NPM No. 111-2016

Requesting Entity: Indang Water District

Issues Concern: BAC Composition; Honoraria



Which position/s in a local water district satisfies the requirement of third level ranking official for membership to the Bids and Awards Committee (BAC) in accordance with Section 11 of Republic Act (RA) No. 9184 and its 2016 revised Implementing Rules and Regulations (IRR)?


A PE`s compliance with the rank requirement under Section 11.2.2 of RA 9184 and its IRR for its BAC composition and membership is based on the term "permanent" as defined in the above-mentioned provision. The term "permanent" refers to a plantilla position within the PE concerned. Hence, it is the plantilla of the agency that will define whether the position qualifies for regular BAC membership, and the determination of ranking should take into consideration the hierarchy of the plantilla positions present in the PE. It does not qualify whether the person occupying plantilla position is contractual, regular, or temporary, but rather the concern specifically refers to whether the position exists within the organizational structure of the PE. In a previous opinion, we have clarified that only officers occupying either second or third ranking permanent positions may be designated as BAC Chairperson, while any officer holding a lower position cannot be designated as such.


Can an employee, designated as Division Head, with a Salary Grade Sixteen (SG-16), be assigned as the Chairperson of the BAC?


It is the plantilla position in the organizational structure of the PE that determines whether an official is eligible to become a member of the BAC. Hence, she may be appointed as BAC Chairperson or a member, as the case may be, provided that she is occupying the appropriate position with the corresponding rank within the organizational structure of the PE pursuant to Section 11 of RA 9184 and its 2016 revised IRR.


Thus, an employee occupying a SG 16 position is eligible to become a BAC Chairperson for as long as the office he is currently occupying or the position of Division Head to which he is designated is a third ranking existing plantilla position of the Local Water District.


Can the BAC be given Honoraria sourced from the fund of the Procuring Entity (PE) after a successful award of contract if there are no proceeds from the sale of bidding documents?


The PE may grant Honoraria only from the sources enumerated in DBM BC Nos. 2004-5A and 2007-3. Absent such funds, Honoraria cannot be provided to BAC members.