NPM 157-2004

Requesting Entity: Organization, Position, Classification and Compensation Bureau (Department of Budget and Management)

Issues Concern: Definition of “Procurement Project” for purposes of grant of honoraria to BAC and TWG members



The legal supposition of “procurement project” as used under the law for purposes of the grant of honoraria.

Budget Circular no. 2004-5 dated March 23, 2004 was issued to provide guidelines on the grant of honoraria to government personnel involved in government procurement. Sub item 4.1 thereof provides, among others, that the chairs and members of the BAC and the TWG may be paid honoraria for successfully completed procurement projects.

As a matter of procedure, prior to the conduct of the procurement proper, the procuring entity shall judiciously prepare, maintain and update an Annual Procurement Plan (APP) for all its procurement which shall include, for each individual project, a Project Procurement Management Plan (PPMP). This shall contain: a) the type of contract to be employed; b) the extent/size of contract scopes/packages; c) the procurement methods to be adopted, and indicating if the procurement tasks are to be outsourced; d) the time schedule for each procurement activity; and e) the estimated budget for the general components of the contract.

Thus, for the purpose of determining the contemplation and intent of “procurement project” for purposes of implementing the guidelines for the grant of honoraria, and for other purposes relative to the implementation of RA 9184, it should be understood to mean the entire project identified, described, detailed, scheduled, and budgeted for in the PPMP. In as much as the PPMP contains information as to the scope, extent and size of the project, any activity within such scope, extent and size is deemed to be integral to the entire project regardless of the project’s divisibility in lots or smaller sizes.