BIDDING DOCUMENTS

FOR THE
CONSULTANCY SERVICES FOR
PROGRAM TO INSTITUTIONALIZE
MERITOCRACY AND EXCELLENCE
IN HUMAN RESOURCE
MANAGEMENT (PRIME HRM)

(Part 2)
PROJECT ID NO.: SEC PB NO. 2022-11
 CHECKLIST OF REQUIREMENTS FOR THE
TECHNICAL AND FINANCIAL PROPOSAL

Class “A” Documents

Technical Proposal consisting of the following as described in ITB item 10 (C. Preparation
of Bids):

1. TPF 1. Technical Proposal Submission Form

2. TPF 2. Consultant’s References

3. TPF 3. Comments and Suggestions of Consultant on the Terms of

Reference and on Data, Services and Facilities to be provided by the
Procuring Entity

4. TPF 4. Description of the Methodology and Work Plan for Performing the
Project

5. TPF 5. Team Composition and Task Projects

6. TPF 6. Curriculum Vitae for Proposed Professional Staff

 Including Training Certificate, Diploma, Employment Certificate, and other
related Certifications

7. TPF 7. Time Schedule for Professional Staff

8. TPF 8. Activity (Work) Schedule

9. TPF 9. Omnibus Sworn Statement

 Accompanied by the company’s Secretary’s Certificate or Special Power of
Attorney

10. Bid Security as described in ITB clause 15

(see TPF 10 for bid securing declaration form)

11. TPF 11. Statement of all Government and Private Contracts Completed

12. TPF 12. List of all Ongoing Government and Private Contracts Including
Contracts Awarded but not yet Started

13. TPF 13. Statement of the Consultant’s Nationality

2
Financial Proposal as described in ITB clause 11 (C. Preparation of Bids):

1. FPF 1. Financial Proposal Submission Form

2. FPF 2. Summary of Costs

3. FPF 3. Breakdown of Price per Activity

4. FPF 4. Breakdown of Remuneration per Activity

5. FPF 5. Reimbursables per Activity

6. FPF 6. Miscellaneous Expenses

* Should there be any discrepancy between the requirements stated in the Checklist and
the requirements specified in the Bidding Documents, the latter shall prevail.

3
 N OTICE OF E LIGIBILITY AND S HORTLISTING
CONSULTANCY SERVICES FOR PROGRAM TO
INSTITUTIONALIZE MERITOCRACY AND
EXCELLENCE IN HUMAN RESOURCE
MANAGEMENT (PRIME HRM)
1. The Securities and Exchange Commission (SEC), through the authorized appropriations
under the FY 2022 Budget of SEC, intends to apply the sum of Thirteen Million One
Hundred Thousand Pesos (Php13,100,000.00) being the Approved Budget for the
Contract (ABC) to payments under the contract for the Project, “Consultancy Services
for Program to Institutionalize Meritocracy and Excellence in Human Resource
Management – PRIME HRM (Project ID No. SEC PB No. 2022-11)” Bids received in
excess of the ABC shall be automatically rejected at bid opening.

2. The DBM now invites bids to provide the following Consulting Services for the Project,
“Consultancy Services for Program to Institutionalize Meritocracy and
Excellence in Human Resource Management – PRIME HRM (Project ID No. SEC
PB No. 2022-11)”

3. The Consultant shall be selected and employed in accordance with Quality Cost Based
Evaluation procedures as described in the Bidding Documents.

4. This notice is addressed to the shortlisted Consultants,

____________________________

5. It is not permissible for the shortlisted Consultants to transfer this invitation to any other
Consultant.

6. The shortlisted Consultants may obtain further information from the SEC-Bids and
Awards Committee (BAC) Secretariat and inspect the Bidding Documents at the address
given below during office hours from 9:00 a.m. to 4:00 p.m.

7. The Bidding Documents may be acquired by the shortlisted Consultant on March 8, 2022
from the address below and upon payment of a fee in the amount of
__________________

4
 These documents may also be downloaded free of charge from the website of the
Philippine Government Electronic Procurement System (PhilGEPS) and the website of
the Procuring Entity, provided that Bidders shall pay the applicable fee for the Bidding
Documents not later than the submission of their bids.

8. SEC will hold a Pre-Bid Conference on March 11, 2022, 10:00 A.M., which shall be
attended by the shortlisted Consultants.

To reduce the risks and hazards of community transmission of COVID-19, the BAC shall
conduct meetings and conferences via video conferencing until further notice, or until
such time that the state of calamity, or implementation of community quarantine or
similar government restrictions shall have been lifted by the proper government
authorities.

The shortlisted Consultants are advised to log in the BAC virtual (Zoom) waiting room
and wait for further advice to join the BAC meeting room, the link of which shall be
provided to the shortlisted Consultants before the start of the Pre-Bid Conference.

9. Bids must be duly received by the BAC Secretariat or the SEC-Procurement Division
through manual submission at the office address indicated below on or before March 23,
2022, 10:00 A.M. Late bids shall not be accepted.

10. All Bids must be accompanied by a bid security in any of the acceptable forms and in the
amount stated in ITB Clause 15.

Bid opening shall be on June 29, 2021, 10:00 A.M, at the given address below and via
video conferencing. Bids will be opened in the presence of the bidders’ representatives
who choose to attend the activity. Authorized attendees, including representatives of
bidders, who are physically present at the Executive Lounge, 3/F Secretariat Bldg., PICC
Complex, Roxas Blvd., Pasay City shall likewise join the meeting via videoconferencing.

Bidders are advised to first log in the BAC virtual (Zoom) waiting room and wait for
further advice to join the BAC meeting room, the link of which shall be provided to the
bidders before the start of bid opening.

11. SEC reserves the right to reject any and all bids declare a failure of bidding at any time
prior to contract award, or not award the contract in accordance with Sections 35.6 and
41 of R.A. No. 9184 and its IRR, without thereby incurring any liability to the affected
bidder or bidders.

12. For further information, please refer

SEC-BAC Secretariat
Procurement Division-Human Resource and Administrative Department
Securities and Exchange Commission
3rd Floor, Secretariat Bldg., PICC Complex, Pasay City
No. 8818-5330
Email address: [email protected]

5
13. You may visit the following website to download the Bidding Documents:
https://www.sec.gov.ph
https://www.philgeps.gov.ph

February __, 2022

ARMANDO A. PAN JR.

Chairman, SEC-BAC

6
 TABLE OF CONTENTS

PART II

SECTION I. NOTICE OF ELIGIBILITY AND SHORT LISTING...................................4

SECTION II. INSTRUCTIONS TO BIDDERS.............................................................8
SECTION III. BID DATA SHEET.............................................................................37
SECTION IV. GENERAL CONDITIONS OF CONTRACT............................................45
SECTION V. SPECIAL CONDITIONS OF CONTRACT...............................................70
SECTION VI. TERMS OF REFERENCE.....................................................................74
SECTION VII. BIDDING FORMS............................................................................80
SECTION VIII. APPENDICES...............................................................................114

7
 Section II. Instructions to Bidders

TABLE OF CONTENTS

A. GENERAL.....................................................................................................10
1. Introduction...............................................................................................10
2. Conflict of Interest......................................................................................10
3. Corrupt, Fraudulent, Collusive, Coercive, and Obstructive Practices................12
4. Consultant’s Responsibilities........................................................................14
5. Origin of Associated Goods..........................................................................16
6. Subcontracts..............................................................................................16
B. CONTENTS OF BIDDING DOCUMENTS........................................................16
7. Pre-Bid Conference.....................................................................................16
8. Clarifications and Amendments to Bidding Documents...................................17
C. PREPARATION OF BIDS..............................................................................18
9. Language of Bids........................................................................................18
10. Documents Comprising the Bid: Technical Proposal...................................18
11. Documents Comprising the Bid: Financial Proposal....................................20
12. Alternative Bids.......................................................................................21
13. Bid Currencies........................................................................................21
14. Bid Validity.............................................................................................22
15. Bid Security............................................................................................22
16. Format and Signing of Bids......................................................................25
17. Sealing and Marking of Bids.....................................................................25
D. SUBMISSION AND OPENING OF BIDS........................................................26
18. Deadline for Submission of Bids...............................................................26
19. Late Bids................................................................................................26
20. Modification and Withdrawal of Bids.........................................................26
E. EVALUATION AND COMPARISON OF BIDS.................................................27
21. Opening and Preliminary Examination of Bids............................................27
22. Process to be Confidential.......................................................................28
23. Clarification of Bids.................................................................................28
24. Bid Evaluation.........................................................................................28

8
 25 Evaluation of Technical Proposals................................................................29
26 Opening and Evaluation of Financial Proposals..............................................30
27 Negotiations...............................................................................................30
28 Post Qualification........................................................................................31
29 Reservation Clause.....................................................................................32
F. AWARD OF CONTRACT................................................................................33
30. Contract Award.......................................................................................33
31. Signing of the Contract............................................................................34
32. Performance Security..............................................................................35
33. Notice to Proceed...................................................................................36
34. Protest Mechanism..................................................................................36

9
 A. General

1. Introduction

1.1. The Procuring Entity named in the Bid Data Sheet (BDS) shall select an
individual, sole proprietorship, cooperative, partnership, corporation, or a
joint venture (JV) (hereinafter referred to as “Consultant”) from among those
short listed, in accordance with the evaluation procedure specified in the
BDS.

1.2. The Procuring Entity has received financing (hereinafter called “funds”) from
the source indicated in the BDS (hereinafter called the “Funding Source”)
toward the cost of the Project named in the BDS. The Procuring Entity
intends to apply a portion or the whole of the funds to payments for this
Project.

1.3. Consultants are invited to submit bids composed of a technical proposal and a
financial proposal for Consulting Services required for this Project described
in the BDS. Bids shall be the basis for contract negotiations and ultimately
for a signed contract with the selected Consultant.

1.4. If the BDS indicates that the Project will be completed in phases, each phase
must be completed to the Procuring Entity’s satisfaction prior to the
commencement of the next phase.

1.5. Consultants must familiarize themselves with local conditions and take them
into account in preparing their bids. To obtain firsthand information on the
project and on the local conditions, Consultants are encouraged to visit the
Procuring Entity before submitting a bid and to attend the pre-bid conference
specified in ITB Clause 7.

1.6. The Consultants’ costs of preparing their bids and negotiating the contract,
including a visit to the Procuring Entity, are not reimbursable as a direct
cost of the project.

1.7. Consultants shall not be under a declaration of ineligibility for corrupt,

fraudulent, collusive, coercive or obstructive practices issued by the Funding
Source or the Procuring Entity in accordance with ITB Clause 3.1.

2. Conflict of Interest

2.1. The Funding Source’s policy requires that Consultants provide professional,
objective, and impartial advice and at all times hold the Procuring Entity’s
interests paramount, without any consideration for future work, and strictly
avoid situations where a conflict of interest shall arise with their other
projects or their own interests. Consultants shall not be hired for any project
that would be in conflict with their prior or current obligations to other
entities, or that may place them in a position of not being able to carry out
the Project in the best interest of the Procuring Entity. Without limitation on
the generality of this rule, Consultants shall not be hired under the
circumstances set forth below:

10
 (a) If a Consultant combines the function of consulting with those of
contracting and/or supply of equipment for the same Project;

(b) If a Consultant is associated with, affiliated to, or owned by a

contractor or a manufacturing firm with departments or design offices
offering services as consultants unless such Consultant includes
relevant information on such relationships along with a statement
in the Technical Proposal cover letter to the effect that the Consultant
shall limit its role to that of a consultant and disqualify itself and its
associates from work in any other capacity that may emerge from the
Project (including bidding for any part of the future project). The
contract with the Consultant selected to undertake the Project shall
contain an appropriate provision to such effect; or

(c) If there is a conflict among consulting projects, the Consultant

(including its personnel and subconsultants) and any subsidiaries or
entities controlled by such Consultant shall not be recruited for the
relevant project. The duties of the Consultant depend on the
circumstances of each case. While continuity of consulting services
may be appropriate in particular situations where no conflict exists, a
Consultant cannot be recruited to carry out a project that, by its
nature, shall result in conflict with a prior or current project of such
Consultant. Examples of the situations mentioned are when a
Consultant engaged to prepare engineering design for an
infrastructure project shall not be recruited to prepare an independent
environmental assessment for the same project; similarly, a
Consultant assisting a Procuring Entity in privatization of public assets
shall not purchase, nor advise purchasers, of such assets; or a
Consultant hired to prepare Terms of Reference (TOR) for a project
shall not be recruited for the project in question.

2.2. Consultants shall not be related to the Head of the Procuring Entity (HoPE),
members of the BAC, the TWG, and the BAC Secretariat, the head of the
PMO or the end-user unit, and the project consultants, by consanguinity or
affinity up to the third civil degree. The prohibition shall apply as follows:

(a) If the Consultant is an individual or sole proprietorship, then to

himself;

(b) If the Consultant is a partnership, then to all its officers and members;

(c) If the Consultant is a corporation, then to all its officers, directors and
controlling stockholders;

(d) If the Consultant is a cooperative, to all its officers, directors, and

controlling shareholders or members; or

(e) If the Consultant is a JV, the provisions of items (a), (b), (c), or (d) of
this Section shall correspondingly apply to each of the members of the
said joint venture, as may be appropriate.

11
 Relationship of the nature described above or a failure to comply with
the provisions of this clause will result in the rejection of the Consultant’s bid.

2.3. Subject to the provisions of ITB Clause 2, any previous or ongoing

participation by the Consultant, its professional staff, or its affiliates or
associates under a contract with the Funding Source or the Procuring Entity
in relation to this Project may result in the rejection of its bid. Consultants
should clarify their situation in that respect with the Procuring Entity before
preparing its bid.

2.4. Failure by a Consultant to fully disclose potential conflict of interest at the

time of Bid submission, or at a later date in the event that the potential
conflict arises after such date, shall result in the Procuring Entity and/or the
Funding Source seeking the imposition of the maximum administrative, civil
and criminal penalties up to and including imprisonment.

2.5. Consultants are discouraged to include officials and employees of the

Government of the Philippines (GoP) as part of its personnel. Participation of
officials and employees of the GoP in the Project shall be subject to existing
rules and regulations of the Civil Service Commission.

2.6. Fairness and transparency in the selection process require that Consultants
do not derive unfair competitive advantage from having provided consulting
services related to the Project in question. To this end, the Procuring Entity
shall make available to all the short listed consultants together with the
Bidding Documents all information that would in that respect give each
Consultant a competitive advantage.

3. Corrupt, Fraudulent, Collusive, Coercive, and Obstructive Practices

3.1. The Procuring Entity as well as the Consultants shall observe the highest
standard of ethics during the procurement and execution of the contract. In
pursuance of this policy, the Procuring Entity:

(a) defines, for purposes of this provision, the terms set forth below
as follows:

(i) “corrupt practice” means behavior on the part of officials in the

public or private sectors by which they improperly and
unlawfully enrich themselves, others, or induce others to do
so, by misusing the position in which they are placed, and
includes the offering, giving, receiving, or soliciting of anything
of value to influence the action of any such official in the
procurement process or in contract execution; entering, on
behalf of the GoP, into any contract or transaction manifestly
and grossly disadvantageous to the same, whether or not the
public officer profited or will profit thereby, and similar acts as
provided in Republic Act 3019.

(ii) “fraudulent practice” means a misrepresentation of facts in

order to influence a procurement process or the execution of
a

12
 contract to the detriment of the Procuring Entity, and includes
collusive practices among Bidders (prior to or after bid
submission) designed to establish bid prices at artificial, non-
competitive levels and to deprive the Procuring Entity of the
benefits of free and open competition.

(iii) “collusive practices” means a scheme or arrangement

between two or more Bidders, with or without the knowledge
of the Procuring Entity, designed to establish bid prices at
artificial, non-competitive levels.

(iv) “coercive practices” means harming or threatening to harm,

directly or indirectly, persons, or their property to influence
their participation in a procurement process, or affect the
execution of a contract;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or

concealing of evidence material to an administrative
proceedings or investigation or making false
statements to investigators in order to materially
impede an administrative proceedings or investigation
of the Procuring Entity or any foreign
government/foreign or international financing
institution into allegations of a corrupt, fraudulent,
coercive or collusive practice; and/or threatening,
harassing or intimidating any party to prevent it from
disclosing its knowledge of matters relevant to the
administrative proceedings or investigation or from
pursuing such proceedings or investigation; or

(bb) acts intended to materially impede the exercise of the

inspection and audit rights of the Procuring Entity or
any foreign government/foreign or international
financing institution herein.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in any of the practices
mentioned in this Clause for purposes of competing for the contract.

3.2. Further, the Procuring Entity will seek to impose the maximum civil,
administrative, and/or criminal penalties available under applicable laws on
individuals and organizations deemed to be involved in any of the practices
mentioned in ITB Clause (a).

3.3. Furthermore, the Funding Source and the Procuring Entity reserve the right
to inspect and audit records and accounts of a Consultant in the bidding for
and performance of a contract themselves or through independent auditors
as reflected in the GCC Clause 51.

13
4. Consultant’s Responsibilities

4.1. The Consultant or its duly authorized representative shall submit a sworn
statement in the form prescribed in Section VII. Bidding Forms as required in
ITB Clause 10.2(d).

4.2. The Consultant is responsible for the following:

(a) Having taken steps to carefully examine all of the Bidding

Documents;

(b) Having acknowledged all conditions, local or otherwise, affecting the

implementation of the contract;

(c) Having made an estimate of the facilities available and needed for this
Project, if any;

(d) Having complied with its responsibility to inquire or secure

Supplemental/Bid Bulletin/s as provided under ITB Clause 8.4.

(e) Ensuring that it is not “blacklisted” or barred from bidding by the GoP
or any of its agencies, offices, corporations, or LGUs, including
foreign government/foreign or international financing institution
whose blacklisting rules have been recognized by the GPPB;

(f) Ensuring that each of the documents submitted in satisfaction of the

bidding requirements is an authentic copy of the original, complete,
and all statements and information provided therein are true and
correct;

(g) Authorizing the Head of the Procuring Entity or its duly authorized
representative/s to verify all the documents submitted;

(h) Ensuring that the signatory is the duly authorized representative of

the Bidder, and granted full power and authority to do, execute and
perform any and all acts necessary to participate, submit the bid, and
to sign and execute the ensuing contract, accompanied by the duly
notarized Special Power of Attorney, Board/Partnership Resolution, or
Secretary’s Certificate, whichever is applicable;

(i) Complying with the disclosure provision under Section 47 of RA 9184

and its IRR in relation to other provisions of Republic Act 3019;

(j) Complying with existing labor laws and standards, in the case of
procurement of services. Moreover, bidder undertakes to:

(i) Ensure the entitlement of workers to wages, hours of work,

safety and health and other prevailing conditions of work as
established by national laws, rules and regulations; or
collective bargaining agreement; or arbitration award, if and
when applicable.

14
 In case there is a finding by the Procuring Entity or the DOLE
of underpayment or non-payment of workers’ wage and wage-
related benefits, bidder agrees that the performance security
or portion of the contract amount shall be withheld in favor of
the complaining workers pursuant to appropriate provisions of
Republic Act No. 9184 without prejudice to the institution of
appropriate actions under the Labor Code, as amended, and
other social legislations.

(ii) Comply with occupational safety and health standards and to

correct deficiencies, if any.

In case of imminent danger, injury or death of the worker,

bidder undertakes to suspend contract implementation
pending clearance to proceed from the DOLE Regional Office
and to comply with Work Stoppage Order; and

(iii) Inform the workers of their conditions of work, labor clauses

under the contract specifying wages, hours of work and other
benefits under prevailing national laws, rules and
regulations; or collective bargaining agreement; or arbitration
award, if and when applicable, through posting in two (2)
conspicuous places in the establishment’s premises; and

(k) Ensuring that it did not give or pay, directly or indirectly, any
commission, amount, fee, or any form of compensation, pecuniary or
otherwise, to any person or official, personnel or representative of the
government in relation to any procurement project or activity.

Failure to observe any of the above responsibilities shall be at the risk of

the Consultant concerned.

4.3. It shall be the sole responsibility of the prospective bidder to determine and
to satisfy itself by such means as it considers necessary or desirable as to all
matters pertaining to this Project, including: (a) the location and the nature
of the contract, project, or work; (b) climatic conditions; (c) transportation
facilities; (c) nature and condition of the terrain, geological conditions at the
site communication facilities, requirements, location and availability of
construction aggregates and other materials, labor, water, electric power and
access roads; and (d) other factors that may affect the cost, duration and
execution or implementation of the contract, project, or work.

4.4. The Procuring Entity shall not assume any responsibility regarding erroneous
interpretations or conclusions by the Consultant out of the data furnished by
the Procuring Entity. However, the Procuring Entity shall ensure that all
information in the Bidding Documents, including supplemental/bid bulletins
issued are correct and consistent.

4.5. Before submitting their bids, the Consultants are deemed to have become
familiar with all existing laws, decrees, ordinances, acts and regulations of the
GoP which may affect the contract in any way.

15
 4.6. The Consultant shall bear all costs associated with the preparation and
submission of his bid, and the Procuring Entity will in no case be responsible
or liable for those costs, regardless of the conduct or outcome of the bidding
process.

4.7. Consultants should note that the Procuring Entity will only accept bids from
those that have paid the applicable fee for the Bidding Documents at the
office indicated in the Request for Expression of Interest.

5. Origin of Associated Goods

Unless otherwise indicated in the BDS, there is no restriction on the origin of Goods
other than those prohibited by a decision of the United Nations Security Council
taken under Chapter VII of the Charter of the United Nations.

6. Subcontracts

6.1. Unless otherwise specified in the BDS, the Consultant may subcontract
portions of the Consulting Services to an extent as may be approved by the
Procuring Entity and stated in the BDS. However, subcontracting of any
portion shall not relieve the Consultant from any liability or obligation that
may arise from the contract for this Project.

6.2. Subconsultant must comply with the eligibility criteria and the documentary
requirements specified in the BDS. In the event that any subconsultant is
found by the Procuring Entity to be ineligible, the subcontracting of such
portion of the Consulting Services shall be disallowed.

6.3. The Consultant may identify the subconsultant to whom a portion of the
Consulting Services will be subcontracted at any stage of the bidding process
or during contract implementation. If the Consultant opts to disclose the
name of the subconsultant during bid submission, the Consultant shall include
the required documents as part of the technical component of its bid. A
subconsultant that is identified by the Consultant during contract
implementation must comply with the eligibility criteria and documentary
requirements and secure approval of the Procuring Entity.

B. Contents of Bidding Documents

7. Pre-Bid Conference

7.1. If so specified in the BDS, a pre-bid conference shall be held at the venue
and on the date indicated therein, to clarify and address the Consultants’
questions on the technical and financial components of this Project.

7.2. The pre-bid conference shall be held at least twelve (12) calendar days
before the deadline for the submission and receipt of bids, but not earlier
than seven
(7) calendar days from the determination of the shortlisted consultants. If the
Procuring Entity determines that, by reason of the method, nature, or
complexity of the contract to be bid, or when international participation
will

16
 be more advantageous to the GoP, a longer period for the preparation of
bids is necessary, the pre-bid conference shall be held at least thirty (30)
calendar days before the deadline for the submission and receipt of bids.

7.3. Consultants are encouraged to attend the pre-bid conference to ensure

that they fully understand the Procuring Entity’s requirements. Non-
attendance of the Consultant will in no way prejudice its bid; however, the
Consultant is expected to know the changes and/or amendments to the
Bidding Documents as recorded in the minutes of the pre-bid conference and
the Supplemental/Bid Bulleting. The minutes of the pre-bid conference shall
be recorded and prepared not later than five (5) calendar days after the pre-
bid conference. The minutes shall be made available to prospective bidders
not later than five (5) days upon written request.

7.4. Decisions of the BAC amending any provision of the bidding documents shall
be issued in writing through a Supplemental/Bid Bulletin at least seven (7)
calendar days before the deadline for the submission and receipt of bids.

8. Clarifications and Amendments to Bidding Documents

8.1. Shortlisted consultants may request for clarification(s) on and/or an

interpretation of any part of the Bidding Documents. Such a request must be
in writing and submitted to the Procuring Entity at the address indicated in
the BDS at least ten (10) calendar days before the deadline set for the
submission and receipt of bids.

8.2. The BAC shall respond to the said request by issuing a Supplemental/Bid
Bulletin to be made available to all those who have properly secured the
Bidding Documents at least seven (7) calendar days before the deadline for
the submission and receipt of Bids.

8.3. Supplemental/Bid Bulletins may also be issued upon the Procuring Entity’s
initiative for purposes of clarifying or modifying any provision of the Bidding
Documents not later than seven (7) calendar days before the deadline for the
submission and receipt of bids. Any modification to the Bidding Documents
shall be identified as an amendment.

8.4. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted in the
PhilGEPS and the website of the Procuring Entity concerned, if available and
at any conspicuous place in the premises of the Procuring Entity concerned. It
shall be the responsibility of all Consultants who have properly secured the
Bidding Documents to inquire and secure Supplemental/Bid Bulletins that
may be issued by the BAC. However, Consultants who have submitted bids
before the issuance of the Supplemental/Bid Bulletin must be informed and
allowed to modify or withdraw their bids in accordance with ITB Clause 20.

17
 C. Preparation of Bids

9. Language of Bids

The eligibility requirements or statements, the bids, and all other documents to be
submitted to the BAC must be in English. If the eligibility requirements or
statements, the bids, and all other documents submitted to the BAC are in foreign
language other than English, it must be accompanied by a translation of the
documents in English. The documents shall be translated by the relevant foreign
government agency, the foreign government agency authorized to translate
documents, or a registered translator in the foreign bidder’s country; and shall be
authenticated by the appropriate Philippine foreign service establishment/post or the
equivalent office having jurisdiction over the foreign bidder’s affairs in the
Philippines. The English translation shall govern, for purposes of interpretation of the
bid.

10. Documents Comprising the Bid: Technical Proposal

10.1. While preparing the Technical Proposal, Consultants must give particular
attention to the following:

(a) The Technical Proposal shall not include any financial information. Any
Technical Proposal containing financial information shall be declared
non-responsive.

(b) For projects on a staff-time basis, the estimated number of

professional staff-months specified in the BDS shall be complied with.
Bids shall, however, be based on the number of professional staff-
months estimated by the Consultant.

(c) Proposed professional staff must, at a minimum, have the experience

indicated in the BDS, preferably working under conditions similar to
those prevailing in the Republic of the Philippines.

(d) No alternative professional staff shall be proposed, and only one

Curriculum Vitae (CV) may be submitted for each position.

10.2. The Technical Proposal shall contain the following information/documents:

(a) Technical Proposal Submission Form shall be the cover letter of the
Technical Proposal, using the form prescribed in Section VII. Bidding
Forms (TPF 1).

(b) Bid security as prescribed in ITB Clause 15. If the bidder opts to
submit the bid security in the form of:

(i) a bank draft/guarantee or an irrevocable Letter of Credit

issued by a foreign bank, it shall be accompanied by a
confirmation from a Universal or Commercial Bank; or

18
 (ii) a surety bond accompanied by a certification coming from the
Insurance Commission that the surety or insurance company is
authorized to issue such instrument.

(c) Information indicated in the paragraphs below must be provided by

the Consultant and each partner and/or subconsultant, if any,
following the formats described in the Technical Proposal Forms:

(i) A brief description of the organization and outline of recent

experience of the Consultant and each partner and/or
subconsultant on projects of a similar and related nature as
required in form TPF 2. Consultant’s References. For each
project, the outline should indicate inter alia, the project,
contract amount and the Consultant’s involvement.
Information should be provided only for those projects for
which the Consultant was legally contracted by itself or as one
of the major participating consultants within an association.
Whenever applicable, the experience of individual experts from
projects completed independently or when associated with
consultants other than the one with whom the individual
is currently associated cannot be claimed as the experience of
the current consultant or any one of its partners and/or
subconsultants, but can be claimed by the individuals
themselves in their CVs. Consultants should be prepared to
substantiate the claimed experience if so requested by the
Procuring Entity.

(ii) Comments, if any, on the TOR (TPF 3. Comments and

Suggestions of Consultant on the Terms of Reference and on
Data, Services, and Facilities to be Provided by the Procuring
Entity) to improve performance in carrying out the Project.
Innovativeness shall be appreciated, including workable
suggestions that could improve the quality/effectiveness of the
Project. In this regard, unless the Consultant clearly states
otherwise, it shall be assumed by the Procuring Entity that
work required to implement any such improvements, are
included in the inputs shown on the Consultant’s Staffing
Schedule. It shall include a list of facilities requested by the
Consultant to be provided by the Procuring Entity, if any, in
addition to those shown on the Data Sheet that may include
support facilities such as: counterpart staff, office space, local
transportation, equipment, domestic administrative support,
etc. that would be needed to carry out the project.

(iii) A concise, complete, and logical description of how the

Consultant’s team shall carry out the services to meet all
requirements of the TOR using TPF 4. Description of the
Methodology and Work Plan for Performing the Project.

(iv) An organization chart of the key and support staff indicating

their tasks and relationships amongst the Consultant and
any

19
 partner and/or subconsultant, the Procuring Entity, the
Funding Source and the GoP, and other parties or
stakeholders, if any, involved in the project using TPF 5. Team
Composition and Task.

(v) The name, age, nationality, background employment record,

and professional experience of each nominated expert
including ongoing projects, with particular reference to the
type of experience required for the tasks assigned should be
presented in the CV format shown in TPF 6. Format of
Curriculum Vitae (CV) for Proposed Professional Staff. Only
one duly notarized CV for each consultant involved in the
Project may be submitted for each position.

(vi) The Procuring Entity requires that each expert attest that the
content of his/her CV is correct and the experts themselves
should sign the certification of the CV. In addition, the expert
should submit a signed written commitment stating that the
expert shall work for the Project once awarded the contract. A
zero rating shall be given to a nominated expert if the expert:

(vi.1) is proposed for a domestic position but is not a Filipino

citizen;

(vi.2) failed to state nationality on the CV; or

(vi.3) the CV is not signed in accordance with paragraph (v)

above.

(vii) A Time Schedule (TPF 7. Time Schedule for Professional

Personnel) indicating clearly the estimated duration in terms of
person-months (shown separately for work in the field and in
the home office) and the proposed timing of each input for
each nominated expert, including domestic experts, if
required, using the format shown. The schedule shall also
indicate when experts are working in the project office and
when they are working at locations away from the project
office.

(viii) A work plan showing in graphical format (bar or Gantt chart)

the timing of major activities, anticipated coordination
meetings, and deliverables such as reports required under the
TOR using TPF 8. Activity (Work) Schedule.

(d) Sworn statement in accordance with Section 25.3 of the IRR of RA

9184 and using the form prescribed in Section VII. Bidding Forms.

11. Documents Comprising the Bid: Financial Proposal

11.1. All information provided in a Consultant’s Financial Proposal shall be treated

as confidential. The Financial Proposal must be submitted in hard copy using
the format shown in Financial Proposal Forms.

20
 11.2. The Financial Proposal requires completion of six (6) forms, particularly, FPF
1, FPF 2, FPF 3, FPF 4, FPF 5, and FPF 6. FPF 1. Financial Proposal
Submission Form should form the covering letter of the Financial Proposal.
Form FPF 2. Summary of Costs, FPF 3. Breakdown of Price per Activity, FPF
4. Breakdown of Remuneration per Activity, FPF 5. Reimbursables per
Activity, and FPF 6. Miscellaneous Expenses, relate to the costs of consulting
services under two distinct categories, namely: (a) Remuneration; and (b)
Reimbursable Expenditures.

11.3. Remuneration is divided into billing rate estimates for international and
domestic consultants. Reimbursable Expenditures are divided into per diem
rates for international and domestic consultants and costs for other
reimbursable expenditure items required to perform the consulting services.

11.4. The list of experts, and their respective inputs, identified in Financial Proposal
Forms, must match the list of experts and their respective inputs shown in
Technical Proposal Forms.

11.5. The Consultant shall be subject to Philippine taxes on amounts payable by

the Procuring Entity under the contract through mandated withholding by
local tax authorities of specified percentages of such amounts or otherwise.
The BDS details the taxes payable.

11.6. The Financial Proposal should clearly estimate, as a separate amount, the
local taxes (including social security), duties, fees, levies, and other charges
imposed under the applicable law, on the Consultants, the subconsultants,
and its personnel (other than Philippine Nationals or permanent residents of
the Philippines).

11.7. Unless otherwise provided in the BDS, total calculated bid prices, as
evaluated and corrected for minor arithmetical corrections, such as
computational errors, which exceed the approved budget for the contract
(ABC) shall not be considered.

12. Alternative Bids

Consultants participating in more than one bid or associating with any other entity
other than those already provided in its eligibility documents and allowed by the
Procuring Entity shall be disqualified.

13. Bid Currencies

13.1. All bid prices shall be quoted in Philippine Pesos unless otherwise provided in
the BDS. However, for purposes of bid evaluation, bids denominated in
foreign currencies shall be converted to Philippine currency based on the
exchange rate prevailing on the day of the bid opening.

13.2. If so allowed in accordance with ITB Clause 13.1, the Procuring Entity for
purposes of bid evaluation and comparing the bid prices will convert the
amounts in various currencies in which the bid price is expressed to
Philippine

21
 Pesos at the exchange rate as published in the Bangko Sentral ng Pilipinas
(BSP) reference rate bulletin on the day of the bid opening.

13.3. Unless otherwise specified in the BDS, payment of the contract price shall be
made in Philippine Pesos.

14. Bid Validity

14.1. Bids shall remain valid for the period specified in the BDS which shall not
exceed one hundred twenty (120) calendar days from the date of the
opening of bids.

14.2. In exceptional circumstances, prior to the expiration of the bid validity period,
the Procuring Entity may request Consultants to extend the period of validity
of their bids. The request and the responses shall be made in writing. The bid
security described in ITB Clause 15 should also be extended corresponding to
the extension of the bid validity period at the least. A Consultant may refuse
the request without forfeiting its bid security, but his bid shall no longer be
considered for further evaluation and award. A Consultant granting the
request shall not be required or permitted to modify its bid.

15. Bid Security

15.1. The Consultant shall submit a Bid Securing Declaration or any form of Bid
Security in an amount stated in the BDS, which shall be not less than the
percentage of the ABC in accordance with the following schedule:

Amount of Bid Security

Form of Bid Security (As the minimum
Percentage of the ABC)
a) Cash or cashier’s/manager’s
check issued by a Universal or
Commercial Bank.

For biddings conducted by

LGUs, the cashier’s/manager’s
check may be issued by other
banks certified by the BSP as
authorized to issue such
financial instrument. Two percent (2%)

b) Bank draft/guarantee or
irrevocable letter of credit issued
by a Universal or Commercial
Bank: Provided, however, that it
shall be confirmed or
authenticated by a Universal or
Commercial Bank, if issued by a
foreign bank.

22
 For biddings conducted by
LGUs, the Bank Draft/
Guarantee, or irrevocable letter
of credit may be issued by other
banks certified by the BSP as
authorized to issue such
financial instrument.

c) Surety bond callable upon

demand issued by a surety or
insurance company duly
certified by the Insurance Five percent (5%)
Commission as authorized to
issue such security.

The Bid Securing Declaration mentioned above is an undertaking which

states, among others, that the bidder shall enter into contract with the
Procuring Entity and furnish the performance security required under ITB
Clause 31, within ten (10) calendar days from receipt of the Notice of Award,
and commits to pay the corresponding amount as fine, and be suspended for
a period of time from being qualified to participate in any government
procurement activity in the event it violates any of the conditions stated
therein as provided in the guidelines issued by the GPPB.

15.2. The bid security should be valid for the period specified in the BDS. Any bid
not accompanied by an acceptable bid security shall be rejected by the
Procuring Entity as non-responsive.

15.3. No bid securities shall be returned to the Consultants after the opening of
bids and before contract signing, except those that failed or were declared as
post- disqualified, upon submission of a written waiver of their right to file a
request for reconsideration and/or protest or lapse of the reglementary period
without having filed a request for reconsideration or protest. Without
prejudice on its forfeiture, bid securities shall be returned only after the
bidder with the Highest Rated Responsive Bid (HRRB) has signed the
contract and furnished the performance security, but in no case later than the
expiration of the bid security validity period indicated in ITB Clause 15.2.

15.4. Upon signing and execution of the contract pursuant to ITB Clause 31, and
the posting of the performance security pursuant to ITB Clause 32, the
Consultant’s bid security will be discharged, but in no case later than the bid
security validity period as indicated in ITB Clause 15.2.

15.5. The bid security may be forfeited:

(a) if a Consultant:

(i) withdraws its bid during the period of bid validity specified in
ITB Clause 15.2;

23
 (ii) does not accept the correction of errors pursuant to ITB
Clause 11.7;

(iii) has a finding against the veracity of the required documents

submitted in accordance with ITB Clause 27.2;

(iv) submits eligibility requirements containing false information or

falsified documents;

(v) submits any bids that contain false information or falsified

documents, or the concealment of such information in the bids
in order to influence the outcome of eligibility screening or any
other stage of the public bidding;

(vi) allows the use of one’s name, or uses the name of another for
purposes of public bidding;

(vii) withdraws a bid, or refuses to accept an award, or enters into

contract with the Government without justifiable cause, after
the Bidder had been adjudged as having submitted the LCRB;

(viii) refuses or fails to post the required performance security

within the prescribed time;

(ix) refuses to clarify or validate in writing its bid during post-

qualification within a period of seven (7) calendar days from
receipt of the request for clarification;

(x) attempts, as documented, to unduly influence the outcome

of the bidding in his favor;

(xi) fails, in case of the potential joint venture partners, to enter

into the joint venture after the bid is declared successful; or

(xii) all other acts that tend to defeat the purpose of the
competitive bidding, such as habitually withdrawing from
bidding, submitting late Bids or patently insufficient bid, for at
least three (3) times within a year, except for valid reasons.

(b) if the successful Consultant:

(i) fails to sign the contract in accordance with ITB Clause 31;

(ii) fails to furnish performance security in accordance with ITB

Clause 32; or

(iii) any other reason stated in the BDS.

24
16. Format and Signing of Bids

16.1. Consultants shall submit their bids through their duly authorized
representative using the appropriate forms provided in Section VII. Bidding
Forms on or before the deadline specified in the ITB Clause 18 in two (2)
separate sealed bid envelopes, and which shall be submitted simultaneously.
The first shall contain the technical proposal and the second shall contain the
financial proposal.

16.2. Forms as mentioned in ITB Clause 16.1 must be completed without any
alterations to their format, and no substitute form shall be accepted. All blank
spaces shall be filled in with the information requested.

16.3. The Consultant shall prepare an original of the first and second envelopes as
described in ITB Clauses 10 and 11. In addition, the Consultant shall submit
copies of the first and second envelopes. In the event of any discrepancy
between the original and the copies, the original shall prevail.

16.4. Each and every page of the Technical Proposal Submission Form and the
Financial Proposal Submission Form under Section VII. Bidding Forms hereof
shall be signed by the duly authorized representative/s of the Consultant.
Failure to do so shall be a ground for the rejection of the bid.

16.5. Any interlineations, erasures, or overwriting shall be valid only if they are
signed or initialed by the duly authorized representative/s of the Consultant.

17. Sealing and Marking of Bids

17.1. Unless otherwise indicated in the BDS, Consultants shall enclose their original
technical proposal described in ITB Clause 10, in one sealed envelope
marked “ORIGINAL - TECHNICAL PROPOSAL”, and their original financial
proposal in another sealed envelope marked “ORIGINAL - FINANCIAL
PROPOSAL”, sealing them all in an outer envelope marked “ORIGINAL BID”.

17.2. Each copy of the first and second envelopes shall be similarly sealed duly
marking the inner envelopes as “COPY NO. - TECHNICAL
PROPOSAL” and “COPY NO. – FINANCIAL PROPOSAL” and the
outer envelope as “COPY NO. ”, respectively. These envelopes
containing the original and the copies shall then be enclosed in one single
envelope.

17.3. The original and the number of copies of the bid as indicated in the BDS shall
be typed or written in ink and shall be signed by the bidder or its duly
authorized representative/s.

17.4. All envelopes shall:

(a) contain the name of the contract to be bid in capital letters;

(b) bear the name and address of the Consultant in capital letters;

25
 (c) be addressed to the Procuring Entity’s BAC in accordance with ITB
Clause 18.1;

(d) bear the specific identification of this bidding process indicated in the
ITB Clause 1.2; and

(e) bear a warning “DO NOT OPEN BEFORE…” the date and time for
the opening of bids, in accordance with ITB Clause 18.

17.5. Bid envelopes that are not properly sealed and marked, as required in the
bidding documents, shall not be rejected, but the bidder or its duly authorized
representative shall acknowledge such condition of the Bid as submitted. The
BAC or the Procuring Entity shall assume no responsibility for the
misplacement of the contents of the improperly sealed or marked Bid, or for
its premature opening.

D. Submission and Opening of Bids

18. Deadline for Submission of Bids

Bids must be received by the Procuring Entity’s BAC at the address and on or before
the date and time indicated in the BDS.

19. Late Bids

Any bid submitted after the deadline for submission and receipt of bids prescribed by
the Procuring Entity, pursuant to ITB Clause 18, shall be declared “Late” and shall
not be accepted by the Procuring Entity. The BAC shall record in the minutes of Bid
submission and opening, the Consultant’s name, its representative and the time
the late bid was submitted.

20. Modification and Withdrawal of Bids

20.1. The Consultant may modify its bid after it has been submitted; provided that
the modification is received by the Procuring Entity prior to the deadline
prescribed for submission and receipt of bids. The Consultant shall not be
allowed to retrieve its original bid, but shall be allowed to submit another bid
equally sealed, properly identified in accordance with ITB Clause 17.4, linked
to its original bid marked as “TECHNICAL MODIFICATION” or “FINANCIAL
MODIFICATION” and stamped “received” by the BAC. Bid modifications
received after the applicable deadline shall not be considered and shall be
returned to the Consultant unopened.

20.2. A Consultant may, through a letter of withdrawal, withdraw its bid after it has
been submitted, for valid and justifiable reason; provided that the letter of
withdrawal is received by the Procuring Entity prior to the deadline prescribed
for submission and receipt of bids. The letter of withdrawal must be executed
by the authorized representative of the Bidder identified in the Omnibus
Sworn Statement, a copy of which should be attached to the letter.

26
 20.3 Bids requested to be withdrawn in accordance with ITB Clause 20.1 shall be
returned unopened to the Bidders. A Consultant, who has acquired the
bidding documents, may also express its intention not to participate in the
bidding through a letter which should reach and be stamped by the BAC
before the deadline for submission and receipt of bids. A Consultant that
withdraws its bid shall not be permitted to submit another bid, directly or
indirectly, for the same contract.

20.4 No bid may be modified after the deadline for submission of bids. No bid may
be withdrawn in the interval between the deadline for submission of bids and
the expiration of the period of bid validity specified by the Consultant on the
Financial Bid Form. Withdrawal of a bid during this interval shall result in the
forfeiture of the Consultant’s bid security, pursuant to ITB Clause 15.5, and
the imposition of administrative, civil, and criminal sanctions as prescribed by
R.A. 9184 and its IRR.

E. Evaluation and Comparison of Bids

21. Opening and Preliminary Examination of Bids

21.1 Only bids from shortlisted bidders shall be opened and considered for award
of contract. These shortlisted bidders, whether single entities or JVs, should
confirm in their Technical Proposal Submission Form that the information
contained in the submitted eligibility documents remains correct as of the
date of bid submission.

21.2 The BAC shall open the bids immediately after the deadline for the
submission and receipt of bids in public, as specified in the BDS. In case the
bids cannot be opened as scheduled due to justifiable reasons, the BAC shall
take custody of the bids submitted and reschedule the opening on the next
working day or at the soonest possible time through the issuance of a Bulletin
to be posted at the PhilGEPS website and the website of the Procuring Entity
concerned.

21.3 To determine each bidder’s compliance with the documents prescribed in ITB
Clause 10, the BAC shall open the first envelope (Technical Proposal) and
check the submitted documents of each bidder in accordance with ITB
Clause
10.2 to ascertain if they are all present, using a non-discretionary “pass/fail”
criterion. If a bidder submits the required document, it shall be rated
“passed” for that particular requirement. In this regard, bids that fail to
include any requirement or are incomplete or patently insufficient shall be
considered as “failed”. Otherwise, the BAC shall rate the said first bid
envelope as “passed”.

21.4 Letters of withdrawal shall be read out and recorded during bid opening, and
the envelope containing the corresponding withdrawn bid shall be returned to
the Consultant unopened

21.5 All members of the BAC who are present during bid opening shall initial
every page of the original copies of all bids received and opened.

27
 21.6 All technical envelopes shall be resealed. Those rated “passed” shall be
secured for the detailed technical bid evaluation, while those rated “failed”
will be secured for purposes of possible filing of a request for reconsideration
unless the bidder waives its right to file a request for reconsideration, in
which case, the envelope shall be returned to the bidder immediately.

21.7 The Procuring Entity shall prepare the minutes of the proceedings of the bid
opening that shall include, as a minimum: (a) names of Bidders, their bid
price (per lot, if applicable, and/or including discount, if any), bid security,
findings of preliminary examination, and whether there is a withdrawal or
modification; and (b) attendance sheet. The BAC members shall sign the
abstract of bids as read.

22. Process to be Confidential

22.1 Members of the BAC, including its staff and personnel, as well as its
Secretariat and TWG, are prohibited from making or accepting any kind of
communication with any Consultant regarding the evaluation of their bids
until the approval by the HoPE of the ranking of shortlisted Consultants,
unless otherwise allowed in the BDS or in the case of ITB Clause 23.

22.2 Any effort by a bidder to influence the Procuring Entity in the Procuring
Entity’s decision in respect of bid evaluation, bid comparison or contract
award will result in the rejection of the Consultant’s bid.

23. Clarification of Bids

To assist in the evaluation, comparison and post-qualification of the bids, the

Procuring Entity may ask in writing any Consultant for a clarification of its bid. All
responses to requests for clarification shall be in writing. Any clarification submitted
by a Consultant in respect to its bid and that is not in response to a request by the
Procuring Entity shall not be considered.

24. Bid Evaluation

24.1 For the evaluation of bids, numerical ratings shall be used. In order to
eliminate bias in evaluating the Bids, it is recommended that the highest and
lowest scores for each Consultant for each criterion shall not be considered in
determining the average scores of the Consultants, except when the
evaluation is conducted in a collegial manner.

24.2 For complex or unique undertakings, such as those involving new

concepts/technology or financial advisory services, participating shortlisted
consultants may be required, at the option of the Procuring Entity concerned,
to make an oral presentation to be presented by each Consultant, or its
nominated Project Manager or head, in case of consulting firms, within
fifteen
(15) calendar days after the deadline for submission of Technical Proposals.

24.3 The entire evaluation process, including the submission of the results thereof
to the HoPE for approval, shall be completed in not more than twenty-one
(21) calendar days after the deadline for receipt of bids. The bid with the
highest
28
 rank shall be identified as the Highest Rated Bid. The HoPE shall approve or
disapprove the recommendations of the BAC within two (2) calendar days
after receipt of the results of the evaluation from the BAC.

24.4 All participating shortlisted consultants shall be furnished the results (ranking
and total scores only) of the evaluation after the approval by the HoPE of the
ranking. Said results shall also be posted in the PhilGEPS and the website of
the Procuring Entity, if available, for a period of not less than seven (7)
calendar days.

25 Evaluation of Technical Proposals

25.1 The BAC shall then conduct a detailed evaluation of technical bids following
the procedures specified in the BDS depending on the evaluation procedure
identified in the Request for Expression of Interest and ITB Clause 1.1.

25.2 The BAC evaluates the Technical Proposals on the basis of their compliance
with the requirements under ITB Clause 10 and responsiveness to the TOR
using the following criteria:

(a) Quality of personnel to be assigned to the Project which covers

suitability of key staff to perform the duties for the Project and general
qualifications and competence including education and training of
the key staff;

(b) Experience and capability of the Consultant which include records of

previous engagement and quality of performance in similar and in other
projects; relationship with previous and current clients; and, overall
work commitments, geographical distribution of current/impending
projects and attention to be given by the consultant. The suitability of
the Consultant to the Project shall consider both the overall experiences
of the firm and the individual experiences of the principal and key staff
including the times when employed by other consultants; and

(c) Plan of approach and methodology with emphasis on the clarity,

feasibility, innovativeness and comprehensiveness of the plan approach,
and the quality of interpretation of project problems, risks, and
suggested solutions.

25.3 The BAC shall assign numerical weights and the minimum required technical
score to each of the above criteria which shall be indicated in the BDS. A
Bid shall be rejected at this stage if it does not respond to important aspects
of the TOR or if it fails to achieve the minimum Technical Score (St) indicated
in the BDS.

25.4 Technical Proposals shall not be considered for evaluation in any of the
following cases:

(a) late submission, i.e., after the deadline set in the ITB Clause 18;

29
 (b) failure to submit any of the technical requirements provided under this
ITB and TOR;

(c) the Consultant that submitted a Bid or any of its partner and/or
subconsultant belongs to one of the conflict of interest cases as
described in ITB Clauses 2.1(a) to (c) and failed to make a proper
statement to that effect in the cover letter; or

(d) the Technical Proposal included any cost of the services.

26 Opening and Evaluation of Financial Proposals

26.1 Financial Proposals shall be opened on the date indicated in the BDS.

26.2 The Financial Proposals opened shall be evaluated based on the evaluation
procedure indicated in ITB Clause 1.1 using the corresponding procedure
provided in the BDS.

27 Negotiations

27.1 Negotiations with the Consultant that submitted the Highest Rated Bid shall
be held at the address indicated in the BDS. The aim is to reach agreement
on all points.

27.2 Negotiations shall cover the following:

(a) Discussion and clarification of the TOR and Scope of Services;

(b) Discussion and finalization of the methodology and work program

proposed by the Consultant;

(c) Consideration of appropriateness of qualifications and pertinent

compensation, number of man-months and the personnel to be
assigned to the job, taking note of over-qualified personnel to be
commensurate with the compensation of personnel with the appropriate
qualifications, number of man-months and schedule of activities
(manning schedule);

(d) Discussion on the services, facilities and data, if any, to be provided by

Procuring Entity concerned;

(e) Unless otherwise indicated in the BDS, discussion on the Financial

Proposal submitted by the Consultant; and

(f) Provisions of the contract.

27.3 Having selected the Consultant on the basis of, among other things, an
evaluation of the proposed key professional staff, the Procuring Entity expects
to negotiate a contract on the basis of the experts named in the bid. Before
contract negotiations, the Procuring Entity shall require assurances that the
experts shall be actually available. The Procuring Entity shall not consider
substitutions during contract negotiations except for justifiable reason as may
30
 be determined by the Procuring Entity, such as illness, death, or
resignation, unless both parties agree that undue delay in the selection
process makes such substitution unavoidable or that such changes are critical
to meet the objectives of the Project. If this is not the case and if it is
established that key staff were offered in the bid without confirming their
availability, the Consultant may be disqualified. Once the contract has been
awarded, no replacement shall be allowed until after fifty percent (50%) of
the personnel’s man-months have been served, except for justifiable reasons
as may be determined by the Procuring Entity. Violators shall be fined an
amount equal to the refund of the replaced personnel’s basic rate, which
should be at least fifty percent (50%) of the total basic rate for the duration
of the engagement.

27.4 Negotiations shall include a discussion of the technical proposal, the proposed
methodology (work plan), staffing and any suggestions made by the
Consultant to improve the TOR. The Procuring Entity and Consultant shall
then work out the final TOR, staffing, and bar charts indicating activities,
staff, periods in the field and in the home office, staff-months, logistics, and
reporting. The agreed work plan and final TOR shall then be incorporated in
Appendix I and form part of the contract. Special attention shall be paid to
getting the most the Consultant can offer within the available budget and to
clearly defining the inputs required from the Procuring Entity to ensure
satisfactory implementation of the Project.

27.5 The financial negotiations shall include a clarification of the Consultant’s tax
liability in the Philippines, if any, and the manner in which it shall be reflected
in the contract; and shall reflect the agreed technical modifications in the cost
of the services. The negotiations shall conclude with a review of the draft
form of the contract. To complete negotiations, the Procuring Entity and the
Consultant shall initial the agreed contract. If negotiations fail, the Procuring
Entity shall invite the Consultant whose Bid received the second highest score
to negotiate a contract. If negotiations still fail, the Procuring Entity shall
repeat the process for the next-in-rank Consultant until the negotiation is
successfully completed.

28 Post Qualification

28.1 The BAC shall determine to its satisfaction whether the Consultant that is
evaluated as having submitted the Highest Rated Bid (HRB) complies with
and is responsive to all the requirements and conditions specified in the
Eligibility Documents and ITB Clauses 10 and 11.

28.2 Within a non-extendible period of five (5) calendar days from receipt by the
Consultant of the notice from the BAC that it submitted the Highest Rated
Bid, the Consultant shall submit its latest income and business tax returns
filed and paid through the BIR Electronic Filing and Payment System (EFPS)
and other appropriate licenses and permits required by law and stated in the
BDS.

Failure to submit any of the post-qualification requirements on time, or a

finding against the veracity thereof, shall disqualify the bidder for award.
Provided, in the event that a finding against the veracity of any of the
documents submitted is made, it shall cause the forfeiture of the bid security
31
 in accordance with Section 69 of the IRR of RA 9184.

28.3 The determination shall be based upon an examination of the documentary

evidence of the Consultant’s qualifications submitted pursuant to ITB
Clauses
10 and 11, as well as other information as the Procuring Entity deems
necessary and appropriate, using a non-discretionary “pass/fail” criterion,
which shall be completed within a period of twelve (12) calendar days.

28.4 If the BAC determines that the Consultant with the Highest Rated Bid passes
all the criteria for post-qualification, it shall declare the said bid as the
Consultant with the HRRB, and recommend to the HoPE the award of
contract to the said Consultant at its submitted price or its calculated bid
price, whichever is lower, subject to ITB Clause 30.3.

28.5 A negative determination shall result in rejection of the Consultant’s bid, in

which event the BAC shall proceed to the next Highest Rated Bid with a fresh
period to make a similar determination of that Consultant’s capabilities to
perform satisfactorily. If the second Consultant, however, fails the post
qualification, the procedure for post qualification shall be repeated for the
Consultant with the next Highest Rated Bid, and so on until the HRRB is
determined for recommendation of contract award.

28.6 Within a period not exceeding fifteen (15) calendar days from the
determination by the BAC of the HRRB and the recommendation to award the
contract, the HoPE or his duly authorized representative shall approve or
disapprove the said recommendation.

28.7 In the event of disapproval, which shall be based on valid, reasonable, and
justifiable grounds as provided for under Section 41 of the IRR of RA 9184,
the HoPE shall notify the BAC and the Consultant in writing of such decision
and the grounds for it. When applicable, the BAC shall conduct negotiations,
and if successful, post-qualification of the Consultant with the next Highest
Rated Bid. A request for reconsideration may be filed by the bidder with the
HoPE in accordance with Section 37.1.3 of the IRR of RA 9184.

29 Reservation Clause

29.1 Notwithstanding the eligibility, short listing, or post-qualification of a

Consultant, the Procuring Entity concerned reserves the right to review its
qualifications at any stage of the procurement process if it has reasonable
grounds to believe that a misrepresentation has been made by the said
Consultant, or that there has been a change in the Consultant’s capability to
undertake this Project from the time it submitted its eligibility requirements.
Should such review uncover any misrepresentation made in the eligibility and
bidding requirements, statements or documents, or any changes in the
situation of the Consultant which will affect its capability to undertake the
project so that it fails the preset eligibility or bid evaluation criteria, the
Procuring Entity shall consider the said Consultant as ineligible and shall
disqualify it from submitting a bid or from obtaining an award or contract.

32
 29.2 Based on the following grounds, the Procuring Entity reserves the right to
reject any and all bids declare a failure of bidding at any time prior to
contract award, or not award the contract without thereby incurring any
liability, and make no assurance that a contract shall be entered into as
a result of the bidding:

(a) If there is prima facie evidence of collusion between appropriate public

officers or employees of the Procuring Entity, or between the BAC and
any of the bidders, or if the collusion is between or among the bidders
themselves, or between a bidder and a third party, including any act
which restricts, suppresses or nullifies or tends to restrict, suppress or
nullify competition;

(b) If the Procuring Entity’s BAC is found to have failed in following the
prescribed bidding procedures; or

(c) For any justifiable and reasonable ground where the award of the
contract will not redound to the benefit of the GoP as follows:

(i) If the physical and economic conditions have significantly changed

so as to render the project no longer economically, financially or
technically feasible as determined by the HoPE;

(ii) If the project is no longer necessary as determined by the HoPE;

and

(iii) If the source of funds for the project has been withheld or
reduced through no fault of the Procuring Entity.

29.3 In addition, the Procuring Entity may likewise declare a failure of bidding
when:

(a) No bids are received;

(b) All prospective bidders are declared ineligible;

(c) All bids fail to comply with all the bid requirements or there is no
successful negotiation, or fail post-qualification; or

(d) The bidder with the HRRB refuses, without justifiable cause to
accept the award of contract, and no award is made in accordance with
Section 40 of the IRR of RA 9184.

F. Award of Contract

30. Contract Award

30.1 Subject to ITB Clause 28, the HoPE or its authorized representative shall
award the contract to the Bidder whose bid has been determined to be the
HRRB.

33
30.2 Prior to the expiration of the period of bid validity, the Procuring Entity shall
notify the successful Consultant in writing that its bid has been accepted,
through a Notice of Award duly received by the Consultant or its
authorized

34
 representative personally or by registered mail or electronically, receipt of
which must be confirmed in writing within two (2) days by the
Consultant with the HRRB and submitted personally or sent by registered
mail or electronically to the Procuring Entity.

30.3 Notwithstanding the issuance of the Notice of Award, award of contract shall
be subject to the following conditions:

(a) Submission of the following documents within the (10) calendar

days from receipt of the Notice of Award:

(i) Valid JVA, if applicable;

(ii) In the case of procurement by a Philippine Foreign Service

Office or Post, the PhilGEPS Registration Number of the
winning foreign consultant; and/or

(iii) SEC Certificate of Registration of the foreign consulting firm,

and/or the authorization or license issued by the appropriate
GoP professional regulatory body of the foreign professionals
engaging in the practice of regulated professions and allied
professions, where applicable.

(b) Posting of the performance security in accordance with ITB Clause 32;

(c) Signing of the contract as provided in ITB Clause 31; and

(d) Approval by higher authority, if required, as provided in Section 37.3

of the IRR of RA 9184.

31. Signing of the Contract

31.1 At the same time as the Procuring Entity notifies the successful Bidder that its
bid has been accepted, the Procuring Entity shall send the Contract Form to
the Bidder, which contract has been provided in the Bidding Documents,
incorporating therein all agreements between the parties.

31.2 Within ten (10) calendar days from receipt of the Notice of Award, the
successful Bidder shall post the required performance security and sign and
date the contract and return it to the Procuring Entity.

31.3 The Procuring Entity shall enter into contract with the successful Bidder
within the same ten (10) calendar day period provided that all the
documentary requirements are complied with.

31.4 The following documents shall form part of the contract:

(1) Contract Agreement;

(2) Bidding Documents;

35
 (3) Winning bidder’s bid, including the Technical and Financial Proposals,
and all other documents/statements submitted (e.g., bidder’s
response to request for clarifications on the bid), including
corrections to the bid, if any, resulting from the Procuring Entity’s bid
evaluation;

(4) Performance Security;

(5) Notice of Award of Contract; and

(6) Other contract documents that may be required by existing laws

and/or specified in the BDS.

32. Performance Security

32.1 Unless otherwise provided in the BDS, to guarantee the faithful performance
by the winning Consultant of its obligations under the contract, it shall post a
performance security within a maximum period of ten (10) calendar days
from the receipt of the Notice of Award from the Procuring Entity and in no
case later than the signing of the contract.

32.2 The performance security shall be denominated in Philippine Pesos and

posted in favor of the Procuring Entity in an amount not less than the
percentage of the total contract price in accordance with the following
schedule:

Amount of Performance Security

Form of Performance Security (As minimum Percentage of the
Total Contract Price)
(a) Cash or cashier’s/manager’s
check issued by a Universal or
Commercial Bank;

For biddings conducted by the

LGUs, the Cashier’s/Manager’s
Check may be issued by other
banks certified by the BSP as
authorized to issue such financial
instrument.

(b) Bank draft/guarantee or

Five percent (5%)
irrevocable letter of credit issued
by a Universal or Commercial
Bank: Provided, however, that it
shall be confirmed or
authenticated by a Universal or
Commercial Bank, if issued by a
foreign bank; and/or

For biddings conducted by the

LGUs, the Bank Draft/
Guarantee or Irrevocable Letter
36
 of Credit may be issued by
other banks certified by the BSP
as authorized to issue such
financial instrument.
(c) Surety bond callable upon
demand issued by a surety or Thirty percent (30%)
insurance company duly certified
by the Insurance Commission as
authorized to issue such security.

32.3 Failure of the successful Consultant to comply with the above-mentioned

requirement shall constitute sufficient ground for the annulment of the award
and forfeiture of the bid security, in which event the Procuring Entity shall
have a fresh period to initiate negotiation and if successful, complete post-
qualification of the second Highest Rated Bid. The procedure shall be
repeated until the HRRB is identified and selected for recommendation of
contract award. However if no Consultant had a successful negotiation or
passed post- qualification, the BAC shall declare the bidding a failure and
conduct a re- bidding with re-advertisement, if necessary.

33. Notice to Proceed

33.1 Within seven (7) calendar days from the date of approval of the contract by
the appropriate government approving authority, the Procuring Entity shall
issue the Notice to Proceed together with copies of the approved contract to
the successful Consultant. All notices called for by the terms of the contract
shall be effective only at the time of receipt thereof by the successful
Consultant.

33.2 The contract effectivity date shall be the date of contract signing. The
Consultant shall commence performance of its obligations only upon receipt
of the Notice to Proceed.

34. Protest Mechanism

Decision of the Procuring Entity at any stage of the procurement process may be
questioned in accordance with Section 55 of the IRR of RA 9184.

37
 Section III. Bid Data Sheet
ITB Clause

1.1 The Procuring Entity is the Securities and Exchange Commission (SEC).

The evaluation procedure is Quality Cost Based Evaluation (QCBE).

1.2 The Funding Source is:

SEC through the authorized appropriations under the FY 2022 Budget of
SEC in the amount of Thirteen Million One Hundred Thousand Pesos
(Php13,100,000.00)
The name of the project is “Consultancy Services for Program to
Institutionalize Meritocracy and Excellence in Human Resource
Management (PRIME-HRM)

1.3 See attached Terms of Reference (TOR).

1.4 The Terms of Reference (TOR) defines the Schedule of Requirements.

6.1 Subcontracting is not allowed.

7.1 SEC will hold a Pre-Bid Conference on March 11, 2022, 10:00 A.M., which the
shortlisted Consultants shall attend.

To reduce the risks and hazards of community transmission of COVID-19, the

BAC shall conduct meetings and conferences via video conferencing until
further notice, or until such time that the state of calamity, or
implementation of community quarantine or similar government restrictions
shall have been lifted by the proper government authorities.

The shortlisted Consultants are advised to log in the BAC virtual (Zoom)
waiting room and wait for further advice to join the BAC meeting room, the
link of which shall be provided to the shortlisted Consultants before the start
of the Pre-Bid Conference.

8.1 The Procuring Entity’s address is:

Securities and Exchange Commission

3/F Secretariat Bldg., PICC Complex
Pasay City

10.1(b) Not applicable

38
10.1(c) The Key Personnel must, at a minimum, have the experience and
capability indicated in the TOR.

10.2 In addition to the TPFs mentioned, the shortlisted Consultants shall submit
the following:

TPF 11 - Statement of all Government and Private Contracts Completed; and

TPF 12 - List of all Ongoing Government and Private Contracts Including

Contracts Awarded but not yet Started

TPF 13 – Statement of Consultant’s Nationality

11.5 Taxes: All proposals shall be inclusive of 12% Value-Added Tax and all
other standard and applicable government taxes.

11.7 The ABC is P13,100,000.00. Any bid with a financial component

exceeding this amount shall not be accepted.

13.1 The bid prices shall be quoted in Philippine Pesos.

13.3 No further instructions.

14.1 Bids will be valid until June 21, 2022.

15.1 The bid security shall be limited to a Bid Securing Declaration or any of the
following forms and amounts:

1. The amount of not less than P262,000.00 (2% of ABC), if bid security is
in cash, cashier’s/manager’s check, bank draft/guarantee or irrevocable
letter of credit; or

2. The amount of not less than P655,000.00 ( 5% of ABC), if bid security is

in Surety Bond.

15.2 The bid security shall be valid until June 21, 2022.

15.5(b)(iii) No further instructions.

17.1 No further instructions.

17.3 The shortlisted Consultants shall submit one copy of the technical and
the financial proposals.

39
18 The address for submission of bids is:

SEC-BAC Secretariat
Procurement Division, Human Resource and Administrative Department
3/F Secretariat Bldg., PICC Complex
Pasay City

The deadline for submission of bids is on March 23, 2022, 10:00 A.M.

21.2 The address for submission of bids is:

SEC-BAC Secretariat
Procurement Division, Human Resource and Administrative Department
3/F Secretariat Bldg., PICC Complex
Pasay City

The deadline for submission of bids is on March 23, 2022, 10:00 A.M.

22.1 No further instructions.

25.1 The following processes for the opening and evaluation of bids shall be
adopted:

a) The technical proposal together with the financial proposal shall be

considered in the ranking of consultants. The technical proposals shall be
evaluated first using the criteria in ITB Clause 25.2. The financial
proposals of the consultants who meet the minimum technical score shall
then be opened.

b) The financial and technical proposals shall be given 15% and 85%
weights, respectively. The BAC shall rank the consultants in descending
order based on the combined numerical ratings of their technical and
financial proposals and identify the Highest Rated Bid.

c) The HoPE shall approve or disapprove the recommendations of the BAC

within two (2) calendar days after receipt of the results of the evaluation
from the BAC.

d) After approval by the HoPE of the Highest Rated Bid, the BAC shall,
within three (3) calendar days, notify and invite the consultant with the
Highest Rated Bid for negotiation in accordance with ITB Clause 27.

40
25.3 For the evaluation of the Technical Proposal, the following numerical weight
and the minimum required points for each criterion shall be used:

 Applicable experience of the Firm (40 points);

 Qualification of principal and key staff of the Firm who may be
assigned to the job vis-à-vis extent and complexity of the undertaking
(40 points); and
 Current Workload (20 points)

The minimum points required to pass is 70 points/100 points.

Technical Rating Criteria
Criteria SCORE
1. Applicable experience of the Firm 40
With proven track record in conducting organizational
assessment with clients from private and government
sectors
More than 15 years
More than 10 years to 15 years
More than 7 years to 10 years
5 years to 7 years
2. Qualification of principal and key staff of the Firm who 40
may be assigned to the job vis-à-vis extent and
complexity of the undertaking
2.1 Team Leader
2.1.1 Professional Experience
More than 15 years of conducting organizational
assessment as a team leader
10 to 15 years of conducting organizational
assessment as a team leader
Less than 10 years of audit experience as a lead
auditor
2.1.2 Education Qualification
Post-graduate Degree
Master’s Degree
2.1.3 Prior engagements in conducting
organizational assessment
3 to 4 active and completed relevant projects
1 to 2 active and completed relevant projects
2.2 Team Members
2.2.1 Professional Experience
More than 10 years of conducting organizational
assessment
5 to 10 years of conducting organizational
assessment
Less than 5 years of conducting organizational
assessment
2.2.2 Trainings Attended/Conducted Relevant to
Organizational Assessment and PRIME-HRM1
More than 80 hours of relevant training

41
 40 to 80 hours of relevant training
Less than 40 hours of relevant training
2.2.3 Educational Qualification
Post-Graduate Degree
Master’s Degree
Bachelor’s Degree
2.2.4 Prior engagements in conducting
organizational assessment
3 to 4 active and completed relevant projects
1 to 2 active and completed relevant projects
3. Current Workload 20
3.1 Positive Feedback
Work Acceptance Report/Certification by previous client
or any equivalent document
3.2 Overall Work Commitment2
Higher than 1.5 ratio (number of consultants divide
ongoing projects)
Between 1.0 and 1.5 ratio (number of consultants divide
ongoing projects)
Between 0.5 and 1.0 ratio (number of consultants divide
ongoing projects)
Lower than 0.5 ratio (number of consultants divide
ongoing projects)
TOTAL SCORE 100
26.1 The opening of Financial Proposals shall be within three (3) days from
notification of Consultant passing the minimum qualifying mark for technical
proposals at the Department of Budget and Management, Bids and Awards
Committee, Ground Floor, DBM Building III, General Solano St., San Miguel,
Manila.
26.2 After the evaluation of quality is completed, the Procuring Entity shall notify
those Consultants whose Bids did not meet the minimum qualifying mark or
were considered non-responsive to the Bidding Documents and TOR,
indicating that their Financial Proposals shall be returned unopened after
completing the selection process. The Procuring Entity shall simultaneously
notify the Consultants that have passed the minimum qualifying mark,
indicating the date and time set for opening the Financial Proposals. The
opening date shall be within three (3) days from notification date. The
notification may be sent by registered letter, facsimile, or electronic mail.

The Financial Proposals shall be opened publicly in the presence of the

Consultants’ representatives who choose to attend. The name of the
Consultant, the quality scores, and the proposed prices shall be read aloud
and recorded when the Financial Proposals are opened. The Procuring Entity
shall prepare minutes of the public opening.

42
 The BAC shall determine whether the Financial Proposals are complete, i.e.,
whether all the documents mentioned in ITB Clause 11 are present and all
items of the corresponding Technical Proposals that are required to be
priced are so priced. If not, the Procuring Entity shall reject the proposal.
The BAC shall correct any computational errors. The Financial Proposal shall
not exceed the ABC and shall be deemed to include the cost of all taxes,
duties, fees, levies, and other charges imposed under the applicable laws.
The evaluation shall include all such taxes, duties, fees, levies, and other
charges imposed under the applicable laws; where special tax privileges
are granted to a particular class or nationality of Consultant by virtue of the
GoP’s international commitments, the amount of such tax privileges shall be
included in the Financial Proposal for purposes of comparative evaluation of
Bids.

The lowest Financial Proposal (Fl) shall be given a Financial Score (Sf) of 100
points. The Sf of other Financial Proposals shall be computed based on the
formula indicated below:
Sf = 100 🞨 Fl/F

Where:

Sf is the financial score of the Financial Proposal under

consideration, Fl is the lowest Financial Proposal, and

F is the Financial Proposal under consideration.

Using the formula S = St 🞨 T% + Sf 🞨 F%, the Bids shall then be ranked

according to their combined St and Sf using the weights (St is the technical
score of the Technical Proposal under consideration; T = the weight given to
the Technical Proposal; F = the weight given to the Financial Proposal; T +
F
= 1) indicated below:

T 0.85; and

F 0.15;

provided that the total weights given to the Technical and Financial
Proposals shall add up to 1.0.
27.1 The address for negotiations is -

Securities and Exchange Commission

Bids and Awards Committee
Secretariat Bldg., PICC Complex, Roxas
Blvd., Pasay City

43
28.2 The following shall be submitted within a non-extendible period of five (5)
calendar days from receipt by the Consultant of the notice that it
submitted the Highest/Single Rated Bid:

Latest Income and Business Tax Returns, filed and paid through the
Electronic Filing and Payments System (EFPS), consisting of the following:

- 2020 Income Tax Return with proof of payment; and

- VAT Returns (Form 2550M and 2550Q) or Percentage Tax Returns
(2551M) with proof of payment covering the months from November
2020 to April 2021.

* In case the notice for the submission of post-qualification documents is

sent via the bidder’s email, it shall be considered as received by the bidder
on the date and time the email was sent, whether or not the bidder
acknowledged the said email. It shall be the bidder’s responsibility to check
its/his/her email for the purpose.

31.4.6 No additional requirement.

32.1 No further instructions.

32.2 In accordance with item 6.4 of GPPB Resolution No. 09-2020, a Performance
Securing Declaration (PSD) shall be accepted in lieu of a performance
security to guarantee the winning bidder’s faithful performance of
obligations under the contract, subject to the following:

a. Similar to the PSD used in Framework Agreement, such declaration

shall state, among others, that the winning bidder shall be blacklisted
from being qualified to participate in any government procurement
activity for one (1) year, in case of first offense or two (2) years, if with
prior similar offense, in the event it violates any of the conditions
stated in the contract;

b. An unnotarized PSD may be accepted, subject to submission of a

notarized PSD before payment, unless the same is replaced with a
performance security in the prescribed form, as stated below; and

c. The end-user may require the winning bidder to replace the submitted
PSD with a performance security in any of the prescribed forms under
Section 39.2 of the 2016 Revised IRR of RA No. 9184 upon lifting of the
State of the Calamity, or community quarantine or similar restriction,
as the case may be.

44
 Section IV. General Conditions of Contract

TABLE OF CONTENTS

1. DEFINITIONS....................................................................................................48

2. HEADINGS........................................................................................................49

3. LOCATION........................................................................................................49

4. LAW GOVERNING CONTRACT AND SERVICES.....................................................49

5. LANGUAGE.......................................................................................................50
6. CONSULTANTS AND AFFILIATES NOT TO ENGAGE IN CERTAIN
ACTIVITIES......................................................................................................50
7. AUTHORITY OF MEMBER IN CHARGE.................................................................50

8. RESIDENT PROJECT MANAGER..........................................................................50

9. ENTIRE AGREEMENT.........................................................................................50

10. MODIFICATION.................................................................................................51

11. RELATIONSHIP OF PARTIES...............................................................................51

12. AUTHORIZED REPRESENTATIVES.......................................................................51

13. GOOD FAITH....................................................................................................51

14. OPERATION OF THE CONTRACT.........................................................................51

15. NOTICES..........................................................................................................51

16. WARRANTY AS TO ELIGIBILITY..........................................................................52

17. CONFIDENTIALITY............................................................................................52

18. PAYMENT.........................................................................................................52

19. CURRENCY OF PAYMENT...................................................................................53

20. LIABILITY OF THE CONSULTANT........................................................................53

21. INSURANCE TO BE TAKEN OUT BY THE CONSULTANT.........................................53

22. EFFECTIVITY OF CONTRACT..............................................................................53

23. COMMENCEMENT OF SERVICES.........................................................................53

24. EXPIRATION OF CONTRACT...............................................................................53

25. FORCE MAJEURE..............................................................................................53

26. SUSPENSION....................................................................................................55

27. TERMINATION BY THE PROCURING ENTITY.......................................................55

45
28. TERMINATION BY THE CONSULTANT.................................................................56

29. PROCEDURES FOR TERMINATION OF CONTRACTS.............................................57

30. CESSATION OF SERVICES.................................................................................58

31. PAYMENT UPON TERMINATION.........................................................................58

32. DISPUTES ABOUT EVENTS OF TERMINATION.....................................................58

33. CESSATION OF RIGHTS AND OBLIGATIONS.......................................................58

34. DISPUTE SETTLEMENT.....................................................................................59

35. DOCUMENTS PREPARED BY THE CONSULTANT AND SOFTWARE
DEVELOPED TO BE THE PROPERTY OF THE PROCURING ENTITY........................59
36. EQUIPMENT AND MATERIALS FURNISHED BY THE PROCURING ENTITY. 59

37. SERVICES, FACILITIES AND PROPERTY OF THE PROCURING ENTITY...................59

38. CONSULTANT’S ACTIONS REQUIRING PROCURING ENTITY’S PRIOR APPROVAL...60

39. PERSONNEL.....................................................................................................60

40. WORKING HOURS, OVERTIME, LEAVE, ETC........................................................61

41. COUNTERPART PERSONNEL..............................................................................62

42. PERFORMANCE SECURITY.................................................................................62

43. STANDARD OF PERFORMANCE..........................................................................63

44. CONSULTANT NOT TO BENEFIT FROM COMMISSIONS, DISCOUNTS,

ETC.................................................................................................................63
45. PROCUREMENT BY THE CONSULTANT...............................................................64

46. SPECIFICATIONS AND DESIGNS........................................................................64

47. REPORTS.........................................................................................................64
48. ASSISTANCE BY THE PROCURING ENTITY ON GOVERNMENT
REQUIREMENTS...............................................................................................64
49. ACCESS TO LAND.............................................................................................65

50. SUBCONTRACT.................................................................................................65

51. ACCOUNTING, INSPECTION AND AUDITING.......................................................65

52. CONTRACT COST..............................................................................................66

53. REMUNERATION AND REIMBURSABLE EXPENDITURES........................................66

54. FINAL PAYMENT................................................................................................67

55. LUMP SUM CONTRACTS.....................................................................................68

56. LIQUIDATED DAMAGES FOR DELAY....................................................................68

46
1. Definitions

1.1 Unless the context otherwise requires, the following terms whenever used
in this Contract have the following meanings:

(a) “Applicable Law” means the laws and any other instruments having
the force of law in the Philippines as they may be issued and enforced
from time to time.

(b) “Consultant” refers to the shortlisted consultant with the HRRB

determined by the Procuring Entity as such in accordance with the
ITB.

(c) “Consulting Services” refer to services for Infrastructure Projects and

other types of projects or activities of the Government of the
Philippines (GoP) requiring adequate external technical and
professional expertise that are beyond the capability and/or capacity
of the Procuring Entity to undertake such as, but not limited to: (i)
advisory and review services; (ii) pre-investment or feasibility studies;
(iii) design; (iv) construction supervision; (v) management and related
services; and (vi) other technical services or special studies.

(d) “Contract” means the agreement signed by the Parties, to which these
General Conditions of Contract (GCC) and other sections of the
Bidding Documents are attached.

(e) “Effective Date” means the date on which this Contract comes into full
force and effect.

(f) “Foreign Currency” means any currency other than the currency of the
Philippines.

(g) “Funding Source” means the entity indicated in the SCC.

(h) “GCC” means these General Conditions of Contract.

(i) “Government” means the Government of the Philippines (GoP).

(j) “Local Currency” means the Philippine Peso (Php).

(k) “Member,” in case the Consultant is a Joint Venture (JV) of two (2) or
more entities, means any of these entities; and “Members” means all
these entities.

(l) “Party” means the Procuring Entity or the Consultant, as the case may
be, and “Parties” means both of them.

(m) “Personnel” means persons hired by the Consultant or by any

Subconsultant as employees and assigned to the performance of the
Services or any part thereof; “Foreign Personnel” means such persons
who at the time of being so hired had their domicile outside the
Government’s country; “Local Personnel” means such persons who at
47
 the time of being so hired had their domicile inside the Philippines;
and “Key Personnel” means the Personnel referred to in GCC Clause
39.

(n) “Procuring Entity” refers to any branch, constitutional commission or

office, agency, department, bureau, office or instrumentality of the
Government, including GOCC, GFI, SUC, LGU, and autonomous
regional government procuring Goods, Consulting Services, and
Infrastructure Projects.

(o) “SCC” means the Special Conditions of Contract by which the GCC
may be amended or supplemented.

(p) “Services” means the work to be performed by the Consultant

pursuant to this Contract, as described in Appendix I.

(q) “Subconsultant” means any person or entity to whom/which the

Consultant subcontracts any part of the Services in accordance with
the provisions of GCC Clause 50.

(r) “Third Party” means any person or entity other than the Government,
the Procuring Entity, the Consultant or a Subconsultant.

2. Headings

The headings shall not limit, alter or affect the meaning of this Contract.

3. Location

The Services shall be performed at such locations as are specified in Appendix I and,
where the location of a particular task is not so specified, at such locations, whether
in the Philippines or elsewhere, as the Procuring Entity may approve.

4. Law Governing Contract and Services

4.1 This Contract, its meaning and interpretation, and the relation between the
Parties shall be governed by the Applicable Law.

4.2 The Consultant shall perform the Services in accordance with the Applicable
Law and shall take all practicable steps to ensure that any Subconsultant, as
well as the Personnel of the Consultant and any Subconsultant, complies with
the Applicable Law. The Procuring Entity shall notify the Consultant in writing
of relevant local customs, and the Consultant shall, after such notification,
respect such customs.

4.3 If, after the date of this Contract, there is any change in the Applicable Law
with respect to taxes and duties which increases or decreases the cost
incurred by the Consultant in performing the Services, then the remuneration
and reimbursable expenses otherwise payable to the Consultant under this
Contract shall be increased or decreased on a no loss-no gain basis, and
corresponding adjustments shall be made to the ceiling amounts specified in
GCC Clause 52, provided that the cost is within the Approved Budget for the
48
Contract (ABC).

49
5. Language

This Contract has been executed in the English language, which shall be the binding
and controlling language for all matters relating to the meaning or interpretation of
this Contract.

6. Consultants and Affiliates Not to Engage in Certain Activities

6.1 The Consultant agrees that, during the term of this Contract and after its
termination, the Consultant and any entity affiliated with the Consultant, as
well as any Subconsultant and any entity affiliated with such Subconsultant,
shall be disqualified from providing goods, works, or consulting services for
any project resulting from or closely related to this Contract other than the
Services and any continuation thereof provided there is no current or future
conflict.

6.2 The Consultant shall not engage, and shall cause their Personnel as well as
their Subconsultants and their Personnel not to engage, either directly or
indirectly, in any of the following activities:

(a) during the term of this Contract, any business or professional activities
in the Government’s country which would conflict with the activities
assigned to them under this Contract; and

(b) after the termination of this Contract, such other activities as may be
specified in the SCC.

7. Authority of Member in Charge

In case the Consultant is a JV, the Members hereby authorize the entity specified
in the SCC to act on their behalf in exercising all the Consultant’s rights and
obligations towards the Procuring Entity under this Contract, including without
limitation the receiving of instructions and payments from the Procuring Entity.

8. Resident Project Manager

If required by the SCC, the Consultant shall ensure that at all times during the
Consultant’s performance of the Services in the Government’s country, a resident
project manager, acceptable to the Procuring Entity, shall take charge of the
performance of such Services.

9. Entire Agreement

This Contract, including the documents specified in Section 37.2.3 of the IRR of RA
9184, contains all covenants, stipulations and provisions agreed by the Parties. No
agent or representative of either Party has authority to make any statement,
representation, promise, or agreement not set forth herein of which the Parties
shall not be bound by or be liable for.

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10. Modification

Unless otherwise specified in the SCC, no modification of the terms and conditions of
this Contract, including any modification of the scope of the Services shall be
allowed. Pursuant to GCC Clause 14 hereof, however, each Party shall give due
consideration to any proposal for modification made by the other Party.

11. Relationship of Parties

11.1 Nothing contained herein shall be construed as establishing a relation of

employer and employee or of principal and agent as between the Procuring
Entity and the Consultant. The Consultant, subject to this Contract, has
complete charge of its Personnel and Subconsultants, if any, performing the
Services and shall be fully responsible for the Services performed by them or
on their behalf hereunder.

11.2 The Consultant shall during the performance of the Services be an

independent contractor, retaining complete control over its Personnel,
conforming to all statutory requirements with respect to all its employees,
and providing all appropriate employee benefits.

12. Authorized Representatives

Any action required or permitted to be taken, and any document required or

permitted to be executed, under this Contract by the Procuring Entity or the
Consultant may be taken or executed by the officials specified in the SCC.

13. Good Faith

The Parties undertake to act in good faith with respect to each other’s rights under
this Contract and to adopt all reasonable measures to ensure the realization of the
objectives of this Contract.

14. Operation of the Contract

The Parties recognize that it is impractical for this Contract to provide for every
contingency which may arise during the life of this Contract, and the Parties hereby
agree that it is their intention that this Contract shall operate fairly as between them,
and without detriment to the interest of either of them; and that, if during the term
of this Contract either Party believes that this Contract is operating unfairly, the
Parties shall use their best efforts to agree on such action as may be necessary to
remove the cause or causes of such unfairness, but no failure to agree on any action
pursuant to this Clause shall give rise to a dispute subject to arbitration in
accordance with GCC Clause 34 hereof.

15. Notices

15.1 Any notice, request or consent required or permitted to be given or made

pursuant to this Contract shall be in writing. Any such notice, request or
consent shall be deemed to have been given or made when received by the
concerned party, either in person or through an authorized representative
of
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 the Party to whom the communication is addressed, or when sent by
registered mail, telex, telegram or facsimile to such Party at the address
specified in the SCC.

15.2 Notice shall be deemed to be effective as specified in the SCC.

15.3 A Party may change its address for notice hereunder by giving the other Party
notice of such change pursuant to the provisions listed in the SCC with
respect to GCC Clause 15.2.

16. Warranty as to Eligibility

16.1 The Consultant represents, warrants, and confirms that it, as well as its
Subconsultant, if any, is eligible, i.e., has the legal personality to act as a
consultant in accordance with Part I, Section II. Eligibility Documents issued
for this project.

16.2 The Consultant shall fulfill its obligations under this Contract by using
knowledge according to the best accepted professional standards. The
Consultant shall exercise all reasonable skill, care and diligence in the
discharge of duties agreed to be performed and shall work in the best
interest of the GoP.

17. Confidentiality

Except with the prior written consent of the Procuring Entity, the Consultant and the
Personnel shall not at any time communicate to any person or entity any confidential
information acquired in the course of the Services, nor shall the Consultant and the
Personnel make public the recommendations formulated in the course of, or as a
result of, the Services. For purposes of this clause, “confidential information” means
any information or knowledge acquired by the Consultant and/or its Personnel arising
out of, or in connection with, the performance of the Services under this Contract
that is not otherwise available to the public.

18. Payment

18.1 In consideration of the Services performed by the Consultant under this

Contract, the Procuring Entity shall make to the Consultant such payments
and in such manner as is provided by GCC Clause 53 of this Contract.
However, the Procuring Entity may refuse to make payments when the terms
and conditions of the contract are not satisfactorily performed by the
Consultant.

18.2 Subject to the ceilings specified in GCC Clause 52 hereof, the Procuring
Entity shall pay to the Consultant: (i) remuneration as set forth in GCC Clause
53.2; and (ii) reimbursable expenditures as set forth in GCC Clause 53.4.
Said remuneration shall not be subject to price adjustment.

18.3 All payments under this Contract shall be made to the account of the
Consultant specified in the SCC.

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19. Currency of Payment

Unless otherwise specified in the SCC, all payments shall be made in Philippine
Pesos.

20. Liability of the Consultant

Subject to additional provisions, if any, set forth in the SCC, the Consultant’s liability
under this Contract shall be as provided by the laws of the Republic of the
Philippines.

21. Insurance to be Taken Out by the Consultant

21.1 The Consultant, at its own cost, shall be responsible for taking out or
maintaining any insurance policy against any risk related to the project.

21.2 The Procuring Entity undertakes no responsibility in respect of life, health,

accident, travel or any other insurance coverage for the Personnel or for the
dependents of any such Personnel.

22. Effectivity of Contract

The contract effectivity date shall be the date of contract signing, provided that the
effectiveness of the conditions, if any, listed in the SCC have been met.

23. Commencement of Services

The Consultant shall begin carrying out the Services starting from the effectivity date
of this Contract, as mentioned in GCC Clause 22.

24. Expiration of Contract

Unless sooner terminated pursuant to GCC Clauses 27 or 28 hereof, this Contract

shall terminate at the end of such time period after the effectivity date as shall be
specified in the SCC.

25. Force Majeure

25.1 For purposes of this Contract the terms “force majeure” and “fortuitous
event” may be used interchangeably. In this regard, a fortuitous event or
force majeure shall be interpreted to mean an event which the Consultant
could not have foreseen, or which though foreseen, was inevitable. It shall
not include ordinary unfavorable weather conditions; and any other cause the
effects of which could have been avoided with the exercise of reasonable
diligence by the Consultant.

25.2 The failure of a Party to fulfill any of its obligations hereunder shall not be
considered to be a breach of, or default under, this Contract insofar as such
inability arises from an event of force majeure, provided that the Party
affected by such an event has taken all reasonable precautions, due care
and

53
 reasonable alternative measures, all with the objective of carrying out the
terms and conditions of this Contract.

25.3 Unless otherwise agreed herein, force majeure shall not include:

(a) any event which is caused by the negligence or intentional action of a

Party or such Party’s Subconsultants or agents or employees;

(b) any event which a diligent Party could reasonably have been expected
to both take into account at the time of the conclusion of this Contract
and avoid or overcome in the carrying out of its obligations
hereunder;

(c) insufficiency of funds or failure to make any payment required

hereunder; or

(d) the Procuring Entity’s failure to review, approve or reject the

outputs of the Consultant beyond a reasonable time period.

25.4 A Party affected by an event of force majeure shall take all reasonable
measures to remove such Party’s inability to fulfill its obligations hereunder
immediately or within a reasonable time.

25.5 A Party affected by an event of force majeure shall notify the other Party of
such event as soon as possible, and in any event not later than fifteen (15)
days following the occurrence of such event, providing evidence of the nature
and cause of such event, and shall similarly give notice of the restoration of
normal conditions as soon as possible.

25.6 The Parties shall take all reasonable measures to minimize the
consequences of any event of force majeure.

25.7 Any period within which a Party shall, pursuant to this Contract, complete any
action or task, shall be extended for a period equal to the time during which
such Party was unable to perform such action as a direct and proximate
result of force majeure.

25.8 During the period of their inability to perform the Services as a direct and
proximate result of an event of force majeure, the Consultant shall be entitled
to continue receiving payment under the terms of this Contract as well as to
be reimbursed for additional costs reasonably and necessarily incurred by it
during such period for the purposes of the Services and in reactivating the
Services after the end of such period, provided that such costs are still within
the total contract price. However, the foregoing provision shall not apply if
the Procuring Entity suspends or terminates this Contract in writing, notice
thereof duly received by the Consultant, pursuant to GCC Clauses 26 and 27
hereof with the exception of the direct and proximate result of force majeure.

25.9 Not later than fifteen (15) days after the Consultant, as the direct and
proximate result of an event of force majeure, has become unable to perform
a material portion of the Services, the Parties shall consult with each other
with a view to agreeing on appropriate measures considering the
circumstances.
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 25.10 In the case of disagreement between the parties as to the existence, or
extent of force majeure, the matter shall be submitted to arbitration in
accordance with GCC Clause 34 hereof.

26. Suspension

26.1 The Procuring Entity shall, by written notice of suspension to the Consultant,
suspend all payments to the Consultant hereunder if the Consultant fail to
perform any of their obligations due to their own fault or due to force
majeure or other circumstances beyond the control of either party ( e.g.
suspension of civil works being supervised by the consultant) under this
Contract, including the carrying out of the Services, provided that such notice
of suspension:

(a) shall specify the nature of the failure; and

(b) shall request the Consultant to remedy such failure within a period not
exceeding thirty (30) days after receipt by the Consultant of such
notice of suspension.

26.2 The Consultant may, without prejudice to its right to terminate this Contract
pursuant to GCC Clause 28, by written notice of suspension, suspend the
Services if the Procuring Entity fails to perform any of its obligations which
are critical to the delivery of the Consultant’s services such as, non-
payment of any money due the Consultant within forty-five (45) days after
receiving notice from the Consultant that such payment is overdue.

27. Termination by the Procuring Entity

27.1 The Procuring Entity shall terminate this Contract when any of the following
conditions attends its implementation:

(a) Outside of force majeure, the Consultant fails to deliver or perform

the Outputs and Deliverables within the period(s) specified in the
Contract, or within any extension thereof granted by the Procuring
Entity pursuant to a request made by the Consultant prior to the
delay;

(b) As a result of force majeure, the Consultant is unable to deliver or

perform a material portion of the Outputs and Deliverables for a
period of not less than sixty (60) calendar days after the Consultant’s
receipt of the notice from the Procuring Entity stating that the
circumstance of force majeure is deemed to have ceased;

(c) In whole or in part, at any time for its convenience, the HoPE may
terminate the Contract for its convenience if he has determined the
existence of conditions that make Project Implementation
economically, financially or technically impractical and/or
unnecessary, such as, but not limited to, fortuitous event(s) or
changes in law and National Government policies;

55
(d) If the Consultant is declared bankrupt or insolvent as determined with
finality by a court of competent jurisdiction; in which event,

56
 termination will be without compensation to the Consultant, provided
that such termination will not prejudice or affect any right of action or
remedy which has accrued or will accrue thereafter to the Procuring
Entity and/or the Consultant;

(e) In case it is determined prima facie that the Consultant has engaged,
before or during the implementation of this Contract, in unlawful
deeds and behaviors relative to contract acquisition and
implementation, such as, but not limited to, the following: corrupt,
fraudulent, collusive, coercive, and obstructive practices; drawing up
or using forged documents; using adulterated materials, means or
methods, or engaging in production contrary to rules of science or
the trade; and any other act analogous to the foregoing. For
purposes of this clause, corrupt, fraudulent, collusive, coercive, and
obstructive practices shall have the same meaning as that provided in
ITB Clause 3.1(a):

(f) The Consultant fails to remedy a failure in the performance of their

obligations hereunder, as specified in a notice of suspension
pursuant to GCC Clause 15.2 hereinabove, within thirty (30) days of
receipt of such notice of suspension or within such further period as
the Procuring Entity may have subsequently approved in writing;

(g) The Consultant’s failure to comply with any final decision reached as a
result of arbitration proceedings pursuant to GCC Clause 34 hereof; or

(h) The Consultant fails to perform any other obligation under the
Contract.

27.2 In case of termination, written notice shall be understood to mean fifteen

(15) days for short term contracts, i.e., four (4) months or less, and thirty
(30) days for long term contracts.

28. Termination by the Consultant

The Consultant must serve a written notice to the Procuring Entity of its intention to
terminate this Contract at least thirty (30) calendar days before its intended
termination. This Contract is deemed terminated if no action has been taken by the
Procuring Entity with regard to such written notice within thirty (30) calendar days
after the receipt thereof by the Procuring Entity. The Consultant may terminate this
Contract through any of the following events:

(a) The Procuring Entity is in material breach of its obligations pursuant to this
Contract and has not remedied the same within sixty (60) calendar days
following its receipt of the Consultant’s notice specifying such breach;

(b) The Procuring Entity’s failure to comply with any final decision reached as a
result of arbitration pursuant to GCC Clause 34 hereof

(c) As the direct and proximate result of force majeure, the Consultant is unable
to perform a material portion of the Services for a period of not less than
sixty

57
(60) days; or

58
 (d) The Procuring Entity fails to pay any money due to the Consultant pursuant
to this Contract and not subject to dispute pursuant to GCC Clause 32 hereof
within eighty four (84) days after receiving written notice from the Consultant
that such payment is overdue.

29. Procedures for Termination of Contracts

The following provisions shall govern the procedures for the termination of
this Contract:

(a) Upon receipt of a written report of acts or causes which may constitute
ground(s) for termination as aforementioned, or upon its own initiative, the
Procuring Entity shall, within a period of seven (7) calendar days, verify the
existence of such ground(s) and cause the execution of a Verified Report,
with all relevant evidence attached;

(b) Upon recommendation by the Procuring Entity, the HoPE shall terminate this
Contract only by a written notice to the Consultant conveying such
termination. The notice shall state:

(i) that the contract is being terminated for any of the ground(s) afore-
mentioned, and a statement of the acts that constitute the ground(s)
constituting the same;

(ii) the extent of termination, whether in whole or in part;

(iii) an instruction to the Consultant to show cause as to why the contract

should not be terminated; and

(iv) special instructions of the Procuring Entity, if any.

The Notice to Terminate shall be accompanied by a copy of the Verified

Report;

(c) Within a period of seven (7) calendar days from receipt of the Notice of
Termination, the Consultant shall submit to the HoPE a verified position paper
stating why this Contract should not be terminated. If the Consultant fails to
show cause after the lapse of the seven (7) day period, either by inaction or
by default, the HoPE shall issue an order terminating this Contract;

(d) The Procuring Entity may, at any time before receipt of the Consultant’s
verified position paper to withdraw the Notice to Terminate if it is determined
that certain services subject of the notice had been completed or performed
before the Consultant’s receipt of the notice;

(e) Within a non-extendible period of ten (10) calendar days from receipt of the
verified position paper, the HoPE shall decide whether or not to terminate this
Contract. It shall serve a written notice to the Consultant of its decision and,
unless otherwise provided, this Contract is deemed terminated from receipt of
the Consultant of the notice of decision. The termination shall only be based
on the ground(s) stated in the Notice to Terminate; and

59
 (f) The HoPE may create a Contract Termination Review Committee (CTRC) to
assist him in the discharge of this function. All decisions recommended by the
CTRC shall be subject to the approval of the HoPE.

30. Cessation of Services

Upon termination of this Contract by notice of either Party to the other pursuant to
GCC Clauses 27 or 28 hereof, the Consultant shall, immediately upon dispatch or
receipt of such notice, take all necessary steps to bring the Services to a close in a
prompt and orderly manner and shall make every reasonable effort to keep
expenditures for this purpose to a minimum. With respect to documents prepared by
the Consultant and equipment and materials furnished by the Procuring Entity, the
Consultant shall proceed as provided, respectively, by GCC Clauses 35 or 36 hereof.

31. Payment Upon Termination

Upon termination of this Contract pursuant to GCC Clauses 27 or 28 hereof, the

Procuring Entity shall make the following payments to the Consultant:

(a) remuneration pursuant to GCC Clause 53 hereof for Services satisfactorily

performed prior to the effective date of termination;

(b) reimbursable expenditures pursuant to GCC Clause 53 hereof for

expenditures actually incurred prior to the effective date of termination; and

(c) in the case of termination pursuant to GCC Clause 27(b) hereof,

reimbursement of any reasonable cost incident to the prompt and orderly
termination of this Contract including the cost of the return travel of the
Personnel and their eligible dependents.

32. Disputes about Events of Termination

If either Party disputes whether an event specified in GCC Clause 27.1 or in GCC
Clause 28 hereof has occurred, such Party may refer the matter to arbitration
pursuant to GCC Clause 34 hereof, and this Contract shall not be terminated on
account of such event except in accordance with the terms of any resulting arbitral
award.

33. Cessation of Rights and Obligations

Upon termination of this Contract pursuant to GCC Clauses 27 or 28 hereof, or upon

expiration of this Contract pursuant to GCC Clause 24, all rights and obligations of
the Parties hereunder shall cease, except:

(a) such rights and obligations as may have accrued on the date of termination
or expiration;

(b) the obligation of confidentiality set forth in GCC Clause 17 hereof; and

(c) the Consultant’s obligation to permit inspection, copying and auditing of their
accounts and records set forth in GCC Clauses 51(b) and 51(c) hereof, any
right which a Party may have under the Applicable Law.
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34. Dispute Settlement

34.1 If any dispute or difference of any kind whatsoever shall arise between the
Parties in connection with the implementation of this Contract, the Parties
shall make every effort to resolve amicably such dispute or difference by
mutual consultation.

34.2 Any and all disputes arising from the implementation of this Contract shall be
submitted to arbitration in accordance with the rules of procedure specified in
the SCC.

35. Documents Prepared by the Consultant and Software Developed to be

the Property of the Procuring Entity

35.1 All plans, drawings, specifications, designs, reports, other documents and
software prepared by the Consultant for the Procuring Entity under this
Contract shall become and remain the property of the Procuring Entity, and
the Consultant shall, prior to termination or expiration of this Contract, deliver
all such documents to the Procuring Entity, together with a detailed inventory
thereof. The Consultant may retain a copy of such documents and software.
The plans, drawings, specifications, designs, reports, other documents and
software, including restrictions on future use of such documents and
software, if any, shall be specified in the SCC.

35.2 All computer programs developed by the Consultant under this Contract shall
be the sole and exclusive property of the Procuring Entity; provided,
however, that the Consultant may use such programs for its own use with
prior written approval of the Procuring Entity. If license agreements are
necessary or appropriate between the Consultant and third parties for
purposes of development of any such computer programs, the Consultant
shall obtain the Procuring Entity’s prior written approval to such agreements.
In such cases, the Procuring Entity shall be entitled at its discretion to require
recovering the expenses related to the development of the program(s)
concerned.

36. Equipment and Materials Furnished by the Procuring Entity

Equipment and materials made available to the Consultant by the Procuring Entity, or
purchased by the Consultant with funds provided by the Procuring Entity, shall be
the property of the Procuring Entity and shall be marked accordingly. Upon
termination or expiration of this Contract, the Consultant shall make available to the
Procuring Entity an inventory of such equipment and materials and shall dispose of
such equipment and materials in accordance with the Procuring Entity’s
instructions. While in possession of such equipment and materials, the Consultant,
unless otherwise instructed by the Procuring Entity in writing, shall insure it at the
expense of the Procuring Entity in an amount equal to their full replacement value.

37. Services, Facilities and Property of the Procuring Entity

The Procuring Entity shall make available to the Consultant and the Personnel, for
the purposes of the Services and free of any charge, the services, facilities and
property

61
 described in Appendix V at the terms and in the manner specified in said appendix,
provided that if such services, facilities and property shall not be made available to
the Consultant as and when so specified, the Parties shall agree on:

(a) any time extension that it may be appropriate to grant to the Consultant for
the performance of the Services;

(b) the manner in which the Consultant shall procure any such services, facilities
and property from other sources; and

(c) the additional payments, if any, to be made to the Consultant as a result

thereof pursuant to GCC Clause 52 hereinafter which should be within the
agreed contract ceiling.

38. Consultant’s Actions Requiring Procuring Entity’s Prior Approval

The Consultant shall obtain the Procuring Entity’s prior approval in writing before
taking any of the following actions:

(a) appointing such members of the Personnel as are listed in Appendix III
merely by title but not by name;

(b) entering into a subcontract for the performance of any part of the Services, it
being understood that:

(i) the selection of the Subconsultant and the terms and conditions of the
subcontract shall have been approved in writing by the Procuring
Entity prior to the execution of the subcontract; and

(ii) the Consultant shall remain fully liable for the performance of the
Services by the Subconsultant and its Personnel pursuant to this
Contract;

(c) replacement, during the performance of the contract for any reason, of any
Personnel as listed in Appendix III of this Contract requiring the Procuring
Entity’s prior approval; and

(d) any other action that may be specified in the SCC.

39. Personnel

39.1 The Consultant shall employ and provide such qualified and experienced
Personnel and Subconsultants as are required to carry out the Services.

39.2 The title, agreed job description, minimum qualification and estimated period
of engagement in the carrying out of the Services of each of the Consultant’s
Key Personnel are described in Appendix III.

39.3 The Key Personnel and Subconsultants listed by title as well as by name in
Appendix III are hereby approved by the Procuring Entity. In respect of other
Key Personnel which the Consultant proposes to use in the carrying out of the
Services, the Consultant shall submit to the Procuring Entity for review
62
and

63
 approval a copy of their biographical data and, in the case of Key Personnel
to be assigned within the GoP, a copy of a satisfactory medical certificate
attached as part of Appendix III. If the Procuring Entity does not object in
writing; or if it objects in writing but fails to state the reasons for such
objection, within twenty-one (21) calendar days from the date of receipt of
such biographical data and, if applicable, such certificate, the Key Personnel
concerned shall be deemed to have been approved by the Procuring Entity.

39.4 The Procuring Entity may request the Consultants to perform additional
services not covered by the original scope of work but are determined by the
Procuring Entity to be critical for the satisfactory completion of the Services,
subject to GCC Clause 55.6.

39.5 No changes shall be made in the Key Personnel, except for justifiable reasons
as may be determined by the Procuring Entity, as indicated in the SCC, and
only upon prior approval of the Procuring Entity. If it becomes justifiable and
necessary to replace any of the Personnel, the Consultant shall forthwith
provide as a replacement a person of equivalent or better qualifications. If
the Consultant introduces changes in Key Personnel for reasons other than
those mentioned in the SCC, the Consultant shall be liable for the imposition
of damages as described in the SCC.

39.6 Any of the Personnel provided as a replacement under GCC Clauses 39.5 and
39.7, the rate of remuneration applicable to such person as well as any
reimbursable expenditures the Consultant may wish to claim as a result of
such replacement, shall be subject to the prior written approval by the
Procuring Entity. Except as the Procuring Entity may otherwise agree, the
Consultant shall bear all additional travel and other costs arising out of or
incidental to any removal and/or replacement, and the remuneration to be
paid for any of the Personnel provided as a replacement shall not exceed the
remuneration which would have been payable to the Personnel replaced.

39.7 If the Procuring Entity finds that any of the Personnel has committed serious
misconduct or has been charged with having committed a criminal action as
defined in the Applicable Law, or has reasonable cause to be dissatisfied with
the performance of any of the Personnel, then the Consultant shall, at the
Procuring Entity’s written request specifying the grounds therefore, forthwith
provide as a replacement a person with qualifications and experience
acceptable to the Procuring Entity.

40. Working Hours, Overtime, Leave, etc.

40.1 Working hours and holidays for Key Personnel are set forth in Appendix III.
Any travel time prior to and after contract implementation shall not be
considered as part of the working hours.

40.2 The Key Personnel shall not be entitled to claim payment for overtime work,
sick leave, or vacation leave from the Procuring Entity since these items are
already covered by the Consultant’s remuneration. All leaves to be allowed to
the Personnel are included in the staff-months of service set forth in
Appendix

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 III. Taking of leave by any Personnel should not delay the progress and
adequate supervision of the Services.

40.3 If required to comply with the provisions of GCC Clause 43.1 hereof,
adjustments with respect to the estimated periods of engagement of Key
Personnel set forth in Appendix III may be made by the Consultant by prior
written notice to the Procuring Entity, provided that:

(a) such adjustments shall not alter the originally estimated period of
engagement of any individual by more than ten percent (10%); and

(b) the aggregate of such adjustments shall not cause payments under
this Contract to exceed the ceilings set forth in GCC Clause 52.1 of
this Contract. Any other such adjustments shall only be made with the
Procuring Entity’s prior written approval.

41. Counterpart Personnel

41.1 If so provided in Appendix III hereto, the Procuring Entity shall make
available to the Consultant, as and when provided in such Appendix III, and
free of charge, such Counterpart Personnel to be selected by the Procuring
Entity, with the Consultant’s advice, as shall be specified in such Appendix
III. Counterpart Personnel shall work with the Consultant. If any member of
the Counterpart Personnel fails to perform adequately any work assigned to
such member by the Consultant which is consistent with the position
occupied by such member, the Consultant may request the replacement of
such member, and the Procuring Entity shall not unreasonably refuse to act
upon such request.

41.2 The responsibilities of the Counterpart Personnel shall be specified in

Appendix III, attached hereto, and the Counterpart Personnel shall not
perform any work beyond the said responsibilities.

41.3 If Counterpart Personnel are not provided by the Procuring Entity to the
Consultant as and when specified in Appendix III, and or if the Counterpart
Personnel lack the necessary training, experience or authority to effectively
undertake their responsibilities, the Procuring Entity and the Consultant shall
agree on how the affected part of the Services shall be carried out, and the
additional payments, if any, to be made by the Procuring Entity to the
Consultant as a result thereof pursuant to GCC Clause 52 hereof.

42. Performance Security

42.1 Unless otherwise specified in the SCC, within ten (10) calendar days from
receipt of the Notice of Award from the Procuring Entity but in no case later
than the signing of the contract by both parties, the Consultant shall furnish
the performance security in any the forms prescribed in the ITB Clause 32.2.

42.2 The performance security posted in favor of the Procuring Entity shall be
forfeited in the event it is established that the Consultant is in default in any
of its obligations under the contract.

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 42.3 The performance security shall remain valid until issuance by the Procuring
Entity of the Certificate of Final Acceptance.

42.4 The performance security may be released by the Procuring Entity and
returned to the Consultant after the issuance of the Certificate of Final
Acceptance subject to the following conditions:

(a) There are no pending claims against the Consultant or the surety
company filed by the Procuring Entity;

(b) The Consultant has no pending claims for labor and materials
filed against it; and

(c) Other terms specified in the SCC.

42.5 In case of a reduction of the contract value, the Procuring Entity shall allow a
proportional reduction in the original performance security, provided that any
such reduction is more than ten percent (10%) and that the aggregate of
such reductions is not more than fifty percent (50%) of the original
performance security.

43. Standard of Performance

43.1 The Consultant shall perform the Services and carry out their obligations
hereunder with all due diligence, efficiency and economy, in accordance with
generally accepted professional techniques and practices, and shall observe
sound management practices, and employ appropriate advanced technology
and safe and effective equipment, machinery, materials and methods.

43.2 The Consultant shall always act, in respect of any matter relating to this
Contract or to the Services, as faithful advisers to the Procuring Entity, and
shall at all times support and safeguard the Procuring Entity’s legitimate
interests in any dealings with Subconsultants or third parties.

43.3 The Consultant shall furnish to the Procuring Entity such information related
to the Services as the Procuring Entity may from time to time reasonably
request.

43.4 The Consultant shall at all times cooperate and coordinate with the Procuring
Entity with respect to the carrying out of its obligations under this Contract.

44. Consultant Not to Benefit from Commissions, Discounts, etc.

The remuneration of the Consultant pursuant to GCC Clause 53 hereof shall

constitute the Consultant’s sole remuneration in connection with this Contract or the
Services and, subject to GCC Clause 45 hereof, the Consultant shall not accept for
their own benefit any trade commission, discount or similar payment in connection
with activities pursuant to this Contract or to the Services or in the discharge of their
obligations hereunder, and the Consultant shall use its best efforts to ensure that
any Subconsultants, as well as the Personnel and agents of either of them, similarly
shall not receive any such additional remuneration.

66
45. Procurement by the Consultant

If the Consultant, as part of the Services, has the responsibility of advising or

procuring goods, works or services, for the Procuring Entity, the Consultant shall
comply with any applicable procurement guidelines of the Funding Source, and shall
at all times exercise such responsibility in the best interest of the Procuring Entity.
Any discounts or advantages obtained by the Consultant in the exercise of such
procurement responsibility shall be for the benefit of the Procuring Entity.

46. Specifications and Designs

46.1 The Consultant shall prepare all specifications and designs using the metric
system and shall embody the best design criteria applicable to Philippine
conditions. The Consultant shall specify standards which are accepted and
well-known among industrial nations.

46.2 The Consultant shall ensure that the specifications and designs and all
documentation relating to procurement of goods and services for this
Contract are prepared on an impartial basis so as to promote national and
international competitive bidding.

47. Reports

The Consultant shall submit to the Procuring Entity the reports, deliverables and
documents in English, in the form, in the numbers, and within the time periods set
forth in Appendix II.

48. Assistance by the Procuring Entity on Government Requirements

48.1 The Procuring Entity may assist the Consultant, Subconsultants, and
Personnel in the payment of such taxes, duties, fees and other impositions as
may be levied under the Applicable Law by providing information on the
preparation of necessary documents for payment thereof.

48.2 The Procuring Entity shall use its best efforts to ensure that the Government
shall:

(a) provide the Consultant, Subconsultants, and Personnel with work

permits and such other documents as shall be necessary to enable the
Consultant, Subconsultants, or Personnel to perform the Services;

(b) arrange for the foreign Personnel and, if appropriate, their

eligible dependents to be provided promptly with all necessary entry
and exit visas, residence permits, and any other documents required
for their stay in the Philippines for the duration of the Contract;

(c) facilitate prompt clearance through customs of any property required

for the Services and of the necessary personal effects of the foreign
Personnel and their eligible dependents;

67
 (d) issue to officials, agents and representatives of the Government all such
instructions as may be necessary or appropriate for the prompt and effective
implementation of the Services; and

(e) grant to foreign Consultant, any foreign Subconsultant and the Personnel of
either of them the privilege, pursuant to the Applicable Law, of bringing into
the Government’s country reasonable amounts of foreign currency for
purposes of the Services or for the personal use of the foreign Personnel and
their dependents.

49. Access to Land

The Procuring Entity warrants that the Consultant shall have, free of charge,
unimpeded access to all lands in the Philippines in respect of which access is
required for the performance of the Services. The Procuring Entity shall be
responsible for any damage to such land or any property thereon resulting from such
access and shall indemnify the Consultant and each of the Personnel in respect of
liability for any such damage, unless such damage is caused by the default or
negligence of the Consultant or any Subconsultant or the Personnel of either of
them.

50. Subcontract

50.1 Subcontracting of any portion of the Consulting Services, if allowed in the

BDS, does not relieve the Consultant of any liability or obligation under this
Contract. The Consultant will be responsible for the acts, defaults, and
negligence of any subconsultant, its agents, servants or workmen as fully as
if these were the Consultant’s own acts, defaults, or negligence, or those of
its agents, servants or workmen.

50.2 Subconsultants disclosed and identified during the bidding may be changed
during the implementation of this Contract, subject to compliance with the
required qualifications and the approval of the Procuring Entity.

51. Accounting, Inspection and Auditing

51.1 The Consultant shall:

(a) keep accurate and systematic accounts and records in respect of the
Services hereunder, in accordance with internationally accepted
accounting principles and in such form and detail as shall clearly
identify all relevant time changes and costs, and the bases thereof;

(b) permit the Procuring Entity or its designated representative and or the
designated representative of the Funding Source at least once for
short- term Contracts, and annually in the case of long-term
Contracts, and up to one year from the expiration or termination of
this Contract, to inspect the same and make copies thereof as well as
to have them audited by auditors appointed by the Procuring Entity;
and

68
 (c) permit the Funding Source to inspect the Consultant’s accounts and
records relating to the performance of the Consultant and to have
them audited by auditors approved by the Funding Source, if so
required.

51.2 The basic purpose of this audit is to verify payments under this Contract
and, in this process, to also verify representations made by the Consultant in
relation to this Contract. The Consultant shall cooperate with and assist the
Procuring Entity and its authorized representatives in making such audit.
In the event the audit discloses that the Consultant has overcharged the
Procuring Entity, the Consultant shall immediately reimburse the Procuring
Entity an amount equivalent to the amount overpaid. If overpayment is a
result of the Consultant having been engaged in what the Procuring Entity
(or, as the case may be, the Funding Source) determines to constitute
corrupt, fraudulent, or coercive practices, as defined in GCC Clause 27(e) and
under the Applicable Law, the Procuring Entity shall, unless the Procuring
Entity decides otherwise, terminate this Contract.

51.3 The determination that the Consultant has engaged in corrupt, fraudulent,
coercive practices shall result in the Procuring Entity and/or the Funding
Source seeking the imposition of the maximum administrative, civil and
criminal penalties up to and in including imprisonment.

52. Contract Cost

52.1 Except as may be otherwise agreed under GCC Clause 10, payments under
this Contract shall not exceed the ceiling specified in the SCC. The
Consultant shall notify the Procuring Entity as soon as cumulative charges
incurred for the Services have reached eighty percent (80%) of this ceiling.

52.2 Unless otherwise specified in the SCC, the cost of the Services shall be
payable in Philippine Pesos and shall be set forth in the Appendix IV attached
to this Contract.

53. Remuneration and Reimbursable Expenditures

53.1 Payments of Services do not relieve the Consultant of any obligation

hereunder.

53.2 Remuneration for the Personnel shall be determined on the basis of time
actually spent by such Personnel in the performance of the Services including
other additional factors indicated in the SCC after the date determined in
accordance with GCC Clause 22, or such other date as the Parties shall agree
in writing, including time for necessary travel via the most direct route, at the
rates referred to, and subject to such additional provisions as are set forth, in
the SCC.

53.3 Remuneration for periods of less than one month shall be calculated on an
hourly basis for time spent in home office (the total of 176 hours per month
shall apply) and on a calendar-day basis for time spent away from home
office (1 day being equivalent to 1/30th of a month).

69
 53.4 Reimbursable expenditures actually and reasonably incurred by the
Consultants in the performance of the Services are provided in the SCC.

53.5 Billings and payments in respect of the Services shall be made as follows:

(a) The Procuring Entity shall cause to be paid to the Consultant an

advance payment as specified in the SCC, and as otherwise set forth
below. The advance payment shall be due after the Consultant
provides an irrevocable standby letter of credit in favor of the
Procuring Entity issued by an entity acceptable to the Procuring Entity
in accordance with the requirements provided in the SCC.

(b) As soon as practicable and not later than fifteen (15) days after the
end of each calendar month during the period of the Services, the
Consultant shall submit to the Procuring Entity, in duplicate, itemized
statements, accompanied by copies of receipted invoices, vouchers
and other appropriate supporting materials, of the amounts payable
pursuant to GCC Clauses 52.1 and 53 for such month. Separate
monthly statements shall be submitted in respect of amounts payable
in foreign currency and in local currency. Each separate monthly
statement shall distinguish that portion of the total eligible costs which
pertains to remuneration from that portion which pertains to
reimbursable expenditures.

(c) The Procuring Entity shall cause the payment of the Consultant’s
monthly statements within sixty (60) days after the receipt by the
Procuring Entity of such statements with supporting documents. Only
such portion of a monthly statement that is not satisfactorily
supported may be withheld from payment. Should any discrepancy be
found to exist between actual payment and costs authorized to be
incurred by the Consultant, the Procuring Entity may add or subtract
the difference from any subsequent payments. Interest shall be paid
for delayed payments following the rate provided in the SCC.

54. Final Payment

54.1 The final payment shall be made only after the final report and a final
statement, identified as such, shall have been submitted by the Consultant
and approved as satisfactory by the Procuring Entity. The Services shall be
deemed completed and finally accepted by the Procuring Entity and the final
report and final statement shall be deemed approved by the Procuring Entity
as satisfactory ninety (90) calendar days after receipt of the final report and
final statement by the Procuring Entity unless the Procuring Entity, within
such ninety (90)-day period, gives written notice to the Consultant specifying
in detail deficiencies in the Services, the final report or final statement. The
Consultant shall thereupon promptly make any necessary corrections within a
maximum period of ninety (90) calendar days, and upon completion of such
corrections, the foregoing process shall be repeated.

70
 54.2 Any amount which the Procuring Entity has paid or caused to be paid in
accordance with this clause in excess of the amounts actually payable in
accordance with the provisions of this Contract shall be reimbursed by the
Consultant to the Procuring Entity within thirty (30) days after receipt by the
Consultant of notice thereof. Any such claim by the Procuring Entity for
reimbursement must be made within twelve (12) calendar months after
receipt by the Procuring Entity of a final report and a final statement
approved by the Procuring Entity in accordance with the above.

55. Lump Sum Contracts

55.1 For Lump Sum Contracts when applicable, notwithstanding the terms of GCC
Clauses 10, 18.1, 31(c), 41.3, 53.2, 53.3, 53.4, 53.5, and 54.1, the provisions
contained hereunder shall apply.

55.2 Personnel - Any replacement approved by the Procuring Entity in accordance

with ITB Clause 27.3 shall be provided by the Consultant at no additional
cost.

55.3 Staffing Schedule - Should the rate of progress of the Services, or any part
hereof, be at any time in the opinion of the Procuring Entity too slow to
ensure that the Services are completed in accordance with the Staffing
Schedule, the Procuring Entity shall so notify the Consultant in writing and
the Consultant shall at its sole cost and expense, thereupon take such steps
as necessary, subject to the Procuring Entity’s approval, or as reasonably
required by the Procuring Entity, to expedite progress so as to ensure that
the Services are completed in accordance with the Staffing Schedule.

55.4 Final payment pursuant to the Payment Schedule in Appendices IV and V

shall be made by the Procuring Entity after the final report has been
submitted by the Consultant and approved by the Procuring Entity.

55.5 Termination - Upon the receipt or giving of any notice referred to in GCC
Clause 29 and if the Consultant is not in default under this Contract and has
partly or substantially performed its obligation under this Contract up to the
date of termination and has taken immediate steps to bring the Services to a
close in prompt and orderly manner, there shall be an equitable reduction in
the maximum amount payable under this Contract to reflect the reduction in
the Services, provided that in no event shall the Consultant receive less
than his actual costs up to the effective date of the termination, plus a
reasonable allowance for overhead and profit.

55.6 Unless otherwise provided in the SCC, no additional payment for variation
order, if any, shall be allowed for this Contract.

56. Liquidated Damages for Delay

If the Consultant fails to deliver any or all of the Services within the period(s)
specified in this Contract, the Procuring Entity shall, without prejudice to its other
remedies under this Contract and under the Applicable Law, deduct from the
contract price, as liquidated damages, a sum equivalent to one-tenth of one percent
of the price

71
of the unperformed portion of the Services for each day of delay based on the
approved contract schedule up to a maximum deduction of ten percent (10%) of the
contract price. Once the maximum is reached, the Procuring Entity may consider
termination of this Contract pursuant to GCC Clause 27.

72
 Section V. Special Conditions of Contract

GCC Clause

1.1(b) Name of Consultant:

1.1(g) The Funding Source is:

The Government of the Philippines (GOP) through the authorized
appropriations under the FY 2021 General Appropriations Act and Multi-
Year Contractual Authority No. MYCA-BMB-C-21-0000005 in the
amount of Two Million Seven Hundred Fifty Thousand Four Hundred Forty
Pesos (P2,750,440.00).
6.2(b) For a period of two years after the expiration of this Contract, the
Consultant shall not engage, and shall cause its Personnel not to engage,
in the activity of a purchaser (directly or indirectly) of the assets on which
it advised the Procuring Entity under this Contract nor in the activity of an
adviser (directly or indirectly) of potential purchasers of such assets. The
Consultant also agrees that its affiliates shall be disqualified for the same
period of time from engaging in the said activities.

7 Not applicable

8 The person designated as resident project manager in Appendix III

shall serve in that capacity, as specified in GCC Clause 8.

10 No further instructions.

12 The Authorized Representatives are as follows:

For the Procuring Entity:

Rowel D. Escalante
OIC-Director IV
Corporate Planning and Management Service
2nd Floor, Building III, Gen. Solano St., San Miguel, Manila
(02) 8657-3300 local 3214

For the Consultant:

73
15.1 The address:

Procuring Entity: Department of Budget and Management

Attention:

Rowel D. Escalante
OIC-Director IV
Corporate Planning and Management Service
2nd Floor, Building III, Gen. Solano St., San Miguel, Manila
(02) 8657-3300 local 3214
Email: [email protected]

Consultants: [insert name of the Consultant]

Attention: [insert name of the Consultant’s authorized representative]

Address:

Facsimile:

Email Address:

15.2 Notice shall be deemed to be effective as follows:

(a) in the case of personal delivery, private courier or registered mail,

on delivery;

(b) in case the notice is sent via the bidder’s email, the notice shall be
considered as received by the bidder on the date and time the
email was sent, whether or not the bidder acknowledged the
said email. It shall be the bidder’s responsibility to check
its/his/her email for the purpose.

18.1 In order to proceed with the payment process, the bidder must submit
the following documents in case they were not submitted during the
deadline for the submission of bidding documents/post-qualification
stage/contract signing stage, as applicable:

a. Notarized Omnibus Sworn Statement in lieu of the submitted

unnotarized Omnibus Sworn Statement; and
b. Notarized Performance Securing Declaration (PSD) or any form of
Performance Security, as stated in Section 39 of the 2016 Revised
Implementing Rules and Regulations of Republic Act No. 9184, in
lieu of the unnotarized PSD.

74
18.3 Consultant Bank Account:

NOTE: Details of account to be filled out by winning consultant prior to

contract signing.
19 No further instructions.

20 All partners to the joint venture shall be jointly and severally liable to
the Procuring Entity.

Limitation of the Consultant’s Liability towards the Procuring Entity are

as follows:

(a) Except in case of gross negligence or willful misconduct on

the part of the Consultant or on the part of any person or
firm acting on behalf of the Consultant in carrying out the
Services, the Consultant, with respect to damage caused by
the Consultant to the Procuring Entity’s property, shall not
be liable to the Procuring Entity:

(i) for any indirect or consequential loss or damage; and

(ii) for any direct loss or damage that exceeds (A) the total
payments for professional fees and reimbursable
expenditures made or expected to be made to the
Consultants hereunder, or (B) the proceeds the Consultants
may be entitled to receive from any insurance maintained by
the Consultants to cover such a liability, whichever of (A) or
(B) is higher.

(b) This limitation of liability shall not affect the Consultant’s

liability, if any, for damage to third parties caused by the
Consultant or any person or firm acting on behalf of the
Consultant in carrying out the Services.

22 No further instruction

24 No further instruction.

34.2 Any and all disputes arising from the implementation of this contract shall
be submitted to arbitration in the Philippines according to the
provisions of Republic Acts 876 and 9285, as required in Section 59 of the
IRR of RA 9184.

75
35.1 All drawings, specifications, designs, source codes, reports, other
documents, hardware, and software licenses, prepared and acquired by
the Consultant for the Procuring Entity under this Contract shall become
and remain the property of the Procuring Entity and the End-User.

38.1(d) The Consultant’s actions requiring the Procuring Entity’s prior approval
are:

1. Change in the plan of approach and methodology

2. Change of joint venture partner, service providers, and third-party

providers, if applicable

3. Change of its Key Personnel and Support Staff

39.5 The Consultant may change its Key Personnel and Support Staff only for
reasons of death, serious illness, incapacity of an individual Consultant, or
until after fifty percent (50%) of the Personnel’s man-months have been
served.

Violators will be fined an amount equal to the refund of the replaced

Personnel's basic rate, which should be at least fifty percent (50%) of the
total basic rate for the duration of the engagement.

42.1 No further instructions.

42.4(c) The final reports, documents and other requirements as specified in

the Terms of Reference have been submitted.
52.1 The total ceiling amount in Philippine Pesos is P2,750,440.00.

52.2 No further instructions.

53.2 No additional instructions.

53.4 Contract price shall be inclusive of Remunerations and Reimbursables

53.5(a) No advance payment is allowed.

(c) The interest rate is zero.

55.6 No further instructions.

76
 Section VI. Terms of Reference

1.0 PURPOSE

The purpose of this Terms of Reference (TOR) is to outline the selection criteria
requirements for procuring the services of an accredited Certification Body (CB) well-
versed with the ISO 9001:2015 Standard for the Reassessment Audit of the
Department’s QMS.

2.0 BACKGROUND AND RATIONALE

ISO 9001 is an international standard that sets requirements for an organization’s

QMS. The new version that was launched on 23 September 2015 focuses on the
“risk- based thinking” and addresses the establishment of processes to further
improve outputs and prevent undesirable results both for DBM and its clients.
Likewise, it seeks to build a strong knowledge-based system, establish a proactive
culture of continual improvement, and ensure consistency in the quality of services
being provided.

The ISO 9001:2015 Certificate of Registration issued to the Department, as proof of

its QMS certification under the Standard, is set to expire on 28 October 2021.

To improve the efficiency and effectiveness of the Department pursuant to Executive

Order (EO) No. 6051 dated 23 February 2007, the DBM QMS earned the certification
under the 2015 edition of the ISO 9001 Standard on 20 December 2018. The
Department has since maintained its QMS with processes and systems consistent
with the Standard’s requirements.

For 2020, the Department QMS underwent the Second Surveillance Audit conducted
by a Third-Party QMS CB; and upon the recommendation for continued certification
of the Budget and Management processes, had to undergo a Reassessment Audit in
2021 in pursuit of improved quality of services and sustained ISO certification. The
DBM resolves to undertake the necessary activities and actions that stand to
ensure the continuing certification of its QMS under the ISO 9001:2015 Standard.

3.0 OBJECTIVE

This project aims to subject the DBM QMS to reassessment and surveillance audits
by an independent CB based on the ISO 9001:2015 Standard towards the continual
improvement of the systems, processes and services of the Department.

1 Institutionalizing the Structure, Mechanisms and Standards to Implement the Government

Quality Management Program Amending for the Purpose Administrative Order No. 161, s.
2006
77
4.0 SCOPE OF WORK

The QMS CB shall:

4.1 Conduct a Reassessment Audit in 2021 for the DBM QMS covering the
management, core, and support processes of the Department as implemented
by the delivery units in all the central and regional offices;

4.2 Issue the ISO 9001:2015 Certification to the Department upon satisfactory
compliance with the requirements of the Standard; and

4.3 Conduct a Surveillance Audit for two (2) consecutive years, i.e., in 2022 and
2023, for the confirmation of the continual certification.

5.0 RESPONSIBILITIES OF THE CB

5.1 The representatives of the CB shall conduct audit, submit audit reports, and
provide other deliverables on mutually agreed schedules, including the man-
days required therefor in accordance with the prevailing applicable standards.

5.2 The representatives from the CB shall inform the Office of the DBM Overall
Quality Management Representative through and in coordination with the
DBM QMS Core Team and Secretariat regarding any changes on the schedule
of audits or any delays in any of the activities related to ISO 9001:2015
reassessment and surveillance audits of the DBM QMS.

6.0 RESPONSIBILITIES OF THE DBM

6.1 The DBM, through DBM QMS Core Team and Secretariat, shall closely
coordinate with the representatives of the CB in the preparation and conduct
of audit and other related audit/certification activities.

6.2 The DBM QMS Core Team and Secretariat shall coordinate the conduct of
audit activities ensuring that the process owners and concerned DBM officials
and staff are available on the scheduled dates of audit.

6.3 Prior to any execution of activities related to this TOR, the DBM QMS Core
Team and Secretariat shall convene a meeting between the representatives
of the CB and the DBM’s key personnel concerned. Close anchoring and
monitoring of all activities as indicated herein shall be undertaken by the
DBM QMS Core Team and Secretariat.

6.4 The DBM shall provide the CB auditors with transportation services for audits
scheduled at DBM functional units as audit sites based in Metro Manila only.

78
7.0 QUALIFICATION REQUIREMENTS

PARTICULARS QUALIFICATIONS
Certification Body 1. At the minimum, a Department of Trade and Industry
– Philippine Accreditation Bureau (DTI-PAB)
Accredited CB with Philippine National Standard
International Organization for
Standardization/International Electrotechnical
Commission (PNS), ISO/IEC 17021:2015 (Conformity
Assessment – Requirements for Bodies Providing
Audit and Certification of Management Systems) and
relevant IAF Mandatory Documents (MDs) to provide
QMS certification to ISO 9001:2015 for International
Accreditation Forum (IAF) 36: Public Administration.
2. With at least five (5) years of experience in
conducting ISO QMS audits.
3. CB shall have the capacity to deploy a team
composed of at least five (5) qualified experts, i.e.,
one (1) lead auditor and four (4) members of the
audit team, in accordance with the qualification and
competencies of key personnel.

Lead Auditor/s 1. With QMS audit experience as a lead auditor in

private and/or government institutions to ISO QMS
certification of at least ten (10) years.
2. He/She must have completed a Master’s Degree
relevant to management, public administration,
industrial engineering and/or other related fields.
3. With knowledge or familiarity with government
budget and/or management processes attained
through work or audit experience.
4. With valid Lead Auditor’s training certificate and
proof of orientation on ISO 9001:2015 Standard.

Team Members 1. With QMS audit experience as a team member or

any other roles in audit in private and government
institutions to ISO QMS certification of at least five
(5) years.
2. He/She must have at least completed a Bachelor’s
Degree relevant to management, public
administration, industrial engineering and/or related
field.
3. Adequate knowledge or familiarity with government
budget and/or management processes attained
through work or audit experience.
4. With relevant training on conducting quality audit as
prescribed under ISO 9001:2015.

79
8.0 EVALUATION PROCEDURE

The CB shall be selected using the Quality-Cost Based Evaluation procedure as

prescribed under Section 24.5.3 of the 2016 Revised IRR of RA No. 9184.

9.0 DURATION OF ENGAGEMENT, TIMELINE AND LEVEL OF EFFORT

9.1 The services of the CB will be engaged for three (3) years: to commence in
October-December 2021 for the Reassessment Audit followed by the
Surveillance Audits in September-December 2022 and September-December
2023.

9.2 The conduct of the Reassessment and Surveillance Audits will take place
upon commencement of the engagement starting with the audits at select
DBM Regional Offices before proceeding with audits at the DBM Central
Office units in consideration of the Budget Preparation’s calendar of events
and activities.

9.3 The engagement of the auditors for the conduct of the Reassessment and
Surveillance Audits will end after completion, presentation and submission of
audit reports, and other deliverables.

10.0 TERMS OF PAYMENT

Payment shall be made upon the completion of Reassessment and Surveillance

Audits and upon the submission of Audit Plans, Audit Reports and issuance of
pertinent ISO 9001:2015 Certification and confirmation thereof. Schedule 1 of this
Terms of Reference contains the Schedule of Requirements.

%
FY Price Deliverable Share Cost
Componen on the (VAT-
t Total Inclusive)
ABC
202 Reassessmen a. Audit Plan; 50% Php1,375,220.00
1 t Audit b. Reassessmen
t Audit Report; and
c. Issuance of ISO
9001:2015
Certificate in
thirty-five (35)
individually framed
copies
202 1st a. Audit Plan; and 25% Php687,610.00
2 Surveillance b.1st Surveillance
Audit Audit Report

80
 %
FY Price Deliverable Share Cost
Componen on the (VAT-
t Total Inclusive)
ABC
202 2nd a. Audit Plan; and 25% Php687,610.00
3 Surveillance b. 2nd Surveillance
Audit Audit Report
TOTAL 100% PhP2,750,440.
00

Payment based on the foregoing milestones shall be subject to any applicable

tax obligation/deduction, and to the usual accounting and auditing rules and
regulations.

11.0 LIQUIDATED DAMAGES FOR DELAY

Liquidated Damages for Delay shall be governed by the General Conditions of the
Contract.

81
 Schedule 1
SCHEDULE OF REQUIREMENTS

The delivery schedule expressed as weeks/months stipulates hereafter the date of the
delivery of particular requirements at the project site.

Ite Description Deliverable Delivery Schedule

m
FY 2021
1 Submission of Audit Audit Plan From receipt of the Notice to
Plan, and Conduct and Proceed but not later than October
Completion of 2021
Reassessment Audit Reassessment
October-December 2021
audit activities
Reassessmen Not later than thirty (30) calendar
t Audit days upon completion of the
Report reassessment audit
2 Issuance of ISO ISO 9001:2015 Within seven (7) calendar days from
9001:2015 Certificate Certificate in receipt of Reassessment Audit
to DBM thirty-five Report without non-conformities; or
in case of non-conformities, thirty
(35) individually (30) calendar days from submission
framed copies by the DBM of the corrective action
plan that is determined by the CB as
compliant
FY 2022
Audit Plan Seven (7) calendar days prior the
Submission of Audit
conduct of the 1st Surveillance Audit
Plan, Conduct and
Conduct of 1st
Completion of 1st
3 Surveillance September-December 2022
Surveillance Audits,
and Submission of 1st Audits
Surveillance Audit 1st Surveillance Within thirty (30) calendar days
Report Audit Report from the completion of the 1st
Surveillance Audit
FY 2023
Audit Plan Seven (7) calendar days prior the
Submission of Audit conduct of the earliest audit
Plan, Conduct and schedule
Completion of 2nd Conduct of 2nd
4 Surveillance Audits, Surveillance September-December 2023
and Submission of 2nd Audits
Surveillance Audit Within thirty (30) calendar days
Report 2nd Surveillance
from the completion of the 2nd
Audit Report
Surveillance Audit

82
 Section VII. Bidding Forms

Technical Proposal Forms.............................................................................................81

Financial Proposal Forms..............................................................................................99
Form of Contract Agreement.......................................................................................109

83
TECHNICAL PROPOSAL FORMS

84
 TPF 1. TECHNICAL PROPOSAL SUBMISSION FORM

[Date]

[Name and address of the Procuring Entity]

Ladies/Gentlemen:

We, the undersigned, offer to provide the consulting services for [Title of Project] in
accordance with your Bidding Documents dated [insert date] and our Bid. We are hereby
submitting our Bid, which includes this Technical Proposal, and a Financial Proposal sealed
under a separate envelope.

In accordance with ITB Clause 21.1, we confirm that the information contained in
the eligibility documents submitted earlier together with the Expression of Interest remain
correct as of the date of bid submission.

If negotiations are held during the period of bid validity, i.e., before [insert date], we
undertake to negotiate on the basis of the proposed staff. Our Bid is binding upon us and
subject to the modifications resulting from contract negotiations.

In accordance with GCC Clause 51, we acknowledge and accept the Procuring
Entity’s right to inspect and audit all records relating to our Bid irrespective of whether we
enter into a contract with the Procuring Entity as a result of this Bid or not.

We understand you are not bound to accept any Bid received for the selection of a
consultant for the Project.

We acknowledge that failure to sign this Technical Proposal Submission Form and
the abovementioned Financial Proposal Submission Form shall be a ground for the rejection
of our Bid.

We remain,

Yours sincerely,

Signature of Authorized Signatory:

Name and Title of Signatory:
Name of Firm:
Address:

85
 TPF 2. CONSULTANT’S REFERENCES

Relevant Services Carried Out in the Last Five

Years That Best Illustrate Qualifications

Using the format below, provide information on each project for which your firm/entity,
either individually, as a corporate entity, or as one of the major companies within an
association, was legally contracted.

Project Name: Country:

Location within Country: Professional Staff Provided by

Your Firm/Entity(profiles):

Name of Client: No of Staff:

Address: No of Staff-Months; Duration of

Project:

Start Date (Month/Year): Completion Date Approx. Value of Services (in

(Month/Year): Current PhP):

Name of Associated Consultants, if any: No. of Months of Professional

Staff Provided by Associated
Consultants:

Name of Senior Staff (Project Director/Coordinator, Team Leader) Involved and Functions
Performed:

Narrative Description of Project:

Description of Actual Services Provided by Your Staff:

Consultant’s Name:

Signature of Authorized Signatory:

86
 TPF 3. COMMENTS AND SUGGESTIONS OF CONSULTANT ON THE TERMS OF
REFERENCE AND ON DATA, SERVICES, AND FACILITIES TO BE PROVIDED BY
THE PROCURING ENTITY

On the Terms of Reference:

1.

2.

3.

4.

5.

On the data, services, and facilities to be provided by the Procuring Entity:

1.

2.

3.

4.

5.

Signature of Authorized Signatory:

87
 TPF 4. DESCRIPTION OF THE METHODOLOGY AND WORK PLAN FOR
PERFORMING THE PROJECT

Methodology:

Work Plan:

Signature of Authorized Signatory:

88
 TPF 5. TEAM COMPOSITION AND TASK

1. Technical/Managerial Staff
Name Position Task

2. Support Staff
Name Position Task

3 Where applicable, indicate relationships among the Consultant and any partner and/or subconsultant, the Procuring Entity, the Funding Source
and other parties or stakeholders.

86
Signature of Authorized Signatory:

86
TPF 6. FORMAT OF CURRICULUM VITAE (CV) FOR PROPOSED PROFESSIONAL
STAFF

Proposed Position:

Name of Firm:

Name of Staff:

Profession:

Date of Birth:

Years with Firm/Entity: Nationality:

Membership in Professional Societies:

Detailed Tasks Assigned:

Key Qualifications:

[Give an outline of staff member’s experience and training most pertinent to tasks on

Prior engagements on the conduct of ISO QMS audit of government budget and/or management processes
project. Describe degree of responsibility held by staff member on relevant previous
projects and give dates and locations.]

Inclusive
Total Actual Duties and
Company Dates Position Title
(Years, Responsibilities
Name
From To Months)

87
Signature of Authorized Signatory:

88
 Relevant Training (start from the most recent) – Please attach training certificate.

Inclusive
No.
Course Title Dates Location Conducted / Sponsored
of
by
From To Hour
s

Education:

[Summarize college/university and other specialized education of staff members, giving

names of schools, dates attended, and degrees obtained.]

Education (start from the most recent)

Inclusive
Scho Dates Degree Course Scholarships / Academic Honors
ol Received
From To

89
Signature of Authorized Signatory:

90
Employment Record:

[Starting with present position, list in reverse order every employment held. List all positions
held by staff member since graduation, giving dates, names of employing organizations,
titles of positions held, and locations of projects. For experience in last ten years, also give
types of activities performed and client references, where appropriate.]

Work Experience As Lead Auditor (start from the current employment)

Inclusive
Dates Total Actual Duties and
Company (Years, Position Title Responsibilities
Name From To Months)

Work Experience as Team Member (start from the current employment)

Inclusive
Dates Total Actual Duties and
Company (Years, Position Title Responsibilities
Name From To Months)

Signature of Authorized Signatory:

91
Note:

Photocopy of the following documents must be submitted together with the Curriculum Vitae
to evidence educational attainment, work experience and professional certifications:

1. Certificate of Employment and similar documents (e.g., certificate of engagement)

2. Training programs attended
3. Diploma
4. Professional Certifications and/or Licenses

Certification:

I, the undersigned, certify that to the best of my knowledge and belief, these data
correctly describe me, my qualifications, and my experience.

Commitment:

I also commit to work for the Project in accordance with the time schedule as indicated in
the contract once the firm is awarded the Project.

Date:
[Signature of staff member and authorized representative of the firm] Day/Month/Year

Full name of staff member:

Full name of authorized representative:

SUBSCRIBED AND SWORN to before me this day of [month] [year] at [place of

execution], Philippines. Affiant/s is/are personally known to me and was/were identified by
me through competent evidence of identity as defined in the 2004 Rules on Notarial Practice
(A.M. No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government
identification card used], with his/her photograph and signature appearing thereon, with
no.
.

Witness my hand and seal this day of [month] [year].

NAME OF NOTARY PUBLIC

Serial No. of Commission

Notary Public for until
Roll of Attorneys No.
PTR No. , [date issued], [place
issued] IBP No. , [date issued],
[place issued] Doc. No.
Page No.
Book No.
Series of .

92
 TPF 7. TIME SCHEDULE FOR PROFESSIONAL PERSONNEL

Months (in the Form of a Bar

Chart)
Nam Position Reports 1 2 3 4 5 6 7 8 9 10 11 12 Number of Months
e Due/Activities

Subtotal (1)

Subtotal (2)

Subtotal (3)

Subtotal (4)

Full-time: Part-time:
Reports
Due:
Activities Duration:
Location Signature:
(Authorized representative)

Full Name:
Title:
Address:

91
 TPF 8. ACTIVITY (WORK) SCHEDULE (CONSISTENT
WITH TOR AND SCHEDULE OF REQUIREMENTS)

Activity Aug Sep Oct Nov Dec Remarks

t
FY 2021 - REASSESSMENT AUDIT & ISSUANCE OF ISO
9001:2015 CERTIFICATES
1. Submission of Audit From receipt of the Notice to
Proceed but not later than 1st
Plan week of October 2021
2. Conduct and
Completion of
Reassessment Audit
activities
3. Reassessment Not later than thirty (30)
Audit Report calendar
days upon completion of
the reassessment audit
Within seven (7) calendar
4. Issuance of ISO days from receipt of
9001:2015 Certificates Reassessment Audit Report
to DBM in thirty-five (35) without non-conformities; or
individually-framed in case of non-conformities,
copies (*) thirty
(30) calendar days from
submission by the DBM of the
corrective action plan that is
determined by the CB as
compliant
FY 2022 - FIRST SURVEILLANCE AUDIT
1. Submission of Audit Seven (7) calendar days prior
Plan the conduct of the 1st
Surveillance Audit
2. Conduct and
Completion of First
Surveillance Audit
activities
3. First Surveillance Within thirty (30) calendar
Audit Report (*) days from the completion of
the 1st Surveillance Audit
FY 2023 - SECOND SURVEILLANCE AUDIT
1. Submission of Audit Seven (7) calendar days prior
Plan the conduct of the earliest
audit schedule
2. Conduct and
Completion of Second
Surveillance Audit
activities
3. Second Surveillance Within thirty (30) calendar
Audit Report (*) days from the completion of
the 2nd
Surveillance Audit
Note:
92
* If audit is completed within December of the corresponding audit year, Certification
Body shall issue an attestation of the following recommendations:
1) For DBM QMS certification under ISO 9001:2015 Standard for FY 2021; and
2) For DBM QMS continued certification for FYs 2022 and 2023.

Signature of Authorized Signatory:

93
 TPF 9. Omnibus Sworn
Statement

OMNIBUS SWORN STATEMENT

REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF )
S.S.

AFFIDAVIT

I, [Name of Affiant], of legal age, [Civil Status], [Nationality], and residing at [Address of
Affiant], after having been duly sworn in accordance with law, do hereby depose and state
that:

1. [Select one, delete the other:]

[If a sole proprietorship:] I am the sole proprietor or authorized representative of

[Name of Bidder] with office address at [address of Bidder];

[If a partnership, corporation, cooperative, or joint venture:] I am the duly authorized

and designated representative of [Name of Bidder] with office address at [address of
Bidder];

2. [Select one, delete the other:]

[If a sole proprietorship:] As the owner and sole proprietor, or authorized

representative of [Name of Bidder], I have full power and authority to do, execute and
perform any and all acts necessary to participate, submit the bid, and to sign and
execute the ensuing contract for [Name of the Project] of the [Name of the Procuring
Entity], as shown in the attached duly notarized Special Power of Attorney;

[If a partnership, corporation, cooperative, or joint venture:] I am granted full power

and authority to do, execute and perform any and all acts necessary to participate,
submit the bid, and to sign and execute the ensuing contract for [Name of the Project]
of the [Name of the Procuring Entity], as shown in the attached [state title of attached
document showing proof of authorization (e.g., duly notarized Secretary’s Certificate,
Board/Partnership Resolution, or Special Power of Attorney, whichever is applicable;)];

3. [Name of Bidder] is not “blacklisted” or barred from bidding by the Government of the
Philippines or any of its agencies, offices, corporations, or Local Government Units,
foreign government/foreign or international financing institution whose blacklisting
rules have been recognized by the Government Procurement Policy Board, by itself or
by relation, membership, association, affiliation, or controlling interest with
another blacklisted person or entity as defined and provided for in the
Uniform Guidelines on Blacklisting;

4. Each of the documents submitted in satisfaction of the bidding requirements is an

authentic copy of the original, complete, and all statements and information provided
therein are true and correct;

94
5. [Name of Bidder] is authorizing the Head of the Procuring Entity or its duly
authorized representative(s) to verify all the documents submitted;

Signature of Authorized Signatory:

95
6. [Select one, delete the rest:]

[If a sole proprietorship:] The owner or sole proprietor is not related to the Head of the
Procuring Entity, members of the Bids and Awards Committee (BAC), the Technical
Working Group, and the BAC Secretariat, the head of the Project Management
Office or the end-user unit, and the project consultants by consanguinity or affinity up
to the third civil degree;

[If a partnership or cooperative:] None of the officers and members of [Name of

Bidder] is related to the Head of the Procuring Entity, members of the Bids and Awards
Committee (BAC), the Technical Working Group, and the BAC Secretariat, the head of
the Project Management Office or the end-user unit, and the project consultants by
consanguinity or affinity up to the third civil degree;

[If a corporation or joint venture:] None of the officers, directors, and controlling
stockholders of [Name of Bidder] is related to the Head of the Procuring Entity,
members of the Bids and Awards Committee (BAC), the Technical Working Group, and
the BAC Secretariat, the head of the Project Management Office or the end-user unit,
and the project consultants by consanguinity or affinity up to the third civil degree;

7. [Name of Bidder] complies with existing labor laws and standards; and

8. [Name of Bidder] is aware of and has undertaken the responsibilities as a Bidder in

compliance with the Philippine Bidding Documents, which includes:

a. Carefully examining all of the Bidding Documents;

b. Acknowledging all conditions, local or otherwise, affecting the implementation
of the Contract;
c. Making an estimate of the facilities available and needed for the contract to
be bid, if any; and
d. Inquiring or securing Supplemental/Bid Bulletin(s) issued for the [Name of the Project].

9. [Name of Bidder] did not give or pay directly or indirectly, any commission, amount,
fee, or any form of consideration, pecuniary or otherwise, to any person or official,
personnel or representative of the government in relation to any procurement project
or activity.

10. In case advance payment was made or given, failure to perform or deliver
any of the obligations and undertakings in the contract shall be sufficient
grounds to constitute criminal liability for Swindling (Estafa) or the
commission of fraud with unfaithfulness or abuse of confidence through
misappropriating or converting any payment received by a person or entity
under an obligation involving the duty to deliver certain goods or services, to
the prejudice of the public and the government of the Philippines pursuant
to Article 315 of Act No. 3815 s. 1930, as amended, or the Revised Penal
Code.

IN WITNESS WHEREOF, I have hereunto set my hand this day of , 20

at Philippines.

[Insert NAME OF BIDDER OR ITS

AUTHORIZED REPRESENTATIVE]
96
 [Insert signatory’s legal capacity]
Affiant
[Jurat]
[Format shall be based on the latest Rules on Notarial Practice]

97
 TPF 10. Bid Securing Declaration

[shall be submitted with the Bid if bidder opts to provide this form of bid
security]

REPUBLIC OF THE PHILIPPINES)

CITY OF ) S.S.

BID SECURING DECLARATION

Project Identification No.: DBM-2021-28

To: [Insert name and address of the Procuring Entity]

I/We, the undersigned, declare that:

1. I/We understand that, according to your conditions, bids must be supported by a

Bid Security, which may be in the form of a Bid Securing Declaration.

2. I/We accept that: (a) I/we will be automatically disqualified from bidding for any
procurement contract with any procuring entity for a period of two (2) years upon
receipt of your Blacklisting Order; and, (b) I/we will pay the applicable fine
provided under Section 6 of the Guidelines on the Use of Bid Securing
Declaration, within fifteen (15) days from receipt of the written demand by the
procuring entity for the commission of acts resulting to the enforcement of the
bid securing declaration under Sections 23.1(b), 34.2, 40.1 and 69.1, except
69.1(f),of the IRR of RA No. 9184; without prejudice to other legal action the
government may undertake.

3. I/We understand that this Bid Securing Declaration shall cease to be valid on the
following circumstances:

a. Upon expiration of the bid validity period, or any extension thereof pursuant
to your request;
b. I am/we are declared ineligible or post-disqualified upon receipt of your
notice to such effect, and (i) I/we failed to timely file a request for
reconsideration or
(ii) I/we filed a waiver to avail of said right; and
c. I am/we are declared the bidder with the Lowest Calculated Responsive
Bid, and I/we have furnished the performance security and signed the
Contract.

IN WITNESS WHEREOF, I/We have hereunto set my/our hand/s this day of
[month] [year] at [place of execution].

[Insert NAME OF BIDDER OR ITS AUTHORIZED

REPRESENTATIVE]
[Insert signatory’s legal capacity]
Affiant

98
 [Jurat]
[Format shall be based on the latest Rules on Notarial Practice]

99
 TPF 11. Statement of All Completed Government and Private Contracts

Business Name:
Business Address:

Name of Date Title of Kinds of Amou Date End User’s

Client/Contact of the the Consulti nt of of Acceptanc
Person/Contact Contra Contract ng Contra Delive e or
Number/Email ct / Name Services ct ry Official
Receipt(s)
Address of the Issued for
Project the
Contract
Government

Private

Submitted by :
(Printed Name and Signature)

Designation :

Date :

Instructions:

a) Projects should have been completed within the period of June 29, 2018 to June 28,
2021.
b) State ALL completed contracts with the government [including the DBM] and
private organizations, which may be similar or not similar to the project being
bidded.

100
 TPF 12. List of All Ongoing Government and Private Contracts Including
Contracts Awarded but not yet Started

Business Name:
Business Address:

Name of Title of Kinds of Total Value of

Date
Client/ the Consulti Amou Outstandi Date
of the
Contact Contract ng nt of ng of
Contra
Person/ / Name Services Contra Contracts Delive
ct
Contact of the ct ry
Number/ Project
Email
Address
Government

Private

Submitted by :
(Printed Name and Signature)
Designation :

Date :

Instructions:

i. State ALL ongoing contracts, including those awarded but not yet started, with the
government [including the DBM] and private organizations which may be
similar or not similar to the project being bidded prior to June 29, 2021.

ii. If there is no ongoing, including awarded but not yet started, contract as described
above, state none or equivalent term.

101
 TPF 13. STATEMENT OF THE CONSULTANT’S NATIONALITY

Department of Budget and Management

Bids and Awards
Committee Building III,
Gen. Solano St. San
Miguel, Manila

Ladies/Gentlemen:

In compliance with the requirements of the Department of Budget and Management

– Bids and Awards Committee (DBM-BAC) for the bidding of the Consultancy Services for
the Engagement of a Certification Body for the Reassessment and Surveillance
Audits of the DBM Quality Management System (QMS) per ISO 9001:2015
Standards, I/we hereby declare the following:

1. [Select one and delete the rest].

[If domestic entity consultant] That (Name of the consultant) is a domestic sole
proprietorship/partnership/corporation/joint venture organized or formed under the
laws of the Philippines;

[If foreign entity consultant] That (Name of the consultant) is a foreign sole
proprietorship/partnership/corporation/joint venture organized or formed under the
laws of the (Name of the country);

[If foreign entity consultant] That (Name of the consultant) is registered with the
Securities and Exchange Commission and/or any agency authorized by the laws of
the Philippines;

2. That the following are the proposed Personnel:

Name of ALL Proposed Position Nationality Proof of

Proposed Identificati
Personnel on
1. Lead Auditor Filipino
2. Audit Team Member Filipino
3. Audit Team Member Filipino
4. Audit Team Member Filipino
5. Audit Team Member Filipino

3. That attached herewith are the Curriculum Vitae of the above-mentioned personnel
(Annex/es ); and

4. That the undersigned is/are the authorized representative/s for this public bidding as
evidenced by herewith attached notarized authority.

Very truly yours,

Signature:
Name and Title of Authorized Signatory:
Name of Consultant/Company:
Address: Contact No/s.
102
(Note: Please attach the notarized authority of the consultant’s signatory for the
public bidding for this project)

103
 FINANCIAL PROPOSAL FORMS

Notes for Consultants

The following summarizes the content of the Financial Proposal.

Cover Letter

Use FPF 1. Financial Proposal Submission Form, which is an acknowledgement that, in

preparation and submission of the Technical and Financial Proposals, Consultants have:

(a) followed the applicable rules and guidelines indicated in this ITB;

(b) not taken any action which is or constitutes a corrupt, fraudulent, or coercive
practice as defined in the applicable rules and guidelines; and

(c) agreed to allow the Procuring Entity and the Funding Source, at their option, to
inspect and audit all accounts, documents, and records relating to its Bid and to the
performance of the ensuing contract.

Costs of Consulting Services

Use FPF 2. Summary of Costs; FPF 3. Breakdown of Price per Activity; FPF 4. Breakdown
of Remuneration per Activity; FPF 5. Reimbursables per Activity; and FPF 6. Miscellaneous
Expenses

104
 FPF 1. FINANCIAL PROPOSAL SUBMISSION FORM

[Date]

[Name and address of the Procuring Entity]

Ladies/Gentlemen:

We, the undersigned, offer to provide the consulting services for [Title of Project] in
accordance with your Bidding Documents dated [insert date] and our Bid (Technical and
Financial Proposals). Our attached Financial Proposal is for the sum of [amount in words and
figures]. This amount is exclusive of the local taxes, which we have estimated at [amount(s)
in words and figures].

Our Financial Proposal shall be binding upon us subject to the modifications resulting
from Contract negotiations, up to expiration of the bid validity period, i.e., [Date].

In accordance with GCC Clause 51, we acknowledge and accept the Procuring
Entity’s right to inspect and audit all records relating to our Bid irrespective of whether we
enter into a contract with the Procuring Entity as a result of this Bid.

We confirm that we have read, understood and accept the contents of the
Instructions to Bidders (ITB), the Bid Data Sheet (BDS), General Conditions of Contract
(GCC), Special Conditions of Contract (SCC), Terms of Reference (TOR), the provisions
relating to the eligibility of Consultant and the applicable guidelines for the procurement
rules of the Funding Source, any and all Bid bulletins issued and other attachments and
inclusions included in the Bidding Documents sent to us.

We understand you are not bound to accept any Bid you receive.

We remain,

Yours sincerely,
Signature of Authorized Signatory:
Name and Title of Signatory:
Name of Firm:
Address:

105
 FPF 2. SUMMARY OF COSTS

Costs Amount in Philippine Peso

Activity 1. Submission of Audit Plan,

and Conduct and Completion of
Reassessment Audit

Activity 2. Issuance of ISO

9001:2015 Certificate to DBM

Activity 3. Submission of Audit Plan,

Conduct and Completion of 1st
Surveillance Audits, and Submission of
1st Surveillance Audit Report

Activity 4. Submission of Audit Plan,

Conduct and Completion of 2nd
Surveillance Audits, and Submission of
2nd Surveillance Audit Report

Subtotal

Local Taxes

Total Amount of Financial Proposal

Signature of Authorized Signatory:

106
 FPF 3. BREAKDOWN OF PRICE PER ACTIVITY

Submission of Audit Plan, and Conduct and

Activity No. 1
Completion of Reassessment
Audit
Price Component Amount in Philippine Peso
Remuneration
Reimbursables
Miscellaneous Expenses
Subtotal

Activity No. 2 Issuance of ISO 9001:2015 Certificate to DBM

Price Component Amount in Philippine Peso

Remuneration
Reimbursables
Miscellaneous Expenses
Subtotal
Submission of Audit Plan, Conduct and Completion
Activity No. 3 of 1st
Surveillance Audits, and Submission of 1st
Surveillance Audit Report
Price Component Amount in Philippine Peso
Remuneration
Reimbursables
Miscellaneous Expenses
Subtotal
Submission of Audit Plan, Conduct and Completion
Activity No. 4 of 2nd Surveillance Audits, and Submission of 2nd
Surveillance Audit
Report
Price Component Amount in Philippine Peso
Remuneration
Reimbursables
Miscellaneous Expenses
Subtotal
GRAND TOTAL

107
Signature of Authorized Signatory:

108
 FPF 4. BREAKDOWN OF REMUNERATION PER ACTIVITY

Submission of Audit Plan, and Conduct and

Activity No. 1 Completion of Reassessment
Audit

Position No. of No. of Remuneratio Total

Personn Month n Rate Amount
el s
Lead Auditor
Team Member 1
Team Member 2
Team Member 3
Team Member 4
Subtotal

Activity No. 2 Issuance of ISO 9001:2015 Certificate to DBM

Position No. of No. of Remuneratio Total

Personn Month n Rate Amount
el s
Lead Auditor
Team Member 1
Team Member 2
Team Member 3
Team Member 4
Subtotal

Submission of Audit Plan, Conduct and

Activity No. 3 Completion of 1st Surveillance Audits, and
Submission of 1st Surveillance Audit Report

Position No. of No. of Remuneratio Total

Personn Month n Rate Amount
el s
Lead Auditor
Team Member 1
Team Member 2
Team Member 3
Team Member 4
Subtotal

Signature of Authorized Signatory:

109
 Submission of Audit Plan, Conduct and
Activity No. 4 Completion of 2nd
Surveillance Audits, and Submission of 2nd
Surveillance Audit Report

Position No. of No. of Remuneratio Total Amount

Personn Month n Rate
el s
Lead Auditor
Team Member 1
Team Member 2
Team Member 3
Team Member 4
Subtotal
GRAND TOTAL

110
Signature of Authorized Signatory:

111
 FPF 5. REIMBURSABLES PER ACTIVITY

Activity No. 1: Submission Unit Quantity Unit Price Total Amount

of Audit Plan, and Conduct
and Completion of
Reassessment Audit
1. International flights Trip

2. Miscellaneous travel Trip

expenses
3. Subsistence allowance Day
4. Local transportation costs
5. Office rent/ accommodation/
clerical assistance
Subtotal
Activity No. 2: Issuance of
ISO 9001:2015 Certificate
to DBM
1. International flights Trip

2. Miscellaneous travel Trip

expenses
3. Subsistence allowance Day
4. Local transportation costs
5. Office rent/
accommodation/clerical
assistance
Subtotal
Activity No. 3: Submission Unit Quantity Unit Price Total Amount
of Audit Plan, Conduct and
Completion of 1st
Surveillance Audits, and
Submission of 1st
Surveillance Audit Report
1. International flights Trip

2. Miscellaneous travel Trip

expenses
3. Subsistence allowance Day
4. Local transportation costs
5. Office rent/
accommodation/clerical
assistance
Subtotal
112
Signature of Authorized Signatory:

113
 Activity No. 4: Submission Unit Quantity Unit Price Total Amount
of Audit Plan, Conduct and
Completion of 2nd
Surveillance
Audits, and Submission of
2nd Surveillance Audit
Report
1. International flights Trip

2. Miscellaneous travel Trip

expenses
3. Subsistence allowance Day
4. Local transportation costs
5. Office rent/
accommodation/clerical
assistance
Subtotal
GRAND TOTAL

114
Signature of Authorized Signatory:

115
 FPF 6. MISCELLANEOUS EXPENSES

Activity No. 1: Submission of Unit Quantity Unit Price Total

Audit Plan, and Conduct and Amoun
Completion of Reassessment t
Audit
1. Training design/session plan
and design framework including
training evaluation plan
Communication costs between
and
(telephone, telegram, telex)
Drafting, reproduction of reports
Equipment: vehicles,
computers, etc.
Software
2. Presentation Decks and
other virtual instructor-led
training materials
Communication costs between
and
(telephone, telegram, telex)
Drafting, reproduction of reports
Equipment: vehicles,
computers, etc.
Software
3. Facilitator’s Guide including
capacity development
program
Communication costs between
and
(telephone, telegram, telex)
Drafting, reproduction of reports
Equipment: vehicles,
computers, etc.
Software
4. Participants’ Guide
Communication costs between
and
(telephone, telegram, telex)
Drafting, reproduction of reports
Equipment: vehicles,
computers, etc.
Software
Subtotal

116
Signature of Authorized Signatory:

117
 Activity No. 2: Issuance of Unit Quantity Unit Price Total
ISO 9001:2015 Certificate Amoun
to DBM t
1. Communication costs between
and
(telephone, telegram, telex)
Drafting, reproduction of reports
Equipment: vehicles,
computers, etc.
Software
Subtotal
Activity No. 3: Submission of
Audit Plan, Conduct and
Completion of 1st Surveillance
Audits, and Submission of 1st
Surveillance Audit
Report
1. Communication costs between
and
(telephone, telegram, telex)
Drafting, reproduction of reports
Equipment: vehicles,
computers, etc.
Software
Subtotal
Activity No. 4: Submission of
Audit Plan, Conduct and
Completion of 2nd Surveillance
Audits, and Submission of 2nd
Surveillance
Audit Report
1. Communication costs between
and
(telephone, telegram, telex)
Drafting, reproduction of reports
Equipment: vehicles,
computers, etc.
Software
Subtotal

GRAND TOTAL

118
Signature of Authorized Signatory:

119
 FORM OF CONTRACT AGREEMENT

THIS AGREEMENT, made this [insert date] day of [insert month], [insert year]
between [name and address of Procuring Entity] (hereinafter called the “Entity”) and [name
and address of Consultant] (hereinafter called the “Consultant”).

WHEREAS, the Entity is desirous that the Consultant execute [name and
identification number of contract] (hereinafter called “the Works”) and the Entity has
accepted the bid for [insert the amount in specified currency in numbers and words] by the
Consultant for the execution and completion of such Consulting Services and the remedying
of any defects therein.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement, words and expressions shall have the same meanings as
are respectively assigned to them in the Conditions of Contract hereinafter
referred to.

2. The following documents shall be attached, deemed to form, and be read and
construed as part of this Agreement, to wit:

(a) General and Special Conditions of Contract;

(b) Terms of Reference
(c) Request for Expression of Interest;
(d) Instructions to Bidders;
(e) Bid Data Sheet;
(f) Addenda and/or Supplemental/Bid Bulletins, if any;
(g) Bid forms, including all the documents/statements contained in the
Bidder’s bidding envelopes, as annexes, and all other documents/
statements submitted (e.g., bidder’s response to request for
clarifications on the bid), including corrections to the bid, if any,
resulting from the Procuring Entity’s bid evaluation;
(h) Eligibility requirements, documents and/or statements;
(i) Performance Security;
(j) Notice of Award of Contract and the Bidder’s conforme thereto;
(k) Other contract documents that may be required by existing laws
and/or the Entity.

3. In consideration of the payments to be made by the Entity to the Consultant

as hereinafter mentioned, the Consultant hereby covenants with the Entity to
execute and complete the Consulting Services and remedy any defects
therein in conformity with the provisions of this Consultant in all respects.

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 4. The Entity hereby covenants to pay the Consultant in consideration of the
execution and completion of the Consulting Services, the Contract Price or
such other sum as may become payable under the provisions of this Contract
at the times and in the manner prescribed by this Contract.

IN WITNESS whereof the parties thereto have caused this Agreement to be executed
the day and year first before written.

Binding Signature of Procuring Entity

Binding Signature of Consultant

[Addendum showing the corrections, if any, made during the bid evaluation should be
attached with this agreement]

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 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

C I T Y O F M A N I L A ) S.S.

BEFORE ME, a Notary Public for and in the City of , Philippines on this day of
, 2021 personally appeared the following:

NAME VALID ID VALID UNTIL

DBM ID No.

<NAME OF
BIDDER’S
AUTHORIZED
REPRESENTATIVE>

known to me to be the same persons who executed the foregoing Contract and who
acknowledged to me that the same is their free and voluntary act and deed and of the
entities they respectively represent.

This CONTRACT for the Online Competency Assessment for DBM Employees was signed by
the parties, and their material witnesses on each and every page thereof.

WITNESS MY HAND AND SEAL this day of , 2021.

Doc. No ;
Page No ;
Book No
;
Series of 2021.

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REPUBLIC OF THE PHILIPPINES)
CITY OF ) S.S.
x---------------------------------------------x

PERFORMANCE SECURING DECLARATION

Invitation to Bid: DBM-2021-28

To: [Insert name and address of the Procuring Entity]

I/We, the undersigned, declare that:

1. I/We understand that, according to your conditions, to guarantee the faithful

performance by the supplier/distributor/manufacturer/contractor/consultant of its
obligations under the Contract, I/we shall submit a Performance Securing Declaration
within a maximum period of ten (10) calendar days from the receipt of the Notice of
Award prior to the signing of the Contract.

2. I/We accept that I/we will be automatically disqualified from bidding for any
procurement contract with any procuring entity for a period of one (1) year if in
case it is my first offense, or two (2) years if I have a prior similar offense upon
receipt of your Blacklisting Order if I/we have violated my/our obligations under the
Contract.

3. I/We understand that this Performance Securing Declaration shall cease to be valid
upon:

a. issuance by the Procuring Entity of the Certificate of Final Acceptance,

subject to the following conditions:
i. Procuring Entity has no claims filed against the contract awardee;
ii. It has no claims for labor and materials filed against the contractor; and
iii. Other terms of the contract; or

b. replacement by the winning bidder of the submitted PSD with a performance

security in any of the prescribed forms under Section 39.2 of the 2016 IRR of
RA No. 9184 as required by the end-user.

IN WITNESS WHEREOF, I/We have hereunto set my/our hand/s this day of
[month] [year] at [place of execution].

[Insert NAME OF BIDDER’S AUTHORIZED

REPRESENTATIVE]
[Insert signatory’s legal capacity]
Affiant

SUBSCRIBED AND SWORN to before me this day of [month] [year] at [place

of execution], Philippines.

[Select one of the two following paragraphs and delete the other]

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Affiant/s is/are personally known to me and was/were identified by me through
competent evidence of identity as defined in the 2004 Rules on Notarial Practice
(A.M. No.02-8-13-SC).

Affiant/s exhibited to me his/her [insert type of government identification card used]

with no. issued on at _

. Witness my hand and seal this

day of [month] [year].

NAME OF NOTARY PUBLIC

Serial No. of Commission
Notary Public for _ until
Roll of Attorneys No.
PTR No. , [date issued],
[place issued]
IBP No. , [date issued], [place issued]

Doc. No.
Page No.
Book No.
Series of .

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 Section VIII. Appendices

I. Description of Services

Give detailed descriptions of the Services to be provided, dates for completion of various
tasks, place of performance for different tasks, specific tasks to be approved by Client, etc.

II. Reporting Requirements

List format, frequency, and contents of reports; persons to receive them; dates of
submission; etc. If no reports are to be submitted, state here “Not applicable.”

III. Key Personnel and Subconsultants

List under:

1. Titles [and names, if already available], detailed job descriptions and minimum
qualifications, and staff-months of service, and estimated periods of engagement
for each, including a copy of a satisfactory medical certificate.

2. Same information as in no. 1 for Key foreign Personnel to be assigned to work

outside the Government’s country.

3. Same information as in no. 1 for Key Local Personnel.

4. List of approved Subconsultants (if already available) and Counterpart personnel

(if allowed); same information with respect to their Personnel as in nos. 1 and 2.

IV. Breakdown of Contract Price

List here the elements of cost, including expenditures in foreign currency(ies) denominated
and payable in Philippine Peso, used to arrive at the itemized breakdown of the
contract price:

1. Monthly rates for Personnel (Key Personnel and other Personnel)

2. Reimbursable expenditures

3. Applicable taxes

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V. Services and Facilities Provided by the Client

Give detailed description of the services and facilities made available to the Consultant,
and the time and manner of its availment.

VI. Consultant’s Representations Regarding Costs and Charges

Breakdown of Remuneration Rates, WB funded projects using Quality Based Selection,

Selection Based on the Consultant’s Qualifications and Single Source Selection.

1. Review of Remuneration Rates

1.1 The remuneration rates for staff are made up of salary, social costs,
overheads, fee that is profit, and any premium or allowance paid for projects away
from headquarters. To assist the Consultant in preparing for financial negotiations, a
sample form giving a breakdown of rates is attached (no financial information should
be included in the Technical Proposal). Agreed breakdown sheets shall form part of
the negotiated contract.

1.2 The Procuring Entity is charged with the custody of Government funds and is
expected to exercise prudence in the expenditure of these funds. The Procuring
Entity is, therefore, concerned with the reasonableness of the firm’s Financial
Proposal, and, during negotiations, it expects to be able to review audited financial
statements backing up the Consultant’s remuneration rates, certified by an
independent auditor. The Consultant shall be prepared to disclose such audited
financial statements for the last three years, to substantiate its rates, and accept that
its proposed rates and other financial matters are subject to scrutiny. Rate details
are discussed below.

(i) Salary

This is the gross regular cash salary paid to the individual in the Consultant’s
home office. It shall not contain any premium for work away from headquarters or
bonus (except where these are included by law or government regulations).

(ii) Bonus

Bonuses are normally paid out of profits. Because the Procuring Entity does
not wish to make double payments for the same item, staff bonuses shall not
normally be included in the rates. Where the Consultant’s accounting system is such
that the percentages of social costs and overheads are based on total revenue,
including bonuses, those percentages shall be adjusted downward accordingly.
Where national policy requires that thirteen (13) months’ pay be given for twelve
(12) months’ work, the profit element need not be adjusted downward. Any
discussions on bonuses shall be supported by audited documentation, which shall be
treated as confidential.

(iii) Social Costs

Social costs are the costs to the Consultant of staff’s non-monetary benefits.
These items include, inter alia, pension, medical and life insurance costs, and the
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cost

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of a staff member being sick or on vacation. In this regard, the cost of leave for
public holidays is not an acceptable social cost nor is the cost of leave taken during
the Contract if no additional staff replacement has been provided. Additional leave
taken at the end of the Contract in accordance with the Consultant’s leave policy is
acceptable as a social cost.

(iv) Cost of Leave

The principles of calculating the cost of total days leave per annum as
a percentage of basic salary shall normally be as follows:

Leave cost as percentage of salary2 total days leave x 100

= [365 - w - ph - v -
s]
It is important to note that leave can be considered a social cost only if the
Procuring Entity is not charged for the leave taken.

(v) Overheads

Overhead expenses are the firm’s business costs that are not directly related
to the execution of the project and shall not be reimbursed as separate items under
the Contract. Typical items are home office costs (partner’s time, non-billable time,
time of senior staff monitoring the project, rent, support staff, research, staff
training, marketing, etc.), the cost of staff not currently employed on revenue-
earning projects, and business promotion costs. During negotiations, audited
financial statements, certified as correct by an independent auditor and supporting
the last three years’ overheads, shall be available for discussion, together with
detailed lists of items making up the overheads and the percentage by which each
relates to basic salary. The Procuring Entity does not accept an add-on margin for
social charges, overhead expenses, etc., for staff who are not permanent employees
of the firm. In such case, the firm shall be entitled only to administrative costs and
fee on the monthly payments charged for subcontracted staff.

(vi) Fee or Profit

The fee or profit shall be based on the sum of the salary, social costs, and
overhead. If any bonuses paid on a regular basis are listed, a corresponding
reduction in the profit element shall be expected. Fee or profit shall not be allowed
on travel or other reimbursable expenses, unless in the latter case an unusually large
amount of procurement of equipment is required. The Consultant shall note that
payments shall be made against an agreed estimated payment schedule as described
in the draft form of the Contract.

(vii) Away from Headquarters Allowance or Premium

Some consultants pay allowances to staff working away from headquarters.

Such allowances are calculated as a percentage of salary and shall not draw
overheads or profit. Sometimes, by law, such allowances may draw social costs. In
this case, the amount of this social cost shall still be shown under social costs, with
the net allowance

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2 Where w = weekends, ph = public holidays, v = vacation, and s = sick leave.

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 shown separately. For concerned staff, this allowance, where paid, shall cover
home education, etc.; these and similar items shall not be considered as
reimbursable costs.

(viii) Subsistence Allowances

Subsistence allowances are not included in the rates, but are paid separately
and in local currency. No additional subsistence is payable for dependents  the
subsistence rate shall be the same for married and single team members.

UNDP standard rates for the particular country may be used as reference to
determine subsistence allowances.

2. Reimbursables

2.1 The financial negotiations shall further focus on such items as out-of-pocket
expenses and other reimbursables. These costs may include, but are not restricted
to, cost of surveys, equipment, office rent, supplies, international and local travel,
computer rental, mobilization and demobilization, insurance, and printing. These
costs may be either fixed or reimbursable in foreign or local currency.

3. Bank Guarantee

3.1 Payments to the Consultant, including payment of any advance based on

cash flow projections covered by a bank guarantee, shall be made according to an
agreed estimated schedule ensuring the firm regular payments in local and foreign
currency, as long as the services proceed as planned.

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