APPENDIX 10
GUIDELINES ON THE GRANT OF HONORARIA TO GOVERNMENT
PERSONNEL INVOLVED IN GOVERNMENT PROCUREMENT
DOM BUDGET CIRCULAR 2004-5A
1.0 Background
Budget Circular (BC) No. 2004-SA, dated March 23, 2004, provides the guidelines on the grant of
honoraria to government personnel involved in government procurement consistent with Republic Act
9184 (Government Procurement Reform Act). Certain provisions thereof need further clarification
particularly on the entitlement to honoraria when alternative modes of procurement are used, the
definition of a "successful procurement project", and the funding source for payment of honoraria.
2.0 Purpose
To amend BC No. 2004-5 and reissue the guidelines on the grant of honoraria to qualified personnel.
3.0 Coverage
This circular shall apply to all national government agencies (NGAs), and Its instrumentalities, including
state universities and colleges (SUCs), government- owned or -controlled corporations (GOCCs) and
local government units (LGUs).
4.0 Rationale
Honoraria is a form of compensation granted to individuals for the performance of tasks or involvement in
activities beyond their regular functions. Equity calls for equal compensation for performance of
substantially similar duties, with substantially similar degrees of responsibility. Propriety dictates that
only persons who have successful completed their tasks or participated in accomplished activities ought
to be accomplished.
5.0 Guidelines
5.1 The chairs and members of the Bids and Awards Committee (BAC) and the Technical Working
Group (TWG) may be paid honoraria only for successfully completed procurement projects. In
accordance with Section 7 the Implementing Rules and Regulations Part A (IRR-A) of RA No. 9184,
a procurement project refers to the entire project identified, described, detailed, scheduled and
budgeted for in the Project Procurement Managementb Planprepared by the agency.
A procurement project shall be considered successfully completed once the contract has been
awarded to the winning bidder.