CONTRACT AGREEMENT FOR SECURITY SERVICES for the COA Central Office and COA Regional Office No. IV KNOW ALL MEN BY THESE PRESENTS: This Contract for Security Services made entered into at Quezon City, Philippines, this 16" day of December 2012, by and between: The COMMISSION ON AUDIT, a Constitutional Commission of the Republic of the Philippines, with principal office located at the Commonwealth Avenue, Quezon City, hereinafter referred to as the “COA”, represented in this Act by MA. MILEGUAS M. LEYNO. Director IV, General Services Office, Administration Sector, Commission on Audit, Quezon City, whose authority to bind the COA is contained in her official statement of duties; - and— ICT SECURITY AGENCY duly organized Domestic Corporation with office address at NAIA Ave., corner Pelaez St., San Dionisio, Paranaque City, Metro Manila, hereinafter referred to as the “AGENCY” represented in this Act by Ms. SAMPAGUITA M. CALIMAG, Operations Manager. WITNESSETH THAT: WHEREAS, the COA needs security services package to maintain at all hours peace and order within its installations and safeguard personnel, visitors, offices, facilities, equipment and other property located within COA Compound comprising the National Office, Regional Office No. 1V, and Professional Development Genter. WHEREAS, in its quest for a security services package with the best value for money under most advantageous termns and conditions, and in compliance with existing laws on procurement, COA concucted a public bidding that culminated the opening of bids on August 13, 2012; WHEREAS, after an evaluation process, the AGENCY was found to have submitted the most advantageous, responsive and complying bid, offering to deploy Forty Six (46) security service personnel based on actual requirement indicated in the Final Security Management Plan; WHEREAS, the COA accepts tte AGENCY's security services package proposal; NOW THEREFORE, in consideration of the foregoing, the parties hereby enter into this Contract for Security Services for the COA Central Office and COA Regional Office No. IV, under the following terms and conditions: Page 1 of 9 pagesARTICLE I - CONSIDERATION 1. The COA shall pay the AGENCY the total annual consideration of Ten Million Three Hundred Forty Three Thousand Eight Hundred Ninety Five Pesos & Forty Three Centavos (P10,343,895.43), or a monthly rate of Eight Hundred Sixty One Thousand Nine Hundred Ninety One Pesos and Twenty Eight Centavos (P861,991.28) provided that the actual number of guards deployed and the salary rate per guard indicated in the submitted bid be complied with; 2. Adjustments in contract price may be made by mutual agreement initiated by either party by means of a written "Notice to Re-Negotiate” only under the following circumstances: a. Changes in security requirements not obtaining foreseen at the time of this agreement that may increase or decrease the burden of the security provider. b. Changes in compensation of security guards, either by way of legisiation or by lawful order of the Tripartite Wage Productivity Board, PROVIDED THAT the adjustment shall be based on published or authenticated rates and not on mere self-serving certification. ARTICLE Il - TERM 3. This contract shall be effective for a period of THREE (3) YEARS commencing on January 01, 2013 up to December 31, 2015 subject to the results of the annual performance evaluation of the Committee on Performance Evaluation (COPE) for Security Services provider or unless sooner terminated in accordance with pertinent provisions herein stipulated or other causes provided for by applicable laws; ARTICLE Ill - OBLIGATIONS OF THE AGENCY 4. The AGENCY shall, continuously, i.e., on a 24-hour basis every day, including Saturdays, Sundays, and Holidays, maintain peace and order within COA's installations, safeguard COA officials/personnel and visitors, offices, facilities and properties located in the COA National Office, Regional Office No. IV, and Professional Development Center, all within the COA Compound Constitution Hills, Diliman, Quezon City, from injury, damage or loss; 5. The AGENCY shall exercise extra ordinary diligence in carrying out its obligations in accordance with the Final Security Management Plan which constitutes an integral part hereof and marked as Annex “A” 6. The Agency shall post only, in accordance with the security plan, personnel possessing the following qualifications and who submitted the following credentials, as the case may be’ a) — Filipino Citizen b.) Atleast high school graduate c.) Physically and mentally fit, at least 165 cms. (5"5") tall, 70, kgs. (154 Ibs.) in weight, and not less than 24 years old Page 2 of 9 pages =): t 2 4.) PNP-SAGSD licensed as security guards/security officers e.) Clearance from the NBI, RTC, Prosecutors, and Barangay from the place where they reside, certifying that they had no criminal case filed against them or any other offense, or that there is no pending criminal case against them; f) Certification from the AGENCY manager that they are of good moral character. 9.) Proof of neuro-psychiatric and drug test clearance from any PNP-accredited laboratory. h.) Certificate of Training/retraining ‘The AGENCY shall provide at its own expense the following security ecuement to its security personnel per bidding documents and as stipulated in the COA Security Management Plan to ensure efficiency in the pursuit of their mandated duties and responsibilities and for speedy response to emergency calls. a) 10 units Portable Metal Detector b) 26 units Portable Two-way Radio communication c) 5 units Under chassis Mirror d) 18 units Handguns with sufficient number of ammunition e) 5 units Shotguns with sufficient number of ammunition f) 1 unit Computer with printer 9) 1 unit Motorcycle with gasoline allowance h) 2 units Bicycle i) 16 units CCTV cameras; wide angled, colored, indoor/outdoor, bullet or dome type j) 3 sets of Digital Video Recorder k) 3 units TV monitor 21” screen |) 3 units Automatic voltage regulator m) 30 units amplifier/balun n) 2 units CPU with 1 terabyte HD ‘The AGENCY shall also provide the following additional equipment it offered during the bidding which was made by the Technical Working Group of the Bids and Awards Committee as the basis of evaluating the best offered by an a) 3 units Walk-through machine, Garret Brand; with built cameras; capable of recording 100 persons/minute that passes on it. b) 1 unit Service Motor Vehicle; 4 Wheel drive ©) 2units Digital camera d) 12 units Rechargeable LED lights @) 2 units Night Vision Goggles f) 8 Reflectorized Traffic vest 9) 8 pcs. Reflectorized traffic gloves, h) 12 pieces Raincoats i) 12 pieces Rainboots j) 12 pieces Golf Umbrella k) 2 units Cell phones ) 46 units Tear Gas m) 46 pair Handcuffs 1n) 46 pair First Aid Kit 0) 46 pieces Whistle p) 1 unit Typewriter Page 3 of 9 pagesq) 1 unit 4-door Filing Steel Cabinet 1) Numerous sufficient logbooks and office supplies s) 2 Canine as the need arises 9. To ensure that only personnel with high morale will be posted, the AGENCY shall, in the presence of an authorized COA representative, conduct briefing and orientation of the security guards before their deployment, concerning the COA, its mission, organizational structure, key officials, policies, including among other things, the wages and other benefits of the security guards. In addition to the briefing, a bill of rights for the security guards should be submitted to COA duly signed by both the AGENCY manager and the security guard; 10. The AGENCY shall issue a Duty Detail Order (DDO) for every security guard to ke assigned or posted indicating therein the name of the guard, type of firearms issued, the particular place of assignment, and the duration within which the guards are to render service. The security guard shall, before assumption of duty’ at his post, present his individual DDO to the duly authorized COA representative. 11. The COA shall have the unconditional right to require the AGENCY to replace any guard for cause or no cause and their replacement by those acceptable to the COA. (Replacement should be effected within twenty-four (24) hours after receipt of the request for security guard to be re-deployed in the COA installation.) 12. ‘The tour of duty of the security guard shall be in accordance with the aforesaid Final Security Management Plan as follows: [__¥ shift 2" Shit 3° Shift_ 0703H-1900H 0709H-1500H 1500H-2300H 2300H-0700H (23 quards | 12 guards ~_[Ai guards To maintain the alertness and morale of the security guards, no security guard shall serve for longer than twelve (12) hours of continuous service in a day. The AGENCY wariants to make available at all times duly trained and qualified relievers or replacements to ensure continuous and uninterrupted service in the absence of the assigned guard. In case of replacement, the name of the guards to be replaced shall be indicated in the DDO and shall be presented together with the Recall Order issued to the security guard who will be replaced, to the duly authorized COA representative. In no case shall a security guard assume his post without presenting his DDO and Recall Order to the COA authorized representative. 13. The security guards shall be under the strict supervision of the GENCY. The CO, however, shall have the right to conduct spot inspection of the performance of the security guards at any time it may deem necessary. This right shall not, however, diminish the obligations of the AGENCY under this contract nor absolve it from liability for all the acts or omissions of its guards. Page 4 of 9 pages14, ‘The AGENCY shall undertake a reshuffling of its security guard from one post to another at least every month or shorter when so requested by the COA. On the maiter of discipline, work performance and conduct of the guards, the AGENCY shall submit a report every end of the month to the COA representative. 15. The AGENCY shall require each guard to be always neat and in proper uniform. It shall provide every guard with a logbook to be used for recording people and events. affecting security matters. Each guard shall be equipped with a flashlight, first-aid kit, night stick, whistle, fully loaded serviceable firearms and such other equipment which may be essential for security purposes. Gate guards shall be armed with 12-gauge shotgun or other firearms of higher caliber. Guards assigned to the executive offices must be in barong or decent civilian uniform for discreet outlook. 16. The AGENCY and its guards shall be jointly and severally liable to COA, its officials or employee, or to any other person, for any injury, damage or loss of property trey suffered within the security coverage of the AGENCY as a result of but not limited to assault, arson, theft, robbery, pilferage, trespass, mischief, or any unlawful act, or negligence that may have been reasonably prevented by the due performance of duty by the AGENCY, PROVIDED, THAT ‘the AGENCY shall be duly represented in an investigation that will be conducted by COA to determine whether or not the agency was at fault or did not exercise due diligence required under circumstances to prevent or minimize injury or damage to or loss of property; PROVIDED, FURTHER the absence of a representative from the AGENCY, despite notice will preclude the COA from proceeding with the investigation; PROVIDED FINALLY THAT the AGENCY shall not be held liable for damage or loss due to fortuitous events as may be determined afier an investigation 17, The AGENCY shall submit within twenty-four (24) hours incident reports detailing unusual occurrences or threats to security and well-being discovered during the guard's duty shift. 18. To ensure the smooth and effective coordination with COA, the AGENCY shall put up a field office or bunk house in a space that COA has provided, within seven (7) days from signing of this contract. 19. Upon signing of this contract, the AGENCY shall post a Performance Surety Bond equivalent to: a, Ten (10%) percent of the stated total contract price, if posted in Cash, Cashier's or Manager's Check, or . Thirty (30) percent of the contract price if posted in the form of GSIS Surety Bond. The surety bond shall be callable on demand and remain in full force and effect for at least fifteen (15) calendar months from the date of the effective of this contract. In case this contract is extended on a month-to-month basis, the AGENCY shall post the corresponding additional Performance Surety Bond. 20. The Performance Surety Bond shall be forfeited in favor of COA in case the AGENCY fails to comply with the terms and conditions of this contract. Should the amount forfeited be not sufficient to cover losses, damages and liabilities incurred due to the fault of the AGENCY, the latter shall pay the remaining balance Page 5 of 9 pages21. In aidition to the Performance Security Bond, the AGENCY shall also post within ten (10) working days from the date of execution of this contract, a GSIS Surety Bond issued by the reputable bonding company, in favor of the COA to guarantee payment of wages of the security guards. The surety bond shall be equivalent to one half (1/2) of one (1) year’s wages, of all security guards stipulated in the ccntract. 22. The AGENCY shail assume full and exclusive obligation to pay the mandated wage p’ovided for by laws to its security guards, including claims and other compensation as may be legally due to them, and to promptly remit to the proper agencies the required premiums and contribution for the benefit of the said security guard, such as withholding taxes on salaries, SSS premiums, Philhealth and the like. 23. All taxes payable to the government arising from this contract shall be bome by the AGENCY. 24. The AGENCY shall submit to the COA original copy of the approved paid payroll for the period covered and duplicate copy of the pay slip of each of the security guard for the payroll showing the detailed computation of salary and deductions theretc. The said pay slips shall be subject to validation by the Administration Sector and confirmation by the security guards themselves who shall be required to present original copy thereof, In case the AGENCY failed to submit the above documentary requirements and/or is found to have paid any security guard below the minimum wage or have failed to remit to the proper government offices the required employer's shares in premiums or contributions, the AGENCY hereby authorizes COA to withhold any money due to AGENCY. 25, The AGENCY shall strictly observe the provisions of R.A. 5487, as amended, P.D. 442 (Labor Code of the Philippines) as amended, and it's implementing rules and regulations. ARTICLE IV - OBLIGATIONS OF COA 26. The COA shall pay the AGENCY promptly, PROVIDED, that a MONTHLY DEPLOYMENT REPORT (MDR) stating the names of the guards and supervisors, salary rates, and actual attendance shall be submitted at the end of each month, and PROVIDED, FURTHER, that payments shall be subject to prior verification by COA of the MDR and submission by the AGENCY of proof of remittance of premiums to SSS and Philhealth and other concerned government agencies for the benefit of the security guards, and subject further to the usual government accounting and auditing rules and regulations, 27. The GOA thru its Administration Sector shall issue a certification on the agency's compliance with the pertinent labor laws, rules and regulations on the compensation of the security guards as evidence by the results of validation of payslips and confirmation by the security guards themselves, who are required to present the originél copy thereof. The aforesaid certification and its supporting documents shall form part of the requirements in the processing of the claim for payment of the security agency for the period covered. Page 6 of 9 pagesARTICLE V — TERMINATION 28. The COA may terminate this contract at any time before the end of its terms under any or all of the following circumstances, to wit a. Violation of any of the labor laws, rules and regulations; b. Willful violation by the AGENCY of its obligations under this contract; c. Failure of the AGENCY to comply with the provisions of R.A. 5487, as amended, and P.D. 442, as amended, and its implementing rules and regulations; d. Fraud, falsification or mispresentation in any of the documents submitted by the AGENCY during the accreditation or eligibility check and post qualification; PROVIDED, that, notice shall first be served by COA at least thirty (30) days prior termination. However, if the AGENCY is adjudged by competent authority, whether final or not, to suffer any sanction for serious infractions, the COA may unilaterally terminate this Contract at any time even before the expiration of thirty (30) days. ARTICLE VI - SPECIAL PROVISIONS 29. ‘The Committee on Performance Evaluation shall submit its annual report to the Assistant Commissioner, Administration Sector their findings and recommendation based on the agreed & approved evaluation criteria for security services provider. This performance evaluation shall be made the basis of renewing or rescinding the herein security contract. 30. No employer-employee relationship shall exist between the security guards posted by the AGENCY and the COA. The COA shall be free from any claims by security guards as regards their employment, the same being the responsibility of the AGENCY as the employer. In case of suit where COA is impleaded as indirect employer, the AGENCY shall defend and protect COA’s interest. Any legal fees and expenses that may incur by COA as a consequence of such claims shall be for the account of the AGENCY. 31. Inthe event of a legislated wage increase, the contract price shall be increase based on the newly set minimum wage provided for in the Wage Order. No adjustment shall be made on the basis of increase in administrative or overhead cost of the AGENCY. 32. The COA shall have the option to require the AGENCY to increase or decrease the number of security guards in case of changes in the security requirements. For each additional security guard, the AGENCY may charge the Commission an additional amount of: No.of Hours [Dayson Duty [Shift Monthly Rate/guard 8 Mon. to Sun. Day Shift 19,168.46 12 Mon. to Sun. Day Shift 28,752.70 8 | Mon. to Sun. Night Shift 19,698.88 | ie Mon. to Fri. ‘Day Shift 13,784.63 12 Mon. to Fri Day Shift 20,676.95 8 ~[-Mon. to Fr ‘Night Shift 14,165.69) Page 7 of 9 pagesFor every deducted security guard, the Commission shall reduce the payment to the AGENCY the aforementioned rate/s as they are deemed pertinent and applicable; 33. The AGENCY is strictly prohibited from sub-contracting, assigning or otherwise transferring in any manner whatsoever any of its rights, interests and obligations under this contract without prior written approval by COA. However, the AGENCY may obtain insurance coverage thereon. 34, Disputes or disagreements arising from this contract shall, as far as practicable, be settled amicably. In case of litigation, however, the venue shall be in Quezon City IN WITNESS WHEREOF, the parties have hereunto affixed their signature this 215} day of myer, 2012 at Quezon City. COMMISSION ON AUDIT ICT SECURITY AGENCY By: Be op MA. MILEGUAS M. LEYNO |. CALIMAG: Director IV, General Services perations Manager Administration Sector Signed in the Presence of: REPUBLIC OF THE PHILIPPINES ) QUEZON CITY ) 8.8. ACKNOWLEDGEMENT BEFORE ME, a Notary Public for and in the City of Quezon, Philippines, personally appeared — Director MA. MILEIGUAS M. LEYNO, with TIN No. 134-646-046 Ms. SAMPAGUITA M. CALIMAG, with TIN No, M8- 9%2-947 all known to me and to me known to be the same persons who executed the foregoing CONTRACT AGREEMENT and they acknowledged to me that the same is their free and voluntary act and deed for and in behalf of the PARTIES they represent. Page 8 of pages| HEREBY CERTIFY that this instrument refers to the PROCUREMENT OF SECURITY SERVICES for the COA Central Office and COA Regional Office No. IV located at Commonwealth Avenue, Quezon City, consisting of nine (9) pages including this page on which the acknowledgment is written duly signed on page eight (8) and at the left — hand margins of pages 1 to 7 and 9 by the executing parties and their instrumental witnesses. IN WITNESS WHEREOF, | have hereunto affixed my signature and seal this LUA day of Dee. , 2012 at Quezon City. Notary Public ATTY. CARMINA PAPLITA B, JUGUILON NOTARY PUBLIC My Commission Expies on December $1, 2012 Doc. No, _433 RI No, eTbiod / Jamaey 5, 2008 a ssued at Quezon City Page No. TBP Lifetime No. 0¢724 Book No. _Vil MeL Comptinnen TH-€067NE Series of “WL Page 9 of 9 pages Y