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. :REPUBLIC OF THE PHILIPPINESDepartnlent of Budget and Man:mgemlentBuilding I, General Solano Street, San Miguel, Manila

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No. 20t)4-SAOCTOBER 7,2005

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.. i .~.;'.: .-,, '"J:; .1 ';Hl;}::;;;;' \",,' , ,//) {;JYit'-,",,:hkTO , 'Heads of Departments, Blireaus, Offices".and Agencies"of theNational Government, Including State Universities and Colleges,Government-Owned or -Controlled, Corporations, LocalGovernment Units, and AUOthers Concer~ed" .SUBJECT GUIDELINES ON" THE' GRANT OF HoNoRARiA TOGOVERNMENT PERSONNEL INVOLVED 'IN GOVERNMENT

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1.0 , Background , " '.r\, 'w:rL:,,:(, "~B il;Yr"i.F"'-,

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Rationale .' ,q'J1Hq.:::~,~~:~~~~iHonoraria is a fonn of compensation granted to individuals for' the perforinancc:ff;;,.,>", ,-, ,- 'F ''\j ..-tasks or involvement in activities beyond their regular: functions. Equity' calls' (oi', -equal compensation for perfonnance of substantially similar duties, with substantially'similar degrees of responsibility. Propriety dictates that only persons who havesuccessfully completed their tasks or participated in accompli~bed activitieso.ught.to,. ,.., ,"-'be compensated. '.,. ,,' ,.: -,"~"~1Ir') 'II"""'~} ~)-! r a 'GuldeUnes' ...;~";""'~:;i"". ,::;~\~. .J" -"';"'-'~~w~i;h;-",d,j".",.:{,~I'~"~I,'dt,,~m~~M'Mlt!t;~',,, . ..,' ;-,!i:-,""F.!~~-'~',!'>".~.~...,iW;;#!,'f:1;!!!I1.~I~i.'f~~;,~ '5.1 The chairs and members of the Bids and Awards Committee (BAC) and theTechnical Working Group (TWG) may be paid honoraria only forsuccessfully completed procurement projects. In accordance with Section 7 of

the Implementing Rules and Regulations PaIt A (IRR-A) of RA No. 9184, aprocurement project refers to the entire project identified, described, detailed,scheduJed and budgeted for in the Project Procuremel1t.Management Planpreparedby theagency. , , , ,~ " r.. ..' ... h' -,.'A procurement project shall be considered,successfuHy,c9mpleted once the, - .contract has been awarded to tJ.1ewinning bidder. /~",',: ,- , ",

5.2 , ,The paYment of honoraria shall be limited to procurement that involves.competitive bidding. Competitive bidding activities are present only in:. Open and competitive bidding;Limited ~ourcebidding; ,Negotiated procurement under Section 53 (a), of the IRR-A, where therehas been failure of bidding for the second time; and , ,Negotiated procurement under Section 53 (b) of the IRR-A following theprocedures under Section 54.2 (b) thereof, whereby the procuring entityshall draw up a list of at least (3) suppliers or contractors, which will b~invited to submit bids.

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Conversely, h,onorariawill not be paid whe~procurement is thru: ';.-C'!:,' ',;;"1 ',,,,". Direct contracting;

Repeat order;Shopping;Negotiated procurement under Section 53 (b) of the IRR-A following theprocedures under -Section 54.2 (cl}Jh~reof,whereby the procuring entitydirectly negotiates' with 'previous suppiier; contractor or consultant; orwhen the project is undertaken by administration or thru the AFP,in caseof infrastructure projects; andNegotiated procurement under Section 53 (c) to (g) of the IRR-A.

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, IY5.3 . The honoraria of each person shall not exceed the rates indicated below pe~completedprocurementproject: ' , '"Maximum Honorarium rate per., ."" "

" . , ;procurementj:'roiectBAC Chair ',: P 3,000' " '"BACMeinbers ...' -\"2500'" ,TWG Chair and Members ."'d\ 2;00'0'".. ,., ",;~,;, .' i',-l',\

, 1 .'The average amount of honoraria per month over one year 'shall not ex~eedtwenty five percent (25%) of the basic monthly salary. The honoraria,however, shall be paid only upon the successful completion of eachprocurement. ' , "., '

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To' be entitled to honoraria, personnel should be duly assigned as chair or .member of the BAC or the TWG by the head of the departrrient/agencyd

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.;", .., ,The. members of the BAC Secretariat who are perfonning the"attendant

functions in addition to their regular duties in other non-procure1pent units ofthe agency may likewise be paid honoraria at the same rate as the TWG ChairandMembe~s,subject to the same regulations.

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." , ".. "The members of the BAC Secretariat whose positions are in the P~~curementUnit of the agency shall not be entitled to honoraria. The payment of overtimeservicesmay be allowed, subject to existing policy on the matter.

, .< " ;:',,( '-", 'i.5.7 Heads of government entities are prohibited from pa.ylng'i6'D:orariatopersoru'le1involved in procurement activities outside of those coveredherein.

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By reason of jurisprudence, a Department Undersecretary or. AssistantSecretary who concurrently serves in the BAC, in whatever capacity, shall,n()t, . .,'.,be entitled to honoraria. ' " ,', ",' '," . :.'In lieu of honor~ria, the payment of overtime servic~s may be allowed' fof'theadministrative staff, such as clerks, messengers and drivers s~pportiI}.gtheBAC, the TWO and the Secr~tariat, for procurement activities rendered inexcess of officialworking hours. The payment of overtime services shall be in~ccordancewiththe existingpolicyon thematter.'" . . ,

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