Monthly Archives: January 2014

Things To Remember When Reorganizing the Bids and Awards Committee (BAC)

Since there have been a lot of newly elected officials, particularly on Local Government Units, the Bids and Awards Committee which is tasked to undertake the procurement activities of the agency is usually re-organized at their pleasure. But there are certain points that Local Chief Executives (Governors, Mayors, Punong Barangay) must carefully consider in making the decision.

In designating new set of BAC Members

How many are they?

At least five (5) but not more than seven (7) may be designated. (Section 11.2.1, IRR)

Are they qualified?

Primary consideration must be (a) unquestionable integrity and (b) procurement proficiency. (supra)

The members of the BAC shall be personnel occupying plantilla positions of the procuring entity concerned. (Section 11.2.3, IRR)

Where will they come from? 

The BAC for Local Government Units shall be composed of: (a) One representative each from the regular offices under the Office of the Local Chief Executive such as, but not limited to, the following: Office of the Administrator, Budget Office, Legal Office, Engineering Office, General Services Offices; and (b) A representative from the end user unit. (Section 11.2.3, IRR)

Who designates the Chairman and Vice Chairman? 

The members shall elect among themselves who shall act as the Chairman and Vice-Chairman. (supra)

Is there a required ranking for BAC members?

None. However, the Chairman of the BAC shall be at least a third ranking permanent official of the procuring entity. (supra)

Is it possible to have substitute BAC members in case of unavailability?

Yes. The [Local Chief Executive] may designate alternate members to the BAC, who shall have the same qualifications as their principals as set in the [R.A. No. 9184] and [its] IRR. (Section 11.2.4, IRR)

Are alternate BAC members also entitled of honoraria?

The alternate members shall attend meetings of the BAC and receive the corresponding honoraria, whenever their principals are absent.(supra)

Are the terms of alternate BAC members distinct from their principals? How about their accountability?

The alternate members shall have the same term as their principals. The accountability of the principal and the alternate member shall be limited to their respective acts and decisions. (supra)

Can a person designated to approve contracts in behalf of the Local Chief Executive be a member of the BAC?

No. In no case shall the Head of the Procuring Entity and/or the approving authority be the Chairman or a member of the BAC. (Section 11.2.5, IRR)

Is there a fixed term for BAC members?

Yes. Unless sooner removed for a cause, the members of the BAC shall have a fixed term of one (1) year reckoned from the date of appointment, renewable at the discretion of the Head of the Procuring Entity. (Section 11.2.6, IRR)

What happen to the incumbent BAC members after the term of the appointing Local Chief Executive expires?

Remember that BAC members are occupying plantilla positions, and thus permanent in nature. They don’t usually end the terms of their office with the designating authority. Upon expiration of the terms of the current members, they shall continue to exercise their functions until new BAC members are designated. In case of resignation, retirement, separation, transfer, re-assignment, removal, or death, the replacement shall serve only for the unexpired term: Provided, however, That in case of leave or suspension, the replacement shall serve only for the duration of the leave or suspension. (supra)

Can the [Local Chief Executive] suspend or remove an incumbent BAC member?

For justifiable causes, a member shall be suspended or removed by the [Local Chief Executive]. underscoring supplied (supra)

How about the BAC Secretariat?

How many are they?

There is none indicated in R.A. No. 9184 and its IRR. Usually, there should at least be three (3) of them – a head and two members.

Are they qualified? Is there a required ranking?

As to the members, there is none, but the head of the Secretariat shall be at least a third ranking permanent employee (in LGUs) or if not available, a permanent employee of the next lower rank. In addition to [unquestionable] integrity, [Local Chief Executives] shall consider procurement proficiency as a factor in designating the head of the Secretariat and Procurement Unit.

Where will they come from? 

The [Local Chief Executive] shall create a Secretariat which will serve as the main support unit of the BAC. An existing organic office within the procuring entity may also be designated to serve as Secretariat. However, to strengthen and promote the professionalization of the organizations’ procuring unit, the Head of the Procuring Entity may create procurement units that may serve concurrently as BAC Secretariat in accordance with the guidelines issued by DBM.

Is the BAC Secretariat also entitled of honoraria?

It depends. The procuring entity may also grant payment of honoraria to the BAC Secretariat [and the TWG] members, subject to the relevant rules of the DBM.

What is the term of the head of BAC Secretariat and its members?

There is none. Unlike the BAC, the Secretariat’s term does not expire in one (1) year. The nature of its function is continuous, so that any attempt to re-organize it as often as with BAC members will later prove to be futile for the procuring entity. Discontinuity is the last thing a procuring entity would like to encounter. It is strongly recommended that BAC Secretariat should be established as an organic office and permanently function as such. Procurement proficiency is not obtained in any 2-3 days seminar workshop. The true test of proficiency is qualified experience and service actually rendered. At some extent, it was suggested that a “proficiency test” be conducted on a regular basis for validation.

May the Chief Accountant or any of its members be allowed to constitute the BAC Secretariat?

Yes, it may be allowed. The law is silent. The prohibition of the Chief Accountant and its staff by the COA and GPPB applies only to membership in the BAC.

What happens to the incumbent BAC Secretariat after the term of the appointing Local Chief Executive expires?

It continues. They don’t usually end the terms of their office with the designating authority. The function of the BAC Secretariat is no less than permanent in nature. Unless removed for a cause, their terms are not bound to limitations as long as they are part of the Procuring Entity.

Can the [Local Chief Executive] suspend or remove an incumbent BAC Secretariat?

Yes. The power to appoint necessarily includes the power to remove. But just like the reasons for removal of BAC members, it must be justifiable.

[for further updating]


Posted by on January 28, 2014 in Government Procurement


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