , as amended by BC No. 2007-3 , which allows the payment of honoraria to members of the BAC, BAC Secretariat and TWG for successfully completed procurement projects. This provides sufficient basis in the grant of honoraria to members of the BAC, its Secretariat and the TWG.


[P]ayment of honoraria shall be limited to procurement that involves competitive bidding, which is present only in Competitive Bidding (Section 10), Limited Source Bidding (Section 49), and Negotiated Procurement under Two-Failed Biddings (Section 53.1). Consequently, honoraria will not be paid when procurement is through all the other alternative modes of procurement provided in RA 9184 and its IRR where competitive bidding or a semblance thereof is not present.


Furthermore, the amount necessary for the payment of honoraria and overtime pay shall be sourced from the items enumerated under Section 3.1 of BC No. 2007-3