Procurement Systems & Organizations
(Pursuant to RA 9184 and its IRR)
1
PROCUREMENT ORGANIZATIONS
HOPE
Bids and Awards Committee (BAC)
BAC Secretariat
Technical Working Group
Observers
2
Head of the Procuring Entity (HOPE)
Establish BAC and appoint its members
Ensures that BAC members give their utmost priority to
duties
Ensures professionalization of members of the procurement
organization
Approves the Annual Procurement Plan (APP)
Approves/Disapproves the Contract Award
Resolves Protests
Terms of BAC Members
Designation must be for one (1) year term only, reckoned from the
date of designation. However, the HOPE may renew or terminate
such designation at his discretion.
In case of resignation, retirement, separation, transfer, re-
assignment, or removal, replacement shall be similar
qualifications as the official replaced. The replacement shall serve
for the unexpired term. In case of leave or suspension, the
replacement shall serve only for the duration of the leave or
suspension.
Upon expiration of the terms of the current members, they shall continue to
exercise their functions until new BAC members are designated.
Prohibited BAC Members
Head of the Procuring Entity (HOPE)
Official who approves procurement contracts;
Chief Accountant and his/her staff, unless the Accounting Unit is
the end-user unit, in which case the Chief Accountant, Head of the
Accounting Unit or his/her staff may be designated as an end-user
member. (COA Circular Letter No. 2003 – 004)
BAC Functions and Responsibilities
Recommends Procurement Method
Creates Technical Working Group (TWG)
Conducts the bidding activities
Resolves Requests for Reconsideration
Recommends Imposition of Sanction
Invites Observers during all stages of the procurement process
Conducts due diligence review or verifications of the
qualifications of observers
Prepares Procurement Monitoring Report
Recommends Suspension or Blacklist Bidders
Capacity Development Division
BAC Secretariat
LCE/ HOPE may create a new office or designate an existing
organic office to act as BAC Secretariat
There is no minimum or maximum number of members of
the BAC Secretariat.
Capacity Development Division
Functions of BAC Secretariat
Provide administrative support to the BAC
Organize BAC meetings and conferences
Take custody of procurement documents and other
records
Manage the sale and distribution of bidding documents
Advertise/post bidding opportunities and notices of
awards
Capacity Development Division
Functions of BAC Secretariat
Assist in managing the procurement process
Monitor procurement activities and milestones
Consolidate PPMPs
Act as central channel of communications
Capacity Development Division
Technical Working Group
Created by the BAC from a pool of legal, technical and
financial experts
BAC may create separate TWGs to handle different
procurements
TWG may include experts not organic/employed in the PE
such as consultants, personnel of other agency and
professional organization.
2016 Revised IRR of RA 9184
Issue/s Revision Impact
Role of Duties of TWG: Avoids
TWG pinpointing of
1.) Review of the Technical responsibilities
Specifications, Scope of Work,
and Terms of Reference;
2.) Review of Bidding Documents;
3.) Shortlisting of Consultants;
4.) Eligibility Screening;
5.) Evaluation of Bids;
6.) Post-Qualification; and
7.) Resolution of Request for
Reconsideration (12.1)
15
Observers
Observers represent the public
In all stages of procurement process BAC must invite, in
writing, at least three (3) Observers, at least 5 calendar days
before the date of the procurement stage/activity, who shall be:
Representative from COA
Duly recognized private group in a sector or discipline
Non-Government Organization (NGO)
Non-attendance of observers does not invalidate the
proceedings as long as the observers were properly notified in
writing.
OBSERVERS
During the eligibility checking, shortlisting, pre-bid
conference, preliminary examination of bids, bid evaluation,
and post-qualification, the BAC must invite, in writing, at
least three (3) Observers, at least five (5) calendar days
before the date of the procurement stage/activity.
17
Observers
Responsibilities:
Prepare report (jointly or separately) indicating their
observations on the procurement activities;
Submit report to the PE and furnish a copy to the GPPB
and the Office of the Ombudsman/Resident Ombudsman;
Immediately inhibit and notify in writing the PE of any
actual or potential conflict of interest;
Professionalization of BAC, TWG
& Secretariat/Procurement Unit
The HoPE shall ensure that the BAC, its Secretariat and TWG
members, including other relevant procurement personnel are
sent to attend procurement training or capacity development
program. Within six (6) months upon designation, the BAC, its
Secretariat and TWG members should have satisfactorily
completed such training or program conducted, authorized or
accredited by the GPPB through its Technical Support Office.
Section 16 of IRR
2
2
GRANT OF HONORARIA
PE is authorized to grant honoraria to the members of
the BAC, the TWG, and the BAC Secretariat provided
the amount so granted does not exceed twenty-five
percent (25%) of their respective basic monthly
salary, subject to the following conditions:
• funds are available for the purpose; and
• the grant of honoraria conforms to the guidelines
promulgated by the DBM. (Section 15, IRR of
R.A. 9184)
2
3
GUIDELINES ON THE GRANT
OF HONORARIA
Budget Circular No. 2004-5A, dated 7 October 2005
As amended by Budget Circular No. 2007-3, dated 29
November 2007.
Only for successfully completed procurement
projects
Limited to procurement that involves competitive
bidding – Competitive Bidding, LSB and Nego Proc-
Two Failed Bidding.
Granted to Chair or Members of the BAC or the TWG
by the PE concerned.
2
4
FUNDING SOURCE
Collections from successfully completed
procurement projects, limited to activities prior to the
awarding of contracts to winning bidders:
proceeds from sale of bid documents;
fees from contractor/supplier registry;
fees charged for copies of minutes of bid openings, BAC
resolutions and other BAC documents;
protest fees; and
proceeds from bid security forfeiture
2
5
FUNDING SOURCE
6.2 Pursuant to the DOF-DBM-COA Permanent Committee
Resolution No. 2005-2 dated June 2005, all agencies are
authorized to treat collections from the sources identified in
item 6.1 hereof as trust receipts to be used exclusively for
the payment of honoraria and overtime pay herein
authorized. Agencies may utilize up to 100% of the said
collections for the payment of honoraria and overtime pay
subject to the guidelines in item 5.0 of this Circular. Any
excess in the amount collected shall be form part of their
LGU funds, respectively.
2
6
CEILING FOR HONORARIA
Maximum Honorarium rate
per procurement project
BAC Chair Php 3,000.00
BAC Members Php 2,500.00
BAC Secretariat Php 2,000.00
TWG Chair and Members
Members of the BAC Secretariat whose positions are in the Procurement
Unit of the agency shall not be entitled to honoraria although the payment
of overtime services may be allowed, subject to existing policy on the matter.
