NPM 004-2013

Requesting Entity: Metropolitan Waterworks and Sewerage System (MWSS)

Issues Concern: Creation of Separate Bids and Awards Committee (BAC) and Grant of Honoraria



Whether MWSS can create separate BACs pursuant to Section 11.1.2 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 to expedite the bidding of its numerous projects.

Section 11.1.1 of the IRR of RA 9184 provides that each Procuring Entity (PE) shall establish in its head office a single BAC to undertake the functions specified in Section 12 of the IRR in order to facilitate professionalization and harmonization of procedures and standards. The exception to this rule may be found in Section 11.1.2 of the IRR, which provides that the Head of the Procuring Entity (HOPE) may create separate BACs where the number and complexity of the items to be procured shall so warrant in expediting the procurement process. Hence, Section 11 of RA 9184 and the IRR clearly establishes the authority of the HOPE to create a separate BAC, without the need of securing any approval or ratification from the Government Procurement Policy Board provided it is warranted by (1) the number of the items, and (2) complexity of the items to be procured by the PE.

Whether MWSS can grant honoraria to members of the BAC, BAC Secretariat and Technical Working Group (TWG) considering the existence of the Commission of Audit (COA) Audit Observation Memorandum (AOM) prohibiting the grant of the same.

Department of Budget and Management (DBM) Budget Circular (BC) No. 2004-5A, as amended by BC No. 2007-3, allows the payment of honoraria to members of the BAC, BAC Secretariat and TWG for successfully completed procurement projects.

As to the matter involving the COA AOM prohibiting the grant of honoraria to members of the BAC, its Secretariat and the TWG, we regret that we cannot comment on this matter as we have no knowledge of issues raised in the AOM. For further clarifications on this subject, we suggest that an opinion be sought from COA and the DBM - Organization, Position Classification and Compensation Bureau (OPCCB) as they are the appropriate government agency with the authority to make determinations and/or clarifications on the matter involving grant of honoraria.